Importance of a HRM Strategic Plan - Assignment Example

The Questions Answer 1 In the modern business environment, human resource functions of a company could and should be used as a central part of the strategic business processes that can allow a company to gain competitive advantages. Proper strategic management of human resource assets can allow a company to perform better in comparison the other companies in the market. However, this can only be done with the management of the company and the human resource department working with each other to follow a proper plan. Importance of a HRM Strategic Plan Most businesses can use advanced technology to man to get tremendous benefits for their organization in terms of increasing productivity or improving efficiency of business processes. All companies can have access to the same development and production tools as that are available to the competition and often the only difference between companies comes from the human resources they have access to. In practical terms, two companies could have the same computers and software tools, the same raw materials to use, even similar machinery for production of goods but if one business has better employees or better means of managing them then that organization will certainly have an advantage over a company that does not have a real plan for strategic human resource management. With training, labor and human resources have the advantage that they can grow with the company and while other equipment might have to be replaced with time, human resources only improve in quality with experience and training. Moreover, with effective training they can improve their skill set to play larger roles for the company and take on more responsibility. Training might also be nothing less than a necessity for the company when the business model changes to a certain level or when the company is looking to enter new markets where the existing skill set of the employees is insufficient. Undoubtedly, the advantages connected with training have been recounted by many HR related professionals but there is also a significant investment involved in training and developing human resources which may not turn out to be as loyal to the company as expected. A strategic HRM plan allows a company to provide the best individuals within the company the best opportunities to go ahead and rise to the top. The worth of an individual to the firm becomes the input given by the individual and the value provided by him/her towards the vision and the objectives of the company. Beyond giving workers incentive and motivation to work better, strategic HRM plans require the makers of the plan to think about where the company is going and what it needs to do in order to get there. Using the right human resources available to the company, the journey could be shortened or made more profitable for the organization. Responsibilities of the Manager in Strategic HRM Planning As shown in the diagram in the question, there are several responsibilities of the manager with regard to strategic HRM planning of which two become more important than the others i.e. futures thinking and strategic intents. This is because these form the basis and give direction to the plan. For example, if the company wishes to expand into different countries, it may need to recruit individuals before it has created or bought an office location in the new country. This means that strategic HRM planners need to not only be aware of the vision of the company but also of the agenda of the firm with regard to the plans it has for operations, expansion, sales and even diversification. Futures thinking and strategic intents are connected with the business strategy that can change quite rapidly taking a business from a defensive position which seeks to protect market share to an offensive stance that seeks to improve the market share of the company. Depending on the finances that a company has access to, the company may decide to hold off expansion in which case the role of the human resource manager would be reduced to managing current employees rather than to make plans for new recruitment or to provide training for current employees rather than to orient new workers. It must be noted that employee training and employee assessment become essential parts of HRM since the elements of analysis and evaluation can not be fully implemented without training and other allied factors. Smith & Hayton (1999) report that the overall business case for giving training and managing training for employees should be seen as an investment in HR. The provision of training can improve the bottom line for the company since it may allow individuals to handle those tasks that may need to be handled by others in the company or by external professionals. By providing sufficient training to a people within the company, it is entirely possible that the need for certain positions can be reduced or be eliminated outright. Of course, the management of human resource assets also means that those who are underperforming or are not a good fit for the company may be asked to leave the firm altogether. Companies such as GE have built their corporate culture through managing their human resources to the point that only those who are fit to work for the company are kept in the company. The bottom ten percent of the company is removed yearly keeping a fresh flow of ideas and new blood into the company (Welch, 2005). A company which seeks innovative individuals with entrepreneurial drive would take on a very different culture from a factory environment where chains of command are not to be broken and work is laid out in orderly systems for the government of human resources. Finally, it must be understood that the diagram shows a representation of the thinker who is supposed to consider all possible aspects of managing HR and that is the very essence of a solid plan for the strategic management of human