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Human resource management or HR management is considered the strategic approach in order to manage the people efficiently within an organization. It is effective to help the business to gain a high competitive edge. The aim of this report is to review the HR practices to produce an effective roadmap to successfully strengthen Nissan Motor’s talent management strategy.
Human Resource Management (HRM) refers to a practice which where new employees are being recruited, provided training and administering employee benefit programs. HRM is associated with different areas of an organization and each of the areas is responsible to make a b contribution to the organizational performance. Human Resource System (HRS) identifying the functional areas and improved the overall organisational performance. The initial one is the recruitment and staffing of the employees that are essential to maintain the organization with a skilled workforce in order to gain such business benefits. As stated by Sung and Choi (2018), employee training and development is the most essential area of HRM through which it is possible to enhance the skills and abilities of the workers to achieve organizational goals more easily. In this context, it can be stated that Nissan is able to promote employee well-being on a b aspect.
Figure 1, provides a broad knowledge regarding varied areas a HRM of an organisation follows for maintaining a sustainable performance. In a long tenure it is important to maintain sustainability for holding skilled labourers and decreasing the rate of labour turnover. According to the case study, Nissan needs to follow all the elements for maintaining sustainability within the organisational framework. Retaining old skilled employees within an organisation is refers to employee retention. Recruitment and selection procedure indicates selecting new skilled employees within the current labour market. Workforce Conflict is common due to difference in perspective as a result HRM resolve those conflicts for maintain workflow without any disturbance. Workforce planning is another important activity that conducts one job after another in a systematic format. Acknowledging skilled employees by providing extrinsic motivational elements help in increasing employee satisfaction. Training and Development indicates providing better employment learning procedures.
In addition to the above, employee compensation is also relevant to maintaining an accurate pay scale, performance bonuses along with raises within the organization. These aspects are effective to maintain a higher level of employee satisfaction that is much needed to ensure effective performance from the side of employees. Better monitoring of the payroll activities along with the working environment is also under the area of HRM. In the viewpoint of Zaman and Nadeem (2019), working conditions within an organization need to be proper in order to maintain the organizational reputation. In refer to this; Nissan outsources the global HR management systems that are very effective to develop a diverse working condition in the organization (Nissan Motor Corporation, 2022).
As per the above image, the cross-culture aspect of Nissan is helpful to create a higher value within the firm. Through this approach, it is possible to hire employees from the global workforce and make them feel comfortable enough in order to promote their work performance severely.
The competency of HR manger is refers to resource skills and knowledge. Therefore, this competency of a particular HR manger is being measured by understanding efficiency of key HR metrics. The key metrics are engagement with employees, recruiting new employees and enhancing employee performance along with value. Organisational change is highly required for incorporating improved mechanism within the activities. HRM team of Nissan have to include techniques for understanding the required areas need improvement. Improvement supports in enhancing organisational culture and providing a better workplace that provides a hiked productivity.
HRM roles are changing according to the external environment of a business and this change brings improvement towards advancement of technology, change in social needs, dominance towards artificial intelligence and globalisation. This improvement ensures overall technological development within Nissan. Changing nature procedure is conducted with the support of expertise HRM of an organisation. A team of HRM has a scope of understanding the areas of improvement by interacting with the existing employees. Therefore, building up a linkage between HRM activities and organisational change supports the overall sustainable performance.
Critically evaluating weaknesses and strengths of HRM to improve overall performance
Focusing on employee benefits, it can be stated that this area of HRM is beneficial to retain skilled staff on a long-term approach to ensure better organizational performance (Nissan-global, 2022). From the case study, it has been identified that Nissan keeps a b focus on the continuous improvement of its HR system. Moreover, the organization is also able to provide opportunities for self-designed careers and it is beneficial to retain skilled workers here. In case of providing the opportunities in order to offer a personal equal growth for the workers, Nissan is able to develop such educational aspects for its workers. For example, the "Global Training Program" (GTP) for the education of engineers as well as education for the technicians is helpful enough to build the alliance group framework
Nissan have a series of strategic business objectives those are being achieved by this organisation with the support of improved HRM practices. The above figure interprets this company try to improve overall market share in automobile industry with the help of employees’ productivity. Hence, HRM try to provide a satisfactory working condition that supports in improving the sustainable performance. From the case study, it has been also found that such support for self-designed careers and the offer of learning opportunities are beneficial to maintaining effective employee growth and high satisfaction level. In the case of offering learning opportunities to the workers in Nissan, it is observed that the organization has its midterm business plan such as Nissan M.O.V.E to 2022 (Nissan-global, 2022). This plan is effective to develop strategic educational programs for its workers along with sustainable growth. Being the most popular automobile organization in the UK, it is essential for the firm to educate the workers regarding innovation and the latest technologies. In addition to this, the establishment of Monozukuri University by Nissan is also effective for the individuals to enhance their knowledge level regarding technologies of the automobile industry for a better future.
