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Organizational structure, in general, explains in the way few activities like work allotment, management as well as monitoring are focussed on the direction of attainment of corporal objectives. It usually provides an impact over the basis upon which regular functioning process as well as routine rest. On the other hand organizational culture shows the business approach, work morals as well as standards of the firm are which motivate creativity.
Human resource management strategies can be defined as the technique which recognizes the present as well as upcoming human asset requirements for a particular company to attain its objectives. All these three concepts are interlinked with each other and also provide a huge impact on the functioning of any company (Anon., 2014).
Although the association is vital for progress, the organizational structure might impact the task of the board cycle. In any company organizational structure and organizational culture plays a very pivotal role. Both provide a huge effect on the functioning of the human resource management strategies. The hierarchical structure along with organizational culture provides an impact on the administration of HR in an association in different ways. It decides in what manner human resource capacities are embraced, the job of HR, and furthermore impacts the commitment of HR (Santos, 2014). A successful authoritative construction has its foundations in the formation of a constructive effect on HRM strategies and for that reason; it is adjusted all of the time to a legitimate business system. It is planned in a way to draw in their high-performing individuals and make positions with the goal that the development, as well as the advancement occasions open doors, are likewise affected. Human resource management strategies are an integral part of any organization and having a proper organizational structure not only helps in delegating the targets properly on the other hand proper organizational culture also helps them in achieving in a proper and best possible manner (Alshammari, 2014).
Financial resources are considered to be an important asset for any company because it provides funds to the company for running the business. Every company is it a small or multinational company needs the required amount of financial assets to run the business smoothly. Investment assists in allocating the asset to assist a company’s objective, upholding poise among the expenses as well as profits. Human Recourses recruits as well as inspires individuals to promote those alike objectives. This segment of HR is considered a company’s main expense. Many a time it has been seen that HR managers watch the function of finance in everyday functions. On the other hand, it might be very interesting to know how effectual are the HR settlements might be to the monetary durability of a company (Milian, 2018).
The skills to create differences by means of the sole, as well as intellectual judgments are a pivotal element of creating a good HRM strategy and in this case, finance plays a very pivotal role. For instance, there is an HR executive who works in a firm like EasiClean plc will need proper finance to run the employees as well as the company in a proper manner. Also, the association among the finance as well as HRM strategy is important to effective human capital administration (Nichols, 2018). HR along with money’s capacity to cooperate and see each other's functions might be basic to EasiClean. In EasiClean, HRM strategy and money are two particular business regions. Finance distributes assets to help the association's objectives, keeping harmony among expenses and income to create a strategy in such a manner so that they can be pocket-friendly however effectual. Overall it can be said that finance and HRM strategy depends on each other for creating a win-win situation (Engelbrecht, 2015).
The HRM is considered to be as an important subsystem of any company as a system. There are different kinds of factors like internal factors and external factors which affect the working of a human resource management system in a company like EasiClean, Those factors are discussed in detail below:
So, from the overall discussion it can be found out that for a better functioning of human resource in any company the management needs to consider both internal as well as external factors which might provide positive and both negative impact over the functioning of the Human resource system (Nichols, 2018).
According to the report, government legislation has a direct impact on the human resource management strategies that take place within the company. Employee legislation has a direct effect on the different writings of an organisation in the advertisement portions along with the questions that are asked in interviews to the applicants as well as the whole human resource function within the organisation (Stewart and Brown, 2019). The legislation of the government helps in determining the different ways in which employers collect information regarding their current employees and prospective employees. The manner in which the employers help in determining the final applicant who is to be employed is very much controlled by the government in the implementation and enforcement of the legislation (Chams and García-Blandón, 2019).
According to the legislation of the government, it is against the law for any of the employees to indirectly or directly discriminate against any employees on the ground of their race or religion. It can be said that the legislation implemented by the government help in prohibiting indirect discrimination of the employees (Armstrong and Taylor, 2020). The government steps into control all the forms of discrimination that has the ability of taking place in the organisation by implementing various policies and legislations.
