Human Resource Strategy
As explained by Silver Fern Farms (2015), Silver Fern Farms Ltd is a multinational meat cooperative based in New Zealand. It is owned by 16000 New Zealand cattle, deer and sheep farmers. The entity is the largest New Zealand’s livestock marketing and processing company. Its principal investments relate to meat processing, export logistics, transport of cattle and meat marketing, (Roche, 2012). Silver Fern Farms, works with several associated companies. Some of these entities include NZ Lamb Group, Australian Lamb Company Ltd and Livestock Logistics Nationwide Ltd, (Roche, 2012). This firm uses clear functional strategies to ensure it remains competitive in the food industry. Strategies are business plans for the future, which are identified as objectives and goals, (Rothaermel, 2015). Companies frequently define these procedures by conducting a thorough environmental scanning, allocating resources, implementing them and conducting regular reviews and evaluation so as to monitor their performance. Functional level strategies relate to a particular functional unit of an entity. These may include marketing, operations or human resource strategy.
Human resource management is a critical organizational function. It ensures organizations obtain and retain qualified and competent employees who would assist it in achieving all its development plans, (Purce, 2014). Human resource management activities range from recruitment and selection of potential employees, orientation, training of employees and compensation to performance assessment, health and safety and administration of employee problems, (Rothaermal, 2015).
Human resource strategies are very crucial in the organization. In Silver fern farms Ltd, clear human resource strategies would help in achieving the following:
HR Strategy ensures acquisition of competent working staff: The HR strategy ensures that the organization recruits fully motivated employees, (Saebi & Foss, 2015). The selection strategy proposes various qualification procedures that must be met by potential workers so as to be absorbed by the organization, (Ahsan & Khan, 2013). In Silver Fern Farms, this strategy would design appropriate qualification procedures so as to ensure qualified staff is retained in the organization to enhance achievement of organizational objectives.
HR Strategy acts as a managerial decision-making tool: Managers are responsible for making various decisions in the organization. If an organization has a fully implemented recruitment and training procedures, the managers will have an easy time in planning for allocation of resources for such activities, (Abdul-Jalal, Toulson & Tweed, 2013). This ensures wastage of funds in executing HR functions is prevented. In Silver Fern Farms, a properly developed human resource management plan would make sure it makes accurate decisions on various aspects of its human resources, ranging from recruitment and selection, to promotion and retrenchment.
Importance of Human Resource Strategies
HR Strategy helps in building team spirit of Human Resources in the organization: This is because it avails a platform for communication on the matters relating to human resources, (Menz, 2012). It defines how the employees are expected to cooperate in the organization, their duties, and expectations required from them, (Shaw, Park & Kim, 2013). In the case of Silver Fern Farms Ltd, the HR strategy would enable it to enhance cooperation in the organization through designing of clear operational procedures and expected duties and codes of conduct of the employees.
Human resource policies are wholly dependent on corporate level strategy. Corporate strategies always relate to the main objectives of the firm, (De Waal, 2013). These may include acquisition and allocation of the resources in the business. It defines the growth, portfolio and parenting strategies of the firm.
In determining the growth strategy of the enterprise, a company can either adopt the stability, growth combination or retrenchment strategies. These decisions depend on whether the company has a competent workforce, (Buller & McEvoy, 2012). If the HR strategy is designed in such a way that it ensures acquisition of qualified, finance, marketing, and management staff, then the workers in the organization, would be able to scan the environment actively. This may enable them to identify opportunities and strengths of the organization, and then execute strategies of exploiting the opportunities, (Morris, Schindehutte, Richardson & Allen, 2015). In the case of Silver Fern Farms Ltd, there must be a clear strategy of ensuring qualified staff in the organization so as to execute the growth, combination and retrenchment plans of the entity.
Organizations with different businesses or product segments must employ clear strategies so as to ensure that they remain competitive in the market. Business-level strategies are always competitive strategies, (Hitt, Ireland &Hoskisson, 202). They include cost leadership, focus, and differentiation.
In executing a cost leadership strategy, a competent workforce must be used to scan the environment, so as to make a thorough price comparison of different companies.Cost leadership is a competitive strategy employed by firms, whereby the companies need to offer their products at the lowest market prices, (Xu & Meyer, 2013). Proper environmental scanning requires a competent marketing staff, which can only be recruited if a company has appropriate HR strategies, (Menz, 2012). To keep up with competition Silver Ferns Farms may decide to adopt a cost leadership strategy. It will, therefore, come up with a proper HR strategy that would enable it to recruit the best staff who can help it in making decisions on the cost leadership program.
Relationship between Human Resource Strategy and Corporate Strategy
Human resource strategic plans are always formulated by the Human resource managers so as to outline their aimed duties and how they would be conducted. It contains the vital mission, goals, and objectives, (Hallstedt, Thompson & Lindahl, 2013). It enables the organization to allocate enough resources for conducting human resource management activities, (Kehoe & Wright, 2013). The following is a human resource strategic plan, for Silver Fern Farms Ltd.
Silver Fern Farms Ltd
Systemwide Human Resources
HR Strategic plan
Benefits Programs and strategies
Strategic goal: create and align operational benefits programs and strategy that enhance the well-being of all the employees.
Mission: To acquire and retain a competent workforce in all our departments so as to ensure efficient accomplishment of our strategic vision, goals, and objectives.
|
Strategies |
Objectives |
Future implications |
|
Focus on providing workers with choices and alternatives |
To share partnership in shared outcomes performance of HR in the firm |
Emphasize workers’ responsibilities in a less paternalistic culture |
|
Provide consistent level of service for all employees |
To communicate precisely on choices values and accountability |
Silver Fern Farms becomes a core producer and supplier of meat products in New Zealand and assumes a stabilization strategy. |
|
Control HR costs and creation of value