Example Answers to Strategic Human Resource Management Exam

Example Answers to Strategic adult male Resource Management ExamSection A, Question 1To what extremity does the approach to Talent Management at criterion Chartered shore display features of SHRM?AnswerBy straining heavily on its gift vigilance program it can be clearly be securen that Standard Chartered Bank (SCB) is making the practice of SHRM as one of its headstone priorities. As can be seen from the article, the style SCB adopts its estimation systemology is of a very strategic angle. By making it a world- in all-embracing quantity to conduct face-to-face motion estimates every 6 months goes to show that SCB is re computeing its feature death penalty management objectives to conduct sure that those objectives stay relevant and achiev commensurate, and that is a feature of SHRM. Being sensitive to different flori market-gardenings by employing different appraisal methods excessively shows that SCB understands the importance of managers and lag identifying and dealing with real, actual problems in a way that is most familiar and effective to them. That is in the likes of manner some some some other panorama of SHRM as through much(prenominal) nitty-gritty, SCB is adapted to monitor its own scrap in the market.Through appraisals, SCB in like manner classifies their employees into 5 categories ranging from tall-potentials, to hypercritical picks, therefore to hollow contributors, followed by under chance uponrs and fin each(prenominal)y, under actualizeers. By doing so they be open to identify beas in which they be lacking and act upon it. Interestingly, as Geraldine Haley explains the classifications, it can be seen that SCB is already identifying the likely flow of talent in the bank and ar winning actions to manage the flow. For example, when classifying certain employees as underperformers, Haley goes on to mention that this group of mint do not fit the crinkle requirements and they should be transferred to another(prenominal) office ply or be managed out. Clearly, whether the bank locates to place this group of employees in another role (which fits the idea of SHRM be author by placing people where they perform best clearly benefits any fraternity), or by managing them out ( on that pointby reducing unnecessary men costs or replacement with a to a greater extent(prenominal) than productive candidate), the draped nookie twain actions is clearly strategic in nature. The employee classification in like manner allows the bank to understand the their potential and manpower mix which is critical beca enjoyment, the HR department would be satisfactory to plan in advance for staff mobility or develop different programs to help develop potential of their talents to another level. So far we argon adequate to see that SCB does indeed thinking its employees as a strategic disclose asset in peeved out profits for the bank.Yet another SHRM feature cosmos displayed is the secrecy of employee classifications. As mentioned in the article, SCBs stance is that while they do not necessity certain employees to feel de- trigger offd and others to boast about their own performances, the whole dapple of the classification system is to inform managers that thither might be actions postulate on their part to improve the situation. It is veritable that in SHRM, managers should not cause their staff to feel like they atomic number 18 universe incessantly monitored for measly performance because this volition affect the staffs entrustingness to contribute towards the come with. Again, either way, we see that the actions interpreted argon closely cerebrate to helping the arrangement come through its strategic corporate objectives. The classification system is also being utilize a guide for regional offices to strategically bench mark against one another to see where they stand.Ever since SCB has been experiencing a high staff turn all over rate among sauc ily recruited employees, a solution in the form of a worldwide institution program named Right Start was utilise to curb this problem and they successfully brought down the rate of employees leaving by 5% (http//www.standardchartered.com/annual-report-07/en/business_re opine/people.html, 2008).SCB has also gone on to groom talents into leaders by means of providing train and self-help tools through various medias such as podcasts, videos and courseshops. Another hear excogitation is to allow talents to play to their strengths rather than on focusing on managing their weakness. As Hayley explains the strategic rationale on focusing on coach talents with global roles in the bank, it is because a small 5% improvement from these top managers is overflowing to cause a huge cocksure wedge on the banks earnings. at a lower place the better(p) practice view in SHRM, there ar 18 Key practices of which SCB can safely s c atomic number 18 to yield achieved at least(prenominal) 50% or moreRealistic job previewsUse of psychometric tests for selectionWell-developed induction trainingProvision of extensive training for experient employees unfaltering appraisalRegular feedback on performance from many a(prenominal) sources case-by-case performance- tie in bearProfit-related bonusesFlexible job descriptionsMulti- acquirementingPresence of work-improvement teamsPresence of problem settlement groups training provided on firms business planInformation provided on the firms performance targetsNo compulsory redundanciesAvoidance of voluntary redundanciesCommitment to single condition accordant holiday entitlement (Source University of Sunderland).It can be concluded that SCB is investing so more resources towards its human talent management program simply because it views it employees as human capital for the establishment and understands the wisdom in exploitation and managing its employees in close relation to the values and objectives of the corporation so that an effective men can be grown, and groomed to achieve the strategic objectives of the bank. banter librate (865)1.2 Comment on the relevance of this approach in the light of the new-made banking crisis?AnswerThe banking crisis of 2008 was largely due to the fall of banking giant, Lehman Brothers (LB). If LB had adopted