BUSHRM 702 Strategic Human Resource Management : Impact of Industrial
Jewellery Available For All (JAFA) manufactures and sells a wide range of jewellery throughout New Zealand and Australia. JAFA is one of the few jewellery retailers that have an in-house team of master craftspeople – dedicated in creating future heirlooms and keepsakes while continuously perfecting their craft. Materials are sourced from leading designers and diamond suppliers. A strong relationship with suppliers ensures only top-quality materials make it into the manufacturing processes.
At present, JAFA has 20 stores in New Zealand and 10 stores in Australia. As part of its growth strategy, the company is planning to open branches in the US and Canada.
The head office and the manufacturing arm of JAFA is situated in Parnell, Auckland. The company started out as one shop in Whangarei in 1979 and has grown progressively since then. It provides a variety of services to its customers including design and manufacture of jewellery, particularly engagement and wedding rings. Their philosophy is to craft distinct and appealing jewellery, designing timeless pieces that will last a lifetime.
JAFA employs over 250 staff throughout its 20 stores in New Zealand. There are 30 staff in managerial positions working in New Zealand including a General Manager and a Chief Executive Officer (CEO). The company has a top management team of eight. It also has a Board of Directors that meet four times a year to discuss the direction of the company and strategic issues affecting the company.
The company’s corporate strategy is for continued growth, however, it is currently operating in difficult and challenging market conditions especially in Australia. So far the demand for the company’s superior quality jewellery is strong. JAFA’s business strategies include being an innovator in the design of jewellery and focusing on its customer needs.
You have been recently appointed as the new Human Resources Manager for JAFA. Up until now, the functions of human resources were carried out by each Store Manager in conjunction with the Office Manager at the Parnell Head Office. However, with its increased growth, JAFA recognises that it needs a specialist Human Resources person – hence, the appointment of you to this role.
Your philosophy, as Human Resources Manager, is to find and employ the best people to fill vacant job positions in all of its branches. This philosophy is even more important as JAFA moves to be more innovative in some of its services in order to gain more customers, save on costs and improve its market share in the New Zealand jewellery industry.
In this role, you are continually working hard to convince the Board of Directors and Store Managers about how important human resource management is - without it the jewellery stores would not be competitive in the industry they serve.
Over recent times Human Resources as a discipline has been revolutionised worldwide and the Human Resource Department, with you as its Manager, wants to be recognised as an important and strategic part of JAFA’s future.
Key elements:
- Development of human resource management
- Human resource contribution to organisational strategy and performance: planning process, strategic focus; measurement.
You, as the Human Resources Manager of JAFA, have been invited to the next Board of Directors’ meeting to discuss your vision and direction for the Human Resources department and how it will address JAFA’s vision and mission for the next three years. You have decided to conduct some research to convince the Board of Directors of the importance of the human resource function to JAFA in assisting it to achieve its corporate and business level goals.
You are to write a short report, detailing the following information, that will be presented to the Board of Directors of JAFA to ensure their understanding of the importance of human resources and of the value that a human resource department can add to the company.
2. Discuss in detailthe relationship between the Human Resources Department and the line managers, explaining how you, as the Human Resources Manager, can provide valueto the line managers.
6a. Name a relevant human resource planning model from the literature. Explain this model in your own words. 2 marks
6b. Apply this model to JAFA’s situation as described in the case study. Explain how your chosen human resource planning model fits the strategic focus that JAFA is following.
Key elements:
- Job data collection
- Job profile documentation: job description, person specification
The current Store Manager at JAFA’s Whakatane store has resigned. She has held the position for six (6) years. You need to advertise for, recruit and select a new Store Manager for this branch. When you view the job description and person profile for JAFA Store Managers, you realise that it is out-of-date, so one of your first tasks is to update and rewrite it, as well as updating other necessary documentation before you can begin the recruitment process.
Now that you have the necessary documentation for the JAFA Store Manager role, you need to begin the recruitment process.
11a. Select and explain two (2) specific recruitment methods that are most appropriate for the vacancy of Store Manager for the Whakatane store.
