hr strategy of hartley electronics

Sajedul Islam Chy ID- 21414464 Page 2

Strategic Human Resource Management

Course Name : BA (HONS) Module Name : Strategic Human Resource Management

Module Code : MG607

Assignment Title : HR strategy of Hartley Electronics

Submitted by : Sajedul Islam ChyID No. – 21414464Word Count - 2150

Submitted to : Sayed Tanvir HussainSubmission Date : 7th May 2014

Sajedul Islam Chy ID- 21414464


Executive Summery

ToThe chief executiveHartley Electronics

Subject : Classifying the core human resource problem and choosing an appropriate HR

model in the middle of Best fit, Best practice and Research based view in Hartley electronics.

For producing and providing electronic components for satellite and defence section Hartley

Electronics have a strong brand image in the market. This company is one of the leading

producer and provider of electronic component for sophisticated technology. Although the

company is running well but now there are arising different kinds of SHRM issues which

have a great impact on the company. In this report we have tried to introduce Hartley

Electronics, the present SHRM practices and problems faced by the company. Various short-

term steps taken by the company for strategic handling of those SHRM issues in the H.E.

Vertical and horizontal integration can be a best way for effective HRM practice which helps

the company to be profitable. Vertical and horizontal integration in H.E and how this process

related to the effectiveness of the HR system has been descry clearly. Strategic integration of

the company and the roles responsibilities of the line mangers in H.E are also described.

There are various Approaches of SHRM of which best approach which is Resource Based-

View (RBV) approach of HRM has been chosen which fir effectiveness. How to gain

effectiveness in the company in relation to HR management and other issues are given by

some recommendations. Conclusion has been drawn on various discussions in the report.

FromSajedul Islam ChyThe external consultantHartley Electronics



Table of Contents

Executive Summery..............................................................................................2

Introduction...........................................................................................................4

Strategic Human Resource Management issues faced by the company...............4

Application of Short-term Strategy in Hartley Electronics..................................5

Vertical and Horizontal Integration in Hartley Electronic...................................5

Linking of Horizontal and vertical integration of HR in Hartley Electronics......6

Strategic integration of HR in Hartley Electronics...............................................6

Responsibilities of Line Manager.........................................................................7

Approaches to Strategic Human resource Management.......................................8

Best practice model of HRM:................................................................................................8

Best fit approach of HRM:....................................................................................................8Resource Based view of HRM:.............................................................................................8

Reasons behind choosing RBV approach in Hartley Electronics.......................10

Reasons behind not choosing Best practice and Best fit approaches of HRM...10

Limitations of Best practice approaches.............................................................................10Limitations of Best fit model................................................................................................10

Conclusion..........................................................................................................11

Recommendations...............................................................................................12

Reflection of RBV in Hartley Electronics..........................................................13

Strength..............................................................................................................................13

Weakness...........................................................................................................................13Improvements.....................................................................................................................13

References...........................................................................................................14



Introduction

Hartley Electronics is a renowned electronic company of the United Kingdom that was

established in 1979 with only 50 employees. Now the company has about 125 employees.

With the passes of time this company is now a big multinational electronic company in the

global market. The main objective of the company is to provide micro electronics parts and

components to the satellite and defence sector of the country. The products that the company

manufactures include different electronic circuit boards and various components and parts

necessary for the satellite and defence sector. The main factor of the success of this company

is effective and efficient human resource management practices. Employees are considered as

the organizational resources in the modern organization that contribute most for the

achievement of the organizational success both in the local and international market place.

The main purpose of this report is to focus on the strategic human resource practices of the

Hartley Electronics.

Strategic Human Resource Management issues faced by the company

Strategic human resource management is the process of managing human resources of an

organization by developing long term, effective and efficient and consistent policies and

strategies in order to achieving the organizational goals and objectives. These issues have

both positive and negative impacts on the organizational activities. But the main function of

the human resource manager is to find out the issues that has negative impacts on the

organization and should take proper actions to manage those issues. The management of the

Hartley Electronics are now facing some issues regarding its human resource management

that have negative impacts on both the companies goodwill and the profitability. Some of the

strategic issues faced by the company are given below-

Employees are fear of losing job and low morality.