The employment legislation is also one of the factors that are controlled by the government in Acts. Personal grievances of the employees that take place within the organisations are also covered by various government legislation. On a particular personal grievance by an employee, it is the duty of the government to provide grounds for making a claim so that it has an impact on the Human Resource Department and the strategies they formulate (Collings et al., 2018). In addition to this, with the implementation of government legislation within a company helps in prohibiting discrimination against the employees based on their being involved or belonging to any of the activities of trade union movement. Government legislation also works towards safeguarding the requirements of the employees along with ensuring that their health and safety is maintained (Marchington et al., 2016).
The government legislation has helped in enhancing the operations of the company, a long wait increasing the productivity of the organisation where the employees feel motivated and connected to the organisational structure in management. With the government legislation implemented, it is necessary that the companies provide training programs to the Employees so that they can enhance their skills and knowledge in order to work towards obtaining the goals and objectives of the company (Carbery et al., 2018). Therefore, it can be said that the government's legislation has helped in motivating the employees working for the company as well as helping them in improving their skills and knowledge so that they can contribute further towards the development and success of the organisation they are working for. They have helped in reducing the disruption of the normal business activities as well as help the employees in receiving proper supply of facilities that will enhance their working experience in the company. The government legislation has helped in providing appropriate facilities to the management so that the employees are required to provide all the necessary facilities to the employees (Cave, 2018). This has helped the workspace receive proper facilities such as chairs, desks, separate facilities, water supply, and hygienic toilets and so on.
With the help of the government legislations, the employees have been able to avail the parental leave and protection of the employment in which the employers cannot disagree to provide it to the employees. This has enabled the employees to comply with the legislations implemented by the government so that the employees do not have to face any kind of difficulties working for the organisation (Sharma, 2016). The human resource management strategies have been very much impacted by the government legislation as it ensures safety of the employees by acting upon the health and safety programs. This has helped in preventing all the forms of harm that can be done to the Employees at the workplace. It is mandatory for the organisation to work towards driving in order to achieve the workplace and employee safety within the vicinity of the place (Rotich, 2015). With the government legislation, the employee safety has been kept in mind by the organisation and the employers which make the organisation a safer place to work in.
Local governments and the legislation implemented by the government has played the dominating role in regulating the labour market, the labour conditions, the working time, the wages of the company which has been helpful in enhancing the experiences of the employees along with generating employee satisfaction (Aust et al., 2020). Keeping all these factors in mind, the organisation has been able to work towards enhancing the formulation of strategies so that they can further implement it and gain a competitive edge in the marketplace. The government legislation and the HRM strategies have been aligned together to gain profitability and productivity within the company so that the needs of the employees can be met as well as the demands of the customers are being addressed (Berman, 2015).
It can be said that the Human Resource Department is more or less under the control of the Lost and the regulations that have been set up and implemented by the government. The organisations are very much prone to the legal suits against them by either the third parties or employees (Fuenzalida and Riccucci, 2019). These legal suits are more likely to have a negative impact on the organisation which can disrupt the activities of the company. These legislations have enabled the organisation to implement various employment acts which has helped in enhancing the formulation of strategies within the company along with improving the activities of employees in a better way. This has also improved the outcome of the company along with bringing it a competitive edge (Zhang et al., 2021).
Human resource management (HR) is very important aspect of modern business. Different models of human resource management have evolved with time. Some models are discussed and analysed below and they are as follows,
This model states that human resource (HR) policies should run in harmony with the key company strategy and key emphasis should be given on four aspects of human resource management i.e., selection, appraisal, development and incentives (Tiwari, et.al, 2019) This is one of the oldest and basic models of human resource management and it neglects any future aspect or environmental effect of the business.