11b. List two (2) advantages and two (2) disadvantages for each recruitment method chosen in 11a. 8 marks
The Treaty of Waitangi is an important document in New Zealand. Businesses that are not Crown entities are not required to include the Treaty of Waitangi in their business policies and practices, though many do. In most cases, showing some regard for the Treaty relationship in employment is encouraged. Having knowledge of the Treaty of Waitangi can be useful for when:
- Working alongside Maori
- Working on issues that affect Maori
- Maori protocol is recognised in your workplace
12a. List and describe the three (3) main concepts of the Treaty of Waitangi. 6 marks
12b. Choose one of the concepts described in 12a and discuss how you, as the Human Resources Manager, will ensure that concept is included in JAFA’s Human Resource policies and practices, particularly in the recruitment and selection processes. 3 marks
Answer:
Introduction:
Jewellery Available For All (JAFA) is one of the renowned jewellery manufacturer that has brought revolution in the industry by its unique designs, price and services. JAFA has its branches in different parts of the country as well as in the international market. Being one of the renowned and old companies of the industry, JAFA possesses a large workforce. The primary objective of the organization is to provide quality service to the consumers. The tireless performance of the employees has led the organization to earn the desired position in the market.
The following article has concentrated on the human resource department of the organization.
Learning Outcome One:
Impact of Industrial Revolution on Human Resource Management:
Human resource management department is considered as the major strength of business organization in recent time (Armstrong & Taylor, 2014). The role of human resource manager is to manage the workforce of the organization. The scenario of the industry has been changed with the industry revolution. In the ancient days, the society was mainly agriculture and economy based. The number of industry was limited between some crafts. The structure of the business and organizations has been transformed with the arrival of industry revolution. Organizations have become modernized and business transactions have been increased. It has become difficult for the leaders of the organization to manage whole organization and its workers. A department has been set up to keep all the records of the employees, manage the wages of the employees, and provide health care and facilities to the employees. It was evident in the earlier days that employees were forced to work for long hours without any pay, which stimulates the disagreement between the organizational management and employees. In order to overcome these issues and maintains a healthy relation with the employees, business organizations has appointed human resource manager who will work as a bridge between the organization authority and workers and will be capable of dealing with the labour issues (Brewster & Hegewisch, 2017). Human resource managers were appointed to convey the message of the authority among the workers and motivate employees to contribute for the betterment of the organization. Post evaluation the term human resource management has been coined. Several experiments have taken place as well as various courses have been introduced. It has enlightened a completely new aspect of human resource management that concentrates on the employees and employer both. A new perspective of human resource management has been highlighted which is called strategic human resource management. The competitive nature of the market has been increased since past few years. Hence, it has become mandatory for the business organizations to adopt modern strategies to survive and battle against the rival companies. In order to accomplish the aim, strategic human resource management is considered as a drastic step, which helps managers to deal with the workers in a significant manner. Human resource managers are now a days often incorporating new strategies to motivate employees and shape their behaviour, which is suitable for the growth of the organization (Chelladurai & Kerwin, 2017).
Impact of Personal Management on Human Resource Management:
Human resource management is known as personal management. Business organizations aim at improving the performance of the employees to earn the desired target. Human resource managers works as a weapon for the business organizations to shape the behaviour of the employees to earn desired target. Personal management has put significant impact on the human resource management. It has enlightened a different aspect of the human resource managers. Initially human resource managers were primarily appointed to maintain the data of the employees and wages of the employees. Personal management has introduced HR managers with their new roles and responsibilities. It has become their responsibility to shape the behaviour of the employees and motivate them to achieve the organizational goal. Human resource managers often conduct training and development program, motivational program for the employees. By such practices, human resource managers have become a key success factor of the business organization, as employees are considered as the major strength of the organization that play crucial role to earn success for the organization. The success of the organization is highly dependent on the performance of the employees. In this competitive era, employees are highly required to perform in an appropriate manner to overcome the challenges. Otherwise, it may face various difficulties in the future. Employers always pays close attention to the performance growth of the employees, as it put strong impact on the organizational performance. They appoint skilled human resource managers who preserve great experience in motivating employees and guide them towards the right path, so they can support the growth of the employee’s performance. Thus, it is evident that personal management has greatly influenced human resource management.
Human Resource Management and Line Managers:
Line managers are considered as one of the integral part of the business organizations. Line managers are those to whom employees of the organization report every day. There is a link between the line managers and human resource management. It is often evident that line managers plays an important role in human resource management of a business organization. They carry out various activities of the human resource department, such as- manage the data of the workers, maintain day to day activity of the employees, coaching, guiding. Manage the performance of the employees. It is often evident that lie managers perform other roles of the human resource managers such as recruiting, selecting people and so on. This works as a bridge between the human resource management and line manages.
