The Role of HRM and Organizational Development Assignment Sample
Slide 1: Introduction
- HRM plays a crucial role in operational management within an organization
- The current study will be focused on HRM management of Volvo, a global automotive organization
- Internal and external factors of HRM will be evaluated
- A roadmap will also be presented to recommend proper talent management strategy to the organization
Automotive companies like Volvo require proper commitment from the employees in order to execute targeted goals. In this respect, the effect of strategic HRM on the business environment will be evaluated alongside making proper recommendations for the organization for talent management in the form of a roadmap.
Slide 2: Overview of the case study
- As per the case study, Volvo consists of decentralised and centralised functions
- The organisation demands committed alongside loyal employees to run its operations successfully
- However, issues of skill shortage is faced by the organization in the national and international scenario
- Due to skills shortage, the organisation fails to manage talent acquisition and thus results in poor performance
Based on the current case study it can be observed that decentralized functions within the organization are mainly referred to the HR functions within the domain. Additionally, it can also be observed that production is considered to be the core of Volvo in different global locations (Volvo, 2022). However, the issue of skill shortage faced by the company is questioning its sustainability within its market and is creating barriers to maintain strong performance in the competitive world (case study). In this respect, the mission and vision of the company is to develop proper solutions to the customers through a highly skilled workforce in the market. Henceforth, the designing of talent management strategy will be highly beneficial for the company in the current scenario.
Slide 3: Comparison of different areas of HRM and its contribution to organisational performance
- HR management within an organisation consists of different areas that contributes to organisational success
- Recruiting and retaining staffs is the main area of HRM followed by employee compensation and benefits
- Organisational structure and performance management that are other areas of HRM are directly linked with each other
- Besides, training and development, workplace safety, employees relationships and employees satisfaction are other areas related to HRM
Different areas of HRM helps in managing different operations that further leads to goal accomplishment in a successful way. As illustrated by López‐Cotarelo (2018), retaining and recruiting staff is considered to be the main area of HRM as it helps in talent acquisition and proper production within an organisation. It also helps in managing organisational notions and achieving sustainability. However, as argued by Dundon and Rafferty (2018), recruiting and retaining staff is directly linked with compensation and benefits of employees. It is because without proper compensation and benefits of the employees an organisation will fail to retain its staff. It will directly increase the turnover rate of the company that further will impact its operation in short term and long term goals. For instance, Volvo in the current scenario faces the issue of skills shortage that further impacts its performance level.
Nonetheless, as stated by Diaz‐Carrion et al. (2019), organisational structure and performance management that are considered to be other areas of HRM are also linked with each other. It is because without proper structure an organisation will fail to manage its performance as it will lead to improper resources and improper workplace. Other than that, as per Gooderham et al. (2019), performance management is also linked to the HRM areas of training and development, employee relationship and satisfaction and workplace safety. It is because, as viewed by Opatha and Kottawatta (2020), improper training and development will fail to polish skills of employees that further will impact organisational performance. On the other hand, workplace safety and proper employee relationships also impact working patterns within an organisation and thus create low scope of success in the future. Henceforth, Volvo will also require proper employee relationship and satisfaction to manage employee retention and recruitment.
Slide 4: Effects of strategic HRM on the organisation and business environment
- Strategic HRM tends to create positive impact on organisation and business environment
- Proper strategic management of HRM helps in organisational goals accomplishment that also fulfils performance objectives
- It helps in creating competitive edge of the organisation in the market
- Effective HRM strategy also helps in increasing performance level and managing employee relations within an organisational domain
Strategic HRM mainly implies setting proper performance and organisational objectives that further contributes to organisational success in the long run (Hamadamin and Atan, 2019). On the other hand, it can also be observed that strategic HRM also helps in building a positive workplace environment through maintaining performance level and employee relationship with an organisation. It is because, as per Ali et al. (2018), through strategic HRM an organisation can develop proper strategy that helps in improving position within the market and developing performance instances. As a result of this organisation following strategic HRM mainly gets the benefits of competitive edge within the market.
For instance, the current organisation that is Volvo can be highly benefited through strategic HRM implementation within its organisation. It is because from the case study it can be observed that the organisation is facing the global issue of skill shortage that is impacting its performance adversely. Through strategic HRM the organisation can address the issue of skill shortage based on the notion of proper training and development of the employees. Training and development of strategic HRM also helps in polishing existing skills and developing new skills as per company’s requirements (Sareen, 2018). In this respect, Volvo through strategy HRM can be effective in achieving performance goals and ensures long term success in the market. Henceforth, strategic HRM creates a positive impact on organisation and business performance.
Slide 5: Critical illustration of role of retaining and recruiting proper employees from labour market
- Retaining and recruiting employees from labour market helps in managing talent within an organisation
- It also helps in managing employee relations and improving productivity
- It also plays the role of effective strategy in terms of improving performance and accomplishing organisational goals
- It also plays the role of creating competitive edge of the organisation within the market
Recruiting employees from the labour market helps an organisation to stay updated regarding changes of demands and skills within the market. According to Choi et al. (2018), demands of customers are constantly changing and as a result of which organisations are facing barriers to meet desired level of performance for customer satisfaction. In this respect, employees available in the labour market are highly updated regarding current trends within the market. As a result of this, it plays a crucial role of meeting organisational demand and satisfying customers within the market. Other than that, as per Collins (2021), retaining alongside recruiting employees also plays the role of creating a positive workplace environment of a business. It is because proper recruitment helps in decreasing turnover rate of the company that further reflects proper reputation within the market.