This is a complex and more integrated business model that deals with 6 aspects of human resource management i.e., stakeholders, interests, situational factors (such as labour market, technology, legislation, social values, management philosophy etc.) Human resource management (HRM) policy choices (such as employee influence, HR flows, recruitment, promotion, appraisal, termination, incentives etc.), HR outcome, long term consequences and feedback (Sato, et.al, 2019) The main aim of HRM policy choice is to achieve 4Cs of HR outcomes i.e., 1) commitment, 2) Congruence, 3) Competence and 4) Cost effectiveness.
The guest model was created by David Guest in 1997. This model puts utmost emphasis on the HR manager. According to the model the HR manager has the capability to execute certain plans and strategies that will have effect on HR outcome. This model focuses on six components of human resource (HR) policies, which are, 1) HR strategy, 2) HR practices, 3) HR outcomes, 4) behavioural outcomes 5) performance outcomes and 6) financial outcomes. Implemented HR policies influences employee performance and behavioural outcomes such as employee flexibility, credibility, commitment etc. which in turn influences the financial outcomes of the company and HR practises completely depends upon HR strategies which are usually aligned with organisational strategy.
This model was developed by Hendry and Pettigrew at the University of Warwick. This model is centred on five key elements, which are: 1) inner context (firm specific or micro environmental forces), 2) business strategies, 3) HRM context, 4) HRM content, and 5) macro environmental factors. The model takes into consideration several internal and external factors such as processes of work, changes in business activities, interaction between different components and, most importantly, environmental influences, and also demarcates the adaptations needed to be taken up by the organisation.
The current economy is changing at a rapid pace, and modern business is influenced by several factors such as globalization, fluctuations in the market, changing customer demands, etc. So, HRM policies are key tools to achieve success. A major aspect of HRM policies is recruitment and selection. Recruiting a candidate who has the potential to match all the business requirements is an important issue. They can add high value to the farm and it depends on the efficiency of the hiring managers to choose such candidates on the basis of their knowledge, skills and other attributes.
Training and development are the stages where the recruit's skills are refined. The key objective of the human resource training period is to prepare people so that they can match company objectives and clearly understand company goals. If the company wants to sustain an edge over the other competitors, they need to develop and enhance the skills of their employees. The company must recognise the employees' efforts to keep them motivated. Upper management should make an effort to reward employees on the basis of some predetermined criteria, such as employee competency, teamwork abilities, soft skills, self-initiative, etc. Motivation is a very important aspect of retaining employees. Certain appraisal, incentive, and compensation systems can positively affect people's innovation and their zeal to work. To meet certain objectives, recruitment, training and development, performance appraisal, and the compensation system must all work in harmony. Employees are the biggest stakeholders and assets of any organisation, and managing them should be of the highest priority. In particular, the positive view of the employees highly contributes to the productivity of the organisation and the achievement of the company goals. In this case, communication of objectives and guidelines and boundaries plays a major role. The company is facing tough competition from other companies such as Proctor and Gamble, Unilever, etc. If these components are followed properly, the company can streamline its products and increase productivity. It will also help to manage the cost and deliver balanced growth.
Easy Clean is a multinational company operating for over a hundred years, and their expertise is in manufacturing soaps and detergents. The company is now trying to diversify its business and is planning to launch tissue papers and baby wipes. The company currently operates in 15 countries and is currently working to expand the business. It also has many subsidiaries that deal in beauty products. Since the company is dealing in toiletries and these products have huge environmental impacts, following the Warwick model can be helpful to implement a fruitful human resource (HR) policy. Since the competition is fierce, Easi Clean needs to upscale its products while also managing the cost. For this, the human resource (HR) team needs to have a good strategy to deliver this kind of efficiency. The company can also use some aspects of the Harvard model as the company is investing a lot of capital in research and advancement of technology. Also, the market fluctuates a lot and condition of labour market influences the business. Also, the Guest model puts emphasis on behavioural outcomes such as employee flexibility and competence and in this highly competitive market innovation is the key to survival. People demand new kinds of products each passing day and the company needs to launch new and more advanced products to stay in the competition. But the Warwick model can be most impactful since it deals with both macro and micro factors and works in close harmony with both internal and external factors. Every company needs to adapt to changing market conditions and this model addresses all the changes in business activities and its relation with economy, process of work and the interaction between all these components and can help the company to achieve its goals.
