Strategic Human Resource Management

Introduction

Strategic human resource management is a series of planned and the strategic significance the human resources arrangement and management behavior.(Wright &Mcmanhan, 1992)

This report involves four main aspects: first, explaining the resource base view model of strategic human resource management and analyzing its usefulness; second, explain the activities involved in HR planning; third, assessing the practices available to UK employers to improve employee engagement; forth, evaluating the practices of employee involvement and participation that UK employers have adopted.

Strategic human resource management model

Three theoretical models to strategic human resource management are included. First, …b est practice?model indicates that manage human resources to improve business performance and align employment policies and business strategy practice to achieve company?s goals. Second, …fit or contingency? model defines that different business strategies need different HR strategies. Third,

…resource base view? states that substantial competitive ability can be to achieve goals by using core resource and competence of firm. The following will focus on …resource base view? model.

The resource base view (RBV) indicates that the core resource and competence of the firm can have substantial competitive ability and enduring advantages to succeed in themarket (Hamel & Prahalad, 1994). If the organization has a valuable, inimitable, non-substitutable and rarity resources and competences, the organization will be able to build the core competitiveness to achieve optimal operational performance, and gain a persistent competitive advantage（Torrington, Hall, Taylor & Atkinson, 2008）. Actually, the enterprise is collection of various resources. Due to a variety of reasons, the enterprise has the same heterogeneity resources that determine the differences in the competitiveness of enterprises. RBV can make firms different from one another and in turn allow a firm to deliver products and services in the market (Hamel & Prahalad, 1994). On the other hand, the development of human capital can promote sustained competitive advantage (Hamel & Prahalad, 1994). Human resource can provide competitive advantage for the business, as long as they are unique and competing organization cannot copy or substitute for them.

Knowledge resources become the main source of competitive advantage (Barney. 1991). It enables enterprises to be able to learn faster than your competitors and development capacity. Development of knowledge makes other companies is difficult to imitate resources. Grant (1996) pointed out that knowledge is the enterprise has the most critical competitive asset. In this view, the business organization and the market advantage is its ability to have more to create and maintain knowledge. Leonard-Barton, (1992a), the enterprise's knowledge resources are human capital, organizational capital and physical capital are interdependent whip interaction system, which is the ability to generate rain staff skills, management systems and management processes of knowledge-based, complex linkages of organizational values and norms as well as physical capital and material systems. Major role in strategic human resource management enough to enhance the enterprises, including human capital, intellectual capital, intellectual capital accumulation and the formation of a basic task is the strategic human resources management, integration and reconstruction of enterprises intellectual capital and, ultimately, enterprises a sustainable competitive advantage.

Amit and Schoe-maker (1993), the organizational capacity of organizations to configure their resources skills, to combine resources through organizational procedures, which these capabilities are the backbone of information and formation of the invisible complex interaction, in order to achieve the organization is expected to goals. The ability to participate in the organization process is the process with the employees joining and leaving constantly sustained, and ultimately the enterprise a competitive advantage (Barney, 2001).In fact, the ability of enterprises and constitute the ability of employees' skills are inseparable, we must determine the personnel involved in the process of this organization, in order to gain a deeper comprehension of these officers must have the appropriate individuals and groups skills, and their (individual and groups) behavior must be conducive to the implementation of this process. Dynamic ability to produce not only requires companies to have a strong resource base, and requires companies to be able to configure the existing resources, to create new resources and new knowledge. The fundamental role of human resource management system is the human resources and knowledge resources embedded in one of the configuration, this sense and human resources management system fully reflects the ability of the enterprise organization.

The resource-based theory that the combinations of each organization are unique resources and capabilities, combined with the body has become a business competitive strategy is based on. The main content of the corporate strategic management is how to maximize the nurture and develop a unique business strategy resources and unique ability to optimize the configuration of this strategic resource, namely, core competencies(Barney, 2001). The formation of core competence accumulation strategy requires companies to continue to develop a variety of resources required, enterprises need to constantly learning beyond and innovation, Human Resource Management System plays a very important role.

Human resource planning

According to its internal and external changes in the environment, Enterprises predict the future development of human resources needs starting from strategic planning and development goals, predict the future development of human resources needs, and to provide human resources activities in the process.On the one hand, it analyzesthe current manpower situation to understand the dynamics of personnel andpredicts the future manpower needs. On the other hand, it promotes the rational use of human resources

and human resource planning to improve the imbalance of manpower allocation, in order to seek the rationalization of human resources and meet the development needs of the organization.

ANALYSING THE ENVIRONMENT

Human resources plan to fully consider the internal and external changes in the environment to adapt to the needs, really do target services for enterprise development. Internal change refers to changes in the sales, development changes, or changes in the enterprise development strategies, as well as employees of the flow change; external change refers to changes in the society of the consumer market, the government human resource policy changes, personnel changes in the market and so on. In order to better adapt to these changes in the human resources plan should be possible scenarios to make changes in the forecasting and risk, it is best to have the face of risk coping strategies.

