Significance of Strategic Human Resource Management Functions - Essay Example

?Millennium Hotels Table of Contents Introduction 4 Task 5 1.Significance of Strategic Human Resource Management (SHRM) Functions 5 2.The Purpose of Human Resource Activities 6 1.3.Evaluating the Contribution of SHRM in Achieving Organisational Goals 7 Task 2 8 2.1. Identifying and Analysing Factors Underpinning Need to Make HRM Plan 8 2.2. Assessing Human Resource Requirement 9 2.3. Developing an Effective Human Resource Plan 11 2.4. Evaluating the HRM Plan for Millennium Hotels 13 Task 3 16 3.0. Understanding HR Policy Requirements in an Organisation 16 3.1. Explain the Purpose of Human Resource Management Policies in Organisations 16 3.2. Analysing the Impact of Regulatory Requirements on HRM Policies of Millennium Hotels 18 3.2.1. Positive Impacts of Regulatory Requirements on HRM Policies 18 3.2.2. Negative Impacts of Regulatory Requirements on HRM Policies 19 Task 4 20 4.0. Examining Human Resource Management in an Organisation 20 4.1. Analysing the Impact of Organisational Structure and Culture on HRM 20 4.2. Impact of Culture on HRM 21 4.3. Effectiveness of HRM on Monitoring Organisational Performance 22 4.4. Recommending Steps towards Improving HR Functions 23 Conclusion 24 References 26 Introduction The organisations in the present competitive business environment seek to increase their capability of managing and controlling the performance of their workforce for the purpose of competing with their major rivals and accomplishing superior competitive position. In this similar context, the idea concerning Human Resource Management (HRM) of different organisations play a fundamental role towards strengthening the optimal performance of the workforce and enabling the organisations to gain overall business or operational efficiency in this composite business environment. The conception of HRM considerably ensures to provide adequate potential synergy in order to empower the substantial growth of a particular organisation. Moreover, the concept of HRM can also be considered as one of the major influencing factors of an organisation which facilitates to enjoy adequate capability of increasing the performance of the workforce and attaining the desired objectives of the organisations (SAGE Publications, n.d.). In the context of Strategic Human Resource Management (SHRM), the thought i.e. HRM can be regarded as a holistic approach which ensures to align human resource (HR) related functions of an organisation with its strategic objectives. The primary objective of SHRM implies the practice of identifying the key areas of HRM and developing effective strategy to meet the ultimate organisational goals and objectives (Salaman & et. al., 2005). With this concern, the primary objective of this report is to understand the contribution of SHRM in Millennium Hotels towards the attainment of its desired business objectives. Additionally, the discussion would further identify and analyse the major factors that underpins the need of an adequate HRM plan for Millennium Hotels. Furthermore, the purpose of HRM policies and their potential impacts will also be analysed in accordance with the HRM policies of Millennium Hotels. At last, the report will be concluded through analysing the impact of organisational structure and culture in the HRM practices and examining the efficiency of HRM in Millennium Hotels. Task 1 1.1. Significance of Strategic Human Resource Management (SHRM) Functions The practice of SHRM can be observed as the approach of preserving effective interrelation between the organisational strategic decisions and overall HRM strategies. It intends to build a paramount approach for an organisation on achieving a greater degree of managing capability to efficiently attain its predetermined business goals (Gratton & Truss, 2003). In the context of Millennium Hotels, the approach i.e. SHRM can be viewed as one of the major attributes behind the continuous success of the organisation in the global hospitality industry. In relation to the fiercely growing competitiveness in the modern business environment, the HRM practices of different marketers can be often observed to face different challenges in terms of aligning strategic goals with the HRM policies of the organisations. Moreover, it has also been witnessed that a radical change in the overall business processes executed by diverse market leaders ultimately face numerous constraints due to the continuous pace of business market competition (Bratton, 2002). According to the current SHRM practice of Millennium Hotels, it can be apparently observed that the organisation is highly prioritised to align its strategic direction with its well-built HR policies. Furthermore, it has also been argued that the organisation also tends to prioritise its different HRM linked functions through adopting as well as executing different core practices and ensure to build a long-term affiliation with huge figure of employees within the organisation. In relation to clearly identify the significance of SHRM in the context of Millennium Hotels, the following factors can be demonstrated by a greater level. The HRM functions of Millennium hotels have been viewed to be highly associated with building an effective and productive relationship with the organisations’ personnel. The HRM policies of Millennium Hotels constitutes adequate business norms as well as guidelines that largely empowers the workforce to enhance their productivity and build strong coordination amid each other while performing different operational functions. The enthusiastic structure and framework of the HRM guidelines of the organisation ensures to protect its employees from different constraints which might hinder on their productivity capabilities. The HRM guidelines of the company encompasses adequate flexibility on various significant aspects like working hours, employee wages and benefits along with various workplace safety related concerns that ensures to attain its predetermined business objectives at large. The HRM activities of Millennium Hotels further ensures to assemble efficient coordination amid the team members regarding smooth conduct of their assigned roles and responsibilities which significantly supports the organisation to attain overall objectives (Clark & et. al., 2000). 