Key Human Resources Functions at Goodman Fielder Limited - Case Study Example

Title page Running header: Strategic Human Resources Management Student’s name: Instructor’s name: Subject code: Date of submission: Table of Contents Title page 1 Table of Contents 2 Introduction 3 The concept of strategic human resources management 3 Key HR functions at Goodman Fielder Limited 4 Whether any of the HR functions in Goodman Fielder limited can or cannot be outsourced 6 Introduction The contemporary organisation today faces major challenges including increasing competition which calls for organizations to offer quality services and products if they are to remain relevant in today’s market. It is worth noting that this can only be attained if the organisation will attract and retain quality employees who are highly motivated. This responsibility is left in the hands of the HR department who plan on the organization’s human resources and manage the HR. As part of its functions, the department also undertakes strategic human resources management. This is supposed to ensure that the organization’s strategic plans can be achieved through people. In a bid to enhance efficiency of HR departments, many organisations have adopted outsourcing of some human resources functions which are deemed administrative. It has however been argued that strategic HRM can not be effective if it is to include outsourcing. This pay seeks to array this fears by looking at what strategic HRM is, what the functions of HRM are and what functions could or could not be outsourced by an organization’s HR department. In so doing, the paper also analysis the benefits that the organisation could derive from adopting outsourcing as part of its strategic HRM strategy. The concept of strategic human resources management Strategic human resources management entails the proactive management of an organization’s human resources (employees). According to John (2006), strategic human resources management incorporates such human resources issues as hiring of employees, employees discipline, and the payroll as well as working in collaboration with the employees to boost employee retention and quality of work experience improvement while maximizing the mutual benefit of employment both for the employer as well as for the employee. As such, strategic human resources management entails the organization’s intensions and plans on how it will achieve its business goals through people (human resources). According to Michael (2010), Strategic human resources management is based on a number of propositions including; i) Human capital is a major source of competitive advantage ii) Organizations use people to implement their strategic plans iii) Organizations should use a systematic approach in defining where they are going and how to get there As such, strategic human resources management is the use of overarching approaches in developing organizational human resources strategies and then incorporating the strategies with the organization’s business strategy. As such, strategic human resources management defines organizational plans and intentions as they relate to its overall considerations on issues such as organizational effectiveness in people management issues such as resourcing, development and learning, reward as well as employee relations. In other words, strategic human resources management entails dealing with major people issues which affect or are affected by the organization’s strategic plans. According to Randal (2007), strategic human resources management is critically concerned with such issues as choice of executive leadership as well as formation of positive patterns of labor relations for the organization both at present and in the long run. Key HR functions at Goodman Fielder Limited Goodman Fielder limited is the leading food company in Australia and it boasts of such brands as meadow lea, white wings, and praise among others. In reaching its goals and objectives of being the most innovative food company globally, the company has established a human resources department with an aim of helping its employees achieve their professional and personal goals while contributing to the overall success of the company. The department’s main focus is career development while encouraging the employees to attain their full potential. As such, the department performs the following functions related to employee welfare; a) Manpower Planning – The department plans for the company’s future human resources needs. This involves determining how many employees the company will need in future and the skills they should possess (Jabez, 2011). In addition, it also involves planning for their welfare. In so doing, the department considers such factors as the number of employees leaving the company, projected sales growth, changes in technology as well as employees level of productivity. b) Job analysis and Job description - the department is responsible for designing job analysis and description for available positions. This involves collection of information regarding the positions and writing statements regarding the positions’ duties, responsibilities, expectations and outcomes expected from the position, qualifications and expected reporting relationships and co-workers of the position. c) Reward and benefits – This involves setting compensation structures while evaluating competitive pay practices. This function is however undertaken in consultation with the company’s top management and the finance department. d) Recruitment and selection –This involves selecting and recruiting the best talent for the company which is seen as critical to the company’s success as it determines the quality of the workforce and hence the quality of products and services. e) Training and development – The department carries out regular training and development programmes for the company’s employees with an aim of improving their efficiency levels (Susan, 2008). f) Compliance – the department ensures that the company complies