Human Resource Systems - Assignment Example

1. How has BMW enhanced organizational performance through the implementation of Human Resource Systems and practices People make the organizationsgo. Proper selection, training and management of Human Resource determine the success of an organization. BMW has achieved high profitability last year due to improved productivity and cutting costs. This has been achieved through the two-way communication between the workers and the top management. Workforce diversity, technology, globalization and changes in the jobs and works require proper implementation of Human Resource Systems and practices. BMW has brought revolutionary changes in the working environment as they have realized that satisfied workers are more productive. Empowering employees and organizing around teams are aimed by BMW for facilitating communication and making it easier for decisions to be made. It helps the company to respond quickly to customer's needs and it's competitor's challenges. It helps them learn to prioritize tasks and reduce job stress. A workforce that is knowledgeable and skilled at doing complex things keeps a company competitive and attracts investments. Improved productivity means fewer people, less money, less time, less space and fewer resources. Bonuses are given to workers on giving superb ideas related to cutting cost savings, as they are directly involved in production. BMW prefers increased participation from the worker's side. They must give at least three ideas with eight hundred pound for each idea and to qualify for full annual bonus up to two hundred and sixty six pounds. This is done to save 3.6 M annually. The company has also increased workers pay from 2,500 pounds to 4,500 pounds. Many of the workers are hired on temporary basis and working days are fixed to seven-day operation. Working time account was introduced in the company and workers were paid even when the plant remained shut for retooling. The hours missed were made up later. The company provided ease to the workers by giving them the opportunity to take off over time later as holidays. The company saved more than six million pounds from 10,339 ideas (2 per worker last year). It is due to the detailed knowledge of the working environment that the workers come up with these ideas. The main goal of the company is to cut cost and improve productivity. BMW consider people as a source of competitive advantage. There is quality of work life at the company that is; employee participation, career development, conflict resolution, communication, wellness, job security, safe environment and pride. Staffing, retention, development, adjustment and change management are the activities, which are successfully implemented at BMW. It maximizes the corporate profits through the better management and use of people as a result of which the company has achieved high profits. As workers are directly involved in production and they have more knowledge about the technical aspects so they are involved in decision making by telling them to give ideas related to cutting costs. Incentives are provided on each idea and the implementation of these ideas gives pride and satisfaction to the workers. BMW believes that happy and satisfied workers are more productive. The workers enjoy social security as fair compensation plans are used by the company to reward workers. The company facilitates and encourages performance by providing sufficient rewards that employees really value. Employees are not over burdened by making them to work for long hours. The environment facilitates their work. Thus competency-based pay is provided to them based upon their skills, depth of knowledge and the work accomplished by them. Performance incentives are provided to them and they get reasonable chance to gain high salary. The link between performance and rewards is high. Workload standards have been set in the company and the work is assigned equitably. There is a philosophy of co-operation and involvement. By successful implementation of HR Systems and practices BMW has achieved enhanced organizational performance. 2. Which approach to SHRM discussed in chapter 2 of Beardwell et al best explains BMWs approach to SHRM Various approaches related to Strategic Human Resource Management have been discussed in Chapter 2 of Human Resources Management: A Contemporary Approach By Beardwell Et Al. Human Resource Strategies refers to the specific HR courses of action the company plans to pursue to achieve its goals. These include; Recruitment Selection, Training, Degree of formalization, Compensation and Rewards, Alignment between HR system and firm Strategy, communication, Management skills and Executive leadership. Out of these approaches the Alignment between HR system and firm Strategy best explains BMWs approach to Strategic Human Resource Management. Workers are well compensated and rewarded. Strategic Human Resource Management is done by linking of HRM with strategic goals and objectives in order to improve business performance and developing organizational cultures that foster innovation and flexibility. It involves planning HR activities and deployment in such a way to enable organizations to achieve their goals. Human Resource activities such as recruitment, selection, training and rewarding personnel are done by keeping in view the company's goals and objectives. The company focuses on identifying, analyzing and balancing two sorts of forces that is; the company's external opportunities and threats on one hand and its internal strengths and weaknesses on the other. At BMW distinctive competencies are obtained through highly developed employee skills, distinctive organizational culture well developed management