1.2. The Purpose of Human Resource Activities The different sorts of HR related activities generally involve a series of actions that ensures to empower the existing competencies as well as capabilities of the organisation to attain its desired business goals and objectives. In relation to assess the major activities of HRM in Millennium Hotels, it has been identified that the managers tends to involve various HR associated activities like recruitment, selection, training and development, performance management and providing employees adequate financial benefits. However, the organisation has been viewed to face certain crucial constraints due to its ineffective execution of recruitment procedures resulting in making the organisation to face much difficulty in attaining its predetermined business goals. 1.3. Evaluating the Contribution of SHRM in Achieving Organisational Goals The practice of adequate SHRM approach provides numerous advantages to an organisation and ensures to increase the capability of a firm towards accomplishing its desired business goals (Bratton, 2002). The contribution towards acquiring greater competitive position is often regarded as one of the major potential inputs of SHRM which enables an organisation to gain its position in the competitive business environment. As previously mentioned that the concept of SHRM tends to build an effective alignment between HRM functions with the organisational objectives, therefore, it significantly empowers the performance of each individual concerning smooth conduct of their assigned roles as well as responsibilities. Moreover, the holistic traditional approach in the SHRM process strengthens the business or strategic leaders to motivate employees and keep them determined towards the overall goals of the organisations. Therefore, the practice of SHRM is highly essential for the business leaders or the managers belonging to Millennium Hotels to increase the capabilities of the employees and keep them motivated towards effective conduct of their assigned roles and responsibilities. This practice can enable the organisation to empower its competitiveness in the fiercely growing hospitality industry (Bratton, 2002). Task 2 2.1. Identifying and Analysing Factors Underpinning Need to Make HRM Plan Organisations in the present business environment are likely to widen their respective HRM plan in order to possess better control of the workforce and keep them motivated towards conducting their assigned roles and responsibilities in an effective manner. In this regard, it can be recognised that there pertain several significant factors that prerequisites the need for making an effective HRM plan enabling the organisations to attain their predetermined business targets (Armstrong, 2011). The major encouraging factors underpinning the needs for making an effectual HRM plan for Millennium Hotels have been depicted hereunder. Improving Organisational Competitiveness The improvement especially in the organisational competitiveness can be viewed as one of the major factors which encourage the marketers to gain interests towards planning effective HRM plan. In relation to Millennium Hotels, the organisation should highly prioritise the potentiality of HRM plan in order to develop its competitiveness. In this regard, an effective HRM plan can facilitate the organisation to improve its selection and recruitment procedures which is merely important to attain its desired business objectives (Van Clieaf, 1992). Developing Employee Relation Empowering the relationship with the employees is also an important and influencing factor which underpins the need to develop effective HR planning for an organisation. In relation to the employment relationship of Millennium Hotels, it has been viewed that the organisation has been facing a growing attrition rate in its different subsidiary units. Therefore, an effective HR planning can enable the organisation to motivate and to build a long-term affiliation with the employees facilitating Millennium Hotels to restrict the mounting attrition rate concerning the personnel (Armstrong, 2011). 2.2. Assessing Human Resource Requirement The concept of HRM provides adequate support for an organisation to empower its capability towards developing overall functions and building competitive advantage. It is highly important for the marketers and decision makers in the competitive business environment to clearly recognise the required potentialities of HRM functions which can lead to develop the performance of the organisations. In relation to the major requirement factors of HRM, it has been apparently observed that there are basically four types of practices. The following diagram illustrates these factors which signify the requirement of HRM in an organisation. Source: (Personnel and Readiness Information Management, n.d.) Requirement Elicitation The elicitation practices significantly involve obtaining information, identifying and comprehending the