Human resource management values are also related with the line managers. Line managers needs to be aware of the value of HRM while carrying out the activities of human resource department. They must be interpreted about the basic duty of the human resource managers towards the organization. It will be helpful for them to perform their role in an appropriate manner. As they play various responsibilities of the human resource managers, they are also an important part of the organization and play crucial role in the development of the organization. Thus, they need to be aware of the value of human resource manager. It has been argued that the human resource plays direct role in the organizational development. In this scenario, it can be stated that line managers also play the major role in the success of the organization. Thus, they need to be aware of their role and responsibility towards the organization and the organizational objective. They need to design their performance accordingly (Brewster, Mayrhofer & Morley, 2016).
Strategic Human Resource Management Contributes to TNZCB’s Business Goals Discussed:
Strategic human resource management is one of the key elements of modern business structure that stimulates the growth of the business organizations. Every business organization aims at earning desired position in the industry and battle against numerous rival companies, as rival companies are working as a hindrance for them to survive. Business leaders are incorporating modern business strategies every now and then that can stimulate the growth of the organization. As human resource department plays vital role in the growth of the organization, it has become important for the HR managers to implement incorporate some suitable strategies in the organizational structure to stimulate the growth of the organization. In this modern era, the human resource managers are willing to design their activities according to the objective and goal of the organization. It helps the business leaders to earn the desired position in a significant manner (Armstrong & Taylor, 2014).
By providing training and development program to the new and experienced employees, human resource managers boost up the motivational power of the employees and encourage them to adopt organizational strategies and techniques to contribute in establishing a better future for the organization. Provide training on the modern techniques, human resource managers enhances the capabilities of the employees. On the other hand, it helps the organization to retain their experienced employees for a long period of time, which reduces the cost of the organization and improves the quality of organizational performance (Chelladurai & Kerwin, 2017).
Another crucial strategy that is often adopted by the human resource department is to resolve the issues between the employees and employers and maintain healthy environment within the organization. Managers convey all the messages of the employers to the employees in order to enhance the transparency level of the organization. It plays major role to motivate employees to work as a team to achieve the common organizational goal (Brewster, Mayrhofer & Morley, 2016).
Measurement of effectiveness of Human Resource:
Human resource department of a business organization is set up to influence organizational growth. Thus, in order to evaluate the impact of the human resource department on the organizational development, it is important to measure the effectiveness of the department. There are various methods that can be used to measure the performance of the human resource department, such as-
HR Audits:
An organizational management can maintain HR audits to measure the performance of the human resource department. Such audits concentrate on different aspects of the human resource activities. This record will scrutinize some aspects, such as- is the human resource service is user friendly or not, to what extent core competencies have been identified by the human resource manager and his team and so on (Brewster, Mayrhofer & Morley, 2016).
Research:
By conducting research, it can be identified whether human resource managers are working properly or not. Primary and secondary, both type of research can be done.
Staff Turnover:
By analysing staff member’s turnover, it can be identified if the human resource department is working in an appropriate manner or not. The primary objective of the business organization while recruiting human resource manager is to increase the turnover. By analysing this aspect, an organizational management can reach to the conclusion (Armstrong & Taylor, 2014).
Engagement:
By evaluating the organizational environment, it can be obtained whether the employees are actively participating in the organizational function or not. Thus, it will help the employer to identify the effectiveness of the human resource department within the organizational function.
Parting Words:
It is important to conduct a session with the employees who are resigning from the organization. Every business organization aims at retaining their employees, if employees are leaving their workplace it is the responsibility of the employer to evaluate the actual reason behind it. By implementing this practice, the organizational management will understand whether there is any lack of efficiency in the performance of human resource department.
Absenteeism:
Authority of the business organization needs to monitor the tendency of absenteeism among the employees. It reflects employee’s engagement in the organizational function. The organizational management will be able to identify if the human resource department is working properly (Chelladurai & Kerwin, 2017).
Impact of Two Contextual Factors of the Internal Environment:
Internal Communication:
Communication plays major role in the organizational structure. In order to earn the desired goal in this competitive era, it is highly important for the organizational management to maintain healthy communication with the employees. It will help the employers to share their vision and organizational objective with the employees. Lack of communication may increase the risk of miscommunication and misunderstanding within the organizational structure and it works as a hindrance for the organizational growth.