SCBs view of employees as human capital in the organisation, it could shed at least minimised the acquittance to a certain extent. For one, discussions mingled with employers and staff would have been more open and problem retires could have been brought up and identified at an in the runner place stage. Inefficiencies in the organisation would have been uncovered if there were a global compilation of performance like in SCB, where CEOs were able to benchmark their performances against regional offices. In a way, having a certain amount of centralised dominate through talent management would also alter the monitoring of LB companies globally. It is interesting to note that when a German subsidiary of LB put across that top management in the USA forgo multi-million bonuses as a sign of taking responsibility for un expenditurey performance, the request was immediately in love off at the first instance. It seems that top management either did not know or did not bother to c are what was going on in its other global offices. consequently it is significant for companies to have a solid leadership and to achieve that, organisations must start to take the first step in acknowledging its employees as key assets towards enabling the fraternity to achieve it strategic goals and objectives. in that location later that, the smart sets HR policies should be dawn to include brusk and long term strategies that are inline with the participations corporate objectives. Companies should also consider which view the company would adopt in relation to SHRM. For example, does the company suit the Best Practice view, Bes Fit view, Best Fit Integration view or Resource establish approach? Each has its own strengths and weaknesses but the company has to decide which is the most compatible and allow the company to achieve its goals. perchance the culture of a company should also be set as culture can deeply affect a employees willingness to contribute positively to the company. Every organisation aims to communicate its own objectives and goals to its employees so a to ordain the values and attitudes of the employees towards commitment in performance for the company, and in this respect, having an appropriate culture will greatly enable the employee to settle comfortably into the company and be motivated to perform tumesce. Retaining talent is crucial in a companys passage of reach and much effort should be put into talent management where employees will feel like that are an important part of a company that cherishes their plough shares and seeks to develop and groom them for further growth in their career. With SH RM as the key basic guiding principle, companys should therefore seek to create a pool of talent that will steer it in the right direction, both in good times and bad.Word Count (473)1.3 why is it important to flyer the impact of SHRM? What might be included in a evaluation strategy to measure the impact of SHRM in an organization to achieve strategic integration?AnswerIt is important to measure the impact of SHRM because, firstly, strategies that are formulated into HR policies are closely radio linked to the strategic objectives of its organisation. The conclude why this is so is because the company understands that attitudes and performances of its employees considers a significant oddment towards achieving organisational goals. Therefore when an organisation decides to employ the HR unit as a strategically, resources are being invested to make sure the HR unit contributes towards the attainment of those objectives.In measuring the impact of SHRM in a company, there are 18 K ey practices of SHRM might be used to ascertain the degree of SHRM enclose in the companyRealistic job previewsUse of psychometric tests for selectionWell-developed induction trainingProvision of extensive training for experienced employeesRegular appraisalRegular feedback on performance from many sourcesIndividual performance-related meshProfit-related bonusesFlexible job descriptionsMulti-skillingPresence of work-improvement teamsPresence of problem solving groupsInformation provided on firms business planInformation provided on the firms performance targetsNo compulsory redundanciesAvoidance of voluntary redundanciesCommitment to single statusHarmonised holiday entitlement (Source University of Sunderland). otherwise possible measurements could be in the form of appraisals where performance management objectives are being reviewed. Through the appraisals the organisation would be able to know how it is faring against the achievement of its own targets relative to the overall p erformance of the employees.Word figure (287)Section B, Question 44. What are the main features of a accomplishment Management system? In what ways canorganizations date that such systems fulfil strategically useful outcomes (30 marks)Answer4.1 Main Features of a PMSThe main features of PMS arePMS consists of business-led outcomes that may be assessed against definite business objectivesPMS is integrated with interlocking procedures and flows of informationThere is a mix of quantitative and qualitative objectivesThere is a focus on both system design and manner of implementation. Because PMS are sensitive to swear out and culture, it is hence flexiblePMS rely on a participative approach by mangers and staff alike, which can align with other organisational processes, for example, employee religions, communications and decision-making processesLastly PMS have a distinctive and all-mains(prenominal) tonicity of being people and systems-oriented (Source University of Sunderland).T here are 6 other features of PMS that links it to the overall business strategy of a company which might also guide organisations in ensuring strategic outcomes are met clinical settingOngoing review of objectivesThe education of personal improvement plans linked to training and developmentFormal appraisal and feedbackPay reviewA competence- found organisational cap efficacy review (Source University of Sunderland).4.2 Ensuring PMS Fulfils Strategically Useful OutcomesThe best way to ensure that PMS is able to fulfil strategically useful outcomes is for the organisation to be composite in the setting of performance objectives and thereafter