In any organization, Human resource management plays a significant role in helping business and gaining a competitive edge in the dynamic and varying corporate environment (Chen and Huang, 2009). With this globalised business world, an industry or business enterprise needs to incorporate effective HRM practices both in internal and external environment for the benefit of shareholders, company, employee and customers. These effective HRM practices and plans also aid in improving the performance level to its maximum.
The human resource policies also contribute to linking the human resource functions with strategic objective of the organization (Lengnick-Hall, Beck and Lengnick-Hall, 2011). Therefore, it can be said that this holds the central live blood role in any company. In addition, every organization intends to have edge over its rivalries for the long-term sustainability (D’Aveni, Dagnino and Smith, 2010). Existing research suggests that organizations find it extremely challenging to recruit, motivate, develop and retain competent workforce in this fiercely competitive environment. There are various reasons behind these challenging issues such as different employee culture and beliefs, global practices in an organization, lucrative offer from the competitor company, performance assessment, and many more.
Development of effective human resource policy also requires association on strategy between HR and the enterprise leadership as the human capital are the main factor of any business success (Guest, 2011). Thus, HR management programmes play a vital role in sustaining a viable business. One of the fundamental aspects in creation of HR management policies is strategic development. HRM policies and programmes make up a large portion of the back end of an organization. HR policies help in communicating, developing, and implementing a set of practices and policies that imitate a standard of satisfactory performance (Aycan, Al-Hamadi, Davis and Budhwar, 2007). Moreover, a successful HRM policy with effective strategy does more than drawing the restrictions; it identifies and addresses individual requirements. This will help the organization to coordinate both specific and organization goals. The main core principle that helps the organization in gaining competitive advantage here is the performance improvement. It is related to setting up various prospects and meeting them effectively. The main objective and focus of a business is not only to achieve their specific goals but also considering the way to achieve them.
HRM policies make sure that personnel have clear expectations and this can be addressed by the four key elements i.e. – roles, rules, consequences and tools (Van den Brink, Fruytier and Thunnissen, 2013). All employees working in an organization must know their respective roles in addition with the reporting structure within the business enterprise. This approach also signifies company-wide interdepartmental structures. In terms of rules, employees and managers need to share mutual understanding in relation to acceptable behaviour within the organization. Having a clear set of behavioural expectations is very important for the organization in order to deliver strategic effect. Next thing is the consequences that is related with violations of individual behavioural standards. Gaining of competitive edge in the industry is also connected with the working of individuals together on the organisation floor (Dave and Koskela, 2009). Practices and policies help in the interactions of employee while reducing the personnel obstacles arise in the organizations. The last aspect is the tools, which address the question how organization help the people and managed employee behaviour. These tools plays a crucial role not just to help but also avoid litigation. It also minimizes the time of the organization dealing with the productivity-draining employees’ concerns instead of primary business matters.
Whatsoever the approaches adopted by the company, the fundamental aspect to success is to integrate the resources and time it takes to build a plans and practices for the company before any necessity. It is an essential component of HRM policies and comprehensive people strategy (Christensen Hughes and Rog, 2008). The other significant part is that HRM procedures will not only help the organization by supporting various aspects but also help in creating the required organization culture. For instances, the management can add hiring and retention strategies for delivering the value where employees are allowed for flexible workforce, compensation policies and many pay options and many more. These are only some of the benefits that an organization can use to maintain a positive culture in the internal environment.
It can be easily understood by taking example of a company known as FedEx, an American multinational courier practising a business of overnight shipping services. The company have a pioneering system that helps them in tracking of packages and delivering of real-time updates in relation with the location of packaging. The company deals with strategic HRM principles rather than HRM and thus recognise the core strength of the organization in align with the external aspects. This represents a competitive advantage for the company.
The main aim of FedEx overall HR approach is towards developing skilled, devoted and consumer-oriented personnel. The HRM practices in FedEx are based on “People-Services-Profits” approach (Morris, Heames and McMillan, 2011). The enterprise aims to encourage a operational environment where both contractors and workers feel satisfied, appreciated and valued. The company believes that people are the key aspect link in the value chain and thus value is built by concentrating on employees first. This also brings employee satisfactions as per their company annual survey. This philosophy of the company has gained a rising base of empirical support. FedEx applies common known managerial approaches and effectively concert them into action with the help of a philosophy they state as “People, service and profits”. According to FedEx, people are placed first as they make good business logic. Taking care of the individuals will help them in delivering unsullied service demand by the customers. Moreover, they will also reward the organization with the profitability necessary to protect the company competitive advantage.
