HRM
HRM Essay.
Instructions:-
Description of continue Part B of the essay:
Drawing on your understanding of Ernst and Young and the SHRM challenges you have identified in Part A (EY) and key SHRM/HPWS theoretical frameworks, examine the HRM-performance chain in your selected organisation. In your answer, consider:
o What recommendations would you give to the organisation to improve the impact of Strategic of HRM on both individual and organisational performance?
o What key lessons do you take from this assignment that will enable you to become a more effective HRM practitioner
Grading criteria
All reference material must be appropriately cited in the text of your essay. Include a separate reference section that includes the full citation information. Words excluding of references.
Iit is essential that the organization is positioned within the academic/scholarly literature. This will be very important in Assessment Part B.
The part A is below which is I ordered from you guys
Ernst & Young (EY) is a renowned global firm that offers professional services to countries worldwide. The services it offers include assurance that comprises of financial auditing and fraud investigation; tax services including transfer pricing, consultation and advisory services in Actuarial, Risk, and Performance improvement areas. Its prowess in the industry ranks it among the four top accounting establishments globally. Its key stakeholders include the government, the suppliers and partners, the shareholders, its customers, management, and the employees (Ey.com, 2017). Consequently, the firm needs to ensure that it meets the individual requirements of these stakeholders. Some of the ways it does so are by making sure that it is compliant with all government policies and regulations, performing corporate social responsibility to the community, providing quality service to its customers, maintaining ethics, and ensuring that the employees work in a conducive environment. It also strives to ensure that it attains profitability to keep the shareholders happy.
EY has several strategies that drive insight to actions. They include: focusing on results, collaborative approach, speed to impact, analytics and insight, and people and culture (EY Strategy, 2014). The firm applies these five strategies when dealing with its clients to ensure that it meets the customer requirements, generates realistic approaches in a fast manner that protects the dignity of its clients and their culture. Additionally, EY focuses on maintaining confidence with its stakeholders by keeping customer information confidential, prioritising customer needs and ensuring that it meets those needs, and providing the correct information in the right manner and correct time. These strategies are the reasons why EY continues to grow and increase its market share.
Currently, EY has four trends expected to define its transactional market (Ey.com, 2017). Firstly, future-proofing its business models through digital conversion, switching traditional industry lines with modern ones, and shifting customer preferences. Secondly, cross-border deals to safe supply-chains in the period of geopolitical unpredictability. Thirdly, currency converts into attractive timings of deals. EY aims at taking advantage of depreciating currency to increase its assets. Lastly, EY aims at ensuring that its portfolios are fit and healthy. It will accelerate its acquisitions outside the core business to respond to the increasing competition and gain new customers thus extend what it offers its customers.
However, despite its success in the industry, EY faces some HRM challenges that affect its performance. Firstly, its top management teams lack international experience. EY’s market share ensures that the company interacts with many local cultures in its many locations (Ey.com, 2017). Some of its teams do not have proper knowledge of local practices and comprehension of international markets. Inadequate understanding of the geographical regions cripple’s growth and the acquisition of new markets. Secondly, the company is forced to recruit from rivals as it lacks a pipeline for experienced managers. EY’s speedy market growth does not equate the number of high-quality graduates. It is obliged to develop its talent which consumes time and investment. Thus, the company is forced to recruit employees from rival companies when in dire need of new hires. The process is expensive as the new hires expect increased salaries. Additionally, there exists a high employee turnover rate especially if rival firms offer better terms and contracts.
Thirdly, the company lacks the ability to keep and compensate top performers in diverse markets. EY faces a challenge to incentivise performance appropriately across different markets and cultures. Individuals practice diverse cultures and what galvanises one employee may appear as insensitive and rude to another. Since EY has offices in many countries and cultures, its HR function needs to adapt rewards to fit with the culture. Failure to do this makes it easier for the employees to leave for competitor firms. Lastly, managers and senior executives hold different sentiments on talent management. The top executives do not give priority to hiring locally for global markets unlike the managers who prefer hiring locals. As a result, it becomes hard to decide on appropriate incentive measures and better terms for such employees.
There are however ways to deal with these challenges to ensure EY’s success and growth. The firm should promote from within to reduce the high turnover rates. HRM should also review employee terms periodically and generate incentives based on the culture and location of the company. It should also invest in learning and development to avoid hiring from rival companies (Automatic Data Processing, Inc., 2014). Also, the firm should align individual goals with those of EY. There should adequate communication among the employees and managers and the top executives and managers. Communication will ensure that concerns and grievances are aired and solved in a quick and professional manner. Additionally, the firm should attach short-term staffing plans with long-term labour force scheduling to prevent cases of understaffing and overworking of current staff.
In conclusion, EY can solve its SHRM key challenges by investing in learning and development, generating appropriate reward systems, ensuring efficient communication channels throughout the establishment, and aligning individual goals with those of in the organisation.
