Human resource is the crucial part of business operations. The internal strength and activities are efficiently handled and managed by Human resource of the organization (Benady, 2014). Every organization focuses on developing and efficient and innovative measures to plan and implement the HR activities in order to gain the maximum benefit for the company. The complex business operation and high level of competition in the market has developed the unique pressure of the companies to manage the competitive edge (Parasher, 2015). Top management has realized that the only measure to attain the success is through means of strong and committed manpower. Their contribution in planning and development of the organization may lead the organization to the new height of success. Present report focuses on the changing role of human resource in the economy.
Small and medium sized industries are efficiently growing their businesses by initiating and developing HR activities with businesses development programs (Jacobs, 2015). Cambridge satchels manufactures leather bags and goods. The business commenced its business operation in the year 2008. The remarkable growth and success of the company in such a short span of time have inspired lot of curious minds. The study aid in understanding the contribution of human resource in its success.
1.1 Define Strategic Human Resource Management
Strategic human resource management is the process of developing a concept of achieving business goals by designing the cognitive process satisfying employees needs and demands. Modern business practices focuses on developing and incorporating the strategies focused on employee development (Human Resource Management Models, 2015). This helps the organization in attain the mutual business goals. Cambridge Satchel has infused the planning process of the organization with efficient employee involvement. This provided organization in understanding the employee needs efficiently and thus developing the products to fulfill the same. The company has set the priory to attain and accomplish the employee needs.
Strategic Human resource management may also be defined as organization's intention and plans to achieve the organizational goals by means of employees. The preposition set for these describes that human capital is the source of achieving the competitive edge; planing process may only be implemented through people; It is a systematic approach of deciding where to go from where the company presently is.
Both the mentioned definitions focuses on the employee needs as the crucial need for achieving the goals of the company. The basis of gaining the success in the market is by means of fulfilling employee needs.
The organization's principles has changed the perspective for human resource in the following manner which leads to fulfill the organizational goals in the strategic manner:
Employees are assets: Cambridge Satchel believes that employees have major contribution in the business growth thus they are not the resources of the organization (Tabassi and Bakar, 2009). They are rather the assets of the company who helps in attaining the competitive success.
Skilled employees leads to growth: Organization has developed the process to attain the talented and skilled workforce for the organization in order to efficiently evolve the high level of competition.
Strategic planning through people: The enterprise has adopted a systematic approach of attaining the organizational goal by its human resource (Sonenshein, 2010). The company develop and design the business plans and strategies by efficiently involving its employees. This helps in effectively understanding the internal and external environment. The strong and committed team of workers hence contribute in creating an edge in the market.
1.2 Significance of HRM in Cambridge Satchel
Cambridge Satchel produces leather bags and accessories in order to efficiently fulfill the market demand. The fashion industrial norms states that the trends and tastes of the employees are nor constant and change on the constant basis (Rodwell and Teo, 2008). To overcome the barrier of meeting the changing needs and preferences of the consumers, the enterprise has effectively incorporated the HR practices. The significance human resource management to the organization is:
Optimum utilization of resources: Every business activity has the constraint of limited resource availability. Cambridge satchel ensures the efficiency of the employees in terms of productivity and time. The company focuses on developing the practice of minimizing the wastage of time and resources in order to achieve the objective of profit maximization and quality ascertainment. The Effective staffing and training practices helps in developing the employees to attain the stated goals.
Enhancing productivity: The organization assure the fair and effective means of working environment in order to facilitate the effectivity of employees. Strong and motivated team of employees helps the organization in maximizing its production thus increasing the overall revenue (Regis, 2008).
Securing co-operation: Co-operative workforce of the organization helps in developing the effective and efficient working environment. In order to influence the well managed means of working, effective policies regarding grievance handling and fair work practices have been formed. This helps the organization in maintaining the bond of trust with the employees of the company.
Employee commitment: The human resource management within the organization helps in analyzing the efficiency of the employees. It also helps in training and developing the employees by means of training and development practices. This helps the company in gaining the employee commitment in favor of the company.
Organizational effectiveness: The HR practices within the organization focuses on developing the effective and efficient relations within the management and the employees. It concentrates on the strategic objective of the company thus developing the employee productivity.
Empowering employees: The HRM of the company focuses on increases the employee involvement in the organizational process. This leads in empowering the employees by providing them the power to speak and express.
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1.3 Framework of Strategic HRM
Strategic Human resource management is involved in the task of planning and development of the organizational functioning in order to efficiently help the company to maximize its productivity (Pas and et. al., 2011). Cambridge satchel has incorporated the traditional model in order to influence the effectiveness of HR strategies to achieve the long term goals of the company. It includes:
Human resource planning: The first step of the framework deals with realizing the initial need of human resource for the company. The organization has developed the process determining the employee need in advance to efficiently plan the effective means to seek for the same.