requirements as well as the desires of the stakeholders and articulating adequate measures of requirements (Personnel and Readiness Information Management, n.d.). Requirement Analysis This activity tends to examine the level of requirements and identify their relevance along with clearness and defines effective strategy to address different contradictions arising from the requirements (Personnel and Readiness Information Management, n.d.). Requirement Specification The specification activities in the HRM requirement imply the existing performance of different strategies in terms of developing the processes and identify appropriate technique to clearly examine the requirements (Personnel and Readiness Information Management, n.d.). Requirement Validation The activities in the requirement validation process involve addressing different issues and constraints hindering the performances of the organisations. The activities involve making adequate measures along with decisions with different stakeholder groups and functional experts that supports the organisations to resolve various potential issues (Personnel and Readiness Information Management, n.d.). Thus, the aforementioned factors can be considered as the major aspects meeting the recruitment requirements of Millennium Hotels by a significant level. 2.3. Developing an Effective Human Resource Plan An effective HRM plan facilitates adequate support and competency to an organisation and enables to strengthen its performance towards attaining its strategic goals. Therefore, in this regard, the following HRM activities can be developed for enhancing the efficiency and competency of HRM activities relating to the context of Millennium Hotels. Diversified and Challenging Work The allocation of diversified roles and responsibilities can encourage employees of Millennium Hotels and increase their interests towards the accomplishment of the organisational objectives. Moreover, the challenging works in the organisation can also improve the capabilities and can further articulate continuous creativity and innovation which helps the organisation to attain its desired goals (Lawson & Samson, 2001). Providing Adequate Compensation Package The offering of adequate compensation package or any financial incentives can also build a productive interrelation between Millennium Hotels and its employees. In the context of Millennium Hotels, the HRM functions should highly focus on providing additional compensation facilities to the employees. The practice can help the organisation to build a strong affiliation and develop self-efficacy of the employees resulting in lessening its employee turn-over rates by a certain degree (Armstrong, 2011). Advancement Opportunities Ensuring advancement opportunities to the employees can also generate significant benefits to Millennium Hotels at large. In this similar context, the different HRM functions of the organisation should highly emphasise on offering adequate opportunity to the employees for making their carrier growth. Relating to this significant concern, the HRM functions of Millennium Hotels should be developed in terms of providing adequate opportunities to its employees for improving their professional and personal growth. This particular activity can increase the amount of loyalty within the employees and would also help the organisation to increase its overall business or operational performance in the respective industry (Bratton, 2002). Ensure Continuous Learning In order to maintain a continuous growth of developing employees, it is highly important for Millennium Hotels to ensure continuous learning process through addressing different employment related issues within the organisation. In this regard, the organisation should focus on strengthening leadership capabilities which would empower to improve the performance of the employees through the initiation as well as the exploitation of continuous learning process (Lawson & Samson, 2001). The aforementioned aspect can be better understood with the help of the following graphical illustration. 2.4. Evaluating the HRM Plan for Millennium Hotels In order to meet the ultimate needs relating to HR within the business process of Millennium Hotels, it can be affirmed from a wider outlook that the aforesaid planning would be quite beneficial for the organisation. In the context of offering diversified and challenging work to the employees, the process can help the organisation i.e. Millennium Hotels to improve the skills and competencies of the employees in terms of creativity and innovation towards the attainment of organisational objectives. Moreover, the process of allocating diversified activities to the employees can also help the managers of the organisation to identify the potential capability of the personnel and employ adequate measures to improve their performance (Bratton, 2002). In relation to Millennium Hotels, following are the major HR requirement factors which can improve the existing HRM performance of the organisation by a significant level. Recruitment and Selection Process In accordance with the case provided, it has been apparently observed that the HRM functions of Millennium Hotels have not effectively practiced that resulted a major constraint for the organisation to attain its desired business objectives. In this regard, the organisation should highly prioritise to employ adequate number of qualified and skilled employees in accordance with the overall activities performed within the organisation. In order to strengthen the recruitment and selection process, the HRM department of Millennium Hotels should focus on improving its selection and