References
Automatic Data Processing, Inc., 2014. HR Challenges and Solutions. Maintaining Compliance and Mitigating Future Risk. pp.2-5.
Ey.com (2017), Growing pains: 4 human resource challenges for expanding businesses in rapid-growth markets. [viewed on 18th Mar 2017]
Available at: http://www.ey.com/gl/en/issues/driving-growth/growing-pains—challenge-1
Ey.com (2017), How should business approach carbon neutrality? – How do we engage with our key stakeholders? [ viewed on 18th Mar 2017]
Available at: http://www.ey.com/gl/en/services/specialty-services/climate-change-and-sustainability-services/how-should-business-approach-carbon-neutrality—how-do-we-engage-with-our-key-stakeholders
Ey.com (2017), News – EY – Key trends likely to make 2017 another strong year for deal making. [ viewed on 18th Mar 2017]
Available at: http://www.ey.com/gl/en/newsroom/news-releases/news-ey-key-trends-likely-to-make-2017-another-strong-year-for-dealmaking.
EY Strategy. 2014. 1st ed. Ernest &Young, p.6.
Solution
SHRM
HRM Essay.
Human resources are viewed as one of the essential departments in most firms around the world (Çaliskan, 2010). For an organisation to realise its objectives, they must have a clear understanding of workforce expectations. Understanding the expectations of the employees is going to guide their behaviour in the firm. The fundamental purpose of strategic human resource management is improving and developing business performance via people management. Organisations have to manage their human resource accordingly to achieve the desired objectives of the firm. Strategic HRM uses various diverse approaches to come up with strategies to improve the performance of the employees (Çaliskan, 2010). The policies are related to the overall considerations of the organisation and specific aspects of people management such as employee relations, learning and development, reward system and resourcing.
One vital role of strategic HRM is using the improvement in employee management as a way of gaining a competitive advantage over rivals. Ernst & Young have shown the types of challenges corporates go through in creating a reliable and efficient workforce. A good policy on human resource management can contribute significantly towards improving the performance of an organisation and hence firms ought to come up with ways of improving the efficiency of their workforce.
Increasing productivity via in-house training and functional flexibility instead of outsourcing.
A useful management tool that is used to develop the knowledge and skills as a means of improving the performance of an individual and that of the company in the end (Fallon, 2015). The performance of the organisation will improve regarding productivity and efficiency. Training employees is good because you are improving their skill level while making sure the long-term sustainability of the organisation is maintained. Training ensures future performance of the individual is improved significantly and is well connected to the future objectives of the company (Stredwick, 2008). Companies are evolving, and more positions are utilising functional, flexibility and specialisation to that specific firm. Training employees in-house enable them to grow with the organisation, and the chance of retaining them becomes higher than before since they learn things that are aligned with the needs of the company (Çaliskan, 2010). Training and developing employees is essential to businesses that wish to gain competitive advantage via a skilled and flexible workforce as a way of ensuring increased productivity and quality performance. E&Y should consider the benefits of training workers as opposed to recruiting from the competition which is a very expensive undertaking. Training will create a steady pipeline of experienced and highly skilled managers to ensure the values and policies of the firm are withheld and improved.
Retaining and compensating workers in different cultures
One of the problems of E&Y is the inability to understand the reward system for various employees from different cultural backgrounds. As we have already noted, E&Y is a global company that operates in many different countries and hence there is the distinct possibility that all the workers will not share the preference for a single reward system (Bridger, 2015). The company must understand the culture in the country where they set up shop to make sure that they tailor their duties in alignment with their backgrounds.
As demographics and workforce composition keep changing, the expectations and motivations of employees are also evolving (Fallon, 2015). It is critical for HRM to understand these workers and what they value, and prefer, regarding workplace incentives. Some workers might prefer monetary compensation while others may opt for prestige or even increased autonomy at work. When the HR department fails to understand the subtleties of the reward system in different environments, it will become difficult to retain employees. In most cases, HR will have to structure their benefits policies, incentives, and retention strategies for employees that are not merely driven by financial compensation (Future HR Trends, 2017). Recruitment of workers is not enough and companies, through the human resource departments, must learn to come up with ways of ensuring employee retention. When employees leave after a short while, it reflects a loss for the company since all the previously invested training goes to waste.
The company has varying views on recruiting locally from global markets. According to the managers, the company should hire locally, but the senior executives do not share a similar view. The result of the differing views makes it difficult to develop a plan to offer incentives and better working terms for the employees. The differing views on talent management point to a deeper problem of poor communication. They must ensure that they place effective communication channels to align individual goals with those of the organisation. Recruiting locally offers the company a significant advantage in extending business activities to global markets (Power, 2012). Local recruits will understand the local culture and preferences better than any executive who is not from the area. Understanding the culture makes it easier to interact with employees and share ideas of improving the performance of the business. Using an ethnocentric approach in conducting global business will limit the communication between workers in the host country. Recruiting from the host country will make communication easier and will help to retain employees for longer periods (Burroughs, 2012).
