Understanding Organisations And The Role Of HR For Prudential Public Limited Company

Products and Services Offered

Discuss about the Understanding Organisations and the Role of Hr for Prudential Public Limited Company.
 

Prudential Plc is a multi-national group offering financial services that have been servicing on the principles of integrity, security and prudence since its establishment in London in 1848. With an insurance customer base of 24 million and £509 billion worth of assets under management (Prudential, 2016), it is currently one among the leaders in the financial market.

Products and Services Offered. Prudential is a provider of various financial products and services, such as life insurance, retirement-related services, annuities, mutual funds, and investment management services with significant operations in the United States, Asia, Europe, and Latin America (Bloomberg, 2016).

Key Customers. The main consumers are subdivided into three main segments: the US ‘baby boomer’ generation that is transitioning into retirement and needs retirement income solutions; the growing and increasingly affluent middle class in Asia with its health and wealth protection needs; and the ageing population of the UK with its demand for savings products (Prudential Plc, 2016).

Purpose and Goal. Prudential’s vision is to establish itself as a market leader among financial services providers and become a trustworthy partner to customers in their aim to achieve financial prosperity by offering innovative solutions for the growth and protection of their wealth (Prudential Plc, 2016).

The Impact of External Factors on Business. Prudential’s is not independent of external factors which can affect its business in the following ways:

• Volatility in the market and adverse economic conditions which lead to uncertain and negative trends in interest rates, equity markets and in general investment can have adverse effects on Prudential’s business and profitability (Prudential Plc, 2015).
• Prudential’s business is exposed to foreign exchange rate fluctuations due its operations being spread across vast geographical areas. Exchange rate fluctuations can adversely affect the financial figures of its cross-border business units (Prudential Plc, 2015).
• Prudential’s businesses are subject to government regulatory frameworks, and any change in the laws, policies and regulations in the country of operations can impact its competitiveness, range of products, channels of distribution, and capital requirements (Prudential Plc, 2015).
• Prudential’s operates in highly competitive environments and any significant developments in demographic trends of changes in tastes and preferences of consumers can influence its sustainability in the long run (Prudential Plc, 2015).

Structure and Functions. The Prudential Group is has an independence structure with a simple organizational form that support the independent activities of its 4 business units, namely:

• Prudential UK assists in delivering value for the Group by their determined focus on wealthy and affluent consumers in the UK who require life insurance and pension solutions (Prudential, 2016).
• Jackson National Life Insurance Company provides efficiently customised retirement products keeping the target consumer base of the United States’ 78 million-strong generation of ‘baby boomers ‘who are gradually proceeding towards the ebb of their work life (Prudential, 2016).
• Prudential Corporation Asia is a pioneer in providing health and protection insurance services to the emerging middle-class families of Asia. Eastspring Investments, Prudential’s asset management unit based in Asia, assists in managing investments in 13 different markets across a diverse set of asset classes (Prudential, 2016).
• M&G has now become the largest institutional and retail fund managers of Europe by offering its expertise knowledge of investment solution (Prudential, 2016).

Coordination of Functions to Optimize Performance. Prudential’s strategic units function based on a consistent strategy that utilises each of its capabilities, scale and outreach to provide value to its customers and offer the most optimal and effective savings and protection solutions for its stakeholders (Prudential Plc, 2016). Prudential UK, Prudential Corporation Asia and the Jackson National Life Insurance Company, helps earn insurance underwriting profits by providing financial protection solutions to customers in a way that satisfies their individual and meets their risk tolerance level. Whereas, Eastspring Investments and M&G supplements this by providing investment and asset management services to shareholders, in the process helping to earn fee income generated by managing customers’ wealth. These strategic units collaborate their functions for a sustainable and efficient organizational performance.

Organizational Culture. The organisational environment of Prudential Plc is one where each is treated with dignity and respect, and equal opportunities are provided to every employee. Prudential believes in fostering a culture that encourages behaviours that are consistent with the company’s code of conduct while detecting, resolving and subsequently preventing any potential misconduct. The importance of having an employee base from various cultural backgrounds with diverse skill sets is recognised as an enrichment to the business. Active measures are taken to leverage each person’s individual strength and capabilities to help contribute towards overall organisational success. Prudential’s employees are trained to function within a framework of rules and regulations, while emphasising on the need to follow strict policies, procedure and high ethical standards. 

The human resource and learning & development department of Prudential Plc have a vital role to play in rigorous and effective talent management of its huge employee base. The reduction in the size of the HR department or its complete closure can occur a situation of crisis, which must be avoided at all costs.

Organizational Strategy. The organisational strategy of Prudential is to provide opportunities to their customers for saving and protecting their wealth. It aims at being a socially and economically advantageous force for the communities in which operates by creating job opportunities and delivering long-term value to investors (Prudential Plc, 2015). Prudential focuses on driving growth cycles by ensuring financial security, pooling their consumer’s savings to make fruitful and high-yield investments.