Policy:
Organizational policy plays motivates employees to engage in the organizational function. In this competitive era, it has become very important for the business organizations to maintain healthy relation with the internal stakeholders. Policies plays major role in establishing healthy relation between the employees and employers. Lack of transparency win the organizational policy will lead the organization to meet an awful consequence in near future (Armstrong & Taylor, 2014).
Impacts of Two Contextual Factors of the External Environment:
External Communication:
It is important for the business organizational management to maintain healthy relation with the external stakeholders as well. The reputation and growth of the organization is highly dependent on the external communication. It is important for the business leaders to often meet with the external stakeholders and discuss with them about the organizational policies and strategies. Otherwise, it may destroy the reputation of the organization in the market. At the same time, it may put harmful impact on the growth of the organization.
Brand Promotion:
Promotional events and advertisement plays major role in maintaining the reputation of the organization in the market, which leads the leading business organizations to invest heavily on the promotional events. It helps the organization to reach to their target consumers from the every corner of the world. Wrong promotion of a band can destroy the reputation of the organization. It may lead the organization to face a deadly consequence in the future (Armstrong & Taylor, 2014).
HRM Model and Its Implementation of JAFA:
There are various models that describes human resource management, its presence and important in the organizational structure. Harvard model of human resource management plays major in providing a transparent concept about the impact of the human resource department on the organizational development. Harvard mode has enlightened six key areas where human resource department performs, such as- stakeholders, situational factors, HRM policies, HRM outcomes and long-term consequences. The founder of this model has described that human resource department plays vital role in all this sector and it collaborates all the sectors and its functions. The model shows that output of the organization flows to the organizational authority and its stakeholders (Chelladurai & Kerwin, 2017).
This model can be implemented on the organizational structure of JAFA. Being one of the leading business organizations, JAFA has covered a huge market share and it has many any external as well internal stakeholders. Thus, Situational factors are mainly tackled by the human resource department and its members. Human resource policies play vital role to manage the situational factors and motivates employees to earn the desired goal and organizational outcome.
Learning Outcome Two:
Ten Relevant Questions:
- What is your educational qualification?
- Have you done any course on management?
- Do you have any experience in this field?
- Are you aware of your role and responsibility in this organization?
- What do you think is your primary objective as a store manager?
- What is your opinion about employee motivation and employee engagement in a business organization?
- What will you do to maintain safety level of your store for the employees?
- According to you, what is the key success factor of any business organization?
- What is more valuable between an experienced and loyal employee or rigid business policies?
- What is your salary expectation?
Job Analysis Method:
In this competitive era, it is highly essential for the business organizations to appoint some skilled and hardworking employees who can contribute for the betterment of the organization (Marchington et al., 2016). There are several methods that can be used by the business leaders or the human resource manager of the organization, such as-
Observation Method:
By observing the performance or performed task of the employee, human resource managers can reach to their desired conclusion (Storey, 2014). This method includes three key techniques, such as- direct observation, work methods and critical incident techniques. This method can be implemented by the human resource manager of JAFA as well. It will help the manager to choose the best candidate for the organization (Sparrow, Brewster & Chung, 2016).
Interview/ Questionnaire Method:
By asking relevant questions from the respective field, human resource manager can obtain the knowledge of the employee on the respective field. On the other hand, by using interview method, the organizational management can obtain personal information of the employee and their commitment level and future goal. It will help the human resource manager to reach to the right track (Reiche, Mendenhall & Stahl, 2016).
Job Description:
The primary responsibility of the store manager is to serve the consumers with quality service and earn desired outcome for the organization.
Store Managers Job Duty:
- Welcome customer by greeting them and offer all kind of assistance to them.
- Direct customers to the right item or product, share all the relevant information regarding the product.
- Helps consumers to choose the product
- Monitor the performance of the other staff members of the organization.
- Use performance appraisal system of the organization to appreciate employees.
Personal Profile for Store Manager:
Name:
Designation:
Personal Summary:
Work Experience:
Areas of Expertise:
- Strategic Planning
- Market Competitor Analysis
- Customer service
- Employee management
- Retail Environment
Professional Skills:
Personal Details:
Academic Qualification:
Key skills competencies:
Learning Outcome Three:
Recruitment Methods:
There are two recruitment methods that can be followed by the organizational management of JAFA, such as- Job Advertisements and Personal Recommendation
Job Advertisements:
The organization can advertise their vacancy by using various forms of media, such as- newspaper, internet, radio and television and so on. They can contact advertisement agencies to publish their advertisement. It will grab the attention of the eligible candidates and they will participate directly in the walk in interview, which will be held in the organization. Human resource department of JAFA must provide all the contact details of the company in the advertisement, so that interested employees can contact them for resolving all their queries (Purce, 2014).
