Strategic Human resource

Management

LO1: Understand how the strategic management of human resources contributes to the
achievement of organizational objectives
1.1 Explain the importance of strategic human resource management in organizations
Within HSBC, strategic human resource management has been regarded as an important
organizational function.

It has maintained a significant link with the business strategy of

organization to meet human resource requirements.

Strategic human resource is important for HSBC for following reasons: a) it provides a
systematic approach for recruitment and selection of employees; b) it identifies human resource
needs of an organization to carry organizational activities, c) it provides framework for
developing employee welfare programs, and d) it facilitates all departments of the organization
to achieve respective goals through HR policies.
Strategic human resource is about taking relevant practices and strategies for motivating
employees to enhance their productivity and efficiency (Armstrong, 2008). One important way
by which organization can do this is to offer important incentives, promotions and bonuses (Alan
et al., 2009). Motivated employees are more likely to attain the organizational objectives. When
strategic goals of the organization are set in an effective manner, these are employees who put
their efforts for achieving the organizational goals. Moreover, strategic human resource
management also identifies key areas where manpower is required. In this way, through relevant
recruitment and selection practices, human resource requirements are met by the organization.
1.2 Assess the purpose of strategic human resource management activities in an
organization
Human resource management has been considered as a coherent and strategic approach that
manages most important asset of the organization i.e. human resource (Bratton and Gold 2008).
Employees individually and collectively put their efforts to contribute their part in the attainment
of organizational objectives. The case study organization i.e. Siemens is one of the reputed and
150 year old organization. The company has aimed at delivering quality electronic products to
customers across the world. With a huge workforce of more than 400,000 employees, Siemens
has diversified into services, engineering and software services. To manage this diverse portfolio
of products and services, Siemens has taken effective strategic human resource management
practices.

Strategic human resource management activities are critically important for Siemens to manage
its diversified portfolio of products and also to meet human resource requirements in each
segment of the organization. This is also critical for Siemens to meet needs of employees in an
effective manner. This is because if needs of employees are not met adequately, they cannot
contribute effectively to attain organizational goals of Siemens. The strategic human resource
management activities are also critical for Siemens to manage employee needs proactively. These
activities enable Siemens to manage multiple HR objectives from hiring employees to selecting
staff, to training and motivating them.

1.3 Evaluate the contribution of strategic human resource management to the achievement
of an organizations objectives
Strategic human resource management is often regarded as the strategic and aligned approach for
organization to meet its objectives through most important asset i.e. human resource. Employees
are considered as the most important asset of an organization because they contribute actively for
achieving organizational objectives (Noe and Hollenbeck, 2000).
Within Siemens, strategic human resource management has directed to attain the organizational
objectives. With effective human resource management, recruitment strategies are developed to
hire skilled staff that can meet customer demands. Highly skilled professionals at Siemens
deliver effective consultancy services to clients.

LO2: Be able to develop human resource plans for an organization

2.1 Analyse the business factors that underpin human resource planning in an organization
Following business factors underpin the human resource planning in HSBC:

Strategic HRM strengths: The one important factor is the strength of strategic HRM is to
identify the key people required for meeting the organizational objectives. HSBC focuses
on the HR practices for meeting organizational objectives in a satisfactory manner. The

HR planning is affected by the specific strengths of HSBC in HR policy.

Business growth: The second important factor by which HR planning is influenced is the
business growth of HSBC. When the business is growing, it requires skilled human

resource to meet growing needs of business. HSBC has been growing its business across

the world; hence it requires skilled professionals for its new branches.
Business change: The next important factor that can influence HR planning in the HSBC
is the business change. When the organization implements change programs, it needs key
staff for meeting new demands. For instance, HSBC has introduced online banking
system to meet emerging demands of customers. For this reason, HSBC needs skilled
professionals who can work on online banking software.