HR Activities that Support the Organizational Strategy. The essential HR activities that support the Organizational Strategy are:

• Diversity and Inclusion- This HR conducts non-discriminatory recruitment activities to give equal opportunities to all people from the community irrespective of their age, gender, religion, ethnicity, disability status or sexual orientation (Prudential Plc, 2016). These measures help to garner a workforce that has been selected based only on merit, aptitude and abilities.
• Apprenticeship Program- The HR department conducts an Apprenticeship program for those who to do not have the privilege to further their careers by opting for higher studies. Under this program, talented individuals are given a chance to attend the 13-month program that will help them to gain valuable experience and acquire the relevant skills and knowledge so that they can be included in Prudential’s workforce (Prudential Plc, 2016).
• Community Participation- The HR department organises and encourages its staff to participate in various community development programs that support activities in the field of charity and donations; child and youth education; welfare of society and environment; and the protection of heritage (M&G Investments, 2016).

Support to Line Managers and their Staff from HR Professionals. HR professionals of Prudential assist line managers and their subordinates in the following ways:

• Affinity Networks – Prudential’s HR department has established affinity networks such as its London-based Prudential Women’s Professional Network (PWPN) to give equal opportunities to women in the organization and encourage the influx of female working professionals into the workforce; and the ‘M&G Pride’ network for Lesbian, Gay, Bisexual and Transgender (LGBT) which aims at providing a socially supportive environment to employees who identify themselves as LGBT to help avoid discrimination against them (Prudential Plc, 2016).
• Talent Development Programs – Line managers and their subordinates are provided with various training programs and on-the-job learning opportunities (Prudential Plc, 2016) to help review and update their knowledge base. These measures improve the employee’s competitiveness by keeping them abreast of technological and market developments relevant to their field of work.
• Rewarding Employee Performance – A functional reward system is used for the motivation and retention of employees of high calibre across all organisational levels (Prudential Plc, 2016). The rewards and incentives are dependent on an employee’s ability to deliver their business goals and help line managers to keep a tab on expected behaviours and strive towards better employee performance.

The Role of HR Function in the Overall Success of the Business. The HR department has a considerable contribution to the overall success of the business, by attracting, engaging and supporting a proficient and productive workforce. The most important of these measures are as follows:

• Attracting quality workers – The HR department contributes to overall success by attracting top talent and reducing turnover of such employees. It helps in creating a conducive environment that enables employees to reach their professional and personal potential. Multiple resources are created to assist in improving employee’s skills and to aid in their learning and development. The dedicated Learning & Talent Development team help in configuring and imparting the most appropriate training programs to increase every employee’s sense of job satisfaction (M&G Investments, 2016).
• Employee Engagement – The HR department fosters a work culture wherein employees are empowered by their work, and feel that they have positively contributed towards achieving organisational Initiatives such as colleague appreciation programs, employee focus groups and networking opportunities are done to encourage high employee engagement. These measures have received appreciation from external agencies and won the HR department many prestigious awards (Prudential Plc, 2016).
• Providing Continuous Support – Prudential’s Human Resource and Learning & Development department offers continuous support to its employees through features such as its enterprise ethics office, Global Business Ethics & Integrity Prudential, which helps in continuous training of employees in ethical business functioning (Prudential, 2016); and Jackson University, its e-learning community, which helps further employees education and training inside and outside the organization (Jackson, 2016). 

References

Bloomberg, 2016. Company Overview of Prudential plc. [Online]
Available at: https://www.bloomberg.com/quote/PRU:LN
[Accessed 28 June 2016].

Jackson, 2016. Learning and Development. [Online]
Available at: https://www.jackson.com/careers/whatweoffer/Learning.jsp?&framework-guid=0700d6cc358e9ba755a701ea00fd0007
[Accessed 28 June 2016].

M&G Investments, 2016. M&G Life. [Online]
Available at: https://www.mandg.com/en/corporate/careers/mg-life/
[Accessed 28 June 2016].

Prudential Plc, 2015. Corporate Responsibility Review, London: Prudential Public Limited Company.

Prudential Plc, 2015. Risk Factors, London: Prudential Public Limited Company.

Prudential Plc, 2016. Prudential Apprenticeship Programme. [Online]
Available at: https://www.pru.co.uk/careers-at-pru/prudential-apprenticeship-programme/
[Accessed 28 June 2016].

Prudential Plc, 2016. Prudential plc Fact File 2016, London: Prudential Public Limited Company.

Prudential Plc, 2016. Valuing Our People. [Online]
Available at: https://www.prudential.co.uk/corporate-responsibility/valuing-our-people
[Accessed 28 June 2016].

Prudential Plc, 2016. Working at Prudential. [Online]
Available at: https://www.prudential.co.uk/who-we-are/working-at-prudential
[Accessed 28 June 2016].

Prudential, 2016. BUSINESS INTEGRITY AT PRUDENTIAL. [Online]
Available at: https://corporate.prudential.com/view/page/corp/31805
[Accessed 28 June 2016].

Prudential, 2016. Who We Are. [Online]
Available at: https://www.prudential.co.uk/who-we-are/about-us
[Accessed 29 June 2016].