The design of an efficient organisational structure must leave room for clear decision making as well as logical structuring of jobs to improve communication and productivity in the end (Stredwick, 2008). Different generations of employees have different expectations in life and work (Painter, 2014). Effective communication n is essential in maintaining an efficient HR department and improving the overall performance of the organisation. Managers of a company are usually in regular contact with the senior HR executives, in the parent country for global companies (Bridger, 2015). In businesses that value the role of human resources, managers will collaborate with the top executives to develop the strategic direction of the company. Managers communicate the effectiveness, or lack, of various strategies and policies and the top management, makes the necessary adjustments to conform to the analysis (Thoo and Kaliannan, 2013). Managers should report on the importance of recruiting locally, and the top managers should conduct a thorough analysis to justify the decision that is best for the company.
Strategic goal alignment is a critical part of human resource management. Goal alignment ensures that the activities of the employees are in accordance with the objectives and targets of the company (Future HR Trends, 2017). When a company sets its goals, they must ensure that the employees are informed of their individual roles and the strategic reason behind them. It is easier for employees to work towards a goal when they have a clear understanding of the goals (Cooke, 2001). Everyone works towards the expected targets of the organisation implying an improvement in operational efficiency.
Goal alignment will utilise the abilities of the employees to the maximum since each deal in an area where they are best suited. Workers become more engaged in the activities of the company, and the performance improves while employee retention increases due to increased morale (Cooke, 2001). Alignment will also ensure that there is a speedy implementation of company plans. The movement from strategy planning to execution is hastened meaning that the firm does not delay in decision-making.
There are certain key lessons I can take from this
assignment to enable me to become a more efficient HRM practitioner.
Understanding the various strategies to improve individual and company
performance means I am in a position to determine good and bad practices in
human resources. I have known that the reward system is not based on financial
compensation alone since there are other methods to motivate workers. I have
learnt to study the culture of the people before coming up with any reward or
compensation policies. Understanding the culture is also important since it
will enhance communication and hasten the process of making decisions, which
can be a significant competitive advantage for any business (Burroughs, 2012). As a future HRM practitioner, I have learned the
importance of training workers within the organisation instead of recruiting
from the competition. The last strategy is expensive since the workers will
expect higher earnings than before. Training will create a steady pipeline of
qualified employees whose skills are perfectly aligned with the goals of the
organisation (Future
HR Trends, 2017). I have also
learned that it is paramount for firms to make sure that they have the power to
attract and retain good employees since they are hard to find. Losing employees
to rival companies is an expensive undertaking since substantial resources were
used in the training process. Organisations should utilise the correct HRM
strategies to ensure the individual performance of employees is improved, and
the overall goals of the organisations are achieved.
References
Bridger, E. (2015). Employee engagement. 1st ed. London, United Kingdom: Kogan Page.
Burroughs, A. (2012). How to develop a more effective human resources department. Smart Business. [Online] Available at
How to develop a more effective human resources department[Accessed 21 Apr. 2017].
Future HR Trends. (2017). Challenges for human resource management and global business strategy – Future HR Trends. [Online] Available at http://futurehrtrends.eiu.com/report-2014/challenges-human-resource-management/ [Accessed 21 Apr. 2017].
Cooke, F. (2001). Human resource strategy to improve organisational performance: a route for firms in Britain? International Journal of Management Reviews, 3(4), pp.321-339.
Fallon, N. (2015). HR Evolves Into ‘Human Capital Management’. [Online] Business News Daily. Available at: http://www.businessnewsdaily.com/8145-human-capital-management.html [Accessed 21 Apr. 2017].
Painter, N. (2014). Effective Communications and HR: Making the Connection: HRVoice.org. [Online] Hrvoice.org. Available at: http://www.hrvoice.org/effective-communications-and-hr-making-the-connection/ [Accessed 21 Apr. 2017].
Power, B. (2012). Focus HR on Process Improvement. [Online] hbr.org. Available at: https://hbr.org/2012/02/focus-hr-on-process-improvement [Accessed 21 Apr. 2017].
Stredwick, J. (2008). An introduction to human resource management. 1st ed. Amsterdam: Elsevier/Butterworth-Heinemann.
Çaliskan, E. (2010). THE IMPACT OF STRATEGIC HUMAN RESOURCE MANAGEMENT ON ORGANIZATIONAL PERFORMANCE. Journal of Naval Science and Engineering, [online] 6(2), pp.100-116. Available at: http://dergipark.ulakbim.gov.tr/jnse/article/viewFile/5000143319/5000130884 [Accessed 21 Apr. 2017].
Thoo, L. and Kaliannan, M. (2013). International HR Assignment in Recruiting and Selecting: Challenges, Failures and Best Practices. International Journal of Human Resource Studies, 3(4), p.143.