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Strategic Human Resource Management Assignment
In the business world, all the companies have to ensure that they have to keep changing their objectives and goals to be able to accommodate the changes that take place in the market if they want toe organization to be able service in the market and this can only happens if they are always on their toes to be able to track the changes, predict the future trends and then formulate strategies that can be used in the working of the company. (International Journal, 2015)
Conduct an external environment analysis to critically evaluate the environmental factors by using the PESTLE framework that may influence the firm’s business strategy and its HR strategy.
A company like General Electric (GE) that operates in the different countries of the world have to ensure that they follow the policies of the respective governments as well as other organisations. The political factors include the stability of the government as well the rules and regulations that they have formed for the purpose of trade and import and export. They also include policies and the subsidies that they provide to the companies that operate on the scale as large as the General Electric (GE). The political factor of the business world also includes the construction type of the government.
Taking about the environmental factors of the business, the first that has to be kept in focus is the companies as big and influential as the General Electric (GE) is that they have to promote a healthy and eco-friendly working and production environment. And for this purpose, the management of the company has to ensure that the raw material as well as the mediums that are used in the company for the production of the products is free of all kinds of harmful substances. At the same time, they also have to ensure that the production method doesn’t harm the environment.
The scale of operations for General Electric (GE) is so big that the work that they do definitely affects the people of the society and for this case the management has to be extra careful. They have to make sure that they do not send out a wrong message to the youth of the society and that their products do not turn out to be lif threatening in any way. Other than this they also have ensure that they do something for the backward section of the society like charity or supporting a cause and also generate a certain level of employment.
General Electric (GE) is a company that ahs always been known to be able to lead the market and this is because the company always invests in the best. The same applies to the field of technology as well and the management of the company has to ensure that whatever technology they adopt in the working of the company is the top of the range and that they keep upgrading it. This rule applies to the software that they use for back end work and also the technology that they use for the production process of the company.
Talking about the legal, like it has already being mentioned in the draft that General Electric (GE) is a company that operates in many different companies so the rules have to be followed as per the country but there are some common rules that they have follow. The first is that they have to be fair and just to all the employees and not have any discrimination on the basis of age, gender or background and give equal and reasonable wages. Another legal rule is that they cannot exploit the customers by selling defected products or by over charging in the name of the brand.
The economic factor first of all includes the status of the business market and the kind of trends and patterns that are there in the market because they affect the working of the company. The other economic factors that affect the working of General Electric (GE) is the monetary and the fiscal policies of the respective country and also the flow of cash in the industry. Other than the economic status of the country in the world and the standard of livelihood of the people because this is the factor that gives the people the power and the resources to purchase.
Considering the PESTLE Analysis that has been done, the one thing that comes out of it is that it is mot just the management of the company that has to ensure that they follow the study but also the employees of the company and the HR team of General Electric (GE) has to make it happen. For this, they have to be in constant connect with the research and study department so that they can get the latest statistics and then they have to make the policies to accommodate them in the working of the company. In the end they have to make the employees follow the policies that they make.
The contingency perspective emphasizes the fit between business strategy and HRM policies and strategies, implying that business strategies are followed by HRM policies in determining business performance. The configurationally perspective posits a simultaneous internal and external fit between a firm's external environment, business strategy and HR strategy, implying that business strategies and HRM policies interact, according to organizational context in determining business performance. (Morrison, 2007)
Human resources are an important part of a successful business strategy. Successful business managers realize the importance of well-trained and motivated employees to achieve the company's financial goals. Successful HR departments realize the importance of keeping employees' focus on the company's financial goals while providing opportunities for employee growth and advancement. Employees and management must both realize that a cooperative, not adversarial, relationship is vital to a company's success
Identify and critically evaluate the strategic priorities/objectives of the chosen firm along with justifications.
In order to make this happen successfully in the company, there are many different tools that are available at the disposal of the management for the companies like the General Electric (GE) and the mot successful and useful of them all is the SWOT that has already been done for the company.