resources. Answer 2 Market research is very importnat for busiensses since it provides them with information that can be used to improve, create and enhance the products and services offered by the company. The reseasrch on the market comes from studying both the internal situation of the firm as well as the external situation of the market where the firm is operating. Tools such as SWOT analysis, PESTEL analysis, Porter’s forces, the Boston Matrix and others can be used to analyse both the internal and external environments in which the company is placed. The Enviornments The internal environment of the company may be of greater concern to HR management since it shows the HR manager what the company is doing and the direction the company is going towards. In this regard, the SWOT analysis offers four options in terms of the internal environment of the firm which can be used to create strategies for the company. Internally, the factors of strengths and weaknesses become important while the issues of opportunities and threats remain largely concerned with the external environment. it seems that the SWOT analysis is the best method for analysing a given situation for a firm and then and creating practicable solutions that can be applied to resolve or make the best of the situation. There are also certain weaknesses associated with the SWOT analysis since it may be difficult to apply this analysis to immediate problems that require quick solutions. While the SWOT analysis can be used to avoid a crisis situation or to prevent a crisis from going deeper, it is difficult to develop and apply the results of a SWOT analysis during a crisis situation for the company. The type of data that can be gathered from the two environments is quite vast since everything from the financial situation of the company to the financial situation of the country can be required to create a complete analysis of the external and internal environment. However, data concerning the company itself is more related to the internal environment and even the plans for the development of present human resources can form a set of data on which the relevance of external data can be founded. Using the Data When it comes to marketing, firm knowledge about the products or services offered by the company becomes a critical factor about which information has to be collected for any analysis to be correct. This information has to come from internal sources that can define what need will be fulfilled with the product of the company. Incorrect information about what the product can do and what the scope of the services offered by the company really is can lead to a marketing message which is flawed at best and fraudulent at worst. On the other hand, the external environment as it relates to marketing gives data about what product is needed by the people and what service can satisfy the needs of the market. This becomes very important for marketing professionals since it can show them what product or service of the company would be more relevant to the market than others. At the same time, it would also give the company data concerning the performance of competing products and what could be done to make the product more attractive than the competition’s various offerings in the market. When examining the external environment, a company may also choose to go with another method from SWOT such as a PESTEL analysis but if the marketing related problem itself is quite clearly defined, an analysis like PESTEL could confound the situation more than simplify it. This is because SWOT can give a marketing professional the exact points that need to be high lighted in a marketing campaign or the points that need to be avoided. Similarly, the marketing message could be used to counter the threats faced by the company if the message is formed in a correct manner. For an overall marketing strategy, knowing the external environment through an analysis tool such as PESTEL may become critical. This is because PESTEL discusses the Political, environmental, social, technological, ecological and legal situation where the company is operating. For example, if the social environment and the legal environment is asking companies to show that they are behaving in an environmentally friendly manner, it would be very useful for the company’s marketing message to carry the idea that they are a green company and are concerned about the impact they have on the environment. Of course, such messages can be dangerous if the message of the company is not inline with the vision of the company or the manner in which it is being run. Further, there may be legal barriers to the marketing of certain products, controlled substances and other materials that may not be permitted by the regional government where the company is operating. In essence, the political and the legal environment of the firm can not only control and govern what can be marketed to the public but also how it can be presented for the public. In conclusion, it becomes easy to see that knowing the environment (both external and internal) is critical for the marketing mechanics of the company simply because they give the required situational awareness. Without knowing what is going on in the company or without fully understanding how things are proceeding in the real world where the product will be sold and used, a company would simply be blind when it comes to marketing their goods or services. On the other hand, once this information is available, a marketing strategy can be formed which gives the company an edge over other companies that do or may not have the full information about the environment they operate in. Thus the more useful information a company has, the better off it would be. Works Cited Smith, A. and Hayton, G. 1999, ‘What drives enterprise training?, International Journal of Human Resource Management, vol. 10, no. 2, pp. 251-272. Welch, J. 2005, Winning, Collins. Read More