3.2 THE ISSUES OF STRATEGIC CHANGE ..............................................................................................................8 3.2.1 THE REASONS WHY? STRATEGIC CHANGE REQUIRED ............................................................................... 8 3.2.2 THE FACTORS THAT LEADS TO STRATEGIC CHANGE .................................................................................. 9 3.2.3 RESOURCES IMPLICATION IN STRATEGIC CHANGE.................................................................................... 9 3.3 STAKEHOLDER INVOLVEMENT IN STRATEGY CHANGE ............................................................................... 10 3.3.1 STAKEHOLDER ANALYSIS FOR PLANNING OF CHANGE............................................................................ 10 3.3.2 RESPONSIBILITY CHARTING ...................................................................................................................... 10 3.3.3 EVALUATION AND ACTION PLANNING..................................................................................................... 10 3.4 PLAN FOR IMPLEMENTING MODELS ........................................................................................................... 11 UNIT6 .................................................................................................................................................................. 12 6.1 THE SIGNIFICANCE OF AN INNOVATIVE AND CREATIVE MANAGEMENT ................................................... 12 6.2 MOTIVATION TO CREATIVE AND INNOVATIVE MANAGEMENT PROCESS ................................................. 12 6.3 THE PURPOSE AND METHOD ...................................................................................................................... 12 6.3.1 MEASURES OF INNOVATION .................................................................................................................... 13 6.3.2 INNOVATION MATRIX ............................................................................................................................... 13 10.1 STRATEGIC HRM AND ITS CONTRIBUTION. .............................................................................................. 14 10.1.1 THE SCENARIO OF THE EVENTS AT ABBEY NATIONAL BANK THAT INITIATED BY SANTANDER LTD. .. 15
10.2 HUMAN RESOURCE PLAN FOR AN ORGANIZATION ................................................................................. 16 10.3 THE DESIRABLE HR POLICY IN AN ORGANIZATION. .................................................................................. 17 10.3.1 ASSESS THE IMPACT OF THE HRM ADOPTED IN AN ORGANIZATION. .................................................. 18 10.4. AN ANALYSIS OF ORGANIZATIONAL STRUCTURE .................................................................................... 19 10.4.1 AN ANALYSIS OF ORGANIZATIONAL CULTURE ...................................................................................... 20 10.4.2 ASSESSMENT OF HRM MONITORING. .................................................................................................... 20 10.4.3 RECOMMENDATIONS TO IMPROVE THE EFFECTIVENESS OF HRM. ..................................................... 21 CONCLUSION ...................................................................................................................................................... 22 BIBLIOGRAPHY..................................................................................................................................................... 22
To
illustrate the strategic change process consists of background, issues, role of stakeholders, planning and implementation of models for strategic change and ongoing change process, besides that explains the significance of creative and innovative management and how supporting that process, as well as discloses how to influence others to effect change, furthermore presented the plan for to overcome the barriers to implement the creative and innovative ideas in an organisation , likewise evaluate how the strategic management of Human Resource contributes to achieve the objectives with defined Human Resource plan and policy, and then examining Human Resource Management in an Organisation.
3. BACKGROUND
The Northern Spain based traditional historic Santander Bank Ltd since 1857 launched in U.K market in 2004 and takeover the Abbey National Bank plc, similarly transformed the entire management systems and structure for the better profitability as well as broaden its brands of value for money products. This assignment performed with the view point of Senior manager at Abbey National Bank plc at strategic level and role in Human Resource Manager and Change Consultant. 4. I NTRODUCTION Since Industrialisation there was major perpetual changes occurred not only in the economy of countries but also in organisations, besides that globalisation abolished the boundaries up to an extent, consequently there are collaborations, takeovers, expansions occurred beyond the geographical boundaries. Plainly the success or achievement of organisational goals of an organisation depends the strategic planning and implementation, and then in takeover of an
organisation has to transformed with strategically changed plan, besides that it has to implement correctly for better performance and attainment of organisational objectives.
The formulation of the strategy depend the background of the organisational strategic change and issues behind the strategic change. However the stakeholders even have a role and participation in system planning development. The creative and innovative way of management of precious human resource asset and strategic management of Human Resources reduces the distance to organisational objectives. Obviously the dynamic change depends and demands the robust human capital with fully
engaged and responsive, mean while assertively developed and deployed. A well defined and executed H.R. Development Plan contributes to develop and sustain a sprightly and flexible collaborative organization.
UNIT (3)
customers, victory over competitors, exploiting the present market or creating new opportunities with creative and innovative management. After that the Operational Strategy concerned with how can organize each and every part of the business based on the corporate and business level directions with focus on the issues of resources, processes and human resource. Strategic Management refers the broad sense of strategic decisions and it has components of Strategy Analysis, Strategic Choice and Strategy Implementation. A. Strategy Analysis: Strategy analysis focused to analyze the strengths of business position and examining the main external factors that may cause to influence the organization and it can done various tools as follows.