measure those objectives. When setting clearly defined performance management objectives organisations can railroad train the scope and nature of the objectives to reflect the organisations own corporate goals. These performance objectives should also be linked closely to the individual employees as well as the organisations capability resourc es. When setting objectives, coverage should include competence and skill development, ability in meeting operational targets, and creating a suitable corporate culture. Objectives are generally defined into 3 categories productivity and product related, job-related and person-related.For productivity and output related objectives, these are a measure of quantifiable output targets likeCost reductionAchieving gross sales quota coming together production volumes.For job related targets, these involve meeting the main objectives of the job laid down in its description according to the specified level of competenceAchieving main responsibilities and accountability.Meeting tasks as described in the job description.Meeting the obligations and returns relationships to inwrought and external customers.For person related objectives, these affect the behavioural outcomes of the person playing his job, such as sharing knowledge an ideas with co-workers. Organisations recognise the impor tance of linking organisational culture with person-related objectives as it can help to bring about a positive change in the organisations culture. For instance, an organisation that wants to have a culture that is collaborative in nature will set objectives on employees and measure an employees look for report on the number of references made to other employees work or the number contributions made by the employees colleagues in the report. This type of objective will change a person behaviourally so that he or she is able to meet the performance objectives.As organisations are beginning to shift remote from individualistic performance objectives such financial goals and moving towards objectives which links the workforce to the corporate objectives or wider environment such as quality and military capability of business processes, other measurements are being introduced to maximise the potential and skill of the workforce through a commitment-oriented strategy. Thus, organisat ions have also realised that to call for the wider environment, they have to identify the relationship amidst the 3 key stakeholders an the organisationInvestors who require return on their investment through dividendsCustomers who require quality and service for which they settleAnd employees who require a healthy and supporting works environment that provides job security (Source University of Sunderland).Now that the inter-relationship has been identified, organisations are better able to communicate expected levels of competence from employees and will also be able to appropriately empower staff to deal with activities as a effect of their integration. Lynch and Cross (1995), created a moulding that shows this relationship (see get in 4.A). This model also identifies the broad measures and integration of objectives at each individual level.Figure 4.A shows The Performance Pyramid from Lynch RS and Cross (1995) (Source University of Sunderland)4.2.1 Appraisal SystemsAs the link between objectives and organisational resources are important, it must therefore be integrated with appraisal systems. Appraisals do the job of reviewing the performance management objectives, and it conventionally occurs annually between the manager and staff. However, as the need for objectives to stay relevant and achievable all the time, reviews of the objectives are beginning to occur more regularly. Hence it can be said that regular reviews also encourages the building of relationship and the occurrence of coaching through such regular discussions. In the design of appraisal schemes, there are 2 types of orientation schemes that emerge the image orientation and the developmental orientation.In the control orientation approach, it is always assumed in a negative light that a senior entity in the organisation decides the goals, targets, objectives and takingss for the employees to achieve. This results in employees feeling insecure as they feel that they are being const antly monitored and may lead to a breakdown in commitment. Often, when adjustments are introduced to alleviate such worries, the appraisal scheme becomes ineffective as manager do not speech communication real issues which may cause a loss in motivation or damage in relations between the manager and employee. Standardised controls are put in place so as to maintain consistency and equal treatment for all, however it sacrifices tractability in the process. The level of impact is low on performance with the ejection of a few existing high performers. Thus, this approach is effective when targets are clear and staff are used to it. The emphasis is not so much on enhancing performance through feedback and motivation but more on the managements authority over the employees.In the case of the developmental approach, the manager is not in control whereas employees are the ones who take the initiative to address uncertainties in wanting to know how to improve themselves. Employees want to be helped and support through problems and they learn through failures and success. The strengths in this approach include less(prenominal) resistance between the manger and staff, and being able to handle problems in an open way. Problems can also be dealt with on a more objective basis without souring relationships. Employees are also presumption high trust in their integrity. However, the weaknesses with this approach include less visible outcomes being produced and the manager has to take on a more consultative or counsellor role that they might not be able to perform well in.4.2.2 Types of AppraisalsThere are a few types of appraisals which organisations may drive to adopt including the, self-appraisal, top-down appraisal, peer appraisal and multi-directional appraisal.Top-down appraisals are traditional and feedback is gathered from the staff while objectives come only from the top. The weaknesses of this type of appraisal are that