Discuss about the MGB207 Human Resource Issues and Strategy.
Importance of involving HR managers in strategic decision-making
Strategies act as a central doctrine for the companies and organizations in terms of enhancing the efficiency in the business activities. Developing strategies helps the personnel in prioritizing the activities. Strategic approach is a typical example of organizational or workplace behaviour, enhancing the professionalism of the personnel. This assignment attempts to expose the approach of the personnel in terms of Strategic Human Resource Management.
In the present competitive scenario, the HR manager lack the basic understanding that they need to be strategic in dealing with the business issues. This statement act as a distortion towards the theory of planned behaviour and reasoned action. This is due to the absence of the theoretical judgments towards the allocated duties and responsibilities (Higgins, 2014). In most of the companies and organizations, absence of the HR managers and faculties is one of the major issues. If they are invited to the strategic decision-making process after the decisions have been taken, then it aggravates the complexities. This is in terms of the delayed action towards implementation of the proposed strategies.
In the present context, the instances of a company of US enlivens the knowledge of the readers about the appropriate strategic approach. The steps taken by the company projects the lack of understanding in case of the HR faculties towards productive output from the employees for enhancing the productivity. Absence of this understanding adds vulnerability into the market position of the company within the competitive ambience (Higgins, 2014). Within this, one of the related issue is overstaffing. This issue delays the completion of the tasks within the stipulated time. Along with this, overstaffing indicates additional resources, which strains the budget.
The HR manager was involved at a much later stage when the CEO has already levied the instructions to the CHRO, Director of Workforce Reporting and HR Information Technology. Workforce realignment was one of the obstacles within submission of the required analysis within a time of 30 days. Negligence of the managers towards the proposals forwarded by the staffs is one of the issues, which the case study exposes. CHRO expresses her concern that if the workforce realignment is not done, they would be compelled to think of other options for completing the allocated tasks (Higgins, 2014).
The frustration of CHRO and the Director of the Workforce Reporting is clearly evident in their expressions related to their treatment as “financial simpletons”. This reflects the mentality of the CEO and Directors in terms of treating the employees as a source of extracting productivity. When the need finishes, their status is like disposable napkins, losing all the significance, which they hold in the workplace.
Workforce realignment as a strategic approach to enhance productivity
One of the striking issues is the selling of proposal by the CFO to the CEO without considering the input from HR. This is illegal, as case submissions and other tasks need to be executed only through the inputs from HR. Lack of consideration regarding the inputs from HR is a disruption into the management process (Higgins, 2014). Strategic approach was also missing in the time when the solutions were implemented on reducing the share of cuts. This absence made the approach both fair and unfair. Herein lays the appropriateness of the tag, “peanut butter” to the judgment of the personnel. This is because of the lack of understanding towards the drawbacks, which prevailed in the workplace.
Summoning the higher officials before commencing the projects is appropriate in terms of enhancing the awareness towards the labor, which is needed for enhancing the productivity. Along with this, this is a communication, which results in dissemination of the appropriate information from the higher authorities to the faculties. This communication improves the stability in the relationship between the personnel in the workplace. Developing specific strategies like increasing the top-line revenue for catering to the needs, demands and requirements of the shareholders is appropriate in terms of improving the focus within the business operations (Higgins, 2014). Confidence regarding the maximization of the profit margin through tax savings is a matured step towards achieving financial flexibility. This confidence generate eagerness and willingness among the employees towards exposing better performance. Along with this, confidence from the employees also helps the managers to make estimates regarding completion of the tasks within the stipulated time.
Overstaffing is an issue, which acts as an obstacle within the efficient execution of the business operations. In response to this, the strategy of workforce realignment is a strategic approach in terms of carrying out the tasks as per the company requirements. Workforce realignment can be considered as a planned action and behaviour towards enhancing the productivity (Higgins, 2014). Negligence from the higher officials regarding the petitions is against the ethics. This is because the opinions and viewpoints of the employees is central towards fulfilling the identified and the specified objectives.
Offshoring and outsourcing activities is apt in terms of expanding the supply chain network. Outsourcing is fruitful in terms of getting the governmental assistance for executing the business operations. Offshore manufacturing is a reasoned behaviour in terms of expanding the business horizons of TechSoft. Planning regarding offshoring activities places TechSoft at an advantageous position. This is because the personnel are getting the services are getting the services done at low prices. Planning in this direction indicates the financial flexibility, which the company possesses (Higgins, 2014). This is an efficient means for attracting the foreign clients and investors. However, as there is no mention of the legal parameter, it is difficult to say that TechSoft exposed matured step towards executing offshoring activities. Countering this, tax impositions indicate governmental intervention into the operations. Consciousness towards maximization of profit through savings is a matured step towards coping up with the external and political pressures.