Certainly the changes since 1857, Santander bank reached the position of largest bank in Euro Zone with a market presence of 10 Crore in Europe and North and South America, besides that the position of Fourth largest bank in the World by profit basis in 2009. 2004 Santander bank Launched in U.K and made Acquisitions, agreements and finally made rebranding. (Fig.1) Fig.1
Year/month 2004-Nov. 2008-Sep. 2008-Oct. 2008-Oct. 2010-Aug. 2010-Nov Acquisition Acquisition Acquisition Rebranding Rebranded as Santander Process Bardford & Bingleys Alliance & Leisester Abbey anf Leicester rebranded as Santander Alliance and Leicester Organisation Abbey National Bank Plc.
The U.K based Abbey National Bank formerly begins with Building societies Act 1836 and incorporated in 1849, since 2004 acquisition by Santander Bank it has come over through transformation of changes.(Fig.2) Fig.2
Year
1849 1874 1944 1989 1996 2000 2004
Functions
National Freehold Land and Building Society is established St. John's Wood Permanent Benefit Building Society is established Abbey Road & National Freehold merge to create the Abbey National Building Society Abbey National converts to a plc Abbey National merges with National and Provincial Building Society Cahoot, a separately branded e-bank, is created. Acquisition by Santander Bank Ltd
Strategic Management evaluate and analyses the main initiatives done by the strategic level managers on behalf of the owners. Mean while it consists of not only resources but also performance in external environments. It specify the vision, mission and objectives, besides that developing policies and plans in terms of the projects and programs those developed to achieve the objectives and follows the allocation of resources for implement the policies, projects, plans and programs. The strategic performance measure of Balanced score card method is used to access the overall performance of the organisation and its progress to objectives. (Norton 2004) The strategic choice depend various circumstances and it based on under limited growth, substantive growth and retrenchment, besides that there is other methods of growth in building up new business from scratch and develop, acquire existing business , merger or joint venture. The new opportunities of growth and value creation depends the selection of alternate approach of strategic model. The growth depend the selection of path, for instance; The heavy investment in product development leads to new and best offerings. Development of deep consumer insights to offer customers new and better ways to satisfy needs of customers. New strategy formulation to grow by acquisition and extended markets. The business model includes aspects of organizations approach to develop and deliver profitable offerings to target customers, besides that there exists basic questions such as ; o Target customers o Need of the customers o Offerings for the need o Access by the customer to the offerings
o Role of organization to provide offering. o How earn the profit So it is better to use the innovation model to extract the optimum potential from the focused activities of R&D, customer insight, strategic development efforts.
3.1.2
Kaplan & Norton proposed a five key principles required to build a strategy focused organizations. Those are, translate the strategy into operational terms, align the organization in to the strategy, make strategy everyones everyday job, make strategy a continual process and mobilize change through strong effective leadership. (Norton, 2004) The Balanced Score card known as the integrated system of managing strategies and it connected the long term objectives of the organisation with short term actions, besides that connected with senior management with frontline employees and organizational vision with organisational activities.
Fig.3
The Balanced Score Card Institute Introduced a nine step to success, it is a practical approach based on the balanced score card method and can used by strategic managers to develop strategic plan and manage the system. This disciplined frame work leads to different components of the strategic planning as well as management. There is a visible contact with the projects and programs and the measurement can used to track success of that the organization trying to attain, besides that the vision, mission and strategy of the Organization. Fig.4
The significant responsibility of the organisational leaders framed to build the organisational capabilities which supports not only innovation but also collaboration and continuous learning. The achievement of ambitious goals to meet head on economic uncertainty, environmental risk, social changes and unpredictable forces, therefore to execute successfully in the unfavourable environment, they have to embrace the new way of thinking for to succeed in complex and fast changing environment.
strategy and routine of management, besides that it is inside the budgeting territory, due to that the organization will be productive in long run.
All areas of necessary actions should covered It breaks target results in to achievable portions Deliver the project at time within the budget, with defined actions and assigned responsibilities with confirmed time scales, besides that the action plan should have to produce with the following questions. Where we are exist? Where we do want to reach? What to do for desired target? Who is required and what is target date? The action plan should review regularly for ensuring the completion of actions and should let others see what actions are outstanding.
Fig.7
6.3 THE
The purpose of creative and innovative management is that it creates business value by incremental improvements to existing products or new products and services or reducing cost for survival and growth. The innovators always survive and grow.
The Innovation process to be able either it may pushed or pulled during on development The pushed process refers to an existing one or newly invented technology with access by the
organization and can add profitable additions to use the product. The pulled process refers that to find the areas where the users needs are not satisfied, where as the organisation focused to find the solutions for the gap. To succeed with both of these methods needed not only the understanding of market but also technical knowledge required.
UNIT10 10.1 STRATEGIC HRM AND ITS CONTRIBUTION. The HR is the significant factor of the organization and the performance of an organization depends this key factor, therefore the proper HR policies and process are developed and implemented dynamically, besides that the strategic HR management and its impact make vital contribution on organizational goals. Michie and Sheehan (2005) define that strategic human resource management is the pattern of scheduled HR tasks and development intended to enhance an organization to gain its aims. Finally Batt (2007) described that the major strategic HRM theory premise is that successful performance of organization relies on a close alignment or fit between HR strategy and business (Dyne and Pierce(2004) and Batt(2007) cited in ( Armstrong 2008)
The performance management considered flexible process and it defines as a continuous selfreviewing cycle and consists of planning, acting, and reviewing. The planning process sum up with performance and Fig.5 (Armstrong 2006) development of contract, Acting deals with the managing it throughout the year and finally Reviewing process examining the progress and achievements.