Personal Recommendation:
Employees can be recruited on the basis of personal recommendation as well. It is often evident that many organizational members refer their friends or relatives for the vacant position in their workplace. It will be helpful for the organization and human resource manager to reach to the right candidate (Jackson, Schuler & Jiang, 2014).
Advantages of Job Advertisements:
It will help the human resource manager to find the right candidate for their organization among numerous applicants.
By such practices, the organization will be introduced with the new methods and techniques of recruitment.
Disadvantages of Job Advertisements:
It will put a significant impact on the overall budget of the organization, as it will increase the cost of the organization.
This process is time consuming and long as well. It will take a long time to complete.
Advantages of Personal Recommendation:
It is not time consuming and will help the human resource manager to reach to the candidate within a short time span.
It is cheaper than the other processes as well. It is budget friendly, which is often preferred by many business organizations as well.
Disadvantages of Personal Recommendation:
This method of recruitment is not reliable. Human resource managers often pick wrong employee by following this method.
There is no scope to interview large number of applicant and choose among them in this method. Human resource managers need to choose among the small number of variety.
Three Main Concepts of Treaty Waitangi:
The three basic concept of treaty Waitangi is Partnership, Protection and Participation. The treaty of Waitangi is mainly based on these three concepts.
Participation:
According to this concept, all the members of the organization must work together to achieve the desired position. It will help them to overcome many issues that can be harmful for the growth of the organization (Budhwar, P. S., & Debrah, 2013).
This aspect can be implemented in the case of JAFA as well. Human resource department, employees and employers can work together to achieve the organizational goal. It will stimulate the performance of the organization and earn the desired position in the industry. In order to provide quality service to the consumers, it is important to participate all the members of the organization actively in the organizational growth. Thus, human resource managers and organizational management needs to consider the fact.
New Zealand Human Resource Law:
According to the law of New Zealand, human resource department must provide training and development programs to their newly recruited employees. This method is suitable for the western business environment. Thus, the human resource manager of JAFA needs to consider this law while recruiting the employees. They must conduct training session for their employees to introduce them with the working style of the organization and share organizational goal and objective with them. In order to achieve reputation in the local as well as global market, it is important for the business organization to enhance the potentiality of the employees. Thus, training and development program has become an integral part of the business organizational structure now a das, so the human resource manager needs to consider the fact (Aswathappa, 2013).
While recruiting new people in the organizational structure, the human resource manager of JAFA needs to be aware of the fact that they needs to manage the performance of the employees. They need to monitor the performance growth of the employees and appreciate them for the good performance. At the same time, weak points of the employees needs to addressed by the organization and they must be provided sufficient support to overcome the loopholes of their performance. It will be helpful for the growth of the organization (Aswathappa, 2013).
Conclusion:
As per the previous discussion, it can be stated that human resource department has become an integral part of the business organizations now a days. In this competitive world, in order to provide quality service to the consumers, human resource department plays crucial role. JAFA being one of the renowned organization has been designed in a unique manner. The human resource department of the organization plays vital role in the growth of the organization. Thus, the responsible HR manager of the organization must consider all the aspects of recruiting and enhancing the performance quality of the employees while recruiting any new employee in the organization.
Reference:
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.
Aswathappa, K. (2013). Human resource management: Text and cases. Tata McGraw-Hill Education.
Brewster, C., & Hegewisch, A. (Eds.). (2017). Policy and Practice in European Human Resource Management: The Price Waterhouse Cranfield Survey. Taylor & Francis.
Brewster, C., Mayrhofer, W., & Morley, M. (Eds.). (2016). New challenges for European resource management. Springer.
Budhwar, P. S., & Debrah, Y. A. (Eds.). (2013). Human resource management in developing countries. Routledge.
Chelladurai, P., & Kerwin, S. (2017). Human resource management in sport and recreation. Human Kinetics.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human resource management. Academy of Management Annals, 8(1), 1-56.
Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016). Human resource management at work. Kogan Page Publishers.
Purce, J. (2014). The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.
Reiche, B. S., Mendenhall, M. E., & Stahl, G. K. (Eds.). (2016). Readings and cases in international human resource management. Taylor & Francis.
Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management. Routledge.
Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals). Routledge.
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