recruitment procedures through conducting internal along with external recruitment (French, & Rumbles, 2010). The internal recruitment and selection process are generally practiced by the organisations to position highly skilled and experienced employees to the supervisory level. The process can enable Millennium Hotels to motivate the existing group of employees to increase their long-term productivity. Conversely, the secondary recruitment process involves the practice of hiring capable workers from the execution of different selection techniques. The process can also facilitate Millennium Hotels to strengthen its workforce through recruiting talented individuals from different external places (Breaugh & Starke, 2000). Employee Retention The retention strategy can be considered as one of the major decisions for an organisation which is quite beneficial for both the employees and the organisations as well. An effective retention strategy is merely conducted by the modern organisations to motivate employees and increase their commitment level towards the accomplishment of organisational objectives. Moreover, it can also facilitate the organisations to overcome various possible issues that can hinder their overall development procedure by a considerable level (Chhabra, n.d.). In relation to Millennium Hotels, the organisation should also need to emphasise upon introducing as well as developing adequate retention processes in order to minimise its potential employment-turnover rate. Moreover, the retention plan of the organisation can also generate adequate capability within the workforce which ensures to efficiently help the organisation to achieve its predetermined business targets (Breaugh & Starke, 2000). Adequate Compensation and Benefit Plan Compensating the employees in different disciplines including increasing wages, providing bonus along with rewards and other benefits can also motivate the personnel to increase their performances and can also strengthen their commitment to achieve organisational goals. In this context, Millennium Hotels should focus on integrating additional compensation plan for the employees to mitigate its different employment related issues. Additionally, the HRM of the company should also need to focus on developing adequate flexible arrangement of job roles enabling the employees to enhance their optimal performance within the organisation (French, & Rumbles, 2010). The aforesaid aspect can be better understood with the help of the following pictorial illustration. Task 3 3.0. Understanding HR Policy Requirements in an Organisation 3.1. Explain the Purpose of Human Resource Management Policies in Organisations The different HRM associated policies can be regarded as a set of effective guiding principles ensuring towards raising the performance of each individual and develop the overall performance of the organisations. The HR policies can further stated as a major set of practice which can improve the organisational competencies in terms of attaining desired business objectives of different firms. Following are the major principles underlying the importance of HR policies within an organisation. Building Effective Structure The HR policies of an organisation tends to build an effective structure through integrating different norms and guidelines concerning employee working schedule, disciplinary actions along with performance review and regulations associated with workplace safety (Grobler, 2006). Fairness It can also be witnessed that the HRM based policies of an organisation also ensure to promote equal opportunity for each individual regarding employment and other disciplinary practices. Moreover, the policies tend to protect employees from different issues that can impose considerable impact upon their operational performance by a greater level. In this regard, the HR policies of an organisation tend to defend employees from conducting various discriminatory acts as well as practices concerning demographic variance including age, gender, race and language among others (Krishnamurthi, 2006). Strategy The HRM linked policies of an organisation have been viewed to incorporate adequate functional attributes that are merely important towards the accomplishment of desired business goals. Nevertheless, the policies relating to HRM play a decisive part in terms of redefining the strategic development of the overall HR regulations and organisational direction. Hence, it can be firmly stated that the HR policies of a particular firm incorporate effective attributes facilitating an organisation to attain its strategic objectives and goals at large (Krishnamurthi, 2006). 3.2. Analysing the Impact of Regulatory Requirements on HRM Policies of Millennium Hotels The regulatory attributes in the HRM policies refer the essential factors that tend to deliver adequate support to an organisation in terms of accomplishing superior competitive position. Relating to the context of Millennium Hotels, it can be affirmed that the organisation should highly prioritise the notion of regulatory requirements in its HR policies in order to prevent different operational hindrance and workforce related issues. Moreover, an effective regulatory mechanism in the HR policies can also strengthen the HRM practice and increase the efficiency of the operations that perform by the organisation. However, the regulatory requirements can also negatively impact the HRM policies and hinder the overall performance of the organisation while performing different sorts of HRM related activities (OECD, 2007). Few of the major impacts concerning regulatory requirements particularly on HRM policies of Millennium Hotels have been discussed below. 