First，it is investigating the business and human resources-related information, such as: setting the status of the corporate organizational structure, the positions set and necessity, the company's existing staff, work quotas and labor load, the company's future development goals and tasksplan, factors of

production may be changes. Second, it needs to pay special attention to the analysis of survey of human resources within the organization. This section usually includes: the basic conditions of the existing staff, the knowledge and experience of the staff, the ability and potential of employees for development, general interest and hobbies of employees, personal goals and development needs of employees, employee performance and results, recent years the flow of human resources, corporate human resource structure and the existing human resources policies. In addition, for the business external human resources survey, such as the results of the labor market, the market supply and the status quo, education and training policy and education, labor, choosing psychology of the external labor market factors and influencing factors are required for in-depth investigations and studies. This information are HR planning of human resources base.(Torrington, Hall, Taylor & Atkinson, 2011).

FORECASTING FUTURE HUMAN RESOURCE NEEDS

Human resource planning is not only a business-oriented program, but also is a plan for employees. Business development and staff development rely on each other to mutually reinforce relationship. Only consider the development of enterprises while ignoring the

development of staff will be detrimental to the achievement of the goals of enterprise development. Excellence in human resource planning must be to enable employees to achieve long-term interests of the plan, must be able to make the common development of enterprises and employees plan. Thus it is necessary to forecasting future human resource needs. There are containing objective method and subjective method.

Objective method

Objective method consists of statistical and work-study approaches. Statistical model relate employee number demand to organizational circumstances and activities (Torrington, Hall, Taylor & Atkinson, 2011). Through assuming, the future demand will be calculated. If the environment is not stable, this method is not reliable. The work-study method is based on a thorough analysis of the tasks to be done, and the time each takes (Torrington, Hall, Taylor & Atkinson, 2011). The employees demand per unit of output can be calculated, thus the numbers of employees demand will develop following standard.

Subjective method

Torrington et al (2011) indicates that the most common subjective

method of demand forecasting is managerial judgment, judgments of other operational and technical staff and all level of managers. The method is based on past experience and on corporate plans. This method is more comprehensive and less precise than statistical methods.

ANALYSING THE CURRENT SITUATION AND PROJECTING FORWARD

The protection of human resources is a core problem of human resources plan. It includes the staff of the inflow forecast outflow forecasting, prediction of the internal movement of staff, society's human resources supply situation and the mobility of the profit and loss analysis. Only effectively ensuring the supply of corporate human resources is only possible to carry out a deeper level of human resource management and development.

On the one hand, according to annual labor turnover index, staff leaving the organization can be analyzed. But it gives limited information.

Leavers in year/average number of staff in post during year*100=percentage wastage rate

On the other hand, it can analyze internal movements. Torrington et al (2011) said: age and length of service distributions can show an overall pattern of problems. Movement patterns model displays visually promotion and lateral move channels in operation. Last, talent analysis should be paid attention to ensure that there is a pool supply succession into key role.

Reconciliation, decisions and plans

By comparing the forecast workforce demand and supply, it is possible to compile a forecast of net workforce size. This then needs to be compared with the strategic requirements for the business. The result is the "workforce gap", which is a forecast of too few or too many workers. The role of HRM is to close the gap.

The key HRM activities to manage the workforce gap comprise:

Recruitment plans indicate that how many people need, where to need, what types of talent and how to select talent.Training plans state that it can be im proved employees? skills. Some new technology skills should be taught to employees. It is important to development employees.

Employee engagement

Employee engagementis a business management concept thatemployees are fully involved in and enthusiastic about their works, and thus will increase their organization's interests. According to Scarlett Surveys (2010), "Employee Engagement is a measurable degree of an employee's positive or negative emotional attachment to their job, colleagues and organization which profoundly influences their willingness to learn and perform at work". Thus employee engagement is distinctively different from employee satisfaction, motivation and organizational culture. Through motivate and energize employees that can give their best to the organization to serve the customer. It is all about the willingness and ability of employees to give sustained discretionary effort to help their organization succeed.

WIFI Model

The WIFI model of engagement is made up of some basic components that when brought together are very powerful. There are four parts including well-being, information, fairness and involvement(Sarah, 2008).

Well-being.

Research indicates that engagement is more likely than not to be associated with a good work-life balance(Sarah, 2008). Flexible working hours, family-friendly policies, Job design and structure, and having sufficient challenge in a job and sufficient resources to do the job wellcan increase a level of engagement. Well-being can motivate employees to mutual supervision.Dupont in UK, is a pharmaceutical company, has a core value of sustaining a respectful work environment. There is a zero-tolerance policy towards sexual harassment, workplace harassment and intimidation to protect their employees. It provides the same benefits plan for all employees, including in-vitro fertilization benefits, long-term care insurance and paid adoption leave.