Staffing: Staffing is the process of procuring the efficient human resource for the organization. The company efficiently develops and maintains the system of recruitment and development in order to seek the right person for the right job (Rees, Mamman, and Braik, 2007). Cambridge Satchel focuses on employing the skilled and talented workforce for the company. This helps the company in maintaining the efficiency in cost and productivity.
Reward and remuneration: In order to manage the employee morale and productivity, The company sees the efficient measures to motivate them. The organizations seek the basic needs of the employees on the basis of need hierarchy. This has helped in designing the efficient appraisal and remuneration system. This has helped the company in gaining the strong and committed team of employees.
Human resource development: Training and development are the key parts of the employee development process. The organization efficiently focuses on developing employees by means of efficient training and workshops (Nikandrou and Papalexandris, 2007). This helps in enhancing the skills of the employee in order to maintaining the quality and productivity of the company. The company has efficiently managed the measure of career development to provide employees with the fair chance of development in the company. This has helped the employees in gaining the mutual benefit for both the company and the organization.
Regular enhancement: Cambridge Satchels has adopted the effective measure of performance measurement which has helped the organization maintaining the standard of quality (Kallunki, Laitinen and Silvola, 2011). The wide choices of consumer demands seeks the effective ad high quality products and services. The company thus keeps a keen check on the product and process.
Monitoring and reporting: The organization would be unable to achieve the product standardization and sales maximization if the company have not adopted the effective means of communication and monitoring. Cambridge Satchels thus has created a unique and efficient measure of communication, monitoring and reporting. The efficient flow of information in the organization helps in developing the effective means of working process.
The Harvard model Given by Beer and et.al., focuses on the soft HRM framework This Model treats the employees of the company as the assets rather than the cost. The basis of this model is that the external pressures on the company is uncontrollable. However, the strong and committed team of employees may help in gaining the competitive edge in the market. Thus this model has efficiently adopted the employee favored HR policies in order to turn the outcomes in favor of the business. This model focuses on acquiring the organizational success through long term consequences.
2.1 SHRM process
The process of strategic human resource management focuses on developing and implementing the strategies in order to garnish the organizational capabilities. Cambridge satchels has adopted the following process in order to achieve the maximum benefit from the employees of the company.
Setting objectives: The initial step of the process is to formulate the basic strategy of the company. Cambridge Satchels focused on formulating the basic objectives of the company which dealt with the process of the company working, means of production and level of output. This helped the company in determining the size and level of operations. Mission and goals are the part of the process in order to determine the broad perspective of the business operation.
Environmental analysis: The next step deals with the internal and external audits of the company (Hutchinson, Quinn and Alexander, 2006). This helped the company in analyzing the exiting opportunities and threats. Cambridge satchels uses the tools as SWOT analysis, PESTEL analysis and Porter 5 force to analyze the same.
Strategy formulation: The most crucial part of the process is to evaluate and develop the organizational strategies such that both the organizational and the employees are benefited out of it. The company formulates the hr policies and strategies parallel to the corporate strategies (Ganesan and et.al., 2009). This helps the organization in achieving the set objectives by means of its employees. The organization has efficiently developed the process of career development and training measures to train and develop the employees to achieve the set objectives.
Workforce planning: After developing the strategies of the company, the next step involves with the HR planning process. This process helps the company in analyzing the effective and efficient workforce required to achieve the set objective for the company.
Talent management: Once the company has gained the effective and efficient workforce, the next step is to formulate the HR policies and practices that helps the employees in increasing their productivity and commitment. This helps the organization in managing and maintaining the talented and skilled workforce in the company.
Performance culture: The establishment culture aids the firm to increase the competitive advantage because rival cannot copy the performance and behavior of the employees. Thus, the internal policies of the company focuses on developing the effective and efficient means of culture by means of leadership process.
Implementation: Strategies develops the effective measure to form a winning edge. Strategies help the company in developing the unique measures to create a differentiation in the market. Committed and loyal employees of the company helps in maintaining the edge in the market.
Control: The final step of the process deals with analyzing and evaluating the effective measures of organizational control and development (Flood and et. al., 2008). Te company has developed the effective structure to keep an efficient check of the process. The gap between the standards and actual performance is filled by taking the corrective measures of improvement.
2.2 Roles in Strategic human resource management
Strategic management has efficient role in the development and efficiency of organizational functions. The rand image of the organization has developed a unique need of regular improvement and development. SHRM in the cited organization plays the following roles:
Performance management: The Most crucial role of Strategic HRM is to influence and develop the workforce of the organization in order to maximize the sames while maintain the cost of the company (Gallicano, 2009). Effective and efficient employees contributes significantly in the same. The process thus focuses on measuring the performance of the employees in order to maintain the quality standards of the products. The organization has developed the specific strategies and tactics in order to analyze the gap between where the organization is and where it wants to reach. The managers develop the effective ad efficient leaders within the organization in order to enhance the performance of the employees. In order to attain the effective performance management The company focuses on attaining the employee need at each and every level.