3.2.1. Positive Impacts of Regulatory Requirements on HRM Policies The integration of regulatory aspects in the HRM policies can provide a huge figure of beneficial outcomes to an organisation. In the context of Millennium Hotels, the inclusion of regulatory factors can provide adequate support to reinforce the HRM policies of the organisation at large. The process ensures to reinforce the HRM based policies in terms of recruiting employees, providing compensation as well as benefits to them and ensuring to safeguard employees from the conduct of different discriminative practices (The Trustees of Princeton University, 2013). Additionally, an effective regulatory process in the HR policies of Millennium Hotels can also provide substantial support in terms of upgrading decision-making procedure through developing effective strategies of the organisation. The regulatory process in the organisation can build a strong grievance framework associated with employee fairness, performance, compensation procedures and anti-harassment guidelines among others that can further empower Millennium Hotels to protect its employees from different unfair judgements (The Trustees of Princeton University, 2013). Contextually, an adequate integration of regulatory framework in the HR policies can further strengthen the employment conditions of Millennium Hotels by a significant level. In this regard, the practice ensures to build appropriate work schedules and status through which the fair practice of the organisation concerning the actual working hours of the workforce in the firm can be measured effectively. In this similar context, developing policies concerning ‘standards of conduct’ and ‘conflict of interest’ can also be taken into concern for enhancing the present or existing HRM practices prevailing in Millennium Hotels (The Trustees of Princeton University, 2013). 3.2.2. Negative Impacts of Regulatory Requirements on HRM Policies Nevertheless, the extensive integration of regulatory aspects in the HR policies can also drive an organisation towards facing potential challenges. In this regard, the extensive practice or the inclusion of regulatory aspects in the HRM policies can make Millennium Hotels to face crucial challenges like arising conflict between the management and workforce. Moreover, it can also hinder the overall performance of the organisation in terms of experienced lessened profitability and failure in accomplishing superior competitive position among others (OECD, 2007). The assimilation of extensive regulatory process in the HRM policies can minimise the scope of innovation concerning its range of products or services which further unfavourably impact the organisation to gain its credibility in the growing hospitality industry (Gatewood & et. al., 2010). Therefore, on the basis of the above discussion, it can be affirmed from a broader perspective that the insertion of adequate regulatory process in the HRM policies might provide adequate support to Millennium Hotels. However, the organisation should need to devise and implement certain effectual strategies in order to reduce potential challenges that might rise from the extensive integration of regulatory attributes in its HRM policies. Task 4 4.0. Examining Human Resource Management in an Organisation 4.1. Analysing the Impact of Organisational Structure and Culture on HRM Organisational structure can be referred as an effective set of internal configuration assimilated with administrative system and sub-system, functional requirements along with environmental contingencies that tend to practice common activities towards attaining the desired organisational goals. In relation to the present competitive business environment, it is widely accepted that the organisations seek to develop well-built structure in order to efficiently perform their range of business activities with the intention of sustaining in this competitive landscape (Ravichandran, 2011). In this similar concern, the HRM functions of Millennium Hotels are often influenced by the greater significance of building strong organisational structure. In this regard, the organisational structure significantly involves major functional attributes that enables HRM to efficiently conduct broad assortment of effective functions (Armstrong, 2011). Few of the major impacts of organisational structure on the HRM functions in an organisation have been provided hereunder. An effective and well-built organisational structure enables HRM to efficiently allocate the right individual for any specified job role. In this context, the HRM functions of Millennium Hotels should focus on taking adequate measures on strengthening its organisational structure in order to efficiently perform its HRM activities. Moreover, it can also improve the communication process of the organisation to different hierarchical members and build a productive culture within the organisation. Additionally, a well-built structure and culture also ensures to empower HRM functions in terms of providing equivalent opportunities to each employee and protecting them from the conduct of various discrimination related activities (Swart & et. al., 2012). 