too much emphasis is being rigid on tra ditional organisational hierarchies. Favouritism might also be prevalent and employees might not have full knowledge in structures where managers posses a wide span of control.Self-appraisal methods are hardly used. It gives the employees more ownership and a much higher degree of participation in the appraisal scheme. Managers adopt a more supportive and advisory role where they engage in discussions with the staff on setting of objectives.In the upward appraisal model feedback is given from the bottom to top. Employees are ofttimes asked to provide such feedback anonymously. Organisations that use this method recognise the need to provide more effective working systems for employees to work more efficiently.In the peer appraisal model, members of the same team are being asked to appraise one another. There may be sensitivities confused when using this method as members might show favouritism to feature members or dislike towards certain members might be the reason for poor ratin g given.In contrast to the peer appraisal method, multi-directional appraisals sets up to stupefy feedback from the outside of the team and it often also includes gathering feedback externally from customers. Its key strength is its being able to overcome the lack of knowledge from a single appraiser as it gathers feedback from many sources. However its biggest weakness lies in the lack of control over hostile ratings being given.Thus appraisals are also a tool to ensure that performance objectives meet strategically useful outcomes.Word count (1409)Section B, Question 55. Why are support management systems critical to SHRM? How can organizations developreward systems strategically? (30 marks)Answer5.1 Why Reward Management Systems are circumstantial to SHRMIn strategic human resource management (SHRM), strategies that are being implemented into a companys human resource policies are closely machine-accessible with a companys main adopted strategy in order for it to aid in achie ving company objectives. SHRM does so by means of recruiting, developing, maintaining and retaining an efficient, productive workforce. As employees make up a companys workforce, they should then be regarded as key assets in a company. Reward management systems are therefore critical to SHRM because they are used to reward and compensate employees in manners that impact employees positively for the company. For example, well-developed reward management systems uses rewards to motivate employees to grow and develop their potential, thereby increasing the quality of efforts contributed towards the company.Rewards and compensation systems are also critically used in aligning the culture, objectives and philosophies of the company with efforts of the employees, this allows employees to identify themselves as part of the company and thus strengthen their loyalty and commitment towards the company and its objectives (Sherman et al., 1998). In todays emulous environment where companies co mpete for talent and expertise, rewards play an important role in both the recruitment of talent and retention of long serving employees who have difficult-to-source tacit knowledge in their field of expertise. Having a flexible reward management system also means that a company is able harness other forms employment, for example, hiring of part-timers with relevant experience to temporarily fill in during short-term projects.5.2 Developing a Reward System StrategicallyRewards systems in companies practicing SHRM must obviously be strategic in nature. According to Lawler (1984), there are nine points to consider when making strategic decisions in developing reward systems in companies. The nine points are termed as followsBase of rewards.Performance and Incentivisation scope for progression.mart position.Internal versus orthogonal comparison.Centralised versus de-centralised reward. breaker point of kick in hierarchy.Reward Mix.Process issues.Reward systems consequences/integrat ion.5.2.1 Base of RewardsSalaries can be found on 3 optionsThe type of job a person undertakes.The persons contribution in the job.The knowledge and skill level people possess at bottom the job.The 1st option is to stand based on the growth and development an individual undertaking a job. This is typically done through internally comparing a particular job with other jobs within the company using a job evaluation which measures the tasks that the job is required to perform. External comparisons could be used, whereby companies compare the wages offered by other companies against their own. blood based rewards are typically found in larger organisations where job and support equity is predominant an example would be jobs in the public service sector where job grading is used. The 2nd option is to pay based on the individuals performance within his or her job and is commonly implemented in cases where the jobs are small in number or job scopes that are distinct and pay has to b e individual. Performance based pay is used to balance job demands and contributions made in order to motivate the individual to enhance performance. The 3rd option is to pay based on the need to acquire new skills and knowledge so as to enable organisations to meet the new market challenges.5.2.2 Performance and Incentivisation scope for progression.This point considers the many types and ways of using incentives, whether as a part of an individuals salary or an additional portion. However, the main dilemma lies in reconciling strategic objectives with the use of suitable incentives to motivate and enhance employee performance and commitment to the company. Companies will have to decide the forms in which incentives will take and how it will be distributed as well as the positive and negative repercussions it might bring to the company or its employees. For example, substituting commission for a fixed bonus payout to sales employees might cause low-performers to be happy, while hi gh-performers might become dissatisfy they could have earned more on a commission scheme.5.2.3 Market PositionAs labour markets are vulnerable to the economy, market trends and political influences, radical changes may happen anytime within the labour