In this respect, retaining and recruitment plays the role of creating a high competitive edge of companies within the market. As per Blom et al. (2021), this in-turn increases demands and sales of companies that further ensure future sustainability. For instance, in the current scenario it can be observed that Volvo is facing an issue of skill shortage within the global scenario. In this respect recruiting and retaining employees from the labour market will provide Volvo the opportunity of mitigating talent gaps within the organisation. Other than, as per Connelly et al. (2021), employees from different regions will be highly capable of meeting customer demand in that area. In this respect it can be stated that retaining and recruiting employees from the labour market plays a crucial role in managing employee performance and organisational productivity within the market.
Slide 6: Internal and external factors that influence decisions of HRM in workplace
- Decision making factors of HRM are highly influenced by certain external and internal factors of organisation
- Internal factors that affect HRM decision-making includes corporate objectives, marketing strategies, financial strategies and operational strategies
- Besides, external factors that affect the making of HRM includes market changes technological changes, economic changes, political and legal changes and social changes
Decisions of HRM within a workplace are highly influenced by certain internal and external factors (Costa Dias et al. 2020). Among the internal factors stated above, corporate objectives and operational strategies are the main factors that influence decisions of the HRM. It is because, as per Bilan et al. (2020), corporate objectives alongside operational strategies mainly deal with organisational notions of executing targeted goals. On the other hand, strategies in terms of marketing and finances also influence HRM decisions. It is because marketing and finances are two main important criteria of operations within an organisation.
It also helps in organisational resources and strategies of accomplishing targeted goals. On the other hand, as argued by Hadi and Ahmed (2018), external factors such as market changes play a high impact on the decisions of HRM. It is because HRM mainly deals with employee and customer Management. In this respect market changes reflect high alteration in demands of the customer that also impacts employee performance within an organisation. However, as argued by Frøyland et al. (2019), technological changes, social changes, political and legal changes and economic changes also influence HRM decision as it impacts on operational notions of an organisation directly.
Slide 7: Critical evaluation of the factors in supporting organisational development
- Internal factors such as corporate objectives helps in supporting organisational development through presenting clear goals for employees
- Besides, marketing, financial and operational strategies also helps in guiding employees through the right path way
- Setting proper strategies helps in developing internal factors that further contributes to decision making of HRM and organisational development
Based on the above section it can be analysed that internal factors also supports organisational development. It is because as per Smith and White (2019), proper corporate objectives are highly required for accomplishment of targeted goals within an organisation. It is because without proper corporate objectives employees may fail to understand the mission and vision of the organisation that further can impact productivity within the market. On the other hand, as per Bennett (2021), strategies of marketing operations and finances also help in contributing to organisational development. It is because, in order to succeed within the market, strategies of marketing are highly required to promote awareness regarding organisational operations. Other than that, finances and operational strategy is also effective in managing resources and executing targeted goals within an organisation.
Slide 8: Continuation
- Market changes is considered to be one of the external factors that influence decision making of HRM within an organisation
- Proper awareness regarding market changes helps in supporting organisational development
- Besides, changes in terms of technology, economical, political, and social situation also influence organisational development in a positive way
Market change that is one of the external factors also helps in supporting organisational development by creating awareness regarding the demands and trends within the market. As a result of this, companies can be highly alert regarding the changing preferences of the customer and will be effective in changing its productivity accordingly (Zardasht et al. 2020). Other than that, external factors such as economic, political, social and technological situations also help in supporting organisational development adversely. It is because economics alongside political and social situations reflects the condition of the nation alongside the people within it. In this respect companies like Volvo and others can design their operational strategies accordingly. Henceforth it can be stated that external alongside internal factors that influence HRM decision-making process also helps in supporting organisation development.
Slide 9: Roadmap for strengthening talent management strategy of the organisation
From the roadmap above it can be analysed that first step is recruitment that includes posting jobs, using social media, and encouraging employee referrals. Second step is selection followed by hiring and these two steps include conducting interviews, performing skill evaluation and extending offers. The fourth step is training and development that includes organising training for new staff while the fifth step is remuneration and benefits that includes offering competitive salary and competitive benefits. The sixth and seventh step of this talent management strategy depicts performance management and employee relations that include performing regular performance review and maintaining strong company culture respectively. For instance, Nissan Motors also implemented the strategy of learning and support that also supports continuous development within HRM (Nissan Motor Corporation, 2022). Besides, companies like Toyota Manufacturing, also deal with the concept of talent management strategy through proper recruitment and retention and providing employee benefits (Toyota Manufacturing UK, 2022). Henceforth, the current strategy will be beneficial for Volvo in managing its talent.
Slide 10: Conclusion
- Different areas of HRM such as recruitment, training, organisational structure and employee satisfaction and others contributes to organisational performance
- Effective strategy of HRM also creates competitive edge of organisation further creating positive impact on organisational and its business environment
- Retaining and recruitment proper employees from labour market provides the benefit of customer satisfaction and talent management
- Internal factors such as corporate objective and others alongside external factors such as economic changes, market changes and others directly influence decision of HRM and also supports organisational development
From the above study it can be concluded that the decision of HRM within an organisation is highly influenced by certain internal and external factors. On the other hand, the current organisation seems to be facing a high gap in talent management in the global scenario. In this respect implementing talent management strategy can be effective in mitigating talent gaps and supporting proper development of performance within the organisation.
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