4.2. Impact of Culture on HRM In relation to the organisational culture of Millennium Hotels, it has been apparently observed that the organisation has faced different challenges relating to employment activities. The disagreement of maintaining adequate measure on recruitment process has been witnessed as one of the major drawbacks of HRM functions in the organisation. Moreover, lack of retaining employees along with inadequate initiatives on measuring annual turn-over rate also severely impact upon the performance of Millennium Hotels. In this regard, relating to the culture prevailing in Millennium Hotels, it can be affirmed that the different HRM functions of Millennium Hotels should highly incorporate effective practice of various HR related activities that can reinforce its current business position. The adequate measure on employment activities especially in the recruitment and retention initiatives can mitigate the potential constraints that are affecting the credibility and restricting the organisation to meet its desired business goals. Moreover, it is also becoming quite essential for Millennium Hotels to practice different sorts of HRM associated approaches in order to improve its existing corporate culture. In this context, the integration of incessant training and development, reward and compensation along with continuous performance management activities can empower the organisation to increase the ultimate performance of each member. The practice of multiple HRM approach also ensures to enhance the self-efficacy of each individual and make them highly committed to achieve the organisational goals (Armstrong, 2012). 4.3. Effectiveness of HRM on Monitoring Organisational Performance Monitoring organisational performance can be principally regarded as one of the major and essential practices of HRM which can significantly improve the overall productivity along with individual performance within an organisation. In the context of Millennium Hotels, monitoring team performance concerning their allocated tasks and responsibilities can develop the overall outcome of the organisation at large. On the other hand, performance planning and setting pertinent goals can be considered as the other major and primary attribute which tends to facilitate the team members of Millennium Hotels to effectively perform their tasks at a stipulated time. An effective practice of performance reviewing process can often enable the team to improve their respective operational performance resulting in facilitating the organisations to attain their predetermined business objectives by a greater level (Velimirovic & et. al., 2010). 4.4. Recommending Steps towards Improving HR Functions Improving HR functions can be widely considered as an effective practice for the organisations in order to strengthen their competitive position. The organisations in the present business world tend to integrate different types of strategies to improve the ultimate productivity of their HRM activities. In relation to develop the HRM practices within the context of Millennium Hotels, it is highly important for the organisation to recognise its major influencing factors that motivates its members to increase their productivity capability along with building a strong commitment towards accomplishing the organisational objectives. In this regard, a well-built structure of compensation along with benefits, flexible working hours along with suitable goal oriented task can effectively help the HRM of Millennium Hotels to improve the ultimate productivity capability of the employees at large (Grobler & et. al., 2006). Additionally, the aspect concerning adequate training and development and constantly evaluating the performance of each individual can further improve the performance of each employee and overall functions of Millennium Hotels. In this similar context, it can also be recommended that an effective practice of performance evaluation process of the employees can enhance the effectiveness of HRM of the organisation by a greater level (Gusdorf, 2009). Conclusion In relation to the fiercely increasing competition in the global business environment, the perception of HRM of an organisation plays a vital part in terms of building a long-term sustainability. An effective HRM approach significantly empowers the performance of an organisation through incorporating adequate measure on improving productivity capability of each individual and adopting various effective strategies. From the above analysis, it has been viewed that Millennium Hotels faced different constraints relating to its employment practices due to the lack of adopting along with implementing adequate HRM initiatives. In order to sustain in this competitive hospitality industry, the HRM functions of Millennium Hotels should emphasise on incorporating adequate measures on understanding the strategic management of its HR practices. Therefore, the organisation must need to improve its HRM policies in order to effectively practice each HR function and ultimately develop the exiting performance of the organisation by a considerable level. Additionally, an effective assimilation of organisational strategies with the HRM policies can also be regarded as an efficient practice for Millennium Hotels which can provide adequate opportunity for the organisation to accomplish its desired business goals. Specially mentioning, an appropriate coordination amid the employees and the formation of an effectual organisational structure along with culture aligning with the HRM policies can develop the overall functions of Millennium Hotels and also can enable it to maintain its sustainable position in the growing hospitality industry. References Armstrong, M., 2012. Armstrong's Handbook of Human Resource Management Practice. Kogan Page Publishers. Armstrong, M., 2011. Armstrong's Handbook of Strategic Human Resource Management. Kogan Page Publishers. Bratton, J., 2002. Strategic Human Resource Management. Macmillan Publishers Limited. Breaugh, J. A. & Starke, M., 2000. 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