Exam long answer practice Essay Example

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Strategic Human Resource Management

In the past one decade or so, there has been a lot of research on the relationship between Human Resource Management (HRM) practices and the performance of an organization. Such research is what has yielded Strategic Human Resource Management (SHRM) which aligns the conventional HRM practices with the goals and objectives of the organization. It is this match that makes an organization to be considered an ‘employer of choice’. This paper, therefore, discusses this aspect in relation to the relevant HRM concepts and models.

For an organization to be termed as an ‘employer of choice’, first and foremost, it has to effectively manage its human resource just like it does with other resources such as finance, technology, and infrastructure. The most effective HRM model demands that an organization devices a plan such that its human capital can be acquired, developed, and dismissed (if need be) in line with the overall strategies of the organization. In order to stand out, for instance, as a global accounting company ‘employer of choice’, Deloitte has put in place a number of benefits for its employees. Some of these benefits include comprehensive medical insurance packages, competitive remuneration packages, elaborate employee development programs, and a clear employee dismissal plan for Deloitte’s human resource. The ultimate implication of such benefits is that the company is able to attract, motivate, and retain its employees hence making Deloitte an employer of choice indeed.

Adopting a reward system that is holistic and all-inclusive is another HRM strategy an organization may decide to use in its quest to becoming an ‘employer of choice’. This is what Google has adopted through a compensation model referred to as a ‘Total Reward System’ in which the company considers both the intrinsic as well as extrinsic motivation in its employee compensation. In a similar fashion, Google is also known for its job flexibility programs for some of its employees in specific departments – a system envied not just by potential job seekers but also its competitors. For that reason, the company has retained its position as one of the companies with the most qualified employees globally. It is evident, therefore, that through its HRM functions, Google has been able to achieve one of its strategic goals of becoming an epitome of talent in amongst global companies.

Performance appraisal is another strategic HRM technique an organization may want to use to position itself as an ‘employer of choice’. As a HRM aspect, performance appraisal helps an organization to have clear-cut modes of promoting and/or increasing the salary of a given employee. At Unilever, for example, the company’s performance appraisal system is pegged on the consistency, potential, and performance of the employee being assessed over a specified period of time. Unilever refers to this as ‘Sustainable Quality Performance’ which is usually assessed from the previous year’s performance of the employee in question. While this automatically contributes to the company’s global HRM vision of nurturing and retaining the best talent, it has increased Unilever’s global competitive advantage with respect to human capital development and motivation. A talented employee who is keen on developing themselves in line with the organization’s strategic goals would most likely want to work for Unilever.

Some organizations have capitalized on excellent training and development plans as their most revered HRM activity. One such company is PepsiCo whose supervisors are known to be some of the most effective amongst its peers in beverage industry. According to PepsiCo, the effectiveness of their supervisors is attributed to the intense and quality training the company offers to its employees. The company organizes periodic training opportunities and conferences for their employees to take part and update their skills with the contemporary trends. Such trainings ensure that PepsiCo’s employees develop as per the job requirements hence making them to easily adapt even with new roles. While most organizations have invested heavily in employee training and development in the modern global corporate era, PepsiCo has gained a competitive advantage over most of its peers in terms of staff training.

Last, but certainly not the least, recruitment and selection is also an important aspect of HRM in any organization. As a matter of fact, this is one of the most critical aspects of any organization’s HRM model. This is because through this process, an organization can either on-board an ‘asset’ or a ‘liability’ to the organization. This informs why at Siemens, this is taken quite seriously. Recruitment and selection at Siemens follows a five-step process i.e. online application, phone interview, aptitude test, one-on-one interview, and background and reference check respectively. While some candidates may consider this process tedious and unnecessarily thorough, through the process Siemens has been able to sieve through its applicants to end up with only the best in the industry.

In conclusion, therefore, being an ‘employer of choice’ is not just a factor of competitive remuneration. Instead, it is a combination of virtually all HRM activities that constitute the organization’s human capital management. Of greatest importance, however, is that the HRM activities must align to the organization’s strategies hence the need for strategic HRM.