The company considers that inspired and assiduous individuals deliver key specialised service to ensure profits and enduring development (Slater, Weigand and Zwirlein, 2008). Moreover, due to their competitive and open HRM policies, the HR department also hires people regardless of race, religion, nationality, origin, gender, disability or age. This shows their positive and integrated culture that has no biasness or negative judgments.
FedEx HRM policies also provide various opportunities to the people with a formalised career development programme that focuses on building and enriching the enterprise human resources in align with both employees and organization’s needs (Humanresourcesmba, 2015). Career development helps the employees in formulating career goals including an on-going plan for reaching to these goals. The worksite and offices of FedEx also have an open and supportive environment where each and every employee can extent their full capability and so be a part of the organization success. In addition, the company philosophy of People-Service-Profit also supports the fair treatment of its employees. Moreover, it also considered them as the most valued asset and competitive stone of the success. This shows that there are many opportunities for the people in FedEx to advance their knowledge and skills within the company. The company also have a distinct career development tool named as tuition refund programme, where the organization reimburses employees for their tuition costs.
FedEx is also aware of the employees’ unique and diversified needs and this helps them to give various reward to the employees addressing their benefit needs (fedex.com, 2017). This brings higher employee motivation. This not only leads greater creativity but also increases productivity and discretionary effort and thus this all lead to enhance company performance and helps them in gaining competitive edge against their major competitors such as DHL, USPS, etc.
The main objective of FedEx towards effective HRM practices is focused at enhancing of the way human resources are managed strategically within the business enterprise. This brings increased value to the organization as the HR programmes are integrated with the goals of organization. Moreover, it determines competitive advantage helps organization to draw, train and retain employees having superior skilled and quality.
Thus the major characterises and HRM practices that FedEx have used in achieving competitive advantages are – hiring of capable personnel, communication strategy, compensation strategy, career development programme, training and development strategy and worker retention programme (fedex.com, 2018). In terms of competitive benefit, Federal express goals is to make distinct position in the market and industry by delivering superior client service and trusted on-time deliveries. Their other competitors such as DHL and UPS have the same technologies but it is the FedEx workforce (human resource) – who essentially provide FedEx a vital competitive advantage. Therefore, it is they responsibility of the company to sustain their HRM policies for a long period of time.
In today’s comprehensive economy, there are various aspects that influence HRM policies and practices. It is significant to note that many numbers of organizations already realize that if they need to venture into international markets, an effective set of HRM policies will be required in order to integrate and foster with the dynamics of foreign market place. From management perspectives, it will also help them in relocations of costs, effective selection, compensations and training (Tremblay et al, 2010). This is now also becoming an international perspective. Therefore, it can be said that HRM policies do change from one business to another and also from one nation to another.
Strategic human resource management policies are the outcome of globalisation. These policies and practices are changing rapidly due to the various internal and external having significant impact on the business management practices (Schuler and Tarique, 2007). In the last 25 years, there are various changes happened in the UK which have both positive and negative influence on HRM practices. These changes are internal as well as external raised due to some political, legal and organizational factors.
The first aspect is related to the external environment factors where UK formally leaves the European Union approaches. The United Kingdom is set to formally end its membership of the European Union. Thus will have various implications on the global organizations as well as their HR teams and also influence hiring, recruiting and employer branding for those organizations. Employers are used to EU employees currently have the right to live and work across the EU without restrictions (Frith, 2016). However, now employer need to be aware that these rules may not be in place after the U.K. leaves the EU and there will also a need for assessing of cost implications for the business. Employers will also be concerned with the new HRM policies in relation with impact of Brexit on the employment law regime in the U.K.
As a leading industrial nation, the UK has traditionally had employment legislations in place and has introduced a range of protections for employee since 1970. However, due to Brexit, there will be reinforcement many of those existing regulations and announced many new protections for the workers (Frith, 2016). Although the UK already had a number of equality related laws, being a part of EU led to the introduction of the other principles in related with HRM policies such as protection against associative discrimination, and no cap being placed on compensation for claims relating to it.
According to the view of Mike Butler, a associate of the Society for Human Resource Management of the Society for Human Resource Management (SHRM) global special expertise panel, HR managers or employers in the U.K. will faces several administrative hurdles in hiring job candidates from outside the U.K. as those people will be required of adequate working visa. This will be having a significant impact on HRM practices. In addition, HR needs to be more creative in searching their sources of talent, moreover, they can rely on overseas talented pool and thus they have to develop their own workforce (Chell, 2018).