3.1 HRM practices related to retention and recruitment
Recruitment and retention of employees’ procedure is being segregated between external as well as internal. Internal recruitment indicates including employees from the existing workforce for filling up the vacancies. On the contrary, external recruitment indicates selecting suitable candidates from the existing labour market to fill up specific departments of an organisation. Nissan observes both technicalities to fulfil the vacancies and enhance competitiveness within the organisation. It is essential to make the recruitment and retention process effective enough to ensure a skilled workforce within the firm. In the case of Nissan, it is observed that the HR of this organization strives for the creation of a meritiotic workplace. In this aspect, the recruitment of employees is conducted through five phases such as application, selection, offer, onboarding along with induction. The presence of clarity in those phases is beneficial enough to hire skilled workers only in this firm. Each individual potential is highly accepted by Nissan which helps the organization to develop an innovative workforce. As propounded by Gyllensten et al. (2020), based on the changing work as well as a lifestyle choice, it is essential to develop employee benefits in order to ensure a long-term connection with them. As per this context, Nissan also believes that a worry-free and self-initiated manner is much needed for the workers to enhance business growth as this helps to promote innovation (HN Global, 2021). The HR of this organization has strengthened the workplace environment based on four specific pillars to retain skilled employees. The initial one is that respecting diversity is the core component of the management strategy and it is much more effective to recruit and retain staff in a global context by ensuring a diversified workplace. The second one is to offer career development as well as learning opportunities that help Nissan to enhance employee commitment and loyalty (Yamauchi, 2021). The third one is to ensure employee safety and health and the last one is to strengthen internal communication to execute business activities effectively.
3.2 HRM practices in relation to labour market
In the case of the improved human resource system of Nissan, it has been found that an "evaluation-based remuneration system" is followed here. It is suitable to properly gauge the employee contributions through a structured way for motivating them in order to achieve higher goals. According to Lee and Clarke (2019), employees are the core part of a business and it is essential to maintain their satisfaction level on a b aspect to achieve the business goals properly. Based on the skill, knowledge as well as attitude, it is essential to evaluate the performance level of the employees within the firm.
The business of Nissan is struggling with the UK tax strategy whereas HR is not able to resolve this factor. Moreover, the lack of proper business objectives can make the employees of Nissan confused enough regarding the main business perspectives (HN Global, 2021). The presence of effective strength areas of the HR in Nissan is highly beneficial to handle the weakness areas properly in order to achieve significant benefits.
Based on the above image, a clear overview of the HRM structure of Nissan is gained. It can be stated that the presence of different departments is beneficial to ensure better workplace structure whereas they need to be managed properly to gain effective outcomes. In case of core internal factors that influence the HRM decisions in Nissan are market changes, social changes, corporate objectives, technological strategies along with financial strategies. On the other hand, in the case of external factors, the economic, socio-cultural, political, and legal factors can be taken under consideration.
4.2 Factors supporting organisational development
Based on the market and social changes, it can be stated that Nissan has to keep a b focus on the frequent changes in existing markets to enhance business growth. In this context, it is also essential to identify the demands and necessities of the workers properly to hire and retain them on a long-term basis (Armb and Taylor, 2020). From the case study, it can be stated that the presence of training programs by the HR of Nissan is very fruitful to enhance innovative perspectives within the business (Hamza et al. 2021). In order to analyze the external factors that can influence the HRM decisions, Nissan can undertake the PESTLE analysis of Porter's five forces to understand the country context and industry context respectively. In the case of the UK, it can be evaluated that the presence of a stable political environment (Political stability: 0.47), as well as an economic environment, are beneficial for Nissan to conduct b business growth (Leatherbarrow and Fletcher, 2018).
4.3 Key factors affecting HRM decision with valid recommendation
Recommendation 1: Integrated and creative approach needs to be adopted in order to enhance business strategy mostly.
It is essential for the HR of Nissan to ensure the integrated business approach with the business strategy to enhance organizational performance. Through this, it is possible to provide a clear overview to the workers as well to link up their innovation and thinking with business strategy mostly (Slavkovi? et al. 2018). It is very fruitful to maintain an appropriate business culture and to develop greater innovations.
Recommendation 2: The presence of a proper recruitment method is essential to develop a skilled workforce.
An appropriate recruitment method is responsible for the development of a skilled workforce. For example, the HR of Toyota maintains specific employment criteria for which the candidates can separate themselves as per job role (Toyota Manufacturing UK, 2022). Nissan can take a look at this context to ensure that their recruitment process must be unique and developed enough to attract rare talents and hire them as well. Through this approach, it will also be possible to appoint skilled workers in specific areas in order to maintain the workflow and satisfaction among workers.
In order to strengthen the talent management strategy, initially, it is essential for the HR of Nissan to develop a talent pillar of the business strategy. It is effective to reflect the bottom-line views as well that is much relevant to maintain employee satisfaction (Cooke et al. 2019). Then, it is essential to convert the business goals of Nissan into talent goals through which it is possible to handle the talents more properly. After that, the anticipation of the future hurdles needs to be taken into consideration to run the business smoothly even in an uncertain situation. Talent management initiatives need to be taken under consideration as well and the use of employee referral in this context is also useful (Gandhi and Sachdeva, 2018). Diversity in the hiring process needs to be taken under consideration also to promote a diverse workplace.
It can be concluded that the HRM of Nissan is very effective to hire a skilled workforce and retain them as well. The weakness areas of HRM are a b matter of concern that needs to be resolved as early as possible. The core HRM areas are suitable to maintain the organizational perspectives and it is essential to adopt strategic actions in this regard as well to maintain proper consistency.
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