Unwillingness of the employees to perform their best.

Lack of employee’s motivation to achieve the organizational goals.

Lack of consultancy services provided to the employees by the management.

Top management are unwilling to invest on employee training and development.



Application of Short-term Strategy in Hartley Electronics

Some of the short term strategies taken by the management of the Hartley Electronics for

handling the issues given above are discussed below:

Ensuring job security: The management of Hartley Electronics has undertaken a

strategy to ensure the job security for the employees to increase their motivation and

commitment.

Employee participation: The management of the Hartley Electronics has undertaken a

strategy to involve the employees in the organizational decision making process that will

motivate employees to perform their best.

Effective staffing: Staffing is an important strategic issue for the human resource

management department of an organization. Hiring and selecting effective and efficient

employees who have expertise and skills is essential for the organizational success.

Team and group work: The management of Hartley Electronics has undertaken a

strategy of ensuring completion of tasks on the basis of team and group performance.

Training and development: The organization has ensured training and development

opportunities for the employees to increase their skill and knowledge.

Vertical and Horizontal Integration in Hartley Electronic

The strategic human resource manager should have the clear understanding of vertical and

horizontal integration. Vertical integration means integrating human resource policies and

strategies with the external environment. On the other hand horizontal integration means

balancing the human resource policies and strategies with the objective of the organization

(ATMA, 2014). Vertical integration is also called the effectiveness of HR which means that if

the strategy helps to attain the mission and vision of the company then it is called vertical

integration (Armstrong, M.2006). The management of the Hartley Electronics can ensure the

vertical integration by developing the human resource policies and strategies by considering

the external environmental factors such as political, social, economic, legal, environmental

and technological factors of the country. On the other hand the management of the

organization can ensure the horizontal integration by developing the policies, systems and

strategies of the human resources aligning these with the organizational goals and objectives.



Linking of Horizontal and vertical integration of HR in Hartley Electronics

Since the Hartley Electronics is now facing many strategic challenges mentioned above the

strategic human resource management of the organization should link the concept of both the

vertical and horizontal integration within the organization in order to achieving the

organizational goals and objectives effectively and efficiently. Human resources management

is an important functional area of the Hartley Electronics since they are the main elements of

the organizational resources. In the vertical and horizontal integration the management should

develop all strategies and policies regarding the human resources by considering the external

and internal factors. Development of such policies will be favourable for the employees and

the employees of the organization will be motivated and committed to achieve the

organization’s strategic goals and objectives. In the strategic approach of human resources

management employees are provided with training and development opportunities that

increase their skills and knowledge. By providing training and development to the employees

the Hartley Electronics will be able to build skilled workforce that will bring the competitive

advantages for the organization in the competitive market place (Bizdharma, 2013).

Strategic integration of HR in Hartley Electronics

Strategic integration between the human resource management and the whole business

strategies is becoming a major concern for all business organization in recent year that helps

to achieve the desired goals of the organization (AEA Othman, 2012). Strategic integration is

also called vertical integration that is done on the basis of long term goals and objectives. The

management of the Hartley Electronics must ensure such strategic integration so that it is

consistent with the organizational activities and performance. For strategic integration of the

employee with the strategic planning of Hartley Electronics employee commitment is to be

ensured for higher performance. For successful integration company should restructure the

organization chart. In Hartley Electronics integration of HRM strategy into business strategy

is preferred by the help of line managers as they are more effective than personal specialist.

The level of integration between HRM and corporate strategy should have an involvement of

line managers.



Responsibilities of Line Manager

The line mangers of the business organization have to perform many roles and

responsibilities for the achievement of the organizational success. Some of the important

roles and responsibilities of line manager are shown below:

Figure: Responsibilities of line manager

Line manger works directly with the employees of the organization that is most essential to

build mutual relationship between the management and employees. They helps employee to

adjust with the organizational culture and system of working (CIPD, 2012). The line manager

evaluates the performance of the employee and helps the human resource management to

determine the employee compensation. They ensure the employee involvement in Hartley

Electronics is increased by encouraging the employee. The line manager ensures the

employee’s motivation and commitment to the organization by leading and guiding them

(Folkman, J.2013). Beside these roles and responsibilities some of the other responsibilities

perform by the line manager are given below:

Leading and motivating employee to perform their best for the achievement of the

organizational strategic goals and objectives.