Human resource management strategy planning is an essential component which can be influenced by several factors and therefore few element considerations should be required. The factors that are supposed to be kept in mind during the planning of Human Resource Management strategies are:
Type and strategy of organisation: This is an important consideration as it helps in determining the production process that is involved in the company along with ensuring the number and type of staff required to gain the suitability of the company (Rossidis et al., 2021).
Organisational growth cycle and planning: This aspect needs to be considered when the organisation enters the growth stage.
Environmental uncertainties: These are the major factors that are required to be considered by the organisation in a systematic and careful way before formulating any strategies.
Time Horizon: The stipulated time frame should be carefully planned so that one understands the requirements of time to finish off one particular activity (Rossidis et al., 2021).
Labour market: The conditions of the labour market along with the individuals with skills and abilities are required to be considered when there is a requirement for it.
Key elements of a human resource management strategy
Any basic strategy including the human resource management strategy involves the HR framework of the following pattern: Recruitment, selection, on-boarding, training, work environment, development and reward, and performance. Different advances in technology, the changing conditions of the economy as well as the workforce demographics required the HR professionals of the company, EasiClean plc. To work towards reinventing their roles. The key element of a human resource management strategy involves the following:
Performance management: Performance management involves activities that strive towards helping people in order to become their best cells at work along with boosting the bottom line of the company (Omar, 2020).
Recruitment and selection: It is very important for the organisation to recruit suitable candidates who are skilled and talented. These individuals will be able to obtain the goals and objectives of the company in order to provide it with a competitive edge.
Learning and development: Learning and development is one of the essential factors which helps the company in reskilling and up skilling their employees so that they can adapt to various changes in the processes, society and technology without any difficulties.
Succession planning: With the help of succession planning, the management of EasiClean plc. has been able to help create a talent of pipelines. Building and nurturing the pipeline is one of the key aspects to good people management.
Human resource information system: This system helps in tracking the goals of an individual along with putting in performance ratings (Cafferkey et al., 2019).
Company components compensation: Making the right offer of pay to the individuals is a part of an effective strategy where the best talent is attracted towards the company. Both compensation and reward strategy helps in attracting skills and talented employees along with helping them in achieving the business goals.
HR Data Analytics: With the help of data in these systems, EasiClean plc. will be able to make better and more informed decisions (Dahlbom et al., 2020).
The external factors which lie outside the organisation directly affects the activities that are taking place within the company which also includes the human resource management. The population of the workforce helps in influencing the human resource management as they are the major elements of the external supply of human resources within the company. The market condition of the workforce is also another factor that influences HRM strategies related to recruitment and selection process Oliveira et al., 2021). The inflationary pressure is also another factor that has impacted the cost of living of the employees directly or indirectly. In addition to it, the social cultural factors have impacted the organisational culture which has been effective in terms of high monetary benefits and organisational profit for EasiClean. With the implementation of advanced technology in the infrastructure of the company, two aspects have been impacted directly which includes the human resource practices of the company as well as the nature of jobs provided by the company to the individual (Kim et al., 2021).
The internal factors such as organisational strategies, the organisational culture, the trade unions and the financial position of the organisation has left a huge impact on the activities and profitability of the company. Organisational culture of EasiClean has helped the management to improve their operational aspects as well as organisation flexibilities so that it can gain a competitive advantage in the marketplace (Papa et al., 2018). The company has also worked towards formulating organisational strategies that will help the company in terms of growth and development.
