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Role Of SHRM In Organisational Effectiveness

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Question:

Discuss the Strategic Human Resource Management Plays a Significant Role in Organisational Effectiveness and Strategic Planning is an Essential Element of Anticipating the Future HR Needs of an Organisation.
 
 

Answer:

Introduction

The human resource department has an important role to play while it comes to the smooth functioning of the organization (Brewster, Mayrhofer and Morley 2016). They look after the employees and tries to meet the demands and needs of the employees so that they are satisfied and work for the betterment of the organization (Sparrow, Brewster and Chung 2016). Even though human resource department looks after the welfare of the employees, the external conditions at times have huge impact on the functions and operations of the organization internally (Storey 2014). In other words, it can be said that the internal functions of the human resource management is affected by the conditions of the external market. The situation is different for the educational sector. The employees of the educational sector are not handling the typical customers. Other than the official staffs, there are the teachers who are handling the students. Hence, the human resource management will be bit different from the ones that are done in normal companies. However, quite similar to other situations, the external environment will also affect the way the employees are managed in the organization (Purce 2014). The teachers and other staffs need to more careful with their work as they are handling the future of the students and the human resource department should act by keeping in mind the people that the employees are handling in the institution (Jackson, Schuler and Jiang 2014).

The essay will evaluate the human resource planning and management at University of Sydney. The planning and the human resource management will be assessed with the help of the model proposed by Jackson and Schuler in the years 1995. The model has taken into consideration the external factors that can affect the operations of the human resource in an organization. The internal factors of the human resource management like planning, retentions, recruitment, training and employee relation will be discussed in the essay. The factors will be discussed by keeping in mind the educational sector. The external factors that have been mentioned in the model of Jackson and Schuler will be analyzed and the impact of the factors in the operations of the HR department will be studied in the essay. The external factors mentioned in the model might have positive as well as negative impacts on the HR functions of the institution.

Background of the educational institution

‘Education for all, leadership for good’ is the motto for University of Sydney (The University of Sydney 2017). University of Sydney believes that thinking progressively, challenge the status quo, break the convention and bringing improvement in the world is in their DNA. William Charles Wentworth laid the stone of University of Sydney in the year 1850 and he became the one who founded the first university of Australia. He wanted to impart education to the children without discriminating between their classes. Moreover, he wanted that every child should get education so that he or she becomes useful for developing the future of its respective countries. The idea and value of William Charles Wentworth has not being changed and since the past 60 years, University of Sydney is following Wentworth’s path. However, things got better in the university and in the year 1881 women were admitted in equal number as the male students. The initiative is truly commendable, as until then neither Oxford University nor Jesus College at Cambridge University has taken any such step. University of Sydney gives opportunities to the talented and deserving students by giving away hundreds of scholarships for the students who come from poor financial backgrounds.

University of Sydney can boast the famous alumni. The names of the past students suggest that it has been one of the best places that helps in the development of the career pof the individuals. Some of the names that re associated with University of Sydney are Victor Chang, the famous heart transplant surgeon and Gough Whitlam. Some of the names might not have been able to get the spotlight but their contribution for the development of the society is commendable. Among other alumni, there are Mary Kostakidis, the famous journalist and broadcaster, the eminent activist, Charles Perkins, Dame Joan Sutherland, opera singer, the famous lawmaker, Michael Kirby and the writer, Clive James. Five Australian prime ministers have been associated with  University of Sydney. Edmund Barton is one such personality who won the inaugural federal election for Australia in the year, 1901. The alumni have made their presence felt in developing the social sector of the country. Noel Pearson is fighting for the rights and recognition for the Aboriginal and Torres Strait Islander. They have been able to make their presence felt in politics as well. Professor Marie Bashir who is one of the most eminent public and academic figures has been the former governor of New South Wales.

 


The vision of University of Sydney is to lead in the society to improve the world where the people live in. The values of University of Sydney is instilled since its inception-they believe in giving education for all and implement leadership that will make the lives better. They believe leadership should not be present in a person rather it should be present in culture. The strategy of University of Sydney is to build a place where the bets researcher could practice their work and the most deserving students should be able achieve their goals by applying their potential.

