Strategic Human Resource Management HUMAN RESOURCE MANAGEMENT Topic: Strategic Human Resource Management Company: Shan Foods (Pvt) Ltd GROUP MEMBERS Adeel Aamir Siddiqui 11262 Madiha Mohammed Ali 11970 Omair Abbas Ali 11555 Shaheryar Marghoob 11420 HRM Term Report Page i
Strategic Human Resource Management TABLE OF CONTENTS BUSINESS STRATEGY AND HUMAN RESOURCE STRATEGY ................................... 1 EMPLOYER BRANDING ........................................................................................ 1 PERFORMANCE MANAGEMENT SYSTEM ............................................................ 1 ROLE OF HR IN BUSINESS STRATEGY ..................................................................... 2 IMPACT OF EXTERNAL ENVIRONMENT OF HR STRATEGY ..................................... 2 COMPETITIVE ADVANTAGE AND HUMAN CAPITAL MANAGEMENT .................... 3 HR BUSINESS PARTNER ......................................................................................... 3 STRATEGIC BUSINESS PARTNER .......................................................................... 4 ADMINISTRATIVE EXPERT ................................................................................... 4 CHANGE AGENT .................................................................................................. 4 EMPLOYEE CHAMPION ....................................................................................... 4 HRM Term Report Page ii
Strategic Human Resource Management BUSINESS STRATEGY AND HUMAN RESOURCE STRATEGY The business strategy for Shan foods is to increase their market share by increasing sales revenues. Currently Shan food is enjoying almost 45% market share in the market of spices and other masala mix packets which they are offering and their current sales revenues are Rs. 1.2 billion, so from that they want to grow to Rs. 3 billion sales revenue company in 2012. For achieving the business strategy they have to inline such HR strategy which would complement the business strategy and must not cost them a lot as well. They are applying two main HR strategies for that purpose such as follows: EMPLOYER BRANDING : employer branding is their first HR strategy which they are really working on it so that they can attract the best employees which includes the freshmen and experienced employees as well. With the help of employer branding, they really wanted to change the image of the company from the local to multinational. Because they believe that when we are a multinational company and we are offering almost same compensation and benefits programs which any other multinational is offering in Pakistan then it would be really helpful for our company if we would be able change our image with the help of employer branding. For that particular Shan foods is giving presentations at the time of their in campus recruitment programs so that they can create good employer branding and new image of Shan foods as a multinational company. They also made a Video Illustration on Shan Foods working environment, which served the purpose of employer branding. They put this video on their own website and on youtube.com, googlevideo.com, and some job portals as well, which can be streamed. This video promotes Shan Foods Culture and Values, leaving a respectable and positive image on the viewers mind. PERFORMANCE MANAGEMENT SYSTEM : performance management system is recently adopted in Shan foods so that they can appraise each individual properly. Previously there was a traditional approach been followed in which only the immediate supervisor was evaluating all his or her subordinates and his or her words would be the final line. Regardless of the fact that HRM Term Report Page 1
Strategic Human Resource Management whether anyone is delivering his or her objectives or not but if his supervisor is happy than he would be appraised well otherwise vice versa. But after adopting this system objectives or the task are being set mutually by employee and the supervisor and on the basis of that every employee is being evaluated at the end of the year. This system is adopted with the strategic intent because this will going to help them in retaining good employees in the long run which will ultimately assisting Shan to achieve its business objectives. The above two are the two main strategies which Shan’s HR department is applying. In addition to these two strategies they have separate strategy for all five areas of human resource. HR Department Recruitment PMS Compensation & Benefit HR services T & D ROLE OF HR IN BUSINESS STRATEGY The role of HR department is bit different what we read in theory because Dave Ulrich and other writers which have talked about SHRM mentioned that HR must be the part of strategy development at the beginning of it but there broad or the corporate level strategy is being developed by the top management but right after that HR is the department which penetrate that corporate strategy in the middle management and front line management. HR also supervises that all the strategies which are developed at the middle and lower level management must be in line with the overall business strategy of the company. IMPACT OF EXTERNAL ENVIRONMENT OF HR STRATEGY HRM Term Report Page 2
Strategic Human Resource Management External environment includes competitors and all other players of the market. HR department of Shan is not concerned about the strategies implemented by the competitors HR department but they change their strategy if any changes occur in the economy or any big shift occur in the market. But usually their strategy is devised at the start of the fiscal year and they really stick to that. COMPETITIVE ADVANTAGE AND HUMAN CAPITAL MANAGEMENT The competitive advantage which HR department is providing to the company is that they are providing and retaining all those employees which are assisting organization in maintaining the market of 45% in Pakistan and also the biggest achievement of HR department of Shan is that “they didn’t fired a single employee yet” because the HR department is putting lot of effort at the time of recruitment that we don’t need to layoff that person in future and through this we are saving lot of money of Shan foods which would had been spent on recruiting employees again and again for the same position. HR department has deployed a successful Human Capital Management strategy for FY2010, which resulted in only 17 out of almost 3000 employees, resigned from their positions, during the period. For human capital management Shan foods has incorporated many systems such as PMS, HRM, Payroll and etc which are really assisting them in managing the human capital and utilize their skills efficiently. HR department try to find that human capital which “best fit” with the position available in the organization. HR BUSINESS PARTNER The role of HR department in Shan foods as strategic partner starts from the middle management and from there onwards HR is included in all type of decision making whether that decision is related to setting sales objective for the year or for training of the employees of finance department. HRM Term Report Page 3
Strategic Human Resource Management STRATEGIC BUSINESS PARTNER : HR is fulfilling this responsibility by adopting effective and efficient strategies development at different levels of the organization so that all the strategies which are prevailing in the company must not collide with each other and also they must contribute for the one same objective which was initially set by the top management. ADMINISTRATIVE EXPERT : HR department is trying to eliminate all the hurdles and hassles which were previously faced by the employees due to inadequate processes. For the purpose of process improvement and making life easier for employees HR department implementing different process like PMS, payroll, HRM and etc through which most of the admin work is transformed on automation so that less time spend of admin work and more efforts are being done the main objectives. CHANGE AGENT : HR department is in the process of transformation of SHRM, so they are in process of developing this area of HR as well. But currently their role as changes agent is very limited because right now we are just bringing change in the organization through training sales team so that they can explore new territories locally and internationally. Also we are hiring good and competent strategist which are really assisting our company in devising such strategies through which would be adding new products into our product line in future. EMPLOYEE CHAMPION : HR department of HR is an employee champion in a sense that we follow a candid and direct procedure to counsel and handle employee conflicts. Shan food is offering competitive salary packages as well as the compensation and benefits plans which are not only attracting “best fit” employees but also help HR department in retaining them. We also providing very competitive environment with the help of management by objective (MBO) so that employees must perform at the best. Shan’s conflict resolution department work very well in case if any conflict arises. As Shan is Shariah Compliance Company so we tackle the conflict with the blend of worldly and religiously so that it ends up in win-win situation for all. Also HR department has developed a system through which every employee can just convey his or her issue via skype message to HR and then the representative will be meeting that particular employee and try to resolve his or her issue within 24 hours. HRM Term Report Page 4
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