with labor and employment laws. This ensures employee complaints are minimized while a conducive workplace environment is maintained. g) Addressing employees’ grievances - the department is responsible for employees’ work related grievances in conjunction with the company’s management. The department also ensures cordial employee relations. h) Dismissal and redundancy – the department is responsible for taking firm actions against employees who do not follow the company’s code of conduct and rules and regulations (Ronald, 2007). In addition, when the company no longer requires the services of an employee, the department has to ensure that relevant laws and regulations are followed in the redundancy process. Whether any of the HR functions in Goodman Fielder limited can or cannot be outsourced The topic of outsourcing of the administrative role has also occurred for several areas of HRM. Many companies have outsourced payroll administration. Outsourcing is also being used for training, selection, training and recruiting employees. Strategic human resource management to work effectively can not include strategies involving the outsourcing of HR functions. However, I tend to disagree with this statement. Although many organisations still hold the opinion that the human resources function should be an in-house thing and should never be outsourced, this arises out of the fear of losing control as well as related costs. However, outsourcing has emerged among the most cost effective strategies of navigating the increasingly complex field of human resources. There are many advantages that could arise if organisations could include outsourcing as one of their strategic human resources strategies. These include minimization of business risk associated with the ever changing regulatory environment in the labor market, the cost reduction that could arise from outsourcing non revenue generating back office activities as well as improving efficiency within organisational HR systems. This means the HR department will also have ample time to concentrate on employee development while improving their efficiency and effectiveness. As such, organisations can choose which functions of HR to outsource and which not to as part of their strategic HRM strategy in a bid to striking a balance between costs and maintaining of reasonable level of employee control. This being the case, Goodman Fielder Limited should consider outsourcing the following HR functions; i) Legal compliance –due to increasing legislation, legal compliance has become more complex for companies. Issues of legal compliance that relate to human resource function range from affirmative action, policies on discrimination among other compliance matters (Jossey, 2012). By outsourcing compliance, the company will be taking a huge responsibility from its shoulders. ii) Rewards and benefits administration – administration of employee benefits consumes a lot of time. The function ranges from enrolling employees into insurance programs to sorting their benefits issues. All these issues could be a non stop administrative nightmare and hence the company will save a lot of time by outsourcing it. iii) The payroll- the payroll is both a HR and accounting function that organisations should readily outsource. This is because it is affordable. In addition, Goodman Fielder limited will ease its payroll tax compliance concerns hence riding the human resources department the trouble of having to deal with withholding deposits as well as payroll taxes. iv) Recruitment – Goodman Fielder limited should consider outsourcing this function to an outsider who will act as the company’s internal recruitment function for most of recruitments (Taplin, 2008). Such a provider should manage the entire recruitment process including conducting background checks on potential employees. Although conducting background checks and drug screening is an important part of the recruiting process, they do not have to be conducted by the company’s human resources department. This is because the department just needs to know the result of such processes. As such, such activities can be outsourced to significantly reduce the company’s recruiting as well as on boarding work load bearing in mind that outsourcing such activities can be more cost effective. This will give time to the company’s human resources department to perform other functions. As can be seen, the above human resources functions are largely administrative. As such, the company could better use its human resources officers in interacting with employees and ensuring effective leadership in the company. The time saved could also be used in focusing on use of social media tools to enhance HR functions such as employee retention and improvement of employees’ engagement. It should however be noted that such functions as employee relations, training and development, succession planning, performance appraisals and organizational human resources development strategy should be left in-house. This is because the functions have a lot to do with employee relations and interactions which are better handled in house to keep the employees motivated and hence more productive. References: John, S2006, Strategic human resources management, New York, Sage Publishers. Michael, A2010, Strategic human resources management: A guide to action, London, Kogan Page Publishers. Randal, S2007, Strategic human resources management, New York, John Willey & Sons. Jabez, B2011, Introduction to human resources management practice, Sydney, Prentice Hall. Susan, E2008, Managing Human Resources, Stamford, Cengage Learning. Ronald, R2007, Human resources management: Contemporary issues, challenges, and opportunities, Charlotte, Information Age Publishers. Jossey, B2012, Human resourcing business process outsourcing: Transforming how HR gets its work done, International Human Resources Management Journal, vol. 52, no. 4, pp. 19-25. Taplin, R2008, Outsourcing and human resource management, London, Rutledge. Read More