EasiClean has implemented the Standard Causal Model of HRM. This model has helped the company analysing different internal and external factors that have influenced the effectiveness of the HR department. With the help of this HR model, the organisation has been able to plan and device the different impact of human resources on the internal procedures as well as improving the financial results of EasiClean (Asfahani, 2021). This model has also helped the management of the company underline the chains which helps in analysing the business plan as well as the system performance of the company. They have been able to train the human resources along with providing them with compensation and appraisal so that they can be highly motivated to obtain the goals of the company. With the implementation of this model, the organisation has been able to achieve an improved internal performance which includes increased productivity, quality and innovation in the company. These outcomes have also resulted in enhancing the financial performance of the company thus improving their profit outcome, financial turnover and better margin (Polinhom, 2021). With effective training, the company has been able to provide better results and improve performances without necessarily influencing the outcomes of the HR department and their functions.
There are mainly four main HR strategies that are being followed in the corporate world. They are,
This strategy puts emphasis on an organisation's ability to acquire new talent. New employees don't generally demand high wages, and they are assigned simple jobs at first that don't require developed skills. Little attention is given to the employees’ long-term needs such as appraisal and promotion (Oppong, 2017). This strategy is mainly taken to mend short term needs and not a sustainable policy. The appraisal policy doesn't incorporate any formal measures and mostly depends upon day-to-day feedback. They are directly coordinated with their own supervisors. Their training is also limited to the job-related technique. Though compensation on hours to hours is given but there are no long-term incentives. So, there is lack of consistency among the employees.
In this case, companies hire short-term specialists to acquire new talents and skills. These recruits are not encouraged to develop any attachments with the company, and also, higher level positions are given to people from outside the organisation. Though the tenure is short these people are given good compensation and benefits. No extra training is provided to them and there is no long-term carrier prospects them in the company. Performance appraisals are given on the basis of outcomes and results. Generally, no attachment is created with the company (Stewart & Brown, 2019)
In this strategy, the company trains its employees to develop new talent. The employees are recruited early in their carriers and they are given extensive training.
In this process the companies retain specialised employees who have unique talent and proper training. Here after recruitment the employees are given long term training in specific fields. Performance appraisals are designed to balance both cooperation and competition. Promotions are given to these people with increasing responsibility (Mahmood, et.al, 2019). The compensation given is relatively generous and includes a package of benefit.
Easi Clean is an esteemed company and is currently facing tough competition. The company's immediate business plan is to diversify their products and increase their market share. But since their financial condition is not too sound, they need to upscale their products as well as reduce the cost. In this case the committed expert HR strategy can be useful for the company. In this case the company can retain its best performing and hardworking employees for a longer tenure and can use their expertise to the company benefit. These employees can form a really resourceful and beneficial workforce and can also train the new employees with good potential. The company needs to invest on human capital and maintain highly productive employees.
The first part of committed expert HR strategy is to recruit competent employees. The next step is to encourage them to pursue self-improvement recognise their efforts, give them incentives and, last but not least, retain them in the future. Companies that use this strategy give greater freedom and autonomy to their employees. So, they can have greater innovation and increase company's profit. Also, these employees are more adapted to the organisation's culture and ethics so they can also improve the methods of completing the tasks. Also, in this case the companies hire the talent at a very young age and groom them. The companies train those people, helped them to enhance their skills and so they have a loyalty towards their organisation and tend to stay. In the age of globalisation even the strictly domestic business are Facing international competition and Easi clean is already a multinational company. Apart from that, this company's easy-clean business strategy fits perfectly with its committed expert HR strategy. A good human resources (HR) strategy creates more satisfied employees who in turn work harder for the company and give their organisation a competitive edge. Since employees are the primary stakeholders in the company, a proper human resource management (HRM) policy ensures that the company helps to design work tasks and programmes that reduce turnover (Lawler, 2020) Also, employees who believe that the organisation values their efforts and treats them with respect produce good attitudes in their interactions with customers. And last but not least, the research shows that organisations where employees have better skills are better paid and feel more secure about their job, have higher individual performance, which in turn results in growth in sales.
Nowadays, organisations face immense pressure to reduce the cost of operations as well as deliver high performance, and Easi Clean is no exception. But there are several complexities and barriers to implement human resource (HR) strategies, such as
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