There will also be several skills issue as various figures show that EU migrant are net contributor to the UK economy and this is the phase when the UK economy is experiencing full employment. Due to Brexit, the EU migrant workers may be loose and this will affect HRM practices in most of the organization. Moreover, there will be now two views, – UK needs to ‘skill-up’ its workforce to deal with the shortfalls in skills caused by the EU worker post-Brexit exodus. This will be an aspirational view in HRM policies and practices as it means creating a revolution in training and work.
The next factor that impact the HRM practice and policy is the change in technology and adoption of social media. HR and recruitment professionals make up just 1% of the UK workforce, however, they are a crucial part of any enterprise and improving digital skills is one of the key challenges in this respective sector (Knowles, 2018).
One of the top UK Company Deloitte, said in to their Global Human Capital Trends report that HR departments are now needed to take necessary actions in implementing new technological processes in the workplace and also emphasis on social media and other online recruitment websites to attract talented pool. According to that report the company surveyed, 65% had not significant programme to drive digital leadership skills where 78% believes that it is a significant part of the modern workplace (Fries, 2018).
In addition, as per CIPD HR outlook survey 2016-17, 629 HR professionals in UK at all stages on the trends, topics and issues facing the industry, with important findings including a call for HR to hold the aids of technology such as social media, automation, and adaption to the personnel varying needs and desires. It also includes a demand for flexible working. These changes demand to be included in the new HRM policies with an explicit examination in the competitive environment. The survey also shown that high levels of employment are integrated with uncertainty in the economic environment due to globalization and the recent Brexit, effective talent management in attracting, developing and retaining the top employees as required more than ever.
While business leaders were found highly capable in operational, financial, and technical matters, they often be deficient in individual management skills. Moreover, the key focus of HR training in relation with effective practices continues to be getting the best out of an organization employee while driving business performance. In along with that, the recruitment industry is moving from strength to strength. As per the report of the Recruitment and Employment Confederation (REC)’s 2016-17, total industry turnover for the period was £32.2billion, and anticipated an industry growth of 3.6% in 2018/19 (Knowles, 2018). Various other external factors in the form of talent solution websites also affect the various recruitment practices. As per the report, LinkedIn targeted 4,000 global talent leaders across 35 nations and recognised recruiting diverse candidates, enhancing soft skills assessment and transforming interviewing tools as it will help in the development of the recruitment industry from now until in the near future. This report also highlights the significance of social media and the digital age in enhancing these areas. In addition, various professional social networks like LinkedIn have positively impacted the quality of candidates hired in the industry. This is also called leveraging of technology for sustainable growth. In UK with these trends, organizations are seeing to capitalise on the assistances of a surge of new AI-based software, workplace and connectivity tools and individual data applications. The ease the HR department task due to the automation lifts productivity and enhances people efforts.
The third aspect is related to change in demographics that will have a reflective effect on the labour market in UK and the HRM polices of the organization. In UK, over 30% of people in employment are over the age of 50 and the organization did not have enough younger people and talented individuals (Clegg, 2018). Employers and organization need an innovative approach to identify the substantial issue such as yield challenges, shortfalls of labour and incapacity to meet consumer service and respective product goals.
As older generation retires, and new generation come into the workforce the human resource section must need to check for various ways to attract new set of candidates. HRM policies need to be designed in such a manner that can hire younger people in different ways by offering several types of compensation packages. In addition, they must need to offer a working environment to them in according to the working of this new generation.
Many companies in UK are looking for opportunities to attract those employees who have discontinues their careers due to some considerations. Several years ago, European Council has triggered this new trend when European leaders declared their political goal was to raise the ratio of older workers in the course of active employment (Clegg, 2018). This move was important not only to cope with the future economic challenges for Europe Social Security and welfare systems resulting from an “ageing society” but also to respond to a foreseen shortage of qualified personnel in various labour markets in Western Europe.
This all requires that organization need to contemplate what changes they need to be introduced as the effect of having a more diversified workforce, in relation with employment relationship as well in terms of age. Moreover, the HR department also needs to be highly aware of the different requirements of the different stakeholder’s groups and the capability to solve substantial conflicts with the help of innovative solutions.
The necessary steps that need to be considered as a part of HR practices in light with the changed structure and in terms of demographics, longer life expectancies, different working-time rules, etc. Moreover, individual HR programmes also need to be revised in align with revised HR strategies. The organizations that see various opportunities in diversifying their workforce will deliver an extended career in relation with the new retirement ages. This will help them to well cop up with the high demand of qualified candidates.
In terms of legal aspects, the General Equal Treatment Act also applies to organization pension plans. This designed pension plan must comply with the new legal framework of UK (Davis, 2018). The HR department planned these plans in particular employee entire career and also financed by an organization. In addition, the Federal Labour Court provides some guidance as to its existing stance on how to solve such issue.
References
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