Information

Information, which provides clear vision, mission, goals, strategy and values of the organization are an essential element in binding employees together. That information can help employees to know where they are going and why and how they fit into achieving those goals. The regularity and appropriateness of information at all levels is a key driver of engagement (Sarah, 2008).Telecommunications giant Vodafone CEO Arin Sarun said:

Goal number one is to delight our customers: we want to be even more customer-centric. We want to provide the best products and services in the mobile world. The second goal is to build the best global team. We are a service business and we deliver our products and services through our employees. We need to make sure our employees are trained and are completely up to speed with what is going on in the world around them. Vodafone ensure that at every opportunity their leaders communicate these goals to their employees. Their view is that regularly reinforcing the vision, values and goals statements.

Fairness

Fairness is important to employees. Sarah(2008) said: hiring the right people for the right jobs is fundamental to ensuring that individuals begin their working life with your organization in the most positive way.Performance management also affects fairness. Managers need to clear the expectations of employees in their work and receive regular and timely incentives and feedback shows that the key factor in all employees participated in the study. Important for staff personal development plans. Ready to enter the training and development to meet the personalized needs has proven to be in many developing countries the importance of

participation in cultural organizations.In 2004 financial services organization UBS in UK, there is a plan about the development of high-potential employees. Individuals who are selected for the group-wide programmed spend a couple of months working with a learning partner from HR on a number of areas, including personality assessment, career development and the identification of a specific business challenge. This plan can keep high potentials updated and provide networking opportunities for employees.

Involvement

Workers in the high-involvement plants showed more positive attitudes, including trust, organizational commitment and intrinsic enjoyment of the work. According to a recent study by Watson Wyatt Worldwide, organizations with effective internal communications have a 19.4 per cent higher market premium and deliver 57 per cent higher share- holder return. The study also found a strong correlation between a company's communication and its employee engagement and retention levels. Firms that involve their employees effectively are 4.5 times more likely to report high levels of employee engagement than firms that communicate less effectively. They are also 20 per cent more likely to report lower turnover rates than their peers (Sarah, 2008). In the

National Australia Group in UK, a new measurement process, called 'Scores on the board' was appeared. This measures performance against a set of key indicators: engaged staff, satisfied customers, increased productivity and increased revenue.The idea is to encourage individuals to view the organization as their own business. Each team analyses employee and customer feedback and devises their own plan of action to address any gaps.

Involvement

Eileen Appelbaum and her colleagues (2000) studied 15 steel mills, 17 apparel manufacturers, and 10 electronic instrument and imaging equipment producers.The aim is a more traditional production systems, flexible and high-performance production systems involving the team, training, and compensation incentives. In all three sectors, the use of the factories involved in the practice, and demonstrates superior performance. In addition, workers in the high-involvement plants showed more positive attitudes, including trust, organizational commitment and intrinsic enjoyment of the work(Konrad, 2006). The concept has gained popularity as various studies have demonstrated links with productivity. It is often linked to the notion of employee voice and empowerment (Wilkinson,

2004).Hallmark is by well-known manufacturers of greeting cards and other greetings. In the UK in the early 2000s, the company has experienced a radical change, including the period of the merger of five companies. In order to help create a new company ethics review team physician's business vision and values. These are all by the executive to communicate through a series of roadshows. At the same time, the work of the senior leadership team to start building a high performance team. For Goleman's 1996 work on the basis of the concept of emotional intelligence to create greater self-awareness, interpersonal skills, stress management and personal understanding of the emotional state. The concept was launched with the whole group of other senior leadership team. Human resources support to change their tactics to take the initiative of a consistent vision and values.These included:

●Launching of family-friendly policies;

●Flexible working;

● A new intranet site;

●Online job applications;

●The implementation of an annual staff survey;

●Management guides to HR practices;

● A bimonthly newsletter;

●Cross-functional awareness sessions;

●Career progression planning;

● A new appraisal system that includes the company values;

●Development of internal trainers and an internal training

calendar;

●Creation of HR business partners.

The result of these involvement initiatives has been a marked increase in employee engagement.

Conclusion

In the report, first, the definition of strategic HRM and strategic HRM models are done. RBV model?s usefulness has been analyzed. Second,through analysis four aspects of workforce planning, it shows that workforce planning is a continuous process rather than a on-off activity. Third, by analyzing different cases in UK companies, WIFI model can improve usefully employee engagement. Last, through researching Hallmark company case, involvement is important to employees to improve employee?s engagement and company interest.

Reference

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