2.2 And 2.3

assess the human resource requirements in a
given situation and develop a human resources plan for an
organization
HR planning is the process by which human resource requirements of an organization are
identified and met with relevant policies (Randall and Susan 2007; Mullins 2007). HR planning
is the way by which human resource needs are identified to meet customer demands. HSBC is a
service organization that aims to deliver professional insurance services to customers. Therefore,
it must have skilled and qualified professionals to satisfy customer needs. Following HR plan has
been recommended for HSBC:

Assess current status of human resource: The first step is to analyse the current human
resource objectives, capacity and structure of the organization. Moreover, analyse the
market environment in which organization operates.

Forecast HR demand: The next step is to assess the future demand of human resource by
the organization. This forecasting is done in terms of number of employees required by
the organization in future.

Forecast HR supply: The next step is to assess the human resource supply in the external
environment that can be hired by organization for meeting organizational demand.

Match demand and supply: Next step is to compare the future demand and supply of
human resource to assess that whether organizational needs can be met.

Develop HR policies: The last step is to take relevant steps for meeting HR requirements
of the organization through recruitment, selection, transfers and promotions.

2.4 Critically evaluate how a human resources plan can contribute to meeting an
organizations objectives
Human resource planning has aimed at identifying human resource needs of the organization to
meet the organizational goals. This process enables organization to hire right people for the right
job in the organization. Hence, it can be said that human resource plan contributes in the
attainment of the organizational objectives. Following are the ways by which it is clarified that
human resources plan contributes to meeting an organizations objectives:

Effective use of the people: HR planning is responsible for attracting right people for the
right jobs in the organization. When employees are effectively utilized, they help

organization to attain the organizational goals.

Improvement in performance: HR planning contributes the organization for making
significant improvement in the organizational performance. With motivated and skilled

staff, employees put efforts for improving the organizational performance.

Planning for surplus staff: HR planning enables organization to cater the surplus staff of
the organization at appropriate place. In this way, excess employees are placed at

appropriate place that does not put burden on the organizational budget.
Succession planning: HR planning is also effective to train employees for future position
of the organization. Succession planning enables transition to prepare and train existing
employees for future key positions of the organization. In this way, future position of the
organization is adequately secured.

LO3: Understand human resources policy requirements in an organization

3.1 Explain the purpose of human resource management policies in organizations.
The reason for human resource management in HSBC is in wide point of view. It has chiefly to
distinguish and store the Human Resource exercises in the association. The arrangements of HR
in HSBC bank are as below:
Health and Safety: HSBC bank puts significance on Health and safety policies to verify that a
sheltered domain is exist in the association the measure of danger may emerge from conceivable

terrorist assault or any other disaster. HSBC has urged its employees to take wellbeing and safety
as a piece they could call their own obligation.
Diversity: In HSBC bank Equity and Diversity practices are drilled with loads of respectability.
The diverse workforce of HSBC has provided opportunity to company for improving the
organizational goals in an effective manner.
Bullying and Harassment: HSBC as the world nearby bank has put the individual particular
worker approaches are forced by the enactment and the provincial social standards. All
employees are responsible for acting colleagues with deference and nobility for making the
environment free from Discriminations and harassments.
3.2 Analyse the impact of regulatory requirements on human resource policies in an
organization
The effect of regulatory requirements on Human Resource strategies in HSBC bank is vital and
key for fitting practice of administrative arrangements and complies with the standards. It has
stressed on practicing Employment enactment and legitimate and administrative prerequisites
including pay, discrimination, correspondence livelihood right and obligations. The effect of
regulatory policies in HSBC bank is discussed as below:
Gender discrimination act: Under the Gender discrimination act 1995/1997 it is unlawful to
victimize somebody o grounds of their sex or conjugal status.
Race Relation act: Under the race relation act 1992 it is unlawful to oppress somebody on
grounds of Race, Color, Nationality or Ethnic minority birthplaces or on the grounds of their
religion or philosophical convictions. Anybody get to be inability to be submitted to the
standards would be confronted legitimate activity of end.
Employment act: Under the employment act 2008 HSBC has acquainted the fundamental
business law with the staff. The enrollment law cover the discrimination on number of grounds is
illicit for occurrence, race, sex, and age.