SWOT analysis is there for the support of the management and to help them understand the position that they hold in the market and what the future lies ahead of them. They can use this to correct their mistakes and be bale to build up a better future of the company and this is just what the management of General Electric (GE) does. The rule that they follow for this to be able to happen is that they believe in changing their working style and the objectives for the future depending upon the study that they do of the market and that of the psychology of the people. It helps them to be able to keep up the curiosity build in the minds of the people and the also 6take up a competitive edge in the market which is just what a company needs in the current time and during the level of competition that is being noticed. Based on the SWOT analysis that has been done for General Electric (GE), the following are the strategies and the objectives that have been adopted by the management of General Electric (GE). (Jamieson, 2012)
1. Taking in to consideration the fact that it is a company that operates in the different parts of the world, the management ensures that the products that they launch and the marketing and the distribution strategies that they have are as per the lines of the country that they are targeting, for example, the products and the availability of the clothes of General Electric (GE) is different in India when being compared to USA. This is a good option for the company since they can attack the mindset of the people and take their claim like in India, there is lot of value of the brand name than of the product itself so General Electric (GE) had made itself a brand and it has been very good for their sales figures.
2. The next thing that the management of General Electric (GE) has done is that they have adopted the process of decentralization in the department of the production which means that they have ensured that the production process for a particular country happens in the country itself which saves them a lot of resources which otherwise had to be used for export and duty charges. This means that the products that have been directed for the country of Australia are produced in Australia itself. There are many different officers in the different parts of the country that represent the company and have the authority to supervise the production process and the company has even set up a regional office so that the everyday problems can be solved therefore, reducing the pressure on the headquarters to keep constant tabs and they are able to concentrate on the future.
3. Talking about the staff that is used in the different countries in which the company of General Electric (GE) operates, the management has ensured that rather than exporting the manpower from the base station that is the United States of America, they have appointed the local population which are controlled and managed by the regional office. The benefit of this is that common people are more aware of the psychology of the people of their country and can do better in terms of sales and also for the arrangement of the resources that the company will need to be able to run. This is also a financial benefit to the management of General Electric (GE) since they do have to take care of the over head chares that they will have to bear of they send some people from one part of the world to the other and everybody stays in their comfort zones.
4. For the technological aspect of the company, the strategy that has been adopted by the company of General Electric (GE) is that ensure that they use only the best that is available in the market so that they stay ahead and also produce the best in less amount of time. The one thing that management of the insists on is that they have to export the technology of production to every country in which they produce their goods so that they can control the kind of production that takes place and provide the people with the best of the class quality of the products. Technology that is used in the operations of the company is also the very best since they have to manage their operations in different parts of the world from one place and they need constant support and communication. (Pons, 2013)
But is not just the strategies of the company that matter in the current times but also the objectives that have been for the future or the ones that are current being pursued by the management and the staff of the company since they are the ones that determine the success that the company will be able to achieve in the market and how far have they set their standard. (Ryan, 2008)
The objectives that have been set by the company of General Electric (GE) are as follows:
- The management of the company wants to be one of the most successful companies in the industry and they want to ensure that is done solely on the basis of the kinds and the variety of the products that they offer to the people.
- General Electric (GE) is company that is already known as one of the most successful international business companies and they have to reach out to many different countries but still the management of the company wants to expand their business and want to make high end clothing a necessity rather than a luxury.
- General Electric (GE) is a company wants to ensure that they are able to provide the staff of the company, the best of the facilities and benefits that they can manage and this for the countries. (Edmunds, 2009)
Formulate human resource strategy for your selected firm along with analysis and justification
It is one of the most known facts in the business that is very important to keep the employees of the company happy and loyal since they are ones that ensure that working of the company continues and the objectives for the future are achieved. For this there are many different means and tools that are there in the market and the best out of them is the process of motivation and reward. The management of the company has to ensure that they keep the staff of the company on their best foot so that they give in for the company and for this the management has to push them by satisfying some of their desires on the personal level which could either be in cash or kind. General Electric (GE) is a company that has been in the market for a very long time and understands that the employees of the company are a very important asset that they have to maintain and till this time they have done just that but considering the current state of the business market and the level of the operations of the company, there is a need that has been noticed and that is for change in the Human Resource policies of the company.