market. For example, if there is a labour shortage in certain industries, organisations would be forced to pay a higher wage to acquire the labour needed. As such, organisations are finding it difficult to sustain an internal sense of fairness that comes from a formal measurement of job equity within internal wage structures. Therefore, reward strategies need to be formulated to answer to such external uncertainties, and also be flexible (if it is not already so) enough to confine different wage schemes and levels when required.5.2.4 Internal versus External comparisonAs reward systems are key to hiring, retaining and developing employees, it is important for a company to benchmark its reward policies against the external and interna l environment. Hence, it is important for companies to understand the logic behind market rates of pay and benefit and to know where and how to collect info required to conduct pay and benefits surveys. These surveys are often conducted so that companies are able to rely on the information to make adjustments to current pay and benefit rates, thus staying competitive in their pay and benefit policies. Companies should also be able to present data in a substantive manner so that proper analysis can take place.Job evaluaton (JE) is defined as a systematic procress by which relative worth of jobs are determined so as to establish which jobs will be paid more over others in the organisation (Sherman et al., 1998). The key features of JE areA process which compares the relationships between jobs based on demand placed on employees.A process of judgement made by understand of job descriptions and roles required to perform the job.A process of analysis after generating point factors fro m judgements, to enable job ranking.A process of structuring whereby job descriptions are formulated, problem solving, identifying key factors equivalent to job knowledge, and more. Score formulation also takes place to establish ranking, building wage structures and create job-grading systems.The important decisions to make in a JE are the selection of appropriate factors and their levels, as well as how value of factors will be expressed.5.2.5 Centralised versus de-centralised rewardOrganisations often have to struggle to decide if reward systems should be managed in a centralised or de-centralised manner. Centralised controlling is tight and usually means a standardised rate of wage increment. This may cause employees to be less motivated and innovative in their contribution which becomes unhealthy for the company, this holds true for employees who belong to a business unit selling a alter number of products and services. In this case, it might be better having a de-centralised control of rewards system and empower managers with discretionary authority to reward employees accordingly, hence boosting morale.5.2.6 Degree of Pay HierarchyPay hierarchies exists in organisations and reward systems are certified on them to a large extent. Pay hierarchies show the distinct difference in power and often reflect career progression. However, organisations are stepwise moving away from such distinct hierarchies in pay systems by formulating wage structures that encourages wage overlap and opportunities for increment. Graded wage structures are commonly used and though not all are exactly the same, they share common features such asA salary grade allocated to a job based on an individuals contribution, the labour market and the degree of complexness present in a job.Salary bands or grade in which employees belong to and have to gain promotion in order to progress on to a higher salary band. Each band consists of at least minimum entry point, market or mid-point and a supreme point that employees can achieve.Salary bands are associated with each other usually the maximum point of a starting salary band is the rootage of the next salary band. The degree of overlap will have to be determined by the organisation.As employees move up along the band, organisations will have to decide if employees move up to fixed points along the bands or should employees be allowed to skip certain points and progress at a high-velocity rate instead.5.2.7 Reward MixAlthough pay is often identified to be the key ingredient in a reward mix, other benefits such as free annual health screening, pension schemes, certified-skill upgrades, use of company vehicles, etc, are just as useful in rewarding employees. When creating a reward mix, the challenge for companies is to identify the strategic reasons for having each benefit in the reward mix and their costs to the company.5.2.8 Process IssuesIn the discussion of process issues, the 1st strategic issue to be considere d is communication and transparency. As communication pay objectives to employees clearly is important in achieving positive human resource results, the existing culture of companies usually decides how open the dialogs are. Traditional companies adopt a closed system and keep salary ranges unknown for purposes of pay review. Other companies with open systems often publicise the salary structure and criteria for which salary increment can occur. Open systems tend to instil confidence and fairness into employees as decision-making becomes more transparent and criteria are made known. The 2nd strategic issue concerns with employees degree of involvement in pay decisions. A company aiming to achieve a team-based operating culture and high employee involvement in all aspect of human resource management should consider allowing employees to be involved in determination of job salaries too. Companies adopting close-based systems usually applies HR policies onto its employees and ultimate ly, companies have to decide whether leveraging highly on employees trust and commitment or otherwise, is more suited to the companys culture.5.2.9 Reward Systems consequences/integrationAs HR objectives change over time, so should reward objectives because rewards should be integrated into HR systems. And if the objectives are inline, then the integration between rewards and HR systems will serve well to make a positive impact on employees who in turn remain committed to churn out more positive contributions for the company.Word count (1700)