Organizational functions are performed for the management of its human resources such as recruitment, performance management, motivation, benefits, safety and training as well. This administrative division provide efforts to attain long-term objectives and simultaneously, give stress on getting critical goals of the firm. The existing report is prepared in order to examine the functions and importance of Human Resource Management (HRM) in Orion Pharma (UK) Limited which is a flourishing retail sector in the UK market. Broad description has been made in the report which entails roles and functions of Orion Pharma (UK) Ltd. for mana
Besides that, efforts made for enhancing the performance of employees and quality of products have been featured in a broader sense. The study entails functions performed by the cited firm regarding its employees through assistance of various marketing strategies. Orion Pharma (UK) Ltd has been trying hard to run operations and activities of the firm in the most appropriate manner. In other words, managers of the cited firm are following adequate process for management of HR and the report explains certain methods that have been exercised by the firm.
1 Role of Human Resource Management for achieving potency in the firm
1.1 Definition of Strategic Human Resource Management
According to Bosma (2004), Strategic HRM precise firm's purpose or plans and policies for acquiring goals in the most desired manner. The author is also of the same view point that focuses on human capital of Orion Pharma Ltd which is the main root of aiding the firm to achieve competitive advantages simultaneously and give efforts in executing strategic plans more efficiently. As per view of Berkes (2002), Strategic HRM connotes a firm with the structure wherein human resources is the most crucial part which enforces management to achieve results in the desired manner (Berkes, Colding and Folke, 2002). Strategic human resource highly focuses on strategic prospects for the intention of improving competitive benefits. Writer also considered that giving more and more stress on strategic concepts is a bit ideal for the cited firm for implementing additional and improved efforts.
Besides the aforesaid definitions, Carpenter (2001), is of a different view point where he altered the meaning of strategic HRM which shows how effectively a firm uses its human resources in the most adequate manner in order to enhance its performance for attaining competitive advantage (Bosma and et. al., 2004). Furthermore, he stated that concepts of strategic aspects reduces complexities through plans and policies of how to position human resources. Therefore, from above mentioned definitions of strategic HRM by different authors, it has been cleared how important HRM is for every firm. However, on the other hand, manpower or employees of Orion Pharma Ltd are of totally different perspective who have formulated their own strategic management for operating their daily functions. Here, the main target of the cited firm is to gain huge market share and for acquiring that, certain strategical conceptualizations have been formulated such as:
Specific Human Resource plans: - Actions of specific human resources gives an overview of intentions of Orion Pharma Ltd strategies for the following fields:
Expert management: - As the name suggests, in this specific field, Orion Pharma Ltd has intended to attain numerous quantity of expertized knowledge as well as skills (Carpenter, Sanders and Gregersen, 2001).
Knowledge management: - The main intention of the firm in this context must be for gaining control over professional knowledge in order to enhance quality of performance as well as learning capability of human resources.
Reward: - This accents towards objectives of Orion Pharma (UK) Ltd for achieving long-run goals in order to offer rewards to their employees on the basis of their performance.
Employee relationships: - It is the most critical part or function of HR department of Orion Pharma (UK) Ltd to maintain healthy relationships between employees for acquiring goals.
Principles for successful Human Resource strategy: -Strategies made for HRM must be in such a way that objectives or targets should get achieved at the end. However, strategy making is not just like a dream but efficient efforts are required to be made through the help of available human resources (Sirmon, Hitt and Ireland, 2007). Strategies are made on the basis of employees as well as employers of the organization which also includes their stakeholders in this list. The main purpose of an outstanding strategy should be to provide value to their people only. Therefore, strategies should clarify that how human resources are being rewarded according to their efforts or how they can evolve or grow over themselves within the firm.
1.2 Significance of Human Resource Management in Orion Pharma (UK) Limited
There is great importance of Human Resource Management in Orion Pharma (UK) Limited due to various reasons and they are explained in detail as below:
Effective utilization of resources: - As Orion Pharma (UK) Ltd is a retail firm, appropriate management can lead to rightful allocation and utilization of resources which results in achievement of goals in most prominent manner.
Employee management and retention: - The main responsibility of human resource management of Orion Pharma (UK) Limited is to pull off involvement of employees by rendering them rewards and other kind of benefits. This activity has been helping the cited firm to manage and retain their best and talented employees for long run.
Employee satisfaction: - It is also one of the main consideration of Orion Pharma (UK) Limited to provide proper satisfaction to employees through presenting comforts and opportunities as a result adequate degree of contentment or seriousness can be acquired. However, this chances for employees acts as a booster which motivates them to enhance or improve quality of their performance (Cohen-Charash and Spector, 2001).
Employee discipline and motivation: - Through performance of manpower employed in the cited firm, HR managers seeks to maintain discipline and motivate them on the basis of their experience. In this sense, management of Orion Pharma (UK) Limited has been going in the same direction by providing the same kind of advantages and opportunities to employees which results in creation of a friendly hood environment.