processes and systems. Fair compensation plan and reward system has increased the customers satisfaction. Workers are happy with the working environment and they take pride in the work accomplished by them. There are flexible working hours and workers are also hired on temporary basis to reduce work stress. Innovation is encouraged during the work as ideas given by the works are practically implemented to increase productivity. The workers are rewarded by bonus on giving these ideas. Alignment of the Human Resource system with the strategic goals and objectives of the firm has facilitated the company to achieve superb targets. The knowledge of the workers is fully utilized towards achieving the desired targets. The company has been successful in cutting cost and improving the quality of the cars produced which has satisfied not only the customers but also the workers and the management. This has been achieved through strong communication and involvement between the top management and the worker's union in aligning the strategies with the HR system. 3. What human resource advice would you give to BMW so that they can manage the consolidation stage of their strategy effectively Which approach to SHRM has influenced your thinking and why According to Anton Heiss (Plant Manager); "We are in a consolidation phase. We have to get cost down; we have to improve quality." BMW believes in providing worker's satisfaction through high salary, bonus, incentives and convenient environment. There is a good two-way communication between the top management and the worker's union. The company believes that the strength and weaknesses of the company's human resource can have a determining effect on the viability of the firm's strategic options. The company focuses on the provision of the skills and abilities needed to meet the requirements of an organization's overall objective. BMW can improve the Job Appraisal by ranking workers according to the performance from highest to lowest levels. This can arouse competition in workers. Paired comparisons and behavioral checklists should be used for appraisal. Work planning and review (MBO) can identify goals attained, problems encountered and need for the training to be realized. ARM (Attraction, retention and motivation) concepts should be used to reward the workers. They should be provided equity within the organization and there should be focus on individual need of the workers. Human Resource Management must be an equal partner in the formulation and implementation of the company's organization wide and competitive strategies. Pay for performance plans should be focused. Improving work quality of life and providing fair pay compensation are the approaches, which are most influential. Organization's employees are its human capital as they are assets of the company, which have lone term value for the company. "Human Capital is not a cost to be minimized but a strategic asset to be enhanced". (GAO, 1999). There should a Strategic approach to Human Capital planning. The acquiring and developing of staff should be according to their skills in order to meet critical needs. The organization culture should be performance oriented. Merit Principles should be well protected. Competitive advantage can be obtained with a high quality workforce that enables organizations to compete on the basis of market responsiveness, product and service, quality, differentiated products and technological innovation. Strategic Human Resource Planning should foster the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that should promote innovation and flexibility. There should be a strategic viewpoint of HRM that requires simultaneous consideration of both external business strategy and internal consistency requirement leading to superior performance of the firm. Resources should be marshaled to support the business strategy and implementing the chosen strategy, efficiently and effectively. There should be maximum utilization of the potential of the human resources beneficial to the firm. There should be leveraging of other resources such as physical assets and capital to harmonize and supplement the human resource based advantage. Environmental scanning should be emphasized, as the environment of the organization comprises of both the external and the internal environment. This scanning must focus on task environment where it enables to identify the opportunities outside the environment and those, which are prevailing within the environment. In formulating the strategy the company should seek to take advantage of the opportunities while minimizing the threats. What might be a threat to one company may be an opportunity for another company. Hence initiating the strategy with an Environmental Scanning would support the strategy formulation, implementation, evaluation and control. By proper implementation of the Strategic Human Resource Management, BMW can achieve the consolidation stage of its strategies effectively. REFERENCES AND BIBLIOGRAPHY Beardwell, I and Holden, L (2004), Human Resource Management - A Contemporary Approach (4th Edition), London, Prentice Hall Gary Dessler, Human Resource Management (7th Edition), Prentice Hall, Upper Saddle River, New Jersey 07458 Wayne F. Cascio, Managing Human Resources: Productivity, Quality of Work Life, Profits (5th Edition - International Edition) U.S Office of Personnel Management, Strategic HRM Discussion of Key Terms and concepts (March 10,1999) Torben Andersen , Bo Eriksen, Jeanette Lemmergaard , Line Povlsen ; Is strategic human resource management strategic - The fit between strategy and strategic human resource management , Department of Marketing and Management , University of Southern Denmark Read More