University of Sydney is not left behind as far as sustainability is concerned. They have included water and energy consumption in their priority list. They have also adopted recycling products and waste management as ways to bring improvement in the society.

Discussion of external environmental factors as presented in Jackson and Schuler’s (1995) HRM model

According to Jackson and Schuler (1995), human resource management and planning in an organization is not only about the internal management but also about the external factors. Some of the factors that have been identified by the authors are:

The laws and regulations of a country are responsible for the way the teachers and other employees will be given the pay. The minimum wage that is given to the employees of a country should be given to the employees of the organization (Renwick, Redman and Maguire 2013). In addition to this, the wage should be increased based on the experience of the person. The employees of an organization should be work as per the working hours assigned to the labors of the country (Budhwar and Debrah 2013). The companies cannot make the employees work more than the working hour assigned to the employees working in that country. The employee becomes eligible for extra pay if the person is working more than the assigned working hour (Alfes et al. 2013).

Different countries have different work cultures. In some places, the employees are only concerned about themselves and individual growth while in some places, they think the growth of the organization will help in development of their career (Riley 2014). Some countries believe that working all day long will help them in gaining proper success, while some employees in other countries feel that they should take rest and work simultaneously to be successful at work (Wilton 2016). The work culture is some countries show that there should be proper distinction between the designations of the staffs who are working there, while in some countries they feel that the employees should work together (Aswathappa 2013). The designation among the employees are only for different paychecks, else they work in an informal manner. Thus, the work culture of various countries seem to have huge effect on the employees in an organization are handled. It will be the duty of the HR manager to make any new employee from any international country to understand about the work culture and help the person adjust with the work culture of the country (Marler and Fisher 2013).

The stability of the political power in a country has a huge effect on the way the employees work. The most affected part is the peacefulness with which the employees work. If the government is not stable, it will affect the work of the employees, as they will constantly fear of unrest (Messersmith and Wales 2013). In addition to this, the remuneration of the employees will also be affected (Beer, Boselie and Brewster 2015). If the organization is not sure about the future of the country and the conditions in which they work, the business will not be up to the mark (Boella and Goss-Turner 2013). As a result, they will not be able to pay the employees properly.

Market and industry dynamics go hand in hand when it comes to the human resource manager of an organization. If the industry is not able to function properly, it will affect the way the business of the organization (Carmeli, Gelbard and Reiter?Palmon 2013). As a result, the people might not be interested to work in the particular sector where the company is functioning (Jamali, El Dirani and Harwood 2015). Thus, the company will suffer from loss as they would not get proper employee to work for them. In addition to this, the existing employees might also leave in search of better opportunities in some other sector as the particular sector is not been able to prove fruitful for the development of the career (Shields et al. 2015). Once the industry is in good shape, the companies working in that industry will perform well and it will be able to keep the employees satisfied and happy in their work (Knowles, Holton III and Swanson 2014).

HR functions

The planning, resourcing and retention, which are some of the vital factors of human resource functions in a normal organization are different from the HR functions that are carried out in an educational institution (Kehoe and Wright 2013). While planning the human resource management functions, they have to look after the following things

The stakeholders who are involved with the organization

The environment where the institution is working

The resources available for the organization

The technological impact on the organization

The intellectual capital that is present in the institution

Even though HR is an internal matter, the external factors hugely influences the HR related activities (Brewster, Mayrhofer and Morley 2016). The above-mentioned factors might be related to the internal organization, but the variations in the factors will happen mainly due to the external environment (Sparrow, Brewster and Chung 2016).