Commitment management: Strong and committed workforce is the key requirement of the company. This helps in managing the cost of production while maintaining the quality standards. Company has implemented various strategies to motivate the employee (Deckop, 2006). This has efficiently reduces the employee turnover ratio thus saving the employee capabilities in favor of organizational growth. In order to gain the commitment and competencies within the company, every level of management focuses on developing the efficient HR policies and strategies to fulfill the needs of the employees.
Strategic fit: Strategic fit focuses on finding the efficient person for the job. The company deals in the manufacturing business thus the employees of the company need to have the efficient and effective knowledge of operations. Company thus focuses on maintaining the strategic alignment with the organizational goals and objectives (Cohen and et.al., 2006). Cambridge satchels focuses on procuring the skilled and talented workforce for the company who can help in efficiently achieving the organizational goals. The company has thus developed the effective means of HR policies.
2.3 Development and implementation of human resource strategies
The development of HR strategies of the Cambridge Satchel includes the following:
Aligning business and HR needs: Business need analysis helps the company in evaluating the needs and requirements of the company. This helps the organization in planning the HR for the same. The company thus focuses on procuring the employees who help the company in efficiently achieving the business goals (Deckop, 2006).
HR Strategy formulation: HR strategies and policies helps the management in analyzing the potential of its employees. The company thus plans and develops its business operations. The key focus here is to manage and develop the capabilities of the employees and using the same in achieving the organizational goals.
Organizational performance: Organizational performance is measured in terms of sales revenue and profit generation of the company (Cummings and Worley, 2014). Management analyzes the demand in the market and evaluates the process to improve the same. This step deals with measuring the level of HR activity in achieving the organizational goals.
Organizational structure: The structure of the company facilitates the communication and flow of information. The strong structure of the organization facilitates the decision making process of the company. It introduces flexibility and control in the organization
Training and development: Training and development helps the company in preparing its employees for the quality and efficiency in performance. This process inculcates the measure of performance improvement and development (Bloom and Reenen, 2011). The development programs of the company are carried on three different levels. Thy includes individual, team and organizational level.
Rewards and remuneration: The reward strategy of the company helps in developing the cost of the company against the employee performance. Cambridge satchel has developed the efficient and effective mans of performance measurement. This helps the company in managing the remuneration and reward policy.
Organization culture: In order to achieve the competitive edge in the market organization has developed the effective organizational culture in the company (Arthur and Boyles, 2007). This leads the company in gaining the unique and strong brand image. Strong culture leads to high performance level and thus a successful business.
3.1 Range of HR strategies for Cambridge Satchels
The HR strategies of the company helps in attaining the predetermined goals. Cambridge Satchel has incorporated the efficient means Strategies and tactics in order to achieve the high standards of employee performance (Armstrong, 2011). These strategies of the company has been divided in the following means:
Long Term strategy: The longtime strategies focuses on developing the employee performance in order to enhance the productivity of the company for both short term and long term. The long term HR strategies focuses on developing the individual and organizational growth which help the company in efficiently gaining the employee commitment and effectiveness. This contributes majorly in developing the company in effective and efficient brand image. The committed and strong team of workers helps the company in efficiently planning and developing the working structure (Akhtar, Ding and Ge, 2008). The recent focus of the organization is in achieving the differential position by means of employee efficiency and product quality.
Short term strategy: The short term strategies of the company focuses on developing the short term goals for the organization which may help the organization in attaining the market share. The company's operation and expansion plan focuses on increasing the revenue of the company significantly. For the same the company focuses on efficiently managing the target system o develop the employee for sales influence. It focuses on generating maximum sale and controlling the slacking time of the workforce (Arthur and Boyles, 2007). For the same process the organization has developed the special and influential policies of reward and recognition. This is the driving force for the employee to achieve the set target.
3.2 Assessment of HR strategies and its application
The HR strategies of the company has helped in developing the unique and efficient growth prospects for the company. The growing market share and effective brand image has helped the organization in creating a differential position in the market. The low employee turnover ration of the company efficiently describes the favorable policies and strategies (Berghe and Verweir, 2004). The top management of the organizational has effectively developed the measures of organizational growth. The company has developed various measures to motivate and influence the employee for better and efficient performance. The quality and wide range of products have helped the company in gaining the differential position in the market. The monitoring and reviewing strategies indicates the development rate and issues involved with producing or selling of products. While controlling strategy helps in finding out the reason of the issue and focusing on solving the same.
The above report focuses on the changing role of Human resource in the complex competitive environment. The study focuses on developing different and efficient measures i\of Hr policies in order to maintain the productivity and market growth. Cambridge Satchels commenced it business in the year 2008. The effective growth of the company has developed a unique and efficient brand image in the market. The report discusses the strategies that the company has adopted in order to attain the organizational success. SHRM has helped the company in managing and maintaining the goals and objectives for the organization thus creating the effective means for growth and development.
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