LO4: Be able to examine human resources management in an organization

4.1 Analyse the impact of an organizational structure on the management of human
resources
As indicated by Thompson (2010), there are two fundamental ways to deal with the arrangement
of organizational structure, the possibility methodology and setup approach. The possibility
methodology of the structure of an association will rely on upon components like the way of the
business and its procedure, its size, the land compass of its exercises, its age and history and the
way of nature. He contends that instead of adjusting the possibility approach it is now and then
better to construct structure in light of design methodology, variables like compass of control, the
requirement for formalization centralization and decentralization and arranging framework ought
to be consistently designed into inside steady gathering, (Noe et al., 2010). Authoritative
structure is type of model which demonstrates the portioned administration level and the forced
obligations have a place with people. Effect of key HRM on the HSBC organizational structure
is to situated up an edge work in the support of diminishing undesirable opportunities, make
positive and valuable arrangement in the association

4.2 Analyse the impact of an organizational culture on the management of human resources
Organizational Culture is the key component of organizational practice. In the part of
organizational life culture keep a focal and dimensional area in the association. Authoritative
culture in some cases saw an express consideration by how individuals consider the organization,
the quality and the thoughts how guided by the importance and the conviction of a social nature.
Dealing with the hierarchical culture is critical and the view of it see by the corporate world can
build up the social practice and the execution (Kleiman, 2005). Organizational culture is the type
of perception and thoughts, belief systems and the estimation of the association interior conduct.
The relationship in the middle of culture and HRM capacity is exceptionally normal and inside
connected. HRM capacity incorporates Resourcing, Development, execution administration, pay
and conditions and workers' relationship has the possibility way to deal with every others. The
elements of HRM and the way of life are drilled in the meantime to create and activity the
Strategic Human asset administration in the association.

4.3 Examine how the effectiveness of human resources management is monitored in an

organization
The viability of Human resource management is to enhance the current business in HSBC.
Human resource management system, human asset approaches and Human asset operation is to
give the game changers in the association. The commitment of HRM is to give the
accomplishment to association, help to gain HSBC objectives, diminishing the expense, and
build the advantage.
Strategic human resource has recognized the few field of viability in HSBC. HSBC has the
objective to create client centered and the execution of HRM that offer prizes for individual
execution additionally the acknowledgment of diverse representative in the business has
distinctive request as far as advantage, Training and advancement.
Human resource proficiency implies the liveliness of the operation is given by those individuals
who are working for HSBC. To enhance the business HSBC has got done with rebuilding of the
administration so as to expand responsibility of the business. It is presently investigating the
better approach for help the proficiency in staff to improve esteem for customer by centering the
change of workers engagement.
Performance marker is a methodology of recognizing the individual worker's movement
estimations. HSBC have the right Human asset pioneer of right backing with inspiration to make
superior HR culture that implies the administrators may include with the workers to get high
class efficiency.

4.4 Make justified recommendations to improve the effectiveness of human resources

management in an organization
Recommendations for improving the effectiveness of human resource management of HSBC are
as below:

It should analyse the business performance in relation to the human resource of the

organization.
It should provide authority to employees to take relevant decisions for catering customer
needs in the best way. This will not only boost employee morale but also enhance
organizational performance.

It should introduce regular monitoring plans and programs for assessing employee
performance.

References

Armstrong. (2008). Strategic Human Resource Management: A Guide to Action, Kogan

Page Publishers
Randall S. Susan E. (2007). Strategic Human Resource Management, Blackwell

Thompson, (2010). Strategic Management: Awareness & Change. Ed 6th. Cengage

Learning EMEA

Noe, R. A., Hollenbeck, J. R., Gerhart, B. & Wright, P. M. (2006). Human Resource

Management, NY: McGraw-Hill Irwin.

Kleiman, L. S. (2005). Human Resources Management: A Managerial Tool for
Competitive Advantage. 2nd ed. New Delhi: Biztantra.

Bratton, J., and Gold, J. (2007) Human Resource Management: Theory and Practice, 4th
Edition, Houndmills: Macmillan

Alan, Robert and Bill, (2009), Effective Recruitment and Selection Practices, 5th ed, CH
Australia Limited

Mullins, L. (2007). Management and Organizational Behavior. 7th Ed. India: Pearson
Education