 


The recruitment and selection in the university is done with precision. University of Sydney aims at giving the unmatched services to the student who comes here from various countries and wants that every individual from any type of class will should get proper education (Storey 2014). Hence, while recruitment and selections of the employees starting from the lecturers to the official staffs are communicated about this idea. In addition to this, no differentiations among the staffs are done when it comes to culture and ethnicity (Jackson, Schuler and Jiang 2014). External and internal recruitment processes are taken into account (Purce 2014). When any new employee is recruited, the external recruitment process is taken into account (Renwick, Redman and Maguire 2013). On the contrary, the junior staffs are also given the opportunity to go up the ladder and take more roles that are challenging in the university (Budhwar and Debrah 2013).

Training and development is a continuous process (Alfes et al. 2013). The change in the course materials and nee regulations of the government should be taken into account by the university (Riley 2014). In such a situation, the employees need to know the change and bring in the change in the way they handle the students and other official works (Wilton 2016).

Remuneration and rewards are the important factors to keep the employees motivated n their work (Aswathappa 2013). The employees are appraised once year based on their performance. Other than the appraisals, the employees are given rewards based on their performance throughout the year. The rewards are not necessarily monetary (Marler and Fisher 2013). Giving recognition to the official staffs and the teachers are also a part of the proper functioning of the institution (Messersmith and Wales 2013). The institution is known for taking part social welfare; hence, if any of the employees of the institution is taking part in the social welfare or sustainability in the institution then the person is given special recognition (Beer, Boselie and Brewster 2015). The recognition not only helps to boost the morale of the employees but also help the institution to stay ahead and the serve the society in a better manner (Boella and Goss-Turner 2013).

The employee relation is one of the important factors of HR as far as smooth functioning of any organization is concerned (Carmeli, Gelbard and Reiter?Palmon 2013). There should be competition at work but the competition should not be taken to such a level where the work culture is hampered (Jamali, El Dirani and Harwood 2015). In addition to this, the employees come from different cultural backgrounds, hence it is necessary that they should work in close contact with each other so that they are able to take the university forward (Shields et al. 2015). Even though, each department needs to excel in their respected field, the university sees to the fact none of the lecturers are having any problem with each other. They compete as well as cooperate to keep the work of the university going well and help the university to serve the people in a better manner (Knowles, Holton III and Swanson 2014).

Analysis and Impact of the external factors on the HR functions

The laws and regulations of the country is not only for the employees but also for the students. Education Services for Overseas Students (ESOS) act help in creating a legislative framework so that it is able to support the students, the reputation of the education system of Australia is protected, and the integrity of the migration system of Australia is maintained (universitiesaustralia.edu.au 2013). In  addition to the students, Fair Work Act 2009, Legislation in the Employment and Workplace Relations Portfolio, Sex Discrimination Act  and the Racial Discrimination Act and Equal Opportunity for Women in the Workplace Act 1999 (Cth) looks after the rights  of the employees (Awu.net.au 2017). The government after the fact that none of the employees is being discriminated based on age, race, ethnicity, background or gender.

Right from planning for the resource until the employee retention, the laws and the regulations should be kept into mind by the university. While recruiting the employees, the university should not discriminate between them and the sole concern while recruiting the staffs will be the capability. The remunerations and rewards should not be different from the employees. The only thing that should be taken is the performance of the employees. The opportunities for training and development should be equal for the employees. There should be no discrimination while deciding who should get the training in the institution.

The work culture at Australia is straightforward and direct. They do not beating around the bush and talk to the point. It not only helps the Australians to save time but it also makes the work faster. In addition to this, maintaining bureaucracy and hierarchy at work is seldom seen in the working culture of Australia (Webb et al. 2014). They can go up to the higher authority to discuss any issue. They would not have to pass through a number of people before reaching the higher authority. As they can directly speak to the person they want, it makes the process faster.

 


The work culture of Australia will be beneficial for the university as the coordination among the employees will be better. While they will plan the placement of the employees they would not have to think the way they should communicate. The exit formality will also be easy if any of the employees want to leave the organization.

The political system of Australia is stable and it believes in religious tolerance and freedom of speech for the people of Australia (abc.net.au 2017). The companies in Australia will be able to work in a better manner. The employees will be able to work freely and they can speak for their rights in the organization. as the political system is stable, the university will be able to recruit the employees and the relation between the employees will be good as they will be able to work freely in the institution.

