MBA Assignment

on

HUMAN RESOURCE MANAGEMENT

JULY 15, 2022

[ASSIGNMENT SUBMITTED BY KAISHYAP SHRESTHA]

STUDENT ID- ABSMBA22040643
[Human Resource Management] MBA Assignment 2022

INTRODUCTION
Businesses are founded by people as a means of achieving their goals as well as their visions of what
the business ought to be. Thereafter, objectives and policies are set and put into practice. Combined,
goals, visions, and plans constitute strategies set forth to be achieved in the long or short term.
Stakeholders are vital to the success of a project or business. Whether the stakeholders are internal or
external, every good leader knows the importance of keeping them engaged and satisfied. This is
only possible when proper strategies are in place for the business and are well communicated with all
stakeholders. Strategy in business terms refers to the direction and scope that an organization has
over a long-term period and which helps it in achieving the best using the available resources within
a highly competitive environment (Lippmann, S. A. & Rumelt, & R. P. , 2003). The strategy decides
the structural components linked to the firm. The structure of a company and its role may vary from
company to company widely, depending on the business model. In order to really accomplish the
objectives sets by Business Strategy, it is important to empower individuals across the firm to make
choices and allocate resources in accordance with the guiding principles. Then, a sound business plan
serves as a guide and a road map and this is possible only proper HR practices are carried out across
the organization.

STRATEGIC HUMAN RESOURCE MANAGEMENT (SHRM) AND ITS FRAMEWORK:

Human Resource Management is the process of hiring individuals, providing them with the
necessary training and compensation, creating policies pertaining to them, and creating retention
plans along with cost-effectiveness. The HRM is a strategic approach to managing people in a
company or organization effectively and efficiently so that they contribute to their firm's ability to
compete favorably, which maximizes worker performance in support of a company's strategic goals
and is called a Strategic Human Resource Management (SHRM). The overall goal of the SHRM
is to ensure that the organization's success is achieved through employees by providing necessary
training and development to the employees, performance appraisal, and reward management.
A framework linking HR Practices and management techniques to long-term business goals and
outcomes is provided by strategic human resource management. It puts a greater emphasis on long-
term resource challenges in the context of organizational objectives and the changing nature of work.
Other HR strategies, like reward or performance, are also impacted by it, helping to determine how

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they fit into the overarching business strategy. It helps to ensure that the various aspects of people
management work together to drive the behavior and culture needed to create value and meet
performance targets. People professionals play an important role in understanding organizational
circumstances and designing human capital value chains that meet stakeholder demands (CIPD,
2021).

Results-oriented goals broadly can be achieved by the following general HR Practices:

1. Recruitment and Selection- to ensure the best-fit candidates are recruited for the company – both as
high performers and as a cultural fit.
2. Training and Development- To strengthen the current workforce, concentrate on skill-specific
training, and acknowledge the importance that employees have on learning, it is best practice in
human resources to invest in training and development opportunities. The HR department may help
and encourage employees to grow as well, keeping them more invested in their work and the
company as industries advance at an ever-increasing rate.
3. Transparency- Maintaining openness and being candid with employees regarding the company's
successes and shortcomings is an essential HR practice. Employees feel trusted, respected, and
valued in organizations that encourage open criticism and conversation. A culture of trust between
the employer and employee is fostered when businesses are truthful and upfront with their staff.
4. Employee Benefits- The HR department should make sure that the best benefit plans have a
strategic approach to achieving business objectives, retaining excellent personnel, and ensuring that
the employees are aware of their advantages. The employee benefit plans may vary from
organization to organization as per the nature of the business.
5. Employee Incentives- Incentives have their pros and cons. This HR best practice must be done
correctly for incentives to be effective; otherwise, the organization runs the danger of demotivating
rather than inspiring its staff. The incentive is not always monetary. A recognition and awards
program or the usage of social recognition to commend employees for their efforts are examples of
other incentives that keep employees motivated.
6. Compensation- Improving compensation does not always mean adding numbers. Compensation
may come in different other approaches like adding additional vacation days, gift cards, bonuses, etc.
Good benefits and compensation can demonstrate to workers that the company recognizes and
respects both their contribution as employees and their overall well-being.
7. Compliance Issues- Avoiding compliance problems in the first place is the best approach to tackle
them. To overcome these challenges, HR may utilize some HR software to simplify HR compliance