The performance of agreements developed from analysis of role requirements and follows objectives, there are different types of objectives: Ongoing Objectives Targets Tasks Behavior
The criteria for objectives uses the SMART for summarize the objectives.FIG.6
The measurement of performance required to achieve objectives, due to that generate the feed backs , identify the direction and then take corrective steps and make use of the outcome for achievement of objectives, competence, quality, contribution to team, customer care, working relationships, productivity, flexibility, skills and learning targets, aligning personal objectives with organizational goals, business awareness and financial awareness.
OF THE EVENTS AT
THAT INITIATED BY
The interview with Simon Lloyd, the HR Director of Santander Bank by Jason Spiller reveals the essence of the strategically managed HR policy of the Santander bank. The HR Director come up through different prospective and witnessed the change, also experienced to manage it.
The statement by Simon Lloyd, appreciate the huge impact that change made in business. The people dont like change and they can cope up with it when they know what is changing. The Alliance and Leicester do not have any credit problems and Santander bank arguably proceeded to prosper and grow and productivity is important, that means review the incentive schemes and get vision on what the vision needs. The sum up of HR is that successful business is built on the quality of people in the organization. (Lloyd 2011) The interview discloses the approach to risk by Santander Bank throughout the take over and acquisitions and answered how the HR team set up across the Organization? The answer was, the business partner model and close relation with the business and areas of expertise around talent and training, policy on employee relations and operational HR around the Matrices. Communication and clarity is the key and the survival of bank exists in satisfied customers. The key work is making sure all systems and operations put across as faultless as possible. Further comments on successful HR Strategic management was, the ability to distribute knowledge through the combined Organization as swiftly as possible, such as different ways of working, new procedures and the knowledge is moved around, and an all rounder in every branch with knowledge of every sector encouragingly huge willingness to get the job done His concept on maintain continuity and maintain correct pace is that a lot of it is the training when you introduce a new system for example, its usually live, and the most important thing to do is give people hands on experience. We watch and supervise, and its done branch by branch, and you need to back it up with experts, people with experience in getting branches up and running, plus the intranet provides a good deal of back up and support, giving people access to processes. Training is primarily hands on, on the job, and general training can be done with e-learning. (Lloyd 2011)
According to US Legal, HR policies are official guidelines and rules that are put into place by a companys HR department to hire, train, evaluate and reward staff. Cited (Shehan, 2012) The HR policies and guide lines put by HR department to deals with the following aspects: Hiring staff Train staff Evaluate and train staff Function of an HR Policy It prevent misunderstanding between employer and employees
It explains the rights and obligations in the work place Employee use it as a guide line and direction Employers use it as , if any questions arise in office process
Importance of HR Policy in work place Establishing consistency Help employers to maintain order in work place Protect employers and employees in court of law Types of HR Policy codes to obey by employees Behavioural Ethical Professional Policy on training requirements Performance evaluation Benefits and wages Overtime Breaks International protocols The employment legislation is one of the fastest changing areas of HRM and every country there is supportive Acts, such as in U.K, Minimum Wage Act 1998, Race Relations Act1992, Equal Pay Act1970, Disability Discrimination Act1995-2005, Sex Discrimination Act1995-97, Employment Relations Act2004. These rules are established before and made amendments time to time. So it is a legally in deficient HR policy is suggested.
(Kotter 2006)
Can be turned into actionable programs Anticipate the implementation requirements and problems Be coherent and should and integrated moreover components should support each other Consider the needs of line managers, employees, organization and stakeholders (M. Armstrong 2006) cited in his work, Boxall and Purcell (2003)emphasize: HR planning should aim to meet the needs of the key stakeholder groups involved in people management in the firm.
10.4.3
The IT enhancement and globalization, besides that emerging opportunities provide an abundant chance to experienced employees, moreover the new generation organizations even recognizing the value of HR. Improved HRM process allows to manage the information of employees efficiently and pay employees at right time with right salary The satisfied employees are asset of any organization and more suggestions as follows. a. b. c. d. e. f. g. h. i. j. k. l. FIG.7 Manage and utilise the employee information properly Direct deposit of salary to bank Develop HR capabilities Integrate applications Compliance Define performance metrics Analysis of performance data Recognition of leaders from performers Reward the leaders Train or drop non performers Continuous motivation, create creativity and innovation in HR. Be a reliable organization. Fig.7
CONCLUSION
To recapitulate, there is no change for changes, since the knowledge starts sparks and move to optimization of every status of universal dealings , especially the challenging changes emerging in globally for the organizations, it is vital to change strategically for the survival. The changes all emerged from the human brains and the Strategy managed organizations are recognized the real value of creative and innovative management , moreover the strategically managed HR.
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