The market and the industry dynamics have changed for Australia over the period. Students are looking forward to private institution for their education. Australia is considered to be one of the most attractive country that provides high quality education to the students from all over the world. Australia stands fifth after the United States, the United Kingdom, Germany and France as far as international is concerned. Every year students from 200 different counties come to Australia to study and the footfall of the crosses 450,000 (Investinaustralia.com 2017). After tourism, the educations sector of Australia is considered to be the highest contributor to the economy as far as the expert services are concerned.

It has been forecasted that the Australian education sector has the capacity to provide education to 268,156 students from various countries by the year 2025. The demands for the seats in the universities will more than the supply of seats by the year, 2020. There can be shortfall of 22,692 places for the students.

As the education industry of Australia is rising, there will be more footfalls of students in the University of Sydney. They will have acquired more teachers who would be able to cater to the needs of the needs of the students. There will be a need to increase the training and development of the employees, as they will have to handle more students. Recruitment process should be more on external process as more number of teachers would be required to help the university grow. To attract more teachers who could cater to the needs of the student, the remuneration should also be increased as per the demand of the industry. Once the teachers and the employees will be happy working in the organization, University of Sydney will be able to cater to the needs of the industry.

 

Conclusion

After going through the human resource management of University of Sydney and the HRM model proposed by Jackson and Schuler in the year 1995, it can be concluded that internal and external factors are inter-dependent on each other. The operations of the internal factors will affect the business of the company while the conditions of the external environment will affects the internal functions of the company.

University of Sydney is one of the leading educational institutions with a strong past and even stronger present, they aim at imparting education to the students of all classes. Being a well-known institution, the responsibly also increases accordingly. The HR activities that are prevalent not only in any organization but also in University of Sydney are the planning of the resources and retentions of the staffs, providing proper training and help in development of the staffs, adhering to proper recruitment process and maintain a healthy relations among the employees.

The external factors that are taken into account by the HRM model by Jackson and Schuler are political conditions of a country, laws and regulations, culture of the place and the market and industry dynamics. The present conditions of the factors affect the HR is practiced in the institution. If the condition is good, the employees will be happy and the result will be opposite if the conditions are not favorable.

The laws and regulations of Australia not only look after proper rights of the employees but alos have maintained a structure that will help the students to study peacefully in the country. The government of Australia maintains no discrimination policy. University of Sydney should abide by the rules and it would not affect them negatively as they already support equality. Then political conditions of the country are stable and hence, they would not have to fear of loss of human resources. The work culture of the country suggests that people are straight forward and they do not believe in maintaining hierarchy. They are informal when it comes to work. It will also help the university, as there will be coordination among the teachers. However, they might face issue with the straight forwardness as teacher some from various backgrounds and not all the employees might be well acquainted with the straight forwardness. The educational sector is quite promising for the country and is growing and cater to the needs of huge footfall of students. It has been expected that is future, the footfall, of the student will rise but there might not be enough seats for them. Hence, University of Sydney would not have to think of employee loss but will have to look forward for more recruitments and better training to handle the huge number of students.

 

References

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Carmeli, A., Gelbard, R. and Reiter?Palmon, R., 2013. Leadership, creative problem?solving capacity, and creative performance: The importance of knowledge sharing. Human Resource Management, 52(1), pp.95-121.

Investinaustralia.com, 2017. EDUCATION & TRAINING Industry in Australia | Invest in Australia. [online] Investinaustralia.com. Available at: https://www.investinaustralia.com/industry/education-training/education-training-industry-australia [Accessed 2 Apr. 2017].

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Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human resource management. The Academy of Management Annals, 8(1), pp.1-56.

Jamali, D.R., El Dirani, A.M. and Harwood, I.A., 2015. Exploring human resource management roles in corporate social responsibility: the CSR?HRM co?creation model. Business Ethics: A European Review, 24(2), pp.125-143.

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Wilton, N., 2016. An introduction to human resource management. Sage.

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