Productivity of organization: - On the basis of guidelines provided to employees of Orion Pharma (UK) Limited, their performance leads to attainment of objectives in fruitful manner. Such continuous efforts are consequent in providing acquirement of expected or planned objectives.
Communication: - It is the key player of Orion Pharma (UK) Limited in its human resource department which helps to create healthy communication between its employees and employers. Therefore, presence of proper communication is very crucial in this firm to attain objectives in timely manner.
1.3 Framework of Strategic human resource management
Through the concept of strategic human resource management, Orion Pharma (UK) Limited has been initializing numerous efforts for making strategies to acquire proposed objectives. But it should notbe neglected that with the help of these objectives only the cited firm is able to retain position in competitive market (Subramaniam and Youndt, 2005). Simultaneously, this management approach helps the firm to manage their customers as that directs its manpower to perform in competent style. With the help of diagram, intentions and beliefs of Orion Pharma (UK) Limited can be understood in more convenient way. The pictured framework shows that organisations should examine both internal and external state of affairs which helps human resource managers and decision-makers to make appropriate strategies or plans and policies. In nutshell, all these functions or steps are performed only and only by focusing the single aim that is to gain competitive advantage.
The framework entails that analyzing the situational components is very critical for firm so that firm's status and employee's curiosity can be measured. Along with that, the model skews with engagement of firm's stakeholders in strategy evolution process. It is also essential for Orion Pharma (UK) Limited to give more focus on talented man power through rewards and acknowledgment in order to increase their motivational level. The cited firm through its HR management should keep their allegiance in cost-oriented exercises. Apart from that, managers of the cited firm should also consider long-term objectives like employee's satisfaction or retention, effectiveness of firm and corporate social responsibility as well.
LO. 2: - Understanding the formulation and implementation of Human Resource Strategies
2.1 Strategic Human Resource process analysis
The cited firm Orion Pharma (UK) Limited has been accenting on strategic human resource management in order to execute plans and policies in suitable manner. Steps to be followed in strategic human resource management are as mentioned below:
Formulation of strategy: - The very first step includes development of numerous strategies by talented and skilled employees of Orion Pharma (UK) Limited for a specific purpose. These alternative strategies are merged with firm's objectives in order to obtain expected results.
Strategic implementation: - In this stage, after ascertaining strategies they are got implemented through development of adequate procedure. Here, every employee is assigned specific role and responsibility so that he or she can focus properly in performing operation.
Evaluation: - The final stage of strategic human resource process states the assessment of applied strategy through feedback and opinions of managers. However, it is the most critical stage for Orion Pharma (UK) Limited to assess the value of applied strategy in other projects for long-run. In order to measure the potentiality of action plan or strategy managers of the firm uses Balance Score Card Technique.
2.2 Roles of Strategic Human Resource Management
Assignment of roles and responsibilities to staff members of Orion Pharma (UK) Limited enables them to work with increased efficiency by having a specific role in business. Simultaneously, it is vital for HR mangers to observe and than assign tasks according to knowledge level of employees (Ray, Barney and Muhanna, 2004). Because segregating right job to the right candidate is characteristic of a good management. Top level management of the firm has power to take higher level strategic decisions for upgrading level of production because they are highly responsible for implementing and executing strategic plans. Superior managers must involve bottom level managers while integrating strategies with mission in order to analyze whether they are moving on a right path or not. Beside internal environment, external sources like stakeholders also plays vital role in strategic decision making because it is necessary to include them in every step of business. Another role of HRM in the firm is to analyze role of their stakeholders too.
From the organizational point of view, the major role of top level management is to follow leadership approach in defining aim and values to employees. Along with that it also makes definite that overall role of productivity, marketing, operations and other IT services are prepared, implemented and executed in such a manner that helps to achieve desired objectives (Yew Wong, 2005). Though human resource managers develops plans but they can be executed only through line managers of the firm. Willingness of line managers towards proposed activities of HR also maters a lot in Orion Pharma (UK) Limited.
In spite of all such high priority people or managers, front line managers are also responsible giving more priority to employees motivation. It is because without support of human capital engaged in business, it is not possible to achieve even a small target too. If employees are treated just as a machine, it can create huge impact on productivity and sustainability ratio. It is the duty and responsibility of front line managers to train and develop employees in order to overcome challenges with the help of adequate strategic management (Bontis and Fitz-Enz, 2002). Line managers are always keen to focus on role playing activities as they hire candidates for executing right job to them.
2.3 Development and implementation of HR strategies
Managers of Orion Pharma (UK) Limited has developed numerous strategies as they formulates them according to circumstances prevailing in the surrounding of the firm. Before implementation of strategic human resource management in Orion Pharma (UK) Limited, managers did face lot of issues related to turnover of employees due to their inabilities or job unsuitability, but later managers decided came to the conclusion for providing training and development programs for welfare of employees and that resulted in improvement in motivational level of employees (Bates and et. al., 2008). Still the cited firm need to focus on particular procedures for developing strategies such as:
- Firm needs to formulate plans in which top level managers assigns roles and responsibilities to lower level employees for better performance.