They reduce the employee absenteeism and turn over by encouraging the employees.

Building mutual relationship with the management and the employees.

Developing effective communication system within the organization.

Responsibilites of line managersManaging cultural issues of workforceWork recognition and creditEmphasis on end-resultEnsuring employe job-satisfictionTaking positive actions on individualEnsuring employee involvement



Solving the employee’s problems regarding the working procedures and personal matters.

Approaches to Strategic Human resource Management

Best practice model of HRM: The best practice model of human resource management

is a Universalist perspective adopted by the organization to improve its performance

(Mbatools, 2014). There are three main essences of this model which are following-Firstly,

Employee ability and knowledge is increased by effective recruiting and training. Secondly, it

motivates employee through attractive incentive which help to change behaviour. Thirdly it

helps to increase creativity and performance of the employees (Szulanski, G.1996).

Best fit approach of HRM: The best fit approach of human resource management is also

known as matching model of HRM (Purcell, J. 1999). The main theme of this model is

developing HRM policies according to according to strategy of the business. Strategy

involves performance objectives, future activities and policies for achieving corporate

objectives (Armstrong, M.2006).

Resource Based view of HRM: The RBV model of HRM provides a standpoint

explaining collected works or exclusive bundle of internal capabilities and resources which

can be used as a basis for value creating strategy for the company (Scott A. S.2013). Brand

names, capital equipment, skill of employees, capital, employee knowledge and talented

managers are considered as the resources which are used as input in company’s production

process (Karami, A.2004). So for selecting strategy company should give importance on

internal and external environments, core competencies and relative opportunities.



Figure: Main Approaches to HR strategy (Farnham. D 2010)

Best FitBusiness life cycle model

HR strategic FitDifferent strategies of Firm’s

business Cycle

Best practice of HR

Universal Bundles of HR is applied to All Organization

Best-Fit HRInternal Fit

HR strategic FitStructural

configuration of Organization

Resource based ViewInside-out ApproachScarce resources HR

strategy unique to firm

Best fit HRMatching of External Fit of Business and HR strategy in

Organization

Effective HR strategies and improved

performance of Hartley Electronics



Reasons behind choosing RBV approach in Hartley Electronics

The management of the Hartley Electronics has chosen the RBV approach because of the

following reasons-

RBV will help to identify the Hartley Electronics key resources.

Calculate these resources satisfying the valuable, rare, in-imitable, non-substitutable

criteria.

Protecting resources that possess these evaluations, based on that Hartley Electronics

could improve its performance.

Reasons behind not choosing Best practice and Best fit approaches of HRM

Limitations of Best practice approaches

This approach does not consider the long term perspective of the employee development.

It is very difficult to move to other approach if this approach is taken once that means this

model is inflexible to change.

It is not suitable for every situation of business.

Limitations of Best fit model

Integration of HR activities with the changing environment of the company is in

contingency.

Adjusting entire HR system with the organizational strategies is difficult.

This approach is inconsistent with the corporate culture of the Hartley Electronics.

Less motivated employee which reduces profit of the organization.

Interest of the employee is ignored by the management under this model.



Conclusion

Strategic human resource management is the management of the employees of an

organization by considering the employees as the resources and by developing the policies

and strategies for the long run. This is an important functional area for the Hartley Electronics

to achieve its strategic goals and objectives effectively and efficiently. There are roles and

responsibilities performed by the line manager and human resource managers that ensure the

achievement of the organizational success in the competitive market. The management of the

Hartley Electronics is now facing many strategic issues regarding its employees RBV

approach is a model of HRM which help to engage the entire important elements in the

organization for achieving targeted objective although there are other approaches of SHRM

but RBV is the most efficient approaches for meeting the demand of the needs of the H.E. By

adopting the resource based view to the employees the organization can be able to solve those

issues.



