The aim of this report was to evaluate the impact of HRM practices on the performance of the organization. As a result, to achieve its purpose, University of Central Lancashire (UCLan) was selected as the reference organization. Among the areas of concern that were discussed included the concept of HRM and its theories where the main roles in achieving organization goals were discussed such as strategic thinking, planning, and direction setting among others. Distinctive features of HR. Strategies were discussed in relation to UCLan; which include learning and development and Talent sourcing and selection. The report a later linked the HR. strategy to organization performance and found out that it significantly contributes to UCLan productivity as it ensures that the right people are selected trained and new skills of accomplishing their tasks innovated.
Table of Contents
Executive Summary. 2
1.0 Introduction. 4
1.1 Introduction to UCLan. 4
2.0 Human Resource Management 4
3.0 Features of HR. strategy at UCLan. 6
3.1 Talent sourcing and selection. 6
3.2 Learning and development 7
3.3 Trends in HRM... 7
4.0 HRM and Performance. 8
5.0 Summary. 9
Human Resource Management
1.0 Introduction
1.1 Introduction to UCLan
University of Central Lancashire (UCLan) is one of the prestigious UK universities based in Preston in the North West of England. The university offers students one of the excellent learning and interactive environment from diverse cultures across the globe. The university is well situated in the region that is properly served with all forms of infrastructure such as shops and restaurants that are within a walking distance from the campus. UCLan is governed by different values which include Compassion, Common Sense, Teamwork, Trust and Attention to Detail which are meant to guide students and employees’ conduct within the university. UCLan is surrounded by both indoor and outdoor venture venues which are used for athletes training and thus availing one of the best relaxing and refreshing environments for students who wish to participate in extra curriculum activities (Downe et al., 2007, p392).
Recently, the university has set aside a capital outlay of approximately £100 million as an investment in development and improvement of learning facilities. As a result, the university has been ranked as the top ten best institutions with the most ultramodern library and service satisfaction in the UK (Arulampalam et al., 2005, p 251).
Type of strategy
They type of strategy that UCLan HRM has adopted is specific strategy that seeks to attain the UCLan 2020 strategy. In so doing, the department seeks to identify sets of areas that are explicitly in need of its interests and where strategic planning has to be done in regard to policies and plan defined by the company. Among the specific areas that need to be developed include the pursuing of specific plans such as talent management within the organization, continuous improvement, promote knowledge management, reward policies, employee resourcing and retaining, leaning and development as well as employee rations.
Focus
The aim is this paper is to evaluate and examine Human resource strategy at the institution and examine how HR. functions. The context of the report is to scrutinize the HRM role in achieving the UCLan 2017-2020 strategy that include overall people planning in relation to Support for managers, ensuring recruitment is done in the best interest of the company, developing compensation scheme among other strategic options which are meant to achieve their UCLan 2020 strategy and its impacts on performance
2.0 Human Resource Management
Human resource management (HRM) encompasses different activities that are meant to attract and retain diverse labor force while ensuring that the individual employed are performing to the required standards so as to realize organizational goals (Reiche et al., 2016). Contemporary, HRM has been defined as the entire process of hiring, engaging individuals, training them, effectively compensating them, establishing relevant policies to govern them with employers, as well as coming up with strategies and policies to retain them for foreseeable future (Anitha, 2014, p 308). Precisely resources may include finance, individual, capital as well as raw materials used in production process. Cardinally, HRM takes the center stage in any organization as it is concerned with different functions which harmonize the entire operations of an entity in a legal manner. The core function of HRM is to ensure that it supports business objectives. On the other hand, Human resources (HR) is defined as section or unit in the company that is concerned with the finding, screening, selection, restructuring as well as training potential job applicants and ensuring that the accompanying benefits are facilitated.
Role of HRM
One of the main roles that HRM has in an organization is in relation to the strategic thinking process. The HR. personnel are required to ensure that they fully understand the organization, the legal policies, operations, employee needs, and changes in the environment, understand the business environment in regard to competitors, and finally understanding of your customer for proper policy formulation. Strategic thinking helps the organization to assess performance and thus the need for training and development and steering up of innovation within the business (Piccolo et al., 2010, p 259). Additionally, by being a strategic partner to the management, the Hr. is tasked with developing and suggesting new business and HR. strategies and crucial updates of HR. policies, process and procedures. Finally, strategic thinking helps HR. managers to links output to organization vision by evoking different ideas on how to achieve extent performance. HR. personnel are also required to provide business proposals to the management and help employees to have the required competencies in accomplishing their tasks.