Up till now the employees working in the company in different parts of the word have acted as an individual unit and have focused on their own sales and operations but the current time demands that they act a single unit under the umbrella of General Electric (GE). This is because of the fact that the world has virtually come closer because of the process of globalization and the people are now more aware and knowledgeable. They know about the working and the products of the company in the other countries and have started demanding the same. This is the time that the company has to act like a single unit and for this they need to have a communication channel between all the different locations and not just the headquarters. This is so that the different locations can coordinate with one another and arrange for the products and the services to be delivered to the people. For this purpose the management of the company will have to put in a lot of hard work and invest a lot of resources for the future of General Electric (GE). (Wise Geek, 2013)
Describe a comprehensive action plan for implementation of human resource strategy and its future monitoring.
The Human resource plan that has been discussed in the last leg of the assignment is there for the assistance of the management of General Electric (GE) and for this plan to be implemented with a high degree of success the management of the company will have to follow the following steps:
- They will have to study the market and get the best communication channel that they can manage.
- Next they will have to get all the regional heads at one place and make them understand the goal that the company wants to achieve.
- They will also have to them about the role that they will play to make it happen and how to train the employees to fall in the pattern.
- Last the management of General Electric (GE) will have to come up with a way to be able evaluate the result of the plan that they have implemented.
For evaluating the result of the action of the plan that has been discussed, it will be best that the company that the company should hold an annual conference with all the regional heads of the different company and discuss the progress that they have made. (Springer, 2009)
Motivation has a very strong relationship with leadership as with the help of motivation the leaders are able to incant the subordinates to do their best under the influence of a strong leader. Various leaders have shown different types of motivation skills and abilities where they have been able to transform their organizations completely. Through various motivational skills such as energizing the their teams, putting the people first, acting with integrity, being a problem solver along with good communication and listening skills a leader is able to motive effectively their team to realize the overall objectives and goal.
In the business organization that one thing that can be seen throughout the entire economy is diversity that is being presented in the unit of the people that work in the various organizations in the many sectors. People come in the market from different backgrounds and they have their own set of aspirations that they want to fulfil during their tenure in the business world. Under these circumstances it is the duty of the management of the various organizations to provide the employees the right type of opportunities that they need in order to flourish in their career which in return is going to be very useful for the companies as well. For this purpose the companies like the Exodus that have a good image in the market need to motivate their staff to do better work.
All the possible strategies that are adopted by the company of General Electric (GE) have been discussed and the conclusion that can be drawn out of it is that they are all very thought after strategies and are there to ensure that the company runs in the market for a very long time and also that they are able to retain the position that the company holds in the market and in the minds of the people.
- Edmunds, A., (2009), Factors that Affect Decision Making, [Online], Available: http://smallbusiness.chron.com/factors-influencing-decision-making-business-environment-65082.html [Accessed 25 November 2015]
- International Journal, (2015), International Journal of Business and Management, [Online], Available: http://www.ccsenet.org/journal/index.php/ijbm [Accessed 24 November 2015]
- Jamieson, L., (2012), Why Good Front of the House Helps Create a Successful Hotel, [Online], Available: http://www.hotel-industry.co.uk/2012/08/why-good-front- of-house-helps-create-a-successful-hotel/ [Accessed 25 November 2015]
- Morrison, M., (2007), Pestle Analysis- HR Department, [Online], Available: https://rapidbi.com/pestle-analysis-hr-department/ [Accessed 22 November 2015]
- Pestle Analysis, What is Pestle Analysis, [Online], Available: http://pestleanalysis.com/what-is-pestle-analysis/ [Accessed 22 November 2015]
- Pons, T., (2013), Tutorial Introduction to Revenue Management for Hotels, [Online], Available; http://www.slideshare.net/tomeupons/tutorial-introduction-to-revenue-management-for-hotels-hospitality-seminar-what-is-revenue-management-in-hotel-industry-course [Accessed 23 November 2015]
- Ryan, V., (2008), Factors that Influence Product Development, [Online], Available: http://www.technologystudent.com/joints/prddes1.htm [Accessed 23 November 2015]