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practice which may be helpful to find and correcting errors and avoid future compliance errors. HR
may also designate a point person in the HR team who is in charge of staying updated on new rules
and altering labor laws.
8. Terminations- HR professionals should always show empathy not sympathy to its employee
informing them why they are being let go. Since it will always be challenging for individuals
engaged, this is perhaps the area where implementing HR best practices will be most challenging.
Learning from workers who are leaving their jobs is one of the best HR strategies, as is knowing
which topics to be sensitive to for legal reasons. As the HR department puts these HR principles into
effect, we might find that workers who quit the company quickly did not have a clear understanding
of what the job included when they were employed, and the HRM might think about remapping the
hiring procedure.
“Your employees are your most valuable resource, whether you are the CEO of a Fortune 500 firm
or the founder of a start-up, and taking care of them is one of the secrets to your success” (Arabian
Business, 2022). With the evolution of time, roles of HR management have also evolved and are well
illustrated in the following diagram.

Changing Nature of Human Resource Management

Diagram Source- (Robert L. Mathis; John H. Jackson, 2005)
In the past, HR management used to be primarily an administrative job concerned with daily tasks
like hiring and selecting employees and overseeing employee benefits. Changing labor market
conditions and new business thinking call for HR business strategies that include recruiting and
retaining the right people, as well as providing ethical and cultural leadership. Today, most HR
experts say that strategic planning is a part of their job description, and nearly all HR leaders in the
biggest multinational firms take part in strategic decision-making and work on the organization's
strategy team (SHRM, 2022). Most organizations today recognize that people are important to

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sustainable value creation, which is why they are frequently referred to as a company's "most
important asset." Knowledge, skills, and capacities of employees are assets that the company should
nurture and use to provide long-term value for the company and its many stakeholders.
As per a book called Organizational Success Through Effective Human Resources Management
written by Ronald R. Sims - Plans are made for HRM initiatives. To improve organizational success,
they use HRM strategies. It is difficult to see any firm succeeding without effective HRM initiatives
and plans. The goal of the HRM program is to maximize corporate success while also helping all
employees reach their full potential. (Sims).

It's important to align HR objectives to an organization's overarching objectives so that the

organization’s strategy and HR departments are all working toward the same objectives. Strategic
Human Resource Management helps combine these two concepts to produce best practices and fit
(Perucci, 2020). The idea that business strategy merely follows strategic HRM is oversimplified; the
two must complement one another. The company plan should consider the management, motivation,
and deployment of employees as well as the accessibility of skills and expertise. In fact, it's now
more common than ever to find business strategies that define the management of all resources
within the organization, and that is intrinsically linked to and included in strategic HRM. These
objectives and framework of an organization in relation to organizational success and Human
Resource Strategy can be analyzed with the different Human Resource Management Models.

HUMAN RESOURCE MANAGEMENT MODELS:

The phrase "HRM model" (or "HR framework") refers to an organization's strategic plan intended to
support the administration and coordination of business tasks including human capital. The objective
of the HRM model is an analytical framework that helps to establish relationships among various
variables to be researched, in order to reach the set objectives of the organization and to manage its
employees as efficiently and effectively as possible to achieve organizational effectiveness. This is
why HRM models were developed. The HRM models that every HR professional should be aware of
are as below and today in this essay one model has been discussed.

Information Source- (Dr. Aloumedjo Zam Thierry, 2018)

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The 5-P of Human Resource Management, developed in 1992 by Randall S. Schuler, is a strategic
human resource management model based on; Purpose, Principles, Processes, People, and
Performance which are the 5-Ps of this model. This model was created in consideration of global
HRM, strategic HRM, functional HRM in organizations, and the interface of business strategy and
human resource management.
1. Purpose: Purpose refers to the organization's vision, mission, and objectives.
2. Principles: To achieve the organization’s vision, mission, and objectives, the organization must have
a set of principles providing the action guidelines for achieving the purpose of its existence. These
define how activities are carried out.
3. Process: Processes are organizational structures, systems, and procedures to achieve objectives.
4. People: People work as human resources to complete various tasks in accordance with the rules and
procedures of the company. The Purpose, Principles, and Purposes of this model are only successful
when the right people are recruited as per the organizational requirement. Hence, a high-performing
workforce produces better levels of production as a result which helps in achieving the
organizational goal in the internal and external environment for the long term.
5. Performance: Performance is the outcome measured against standards and a result that can be
measured by appropriate standards.  