Direction setting in another role that the HRM. is tasked with in a business. The process entails the understanding of workforce plans, key missions, and visions as well as any future objectives set by the company and assessing the right way through which it can be achieved. At this stage, the HR. is required to evaluate expected changes in programs over time and want are the drivers for changes, the shorter versus long term development in the organizational strategy, the available legislation and other legal polices which are likely to impact the organization, deeper understanding of the political, economic and political situations and how they impact the performance both now and in future (Ulrich and Dulebohn, 2015, p 188). Moreover, it HRM is tasked with assessment of key strengths and weaknesses, the best way to position the company in the market both currently and in future, identification of key strategic relationship and how they influence the business, and other factors which can help in define the specific direction that a company can take (Kanigel, 2005, p 1).
HR. also participates in the planning of process and operations within an organization. The main duties in the planning process include planning for adequate resources to meet HR. strategic goals and other daily operations within the company, obtaining the right people having the needed set of skills to accomplish different activities, ensure that all ethical standards, legal, technological and other trends in the environment well prepare for and prediction of future HR. goals (Piccolo and Colquitt, 2006, p 327). In general, the HR. is required to do future prediction of the HR. requirements, assessing current capacity; designing outsourcing strategies, planning for training, and proposing restructuring plans. Additionally, it helps in evaluating employee performance and facilitating employee development programs.
Theories of HRM
There are different theories which define the scope of HRM and how they relate to its function which in the organization in an effort to attain the strategies set forth by companies. There are two common broad set of theories which include performance and management theory. Performance theories are concerned with the realization of effective and efficient job productivity as well as enhanced employee motivation. One of the theories is the fourteen principles of management developed by Henry Fayol. According to the theory, according to the model, employees are likely to function well when the organization, which is led by HRM, is more efficient in terms of selection, recruitment, duty allocation, supervision, and compensation (Golden et al., 2010, p 489). The theory recommends four main functions of the HRM which include planning, organizing as well as leading and controlling performance within an organization. Secondly, the fourteen management principles developed by Henri Fayol states that when jobs are well defined in the company, right people employed, clear command of authority established, performance evaluated and a good pay structure for inspiration (Fayol, 1916, p 14). Motivational Theories include Job Characteristics Theory that is concerned with analyzing the various elements within the work environment which can make a given work to be satisfying and in this way motivate employees (Grzywacz and Butler, 2005, p 97). As a result, different forms of rewards are supposed to be given to employees to ensure they do not become dissatisfied with time. Another theory includes Abraham Maslow that seeks to emphasize the fulfillment of basic needs by an employer to have the employee feel secure and committed to contributing toward the achievement of set goals; which is the basic function of the HRM (Guest, 2011, p3).
3.0 Features of HR. strategy at UCLan
HR. strategy can be denoted as a collection of different actions and intentions meant to promote corporation between employer and employees by promoting the management of workers that is expressed through firm’s philosophies, policies, practices, and values by ensuring that HRM concentrates on integrating HR. within the business environment. The main features of a classic HR. strategy are discussed below.
3.1 Talent sourcing and selection
Talent sourcing and selection forms the primary and yet imports feature of a human resource strategy. By definition, Recruitment refers to the process of pursuing, attracting and obtaining a group of potential employees to submit their requests for given positions within an organization; whereas selection is the picking of the right candidates from applicants who own the most desirable skills and capabilities (Birasnav, 2014, p 1622). Under this feature, the approach should be based on two main processes that are used to recruit and select employees which include: the use of internal and external methods (Ruona et al., 2003, p 272). The next step is to use different tools that can be used to select the best staffs which include interviews, aptitude test, and psychometric testing. Due to the need for improved performance, the strategy should be designed to be robust and thorough aiming to only end up with the best personalities who are ready to take the organization to the next level. As a result, Edgar and Geare (2005, p 534) posit that the approach should firstly consider the views of HR., staffs and relevant advisory committee involved in strategic planning; and due influence to be placed on the objectives and the culture that defines the company. Another decisive aspect of this feature is to perform job analysis that will define duties and responsibilities of the work to be performed (Wilzcynska et al., 2014, p 7). At this stage, there is need to define the skills, abilities, talents, education, accountabilities, and relationship that an employee should possesses to be given the opportunity of filling up the vacant position (Taylor, 2004). The aim is to ensure that the best-talented employees are targeted, evaluated, cross-examined and be hired to bring to the organization their expanse knowledge and expertise that can promote innovation, creativity, and product or service improvements.