Recommendations

On the basis of various SHRM issues faced by Hartley Electronics and understand its impact

on the company how to handle these issues are given below;

Strategic HRM should be established in the company so that the needs of the employees

can be identified and satisfied which will increase the production.HR manager of H.E

should give more importance on employee relation, policies and plan to develop them.

For developing approaches of talent management to fit with the company external

consultant has great importance so the availability of external consultant must be ensured

for developing the employees.

Employee commitment to works is seen as driving force for company development. So it

is the main responsibility of line manager in H.E to build up employee commitment.

Committed employee is asset for the company.

Employee should be treated fairly as they are the essential part of the company.HR issues

in the organization is also be fear so that employees are motivated for work in H.E.

Top management is to understand that investment on employee is not cost for the

company it should be treated as investment on employee development and it will provide

higher return.

Team work has a great potentiality for the organization to success so team work is to be

encouraged by the line manager. Team works help the employee to be innovative.

Innovative employees are the key success factor of H.E.

Resource based view of HRM approaches is to be accepted in H.E because it is the best

way to integrate HR issues with the strategic planning of the organization to achieve

targeted objective.



Reflection of RBV in Hartley Electronics

Strength The resource based view ensures the internal equity of the payment.

RBV helps Hartley Electronics to expand its operations in different market with skilled

workforce.

Training need analysis of Hartley Electronics is process oriented that go through the

specified process of the organization.

This approach value the human efforts and employees performance.

Weakness Lack of innovation and development of new products and services.

This approach does not consider the competition of the external market.

It is process oriented and inflexible.

Improvements It is a result oriented approach which helps to achieve the goals and objectives of the

organization.

The management of the Hartley Electronics can gain competitive advantages by focusing

more on external competitiveness firm.

Internal equity and external competitiveness are given more importance which is need for

the achievement of the success of Hartley Electronics.



References

Armstrong, M.2006. Strategic human resource management .3rd Edition. United Kingdom.

AEA Othman, 2012. Perspectives of two major Japanese electrical and electronics companies in Malaysia. Available from: http://www.emeraldinsight.com/journals.htm?articleid=1786451. [Accessed: May 2, 2014].

ATMA, 2014. Strategic HR. Available from. http://www.atma.nu/Desktopdefault.aspx?panelid=120&tabid=228. [Accessed: May 2, 2014].

Bizdharma, 2013. What is Vertical and Horizontal integration? Available from: http://bizdharma.com/blog/what-is-vertical-and-horizontal-integration/. [Accessed: May 2, 2014].

CIPD, 2012. The role of line managers in HR. Available from: http://www.cipd.co.uk/hr-resources/factsheets/role-line-managers-hr.aspx. [Accessed: May 2, 2014].

Folkman, J.2013. Seven Ways to Increase Employee Satisfaction without Giving a Raise. Available from: http://www.forbes.com/sites/joefolkman/2013/11/27/seven-ways-to-increase-employee-satisfaction-without-giving-a-raise/. [Accessed: May 2, 2014].

Farnham, D. (2010) .Human Resource Management in Context: Strategy, Insights and Solutions, 3rd ed., London, CIPD, pp. 229-231

Karami, A.2004. Strategic Human Resource Management and Resource-based Approach: The Evidence from the British Manufacturing Industry. Available from: http://www.ftms.edu.my/pdf/Download/UndergraduateStudent/Strategic_human.pdf. [Accessed: May 2, 2014].

Mbatools, 2014. BEST PRACTICE v. BEST FIT. Available from: http://www.mbatools.co.uk/Revision%20Sheets/OMP/BEST%20PRACTICE.pdf. [Accessed: May 2, 2014].

Purcell, J. (1999). Best practice and best fit: chimera or cul‐de‐sac?. Human Resource Management Journal, 9(3), 26-41.

Scott A. S.2013. Human resources and the resource based view of the firm. Available from: http://jom.sagepub.com/content/27/6/701. [Accessed: May 2, 2014].

Szulanski, G. (1996). Exploring internal stickiness: Impediments to the transfer of best practice within the firm. Strategic management journal, 17(WINTER), 27-43

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