Image Source-from Study Slide - (Dr Sara Turner, 2022)

This model shows how all 5-P are interrelated with each other and upon achieving the proper balance
of all 5-P, the organization success set by the organizational strategies can be achieved in short term
or long term which is the main objective of any organization.

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Examples of Successful companies with HR Best Practices:

1. FedEx Corporation: FedEx Corporation is a company with a proven track record of success. FedEx
believes that its success is determined by how efficiently its employees work. The company
discovered that employees who are well-treated are top producers, resulting in positive company
growth. FedEx developed, and continues to practice, its "People-Service-Profit" philosophy in 1973,
denoting excellent employee care. With its annual Survey-Feedback-Action, or SFA, program, the
company tracks employee satisfaction. Following the survey, management and employees meet to
discuss the results, address problems, and figure out how to solve them. As FedEx focuses on proper
HR Strategies in the welfare of the employee ensuring that suitable employees are in the
organization, FedEx business is successful (Companies With HR Best Practices, NA).
2. Google: Because of its innovative approach to HR and people analytics, Google is one of the most
valuable companies in the world by market capitalization (John Sullivan , 2013). Former Google
product head Jonathan Rosenberg told the Harvard Business Review that it is Google's policy to
never compromise on job requirements. Google is looking for the brightest and most qualified
candidates in tech and data and will not compromise on candidate quality. Further, to avoid any
uncareful job description to fulfil the vacancies, Google advises thinking seriously and writing with
great care about the following: area, role, responsibilities, job qualifications, minimum qualifications,
and preferred qualifications. This clarity leads to candidate searches that are more exact, swift, and
specific in nature. Likewise, Google understands its employee satisfaction. Google was having
difficulty retaining female employees nearly ten years ago. Google looked inward and found that
new mothers at Google did not feel they had the resources or support they required to be successful
at work and at home. As a result, Google implemented a novel and comprehensive maternity plan.
Mothers are given 5 months off with full pay and benefits, which they can divide however they see
fit. Google successfully examined its practices and policies with a critical eye and took significant
steps to ensure employee happiness and retention (HR Zone, 2018).
There is no single HRM strategy that will guarantee success in every situation. Organizations must
develop their own distinct strategy based on their specific context, culture, and goals of the
organization. According to (Armstrong M, 2009) the main role of the HR Function is to enable the
organization to achieve its objectives by taking initiatives and providing guidance and support on all
matters relating to its employees. The basic aim is to ensure that management deals effectively with
everything concerning the employment and development of people and the relationships that exist
between management and the workforce. The HR is responsible for formulating strategies that focus

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on recruiting and retaining top employees as well as overseeing projects that promote company-wide
productivity.

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TALENT MANAGEMENT

In order to improve business performance and higher customer satisfaction, an organization requires
a talented team within the organization and to attract, recognize, develop, engage, retain and deploy
individuals who are thought to be particularly excellent talented performers to the organization, this
is called Talent Management. It must be aligned with business goals and strategic objectives in order
to be effective, and by managing talent strategically, organizations can build a high-performance
workplace, foster a learning climate within the organization, add value to their employer brand, and
improve diversity management. As per (Armstrong M, 2009), Talent Management is the process
based on the proposition that ‘those with the best people win ensuring that the organization has the
talented people it needs to attain its business goals. According to Armstrong’s Handbook of HRM
Practise 13th Edition, Lewis & Hackman defined talent management in three ways: 1) as a
combination of standard human resource management practices such as recruitment, selection and
career development; 2) as the creation of a large talent pool, ensuring the quantitative and qualitative
flow of employees through the organization; (3) as a good based on the demographic necessity to
manage talent.

In order to attract or keep talent in the organization, the organization needs to focus on the following
5 imperatives (Michael Armstrong, 2014):

1. Developing a winning employee value proposition that will make the company stand out
from the crowd.
2. Getting past the recruiting hype to develop a long-term recruiting strategy.
3. Developing managers' potential through job experience, coaching, and mentoring.
4. Investing in A players, developing B players, and acting decisively on C players to strengthen
the talent pool.
5. A pervasive mindset - a deep conviction shared by leaders throughout the company that
having better talent at all levels provides a competitive advantage - is central to this approach.

