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Strategic Human Resource Management

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INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Strategic human resource management is defined as the need of employees in an organisation to achieve objectives of the establishment. It creates a link between management of humans and strategically planning the working of an organisation. The present case study tries to understand the overall HR strategies adopted by Tarmac in uplifting the goals of the enterprises. Company was established in the year 1903 by Edgar Purnell Hooleyin UK (LAFARGE TARMAC, 2014). It is one of the leading industries in supply of building materials. They are innovative in their product and service development. Business enterprise is also looking after the development of the UK economy (Gannon, Doherty and Roper, 2012). Development process is more focused towards the sustainable environment for its countries long term future.

TASK1

Clearly define strategic human resource management

It is a process in which management of HR provides a strategic agenda for supporting the long term business goals of the enterprise. Here all those activities are understood which are related to the behaviour of an individual (David, 2009). This also helps in deploying the activities of human resources in a planned manner, so that goals and objectives of the organisation can be achieved easily.

Tarmac always focuses on its need towards human resources. They consider HRM to be a strategic process. This helps them in planning the whole business for their future. It is followed by achieving objectives and to compete more efficiently with competitors (Collins and Clark, 2003). They believe in having a right skill and knowledge at right place.

Every organisation has a key focus on its human resource management. We can take the example of Miller one of the competitors of Tarmac. They are trying to seek those employees in their organisation who can contribute and create valuable business (Ferguson and Reio, 2010). Every organisation has their own strategic HR which focuses in a planned manner. This is a must for achieving the group objectivities as well as the objective of the organisation (Gannon, Doherty and Roper, 2012).

Importance of HRM in the organisation

HRM helps organisation in achieving the goals of the enterprise by creating a positive attitude among the employees of the firm.

  • Facilitating proficient growth- Human resource policies helps in training the people and making them ready for their future promotions (Fulmer and Genson, 2006). Their talent can be utilized or enhanced for the current as well as for the future company which they are going to join.
  • Better association between union and management- These practises helps in creating a co-ordinal relationship of management with its union (Gannon, Doherty and Roper, 2012). They realise that organisation is interested in enhancing the working of the workers.
  • Helps individual to work in a group- Practising good HRM helps in teaching the individuals to work in a team and to adjust in the group (Collins and Clark, 2003). It also aids in improving the team objectives.
  • Helps an individual to work in a team/group- Effective Human Resource practices teach individuals team work and adjustment. The individuals are now very comfortable while working in team thus team work improves.
  • Identifying potential employees- Identifying people for future has become very important. Employees are regularly trained so that company can identify their potential employees (David, 2009). So, in future they can be promoted for their top level jobs.
  • Allocating jobs to the right person- Proper recruitment and selection process should be followed so that right people is selected for the right job.

Review of all HRM needs of Tarmac

Tarmac will not be able to build a good team of professional without a good human resource management. The key needs which company should follow are recruitment and training of employees, performance appraisals and motivating the employees.

  • Recruitment and Training- This will be the major responsibilities of human resource management of Tarmac. Proper strategic plan should be adopted by HR managers of the enterprise. Job description should be designed properly (Gannon, Doherty and Roper, 2012). Training of employees ought to be on regular basis for enhancing the work efficiency of the workers.
  • Performance appraisals- Company must appraise the performance of the employees. This is beneficial as it helps in bringing out the potential of the employees in achieving the objective of the firm.
  • Maintaining Work Atmosphere- It is very important for a company to offer a good working atmosphere to the employees. This is one of the benefits which employee accepts from the business. Friendly environment gives job satisfaction to the workers.
  • Managing Disputes- Management must always try to solve the issues with its employees. Here the role of Tarmac HR manager comes into by resolving the disputes and preventing the things going out of their hands.
  • Developing Public Relations- It is very necessary for an organisation to build public relation. HRM of an organisation can help in building that relationship with the public (Collins and Clark, 2003). Department of HR plays an important role in developing good relationship with other business too.
  • Analysis on Harvard HRM framework of Tarmac
  • Harvard HRM framework defines that employees are a very important source of business entity. The management of Tarmac has to manage workers in different way as compare to other resources. Some elements of Harvard HRM framework are listed below:
  • Flow of Human resource: According to this element, management of Tarmac needs to develop some innovative and specific approach in the process of recruitment and selection of workers (Decenzo, 2009). Organization can balance between promotions and appraisal between with proper training education program.
  • Incentive system: This system determines that administration of Tarmac can meet the goals of the company with effective incentive plan. So Human resource manager makes efforts to link up the business goals with individual needs of workers (Reid, 2002). Company creates different kinds of incentive plans to motivate workers that creates positive impact on the outcomes company as well as employees.
  • Employee influence: Management should delegate proper authority and responsibility to various managers and employees of different divisions of business entity according to their skills and knowledge. All these process enhance trust of employees on company.
  • Work system: In the process of recruitment and selection, managers Tarmac should delegate proper authority according to requirement of job (Collins and Clark, 2003). Organization should design role and process of working on the basis of interest and skills of a particular worker.

