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Strategic Human Resource Management Unitel

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Question: • Explain the role of HRM in executing the business strategy at Unitel. • Identify key issues relating to the introduction of the new corporate strategy by Unitel senior management. • Propose some potential solutions to the problems relating to the introduction of the new corporate strategy at Unitel. • Discuss how Unitel may benefit from using four (4) human resource management practices (covered throughout the BUSM3201 course) to improve organisational performance at Unitel.   Answer: Unitel Unitel is among one of the biggest companies in the telecommunication industry in the Asia-Pacific region. The company was a government company which was privatised in the early 90s. After the privatisation of the company, it faced a lot of trouble from various other small companies and local competitors (Unitelme.com, 2015). The telecom industry has seen a lot of innovations in the last decade with lot of new facilities are being added to the services. The privatisation has also opened many new windows for the company but with the expansion of the market a lot of foreign companies entered the market. In order to gain a pivotal position for the customers and to excel in their products and services the company’s senior management has decided to introduce a corporate strategy called the Vision 2020. This program aims to bring excellence to the product and increase the value to the customers. The company is facing a lot of challenges. While the senior level managers have embraced the strategy but the lower level employees are finding it difficult to accept it. Vision 2020 is a way which will bring the high level and the field level staffs together for the first time. The company has to implement new strategies and the HR department has to take special initiative which would motivate the employees to actively take part in the program. The employees need to believe in the vision of the company, which will help the employees as well as the company in the long term (Chadwick, 2005). The role of Human Resource Management­­ in implementing the strategy The role of the HR is different according to the various situations. It is similar to the contingency theory which says that there is no single way of leadership. Thus it can be said that the HR needs to act according the situation and the circumstances. In the company Unitel it is necessary for the HR to implement new strategies so that the employees of the company accept the vision 2020 (Chand, 2010). To implement the new strategy it need that the company needs to support the processes, structure and the systems with the new corporate strategy. The strategy will fail to implement if there is lack of coordination between the people and the processes. The employees of the organisation must believe in the plans of the organisation in order to make the organisation a success. The work of the human resource department starts with accepting the new rules and the strategies of the company. Once they are fully assured of the plans then they will go forward in making a well planned strategy for dealing the employees of the organisation. The human resource must make the employees believe in the strategy of the company. The HR must tackle the various issues and their success depends to how far they are successful in making the employees believe in the plans (Vogelsang, 2013). The steps that the HRM needs to do in order to implement the strategy include: To introduce a top to bottom approach- the top management of the employees must communicate with the employees so that the employees feel that they are a part of the organisation. The top management must involve the employees in the strategic decisions and plans. The human resource department of the company must act as a link between the management and the employees. To cooperate with the employees in a cross system manner- the coordination and the cooperation of the employees tends to decline when transformations are done. It is the work of the HR to assign teams rotates the jobs so that the employees communicate and coordinate with each other and that they understand the new working procedures. Communication- it is an essential part of every organisation. The company depends greatly on the internal communication. The strategy of the company must be communicated to the employees to make it successful. It needs to be done since it is the employees who need to carry out the plans and the procedures. Employee motivation and satisfaction- the HR must motivate the employees so that they are more likely to perform the jobs with more enthusiasm. Moreover the company must give the employees some training so that they are well acquainted with the new processes (Kramar, 2013). The satisfaction level of the company must be measured so that the company gets to know the thoughts of the employees regarding the new strategy.   Key issues in implementing new business strategy The company faces various challenges while implementing the new business strategy. The company needs to resolve the issues before the strategy could be successfully implemented in the company. The key issues that the company must resolve are: The pre-existing issues and the challenges of the company- the threat of the telecom industry is that there are several other companies in the market. The company has to compete with all those companies and it is a very tough job for the company. There are companies who are global leaders and are popular in the market. The company must try to tackle those situations carefully and plan their own strategy (Lynch, 2006). Shortage of materials and skilled labour force- the company has problems of shortage of the new processes and skilled manpower in the organization. This has created in work overload on the existing employees and they feel de-motivated in the company. Moreover the recruitment of new skilled labor will in turn raise the expenditure of the company. This is because the skilled employee will require more salary and the company has to bear with it. Thus the company faces challenges due to lack of labours as well as from recruiting new skilled employees. Expenditure of the company in implementation of new technology- the company has to deal with the expenditure of the company when the company incorporates newer technologies in the processes. This technology will eventually benefit the employees abut the company needs to spend a lot on the initial investment. Acceptance and lack of coordination- the company will face a major challenge internally if the employees of the company find it difficult to accept the new strategies. Moreover the employees who are habituated with working with the old process will find it difficult in coordinating with the new processes. Thus the work of the company might get hampered. Wastage of time due to the implementation of the new strategy- the new strategy of vision 2020 is a big step for the company. The entire organization needs to be reorganized. The process of the company, the machines needs to be changed or reorganized in order to implement the strategies (Grinblatt and Titman, 2002). This requires a lot of time since the processes is new and the employees need to adapt themselves to the new processes and the technologies. Training programmes- the employees needs to be given additional training if the new strategies are implemented. The new processes run on new working procedures. The employees need to be given additional training to make them cope up with the workings of the new processes. For the training the company needs to hire additional staffs that will provide the training. This will lead to an additional cost to the company and the company needs to bear with the cost in order to implement the new strategy.   Solutions to the problems on implementing the strategy By resolving the training programmes and the issues The problem with the implementation of the new plan of vision 2020 is that it needs skilled people who can perform the job well. Training is thus needed for the company so that the company can adopt itself with the new technological advancement. Hiring can be called an alternative to the process of training but both require time and money. But training the people who are skilled and can learn quickly can be trained to easily and can reduce the time and the cost (Margison, 2003). Some of the skilled employees are given vocational training and they in turn help the others in the organisation to learn. Moreover the employees can relate with the trainer who is one of them. Changing the perspective and understaffing Changes in the organisation are hard to be accepted. It takes time for the people to adopt it and get accustomed with it. The company was already facing a lot of challenges from the early 90’s. The problem that the company faced was when the changed from government owned to privatisation. The employees have already accustomed with the new change in the policy of the organisation and now the issue of adapting to the new technologies are making them hostile toward the company. The company need to motivate the employees so that they easily approve the change. The company needs to understand the problems of stressful working conditions, reaching goals etc as the employees need some relief from the work. Coordinating the people and the processes The company must make sure that the people in the company are well acquainted with the processes that the company installed. There is a great chance of the company’s people to go against the strategies of the vision 2020. It is so because the company has once changed its processes when it changed from government to private and now they are implementing yet another change in the work processes (Mathis and Jackson, 2003). Thus the employees must be given brief orientation classes so that the employees have a thorough knowledge
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