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EMPLOYEE VALUE PROPOSITION (EVP)

Employee Value Proposition (EVP) is one of the most important essentials which plays a vital role in
talent management. EVP is all about defining a company's essence - what makes it unique and what
it stands for and why an individual is driven to work with pride. It is the unique set of benefits that an
employee receives in return for the skills, capabilities, and experience they bring to a company. It
includes the primary factors, such as the compelling vision or unique culture, that make individuals
proud of the company. In another word, as per the web article by (Valène Jouany), Employee Value
Proposition is an ecosystem of support, recognition, and values that an employer provides to
employees to achieve their highest potential at work. An EVP is manifested in a combination of
statements, tangible benefits, and intangible culture. Some companies have strong EVP statements
which help them to attract or keep talent in the organization. For example- One of Nike’s EVPs is
"Win as a team". This sentiment pervades Nike's benefits and life at Nike depictions. Nike's
culture emphasizes teamwork in order to achieve innovation in the world of sports. It takes the
same approach to benefits and compensation. Fitness discounts, relocation benefits, competitive
pay and retirement plans, and advanced learning opportunities are among the benefits provided
by the company (Emily Heaslip, 2022).

A strong EVP, when incorporated into all sides of a company, will aid in keeping top performers and
luring the best outside personnel.

WHY EV IS IMPORTANT?

1. For Talent Attraction: The EVP of a business is crucial in the hiring process because it explains
why a candidate should apply for a position with your business. Most workers do their homework on
a company before applying for a position. A compelling executive summary illustrates to prospects
what the company has to offer in terms of benefits, corporate culture, and career potential. In the job
advertisements, on a website, and any place else possible candidates are looking for a job, emphasize
the company EVP. A strong EVP can also help draw in passive and talented candidates who aren't
really looking for a new job.
2. For Retaining Top Talent: It's crucial to recruit top talent for the position in the cutthroat job
market, but it's also crucial to keep the high-performing individual. Talented personnel is productive
and difficult to replace, so losing them is a loss. It takes a lot of time and money. This is why Fortune
500 firms go to such lengths to keep their best employees (Valène Jouany).
3. For Optimizing Recruiting Expenses: When a company has a convincing EVP, the company will
get more applications from talented candidates. This also helps organizations retain the top talents.

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Subsequently, the organization has to spend less on recruiting agencies, job ads, social recruitment
agencies, and other talent search expenses.

Hence, to keep and attract the best talent, the company must have a great EVP and for this, an
organization requires to assess the core strength of the organization, and this process measures
different aspects of the organization to make the organization unique and compelling in the
competitive market (Employee Value Proposition). According to (Gartner)- “Organizations that
effectively deliver on their EVP can decrease annual employee turnover by just under 70% and
increase new hire commitment by nearly 30%.”

ROLE OF HR LEADERS:

When we think about the Employee Value Proposition, the first thing that might come to mind is
Compensation and Benefits. But these days, with a lot of shifts in the work ecosystem, especially
when the C-19 pandemic hit globally in 2019, it has become important for an organization and HR
Leaders to think out of the box to improve different components of EVP so that the organization can
attract or retain more talented employee and also importantly keeping all individuals motivated
because only if talented manpower stays in an organization and give their 100%, the organization can
achieve its’ goals. So, here below are some points collectively put together in this essay as being
inspired by various web study materials like [(HAYS, n.d.), (APPLAUZ, n.d.), (ARMSTRONG’S
HANDBOOK OF HRM PRACTICE, 2014), (Talent Management, 2018)] that organizations and HR
Leaders should be working on strategies to improve the EVP.

1. Strategic Resourcing: This is a part of Strategic Human Resource Management that is not only
concerned about recruiting and keeping quality staff required but also selecting and promoting the
people who fit the culture and strategic requirements of the organization. Therefore, the goal is to
make sure that a company gains a competitive advantage by hiring, keeping, and developing more
qualified employees than its competitors. As per (ARMSTRONG’S HANDBOOK OF HRM
PRACTICE, 2014) an organization should prepare plans for finding people from within the
organization and/or for learning and development programs to help people learn new skills.

2. Analyze Recruitment Strength & Weakness: The organization should carry out the study of
strengths and weaknesses as an employer. The study may cover the survey on such as the reputation
of the organization, pay, employee compensation & benefits, working culture, security of
employment, opportunities for training and learning, career enhancement, location of the
organization or plant, etc. and, such study should be used for the development or enhancement of

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EVP in order to attract new talent or keep the existing talented employees (ARMSTRONG’S
HANDBOOK OF HRM PRACTICE, 2014).