Offshoring activities and their benefits
Treatment of the employees as financial simpleton is not at all appropriate. This is because they are asset for the company’s success. Their values and opinions counts for fulfilment of the identified goals and objectives. Moreover, the employees occupy an important place within the organizational hierarchy, as key stakeholders. Therefore, considering the employees are financial simpletons is inappropriate in terms of their professional development. This type of approach cannot be considered as a matured approach of the managers in terms of ensuring the professional development of the employees (Higgins, 2014).
Evaluations and change implementation cannot go side by side. The drawbacks can be considered for implementation of the proposed changes. Here, one of the questions is the lack of consideration for the alternatives regarding the assessment of the potential risks. Risk assessment is an important exercise, which the companies and organizations need to conduct for ensuring the wellbeing of the stakeholders and shareholders. While conducting the risk assessment, the personnel need to expose judgmental decision-making process. This is in terms of seeking effective solutions for reducing the intensity of the potential risks.
Plans regarding increasing the streamline business is appropriate in terms of upgrading the standards and quality of the products and services. Strategic approach towards elimination of duplicate jobs and early retirement schemes for the employees belonging to the old age (Higgins, 2014). On the contrary, if these employees are engaged in the decision-making process, the company would easily acquire corporate minds for enhancing the productivity. Proposing recommendations regarding cost effective changes is fruitful in terms of stabilizing the financial parameter.
The goal of acquiring increased market share is appropriate at a phase when the status of the economy is flat. However, for this, product launches need to be done at the right time for averting adverse effects on the business as a whole.
Evaluation is one of the essential components, which enhances the awareness towards the prevailing drawbacks within the business operations. Discovering these drawbacks attracts the attention of the managers towards the additional steps needed towards reaching the benchmark level of performance. Within this, identifying the need for training can be considered as an effective step in terms of filling up the drawbacks. Preparing the budgets for the training is both planned and reasoned behaviour in terms of prioritizing the business activities according to the identified and specified requirements (Higgins, 2014).
Training is a strategic approach towards exposing the appropriate approach needed for fulfilling the specific needs, demands and requirements of the clients. Taking post training tests can be considered as reasoned action of the managers in terms of assessing the capability of the employees towards making practical application of the learnt skills into the workplace operations. The scores of the employees in the post training tests is assistance in terms of making estimates regarding the future course of action (Higgins, 2014).
Flat demands slowed down the growth and reduced the profit for TechSoft. Untimely launch of the products heavily impacted the financial year, resulting in stained infrastructure, deviating the focus of the business from innovation within the products. The strategic approach is reflected from the development of long terms goals like accumulating greater share of the market; acquiring 9-10% growth in the annual revenue and profit margin. The goal of upgrading the standards and quality of the products and services suffices the need for achieving large scale customer satisfaction.
References and bibliography
Bamberger, P. A., Meshoulam, I., & Biron, M. (2014). Human resource strategy: Formulation, implementation, and impact. Routledge.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Brewster, C. (2017). The integration of human resource management and corporate strategy. In Policy and practice in European human resource management (pp. 22-35). Routledge.
Brewster, C., Chung, C., & Sparrow, P. (2016). Globalizing human resource management. Routledge.
Brewster, C., Houldsworth, E., Sparrow, P., & Vernon, G. (2016). International human resource management. Kogan Page Publishers.
Collings, D. G., Wood, G. T., & Szamosi, L. T. (2018). Human resource management: A critical approach. In Human Resource Management (pp. 1-23). Routledge.
Higgins, Jeff (2014), Employees are Like Peanut Butter and Napkins: A Story of HR not yet at the Strategic Table, Workforce Solutions, pp 35-37, Human Capital Management Institute
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human resource management. The Academy of Management Annals, 8(1), 1-56.
Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016). Human resource management at work. Kogan Page Publishers.
Nankervis, A. R., Baird, M., Coffey, J., & Shields, J. (2016). Human resource management: strategy and practice. Cengage AU.
Reilly, P., & Williams, T. (2017). How to get best value from HR: The shared services option. Routledge.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., ... & Plimmer, G. (2015). Managing employee performance & reward: Concepts, practices, strategies. Cambridge University Press.
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