- Secondly, plans or strategies developed are implemented after integrating them with needs and objectives. Lastly, managers evaluates or assess performance of implemented strategies through monitoring process. Monitoring effectiveness of strategy is also known as strategic review process. In this process management of the firm can easily evaluate whether implemented strategy is able enough to cope up with future needs.
Through the help of aforementioned paragraph, it is clear that developing and implementing strategies is not an easy task at all because it requires numerous efforts to be made by human resource managers. Major steps involved in implementing strategy are:
- Assessment of strategic plan
- Developing plan with integrating vision
- Assorting suitable or talented employees
- Participation of top level management
- Organizing meetings for evaluating progress.
Relating HR practices
Accumulation of data is the only process of business entity but another main purpose should be to build ruling field of HR practices that must be implemented to determine additional practices to create create contact between them in order to deliver combined support (Brush, Greene and Hart, 2001). Role of human resource manager should be to concentrate on organizational development, change management and creating an environment of positive relationship between employees and employers by maintaining development of shared allegiance argumentation.
LO. 3 To evaluate a range of Human Resource Strategies that may be implemented within an organization.
3.1 Scope of HR strategies in Orion Pharma (UK) Limited
The scope of HR strategies is very wide that can be explained through following points:
Employee retention: - Orion Pharma (UK) Limited can grow long-run sustainability by changing or managing appropriate employee retention strategies. This can be done through offering monetary or non-monetary benefits to employees which results in reduction in rate of employee's turnover (Ray, Barney and Muhanna, 2004). Organizing programs that are favorable for employees like incentives schemes or appraisal programs can do enough for motivating them.
Training and development strategies: - As Orion Pharma (UK) Limited is a retail firm, its main aim or focus should be on quality of products and services they serve. Therefore, organizing training and development programs is must compulsory for cited firm managers for those employees who need training or for those who are newly recruited and odes not possess much knowledge about operations of the firm.
Performance management: - It is management of recognizing level of effectiveness among employees. Reward system is the best policy to retain employees in Orion Pharma (UK) Limited (Brush, Greene and Hart, 2001). Another advantage of this technique is that, it helps managers to find out gaps in performance of different employees so that it helps trainers to provide training according to level of their knowledge or gap difference.
3.2 Evaluation of Human Resource Strategies and its applications
Among from all various strategies, the cited firm Orion Pharma (UK) Limited should give more focus on employee retention strategy because it is the most important one as it provide more benefit then others. But before implementing such strategy it is more important for the firm to analyze reason for why employee retention programs are required. In other words, managers of the firm needs to determine factors responsible for emergence of employee retention needs (Florin, Lubatkin and Schulze, 2003). However, this context points out towards preparation of motivational programs which can be helpful in both gaining competitive advantage as well as growth in market share.
LO. 4 Understanding current issues affecting Strategic HRM
4.1 Determination of modern issues affecting strategic HRM
The contemporary issues affecting strategic HRM are as follows:
Generational gap: - This gap links towards difference in age group of employees working in an organization. However, this difference dominates in every firm because of broad literacy and employment level (Cropanzano and et. al., 2001). Therefore, dynamic organizational structures and high complexities in work systems meet out latest practices effectively and efficiently.
International HRM: - International HRM is another critical factor which affects management because of growing business organization on the far side definite location it must have proper culture which can be appropriate for employees as well as other people within the organization.
Equality Act: - This act entails that employee must not get discriminated by their employers in context of hiring, training and any other opportunities regarding sex, caste, colour etc.
4.2 Analyzing contemporary issues affecting strategic HRM
According to Strandberg (2009) big age difference in employees working in Orion Pharma (UK) Limited can lead to low productivity and low quality performance due to lack of enthusiasm and communication (Bontis and Fitz-Enz, 2002). Even though, cited firm has to deal with such issues on regular basis by creating an outstanding culture and effective management. While on other hand, International HRM in global context have integrated the exercise of booming its operational activities beyond the geographical edges. For coping up with this major issues, need for recruiting highly skilled and talented workers arises. Therefore, content of multiculturalism manpower and their conditions is the contemporary portion of business organization.
Employment of people from dynamic civilization requires Orion Pharma (UK) Limited to create a flexible and flourishing surrounding (Strandberg, 2009). Therefore, it can be understood that there must be an appropriate balance in working of the firm which always gives opportunities and on the other hand, work load situations requires working in odd times and providing additional efforts to accomplish the project.
From the entire project, it is obvious that human resource management works as a central necessity for the purpose of processing all kind of controls. Throughout the project, it is clear that Orion Pharma (UK) Limited needs lot more in their human resource management operations for enhancing productivity and quality of goods and services. Though there are numerous issues faced by this firm but with the help of effective management policies, managers can cope up with issues easily.
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