3.2 Learning and development
One of the conspicuous features of any HR. strategy is the existence of employee learning and development. The main aim of using enhancing employee development and training is to promote their skills, knowledge and capabilities; as a result, workers are expected to realize and post improved performance (Fariz et al., 2016, p 34). Development is an endless process through which workers are required to enhance their knowledge as well as skill so that they can meet the changes and challenges that are likely to emerge in their workplace and profession. The most common approaches that are used under this strategy include on-job and off-job training. The commonly used methods to conduct training process include classroom, group discussion, eternal workshops, and job rotation among many other methods that an organization or a trainee can adopt. However, according to Jackson et al (2014, p15), the learning and development process should be done based on the organizations and individual needs for it to be effective and to achieve the desired goals. A well-developed program in this area is likely to be costly to the business, nevertheless, according to Sheehan (2014 p 547), the development of employees within a company by imparting new skills and abilities, and knowledge is the best thing that an organization can do as it results in the realization of a creative and innovation labor force; that essentially becomes the indispensable assert that an organization can possess (Tesavrita et al., 2017, p 187). The workplace requirement are getting more complex and therefore the need for a HR. strategy to endure that such future challenges are well prepared for by designing different learning and development programs that aims at skill and knowledge improvement so that employees are not rendered obsolete and thus losing their jobs in a foreseeable time (Junni et al., 2015, p 2).
3.3 Trends in HRM
The use of technology has resulted in a paradigm shift on how employees are engaged both locally and internationally. Among the areas of great concerns are briefly disused below.
2.2.1 Use of big data analytics
The use of big data has grown significantly important in labor market. Employers have decided to use scientific methods in making hiring decisions (Bratton and Gold, 2017). Different predictive algorithms are used to develop HR. technology systems that have the capability of making informed hiring decisions with great accuracy as employee’s information is well surveyed.
2.2.2 Enhanced performance management
The need to develop a comprehensive compensation schedule has made it possible for companies to focus on employee performance review for determining aspects like promotion, status, and even pay rise (Bratton and Gold, 2017).
2.2.3 Cloud computing
Cloud computing has remained one of the recent trends that have been employed in human resource management by many companies. The method has helped in projections making within the company in regard to performance, increased innovation, faster employee record updates among other functions that are directly affected (Achoui, 2009, p 36).
2.2.4 The growth of work team networks
Companies are moving from individual team centered organizations to a network of teams that have the ability of widely sharing insights with the aim of promoting job performance (Brewster et al., 2016).
2.2.5 Embracing diversity
Due to globalization, there is a need to incorporate diversity into the organization. Many companies have developed structural frameworks which can enhance the interaction or employees from different backgrounds to reduce the effects of culture difference of performance (Lawler III and Boudreau, 2015).
4.0 HRM and Performance
The connection between HRM and corporate performance has drawn a wide range of studies with the aim of establishing the mutual link between the two practices. However, from the existing literature, studies have shown a positive connection between the performance of a firm and HRM practices.
A Paillé et al (2014, p 451) conducted a study to establish the effects of HRM on UK hotel industry. In his finding, the researchers found out that the performance of the hotel industry was dependent upon the HRM strategy that the organization had developed. In addition, the study found out the core function of HRM in an organization such as strategic planning, setting of future direction, planning and operations management, resource planning and future foresting had great value in determining the competitiveness of the company in the market.
Similarly, Tooksoon (2011, p 41) in his study about the effectiveness of HRM strategies and practice on the performance of the company revealed that practices such as employee motivation, teamwork development, training as well as development significantly contributed to the competitiveness and thus positively influence performance when well implemented in organizations. All strategic functions of forecasting future needs, resources, legal environment, and promoting creativity are some of the HRM function which leads to improved products and services that influence the performance of the firm (Cania, 2014, p 383).
Lo et al (2009, p 103) revealed that learning and development have a direct impact on the performance of the companies. For instance, the investigation exposed that learning and development have a significant impact of ensuring that employees develop the required skills and abilities to execute tasks better, and therefore contributing positively to the performance of the concerned organization. Moreover, it was established that development through training equipped workers with the most current skills and knowledge that enable workers to enhance their output and the manner in which tasks are accomplished effectively as one way of improving productivity in the company. In so doing, the UClan HRM department by focusing on developing and enhancing learning in the company is one way of contributing to the realization of overall goals set by the organization.
By focusing on employee development and learning, and the Talent sourcing and selection, the HRM can achieve its strategy of achieving 2020 vision in the institution by ensuring that the right people are recruited, trained, motivated and thus contributing to the enhanced performance of the institution.
However, it is not guaranteed that well selected employees, trained, developed and motivated will lead to automatic performance enhancement as some cannot fully apply the gained knowledge on work.
5.0 Summary
This report did an analysis of the JR strategy at UCLan and how it can contribute to the organization performance. In so doing, the report evaluated different HRM concepts. Theories discussed include job characteristics theory, Henry Fayol fourteen principles of management and Abraham Maslow model. The core features of HR. strategy at UCLan includes Talent sourcing and selection and Learning and development. The paper later linked the strategy to firm performance and established that it was contributing immensely to the success of the institution. For instance, learning and developing employees contributes to enhanced skills that can improve their performance and therefore adding to the attainment of organizational goals and objectives. Therefore, the report concludes that the HR. strategy at the institution is well set to support organizational performance if well put to practice and all stakeholders involved.
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