3. Broadcasting Your Employees’ Achievements & Offering In-Person Thanks: To keep the talent
motivated, an organization or HR leaders must develop a program to always acknowledge the hard
work of the employee publicly. Organizing a lunch program with the employee, posting the
achievement of the employee on online media or on bulletin boards, etc, will definitely keep all the
employees motivated to do their best for the company.

4. Employee Brand: As per (Armstrong M, 2009), the employee value proposition can be expressed as
an employer brand – the image presented by an organization as a good employer. To create an
employee branding, an organization should understand first what the best candidates need and want
which will help to identify what has to be offered and how to offer it in order to make the EVP
highly valuable.

One of the most well-known needs theories is Abraham Maslow's hierarchy of needs. According to
this theory, a person's efforts to meet their physiological, safety, social, esteem, and self-actualization
needs lead to motivation. There is a hierarchy of these needs. In other words, addressing lower-level
needs is a prerequisite for addressing higher-level needs. (Wikipedia, 2022).

Diagram Source- (Wikipedia, 2022)

An organization can use this notion to better understand workplace employee motivation. Companies
can plan how to use financial incentives more strategically by applying this idea to gain insights into
employee motivation.

5. Career Development Opportunity & Encouragement: The prospects for career advancement are
one of the main factors that attract people to an organization and keep them there. Employees want to
see advancement in their positions and roles, so providing a clear plan to achieve this is essential.

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 Training programs
 Promotion paths and opportunities
 Opportunities to work in other locations
 Opportunities to work in other departments
 Opportunities to learn in a university/structure
 Develop new qualifications
 Evaluation and feedback to develop

Example- Offering and/or paying for employees to take classes and seminars will not only teach
them new skills to better do their jobs, but it will create even better employees to give back, and
move up within your organization. Supporting their drive and ambition are great ways to create the
kind of loyalty among your employees that every business wants to cultivate.

6. Work Environment and Company Culture: Employers must understand how critical it is to create
a work environment that not only makes it easier for workers to work for them, but also provides
them a reason to do so. Maintaining a great workplace atmosphere and experience aids in keeping
workers motivated and engaged. Some of the factors of these components are office design, office
location, commuting, work-life balance, wellbeing, management interaction, autonomy, personal
achievements, and recognition for their work. Company values, diversity in work, support,
socializing opportunities, collaboration & team spirit, trust, etc directly affect the company culture.

7. Remote / Hybrid Workplace Culture: When the pandemic hit the world in 2019, this may be one
of the biggest challenges of all the priorities for HR Leaders globally. It can be challenging to create
a workplace where all employees still feel connected and a part of the team when businesses
continue to provide temporary or long-term remote or hybrid working options. This is really
challenging to create a sense of unity, people feel connected to the organizational culture, team-
building exercises, etc when employees are working in a different location. HR team leaders should
find a different way to help the team connect so that everyone stays united and connected, wherever
they are working from, they are still motivated. Encourage employee engagement and personal
development and freedom; reinforce a sense of shared purpose and remind each employee that what
they do is important for the overall success of the company. Most importantly, ensure that all
employees are aware that you are present and available to them whenever they require assistance. In
this way it will help the organization to achieve its goal despite any situation, still keeping the
talented employee motivated and working to achieve success.

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8. Change Management & Developing Critical Skills: It is important for HR Leaders to understand
the effect of organizational shifts on the employees. At some point, it might build up stress, and
fatigue in the employee. Hence, it is important for HR Leaders to support the employees as they are
still adapting to a new way of working. The management shifts may create a gap in the workforce.
Hence, after such changes, it is important for HR leaders to plan for training, and reskilling talents in
various areas so that it will be easier for the employee to adapt to the change or bridge any skill gaps.

In a time where candidates increasingly attach value to an organization’s reputation as an employer,

the company EVP and Employer Brand are essential. But the importance of an Employee Value
Proposition goes beyond attracting new talent. The company EVP is a promise to its employees and
one that, if it is kept, will boost people’s engagement and their trust in the company as an employer.
Living up to the company EVP can even turn the company’s current employees into the best possible
ambassadors for the company’s Employer Brand. That is why it is important due to have more
reasons to carefully think about “Why” before any company starts communicating about the “What”
and the “How”!

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