TASK 2

a) As a part of its overall strategy, Tarmac has given a due emphasis on the DREAM acronym. In this, the major component happens to be E which refers to engaging employees. Tarmac in this regard has been making use of varied HRM processes so as to develop its HR strategy.

  • Planning of the total workforce/demand forecasting -In order to plan the workforce in proper manner, Tarmac tries to identify what levels of human resource are required as per the needs. This is inclusive of skills as well as knowledge that will be required by firm in present case as well as upcoming times (Collins and Clark, 2003). Hence, the firm as a part of its workforce planning tries to cover up all the areas that are present within organizational setup. It further focuses on identifying the right ideas as well as knowledge so as to meet up the business needs. It tries to anticipate requirement of new skills as per changing business environment. This further assists in identifying what training is required by existing employees to grow in business.
  • Recruiting the required human resource – In the area of recruiting the right kind of employees, Tarmac has given emphasis on identifying the recruitment needs, setting of job description and person specification, advertisements, interview followed by selection (Teo and et.al., 2008). Tarmac has understood that a huge amount of cost is incurred while recruiting the employees. Hence, it has emphasized on adhering towards following a structured approach so as to ensure that right candidate is selected.
  • People and Performance/reward management systems – Tarmac ensures that the employees are motivated in the best possible manner. Hence, it recognizes the performance of employees in the best possible manner followed by rewarding them accordingly (Fulmer and Genson, 2006). It has focused on areas related to personal development so that they are able to achieve full potential. This helps them in enhancing the overall performance followed by taking the business forward.

Varied roles are played by the individuals in from of CEO, top management/Board of, Directors, stakeholder among others who are in the area of strategic HRM function. CEO is there to decide over the aim and objectives that are to be formulated (Reid, 2002). It also works out over the future policies as well as strategies which are tub be worked upon by employees. Board of directors decides over the areas to be covered in varied fronts (Teo and et.al., 2008). This is in form of modifying the policies, taking meetings to access the growth of firm followed by identifying the loop holes. In the same way, the management team at HR department decides on the formal and informal training courses that are required to be given for people in relation to current skill set. It is the senior management that plays the part of sharing the corporate objectives with employees. This is required so as to make the employees aware about key skills to be achieved and ones required to meet the targets. Varied roles are also played by web marketing officers, senior finance officer, and procurement manager as well as inbound Services Co-coordinator (Greasley and et.al., 2005). These are there to assist the HR manager for deciding towards how much level of human resource is needed by the treatment so that employees can be recruited accordingly for driving up the business on forward direction.

Tarmac as a company has been making use of varied types of HR strategies that are being developed as well as implemented by the company. For example, in the area of workforce planning, Tarmac has made use of a structural approach for recruitment as well as selection activities. This starts with identifying varied needs of company s well as employees. Here, the focus is given on three basic steps being attraction, recruitment as well as selection. The processes are managed in a proper manner by the HR staff so as to make sure that right type of candidate gets selected (Jain, 2005). In the same way, Tarmac has also strategized in the area of personal development. Here, individual employees are assessed on the basis of which they perform a particular task or activity. This helps to take them as well the overall business forward. The company as a part of HR strategy has specified roles in form of Commercial Analyst, Business Administration Team Leader as well as Human Resources Advisor (Stone, 2010). Other than this, Tarmac management has adopted strategies for motivating employees. This is being done by provision of great opportunities so as to help them towards progression. It thus makes use of varied strategies so as to motivate employees (Ordiz and et,al., 2003). These are in form of providing them with objectives and targets that are clear as well as understandable. They are further helped to improve upon the existing skills followed by nurturing of previous ones (Savolainen, 2012). Other than this in house training is also provided to employees so that jobs can be done by them in an efficient manner. The employees are then further rewarded for the performance done them. These are in form of monetary as well as non monetary benefits.

Given scenario of Tarmac and above discussion states that company is using three major strategies for managing human resources strategically; these are workforce planning, personal development and effective motivation of employees (Sett and Sanyal, 2011). Workforce planning is very effective for this organization in identifying needs and requirements regarding skills and knowledge of employees. By using this strategy company can arrange training and development program as per their needs and requirements (Gardiner and Tomlinson, 2009). Along with this it also helpful for analysing future market challenges for Tarmac and employees of the company that facilitates effective human resource management planning as per the market trends. Work force planning is effective for technological changes because due to this change employee require training for operating different equipments.

Including this, Tarmac focuses on the personal development of employees which is also effective for organization for managing different personnel. It spotlights on developing different aspect of progress in various skills and knowledge. Company provides effective training to web marketing officer on internet which helps in developing effective online relationship with customer (Developing a Human Resource strategy, 2014). They offer training to the finance manager for achieving financial targets and allocation of financial resources. This strategy plays an important role in training program for procurement manager in deciding purchasing rage of operational resources for whole functions of the company. Thus, personal development is very effective strategy for determining training needs of different employees of the company and arranging personal development program for their employees with effecting satisfaction of these requirements.

Tarmac is using motivation strategy for motivating their employees towards the organization objectives and improving their performance as per their individual goals (LAFARGE TARMAC, 2014). This strategy focuses on the equal and effective participation of employees in their task as well as it spotlights on employee’s targets which they require to attain for their better performance. In this strategy they motivated employees for getting new skills and knowledge as per their requirements through effective training and development programs. They offered monetary and non monetary rewards for their performance which facilitates effective motivation towards the best performance (David, 2009). Tarmac is using appropriate communication between different strategic management level of the business and employees which help in developing effective human relationship that play an important role in determining motivational needs of employees.

Therefore, Tarmac is using effective strategies for managing their human resources and all of these strategies are very effective for attaining their all targets and objectives. But In this modern world all these strategies are not enough for managing their human resources. So they need some improvement in their existing strategies, such as SHRM of Tarmac should identify motivational needs of employees at different level by using different motivational theories (Decenzo, 2009). Along with this company should focus on the change management of organization because it is very essential for organization in technological, economical and environmental changes. Including this should make sure about the effective diversity management at work place because there are various employees which have various diversity domination so proper management of diversity is essential for Tarmac for effective strategic human resources management.

TASK 3

In the modern world there are various issues which influence the strategic human resource management of organizations, such as finding and retaining talent and employees, employee competence, diversity management, change management, downsizing and economic changes, etc. As per the given scenario in 2010 and 2012 Tarmac had planned to cut the 550 jobs and also prepared for moving it’s headquarter from Wolverhampton (Gary, 2011). For this issue Tarmac has been consulting with their employees that how joint venture with French company will affect jobs of employee. Therefore because of this issue strategic human resources management of organization has been facing two major problems which are as follows;

Change management: Due to the joint venture human resources management of the organization faces the various changes and management of these changes are very crucial task for whole organization. If organization does not accept and adopt strategies according to the today’s business environment change then they will exploit their opportunities for gaining competitive advantages and future success. For managing changes strategic human resource management department of organization generally different challenges which include appropriate communication and motivation of employees in technological, environmental and economical changes (WELCOME TO LAFARGE TARMAC CAREERS, 2014). Along with this SHRM also face some problem in helping employees for overcome resistance to change, in providing effective leadership for change the entire process of task completion, etc. including these different changes also affect the process of dealing with different equipments during the changes, etc (Tarmac Building Products, 2014). Consequently, different changes affect the productivity, communication, motivation, efficiency, quality and employees moral of the organization. Therefore effective change management is very essential for every Tarmac for maintain the changes because of their joint venture.

Managing diversity: As per the give case study which states that Tarmac has planned to do joint venture with a French company. So, due to this cooperative undertaking strategic human resource management of Tarmac will face the problem in managing diversity. In international market Tarmac’s demand of the human resource and talent will increase. In the other country managing diversity is very crucial task for them; major dimensions of workplace diversity comprise age, gender, race, religions, sexual orientation, geographical location, income status, beliefs, values and experience, etc. In managing diversity major issues are reconciling the corporate culture to understand needs and requirements of different individual according their sensitivities. In addition SHRM needs to think global market and act as local country (Tarmac considers Wolverhampton HQ move, 2012). Along with this Tarmac will face the difficulty in being responsive towards different culture of distinct region, accepting diverse requirements of dissimilar societies, etc. thus, Tarmac is facing the strategic challenges in developing employment policies according to the local employee legislations and different diversity. Thus, effective management of human resource of different diverse will improve the employee’s satisfaction, job security, motivation, and performance of individual employees and organization also (Gary, 2011).

Therefore, in this joint venture Tarmac needs to focus on the change management and diversity management for effective strategic human resources management of organization. Both strategies will help in attaining different individual goals of employees as well as objectives of organization.

CONCLUSION

Human resource management of Tarmac plays an important role in managing the business as well as the development of its employees. Company is highly depended on the skills of its workers for achieving the objectives of the business. Their main focus is helping out the individual to work comfortably with their groups. They consider workforce planning to be a strategic process as this helps in achieving the long term objective of the organisation. Consideration of personal development of employees has also been kept important for an individual to grow professionally and personally within the enterprise. Tarmac tries to motivate their employees at every level so that they perform at high levels. Company is going for a joint venture with one of the French company. In this they can either go for change or diversified management. But Tarmac should go for diversified management in better functioning of its works. As the change management is generally not accepted by the employees.

REFERENCES

  • Collins, C. J. and Clark, K. D., 2003. Strategic Human Resource Practices, Top Management Team Social Networks, And Firm Performance: The Role Of Human Resource Practices In Creating Organizational Competitive Advantage. Academy of Management Journal.
  • Ferguson, K. L., and Reio, J. T., 2010. Human resource management systems and firm performance. Journal of management development.
  • Fulmer, R., and Genson, S., 2006. HR’s Strategic Partnership with Line Management. Graziadio Business Review.
  • Gannon, M. J., Doherty, L. and Roper, A., 2012. The role of strategic groups in understanding strategic human resource management. Personnel Review.
  • Gardiner, E. and Tomlinson, J., 2009. Organisational approaches to flexible working: Perspectives of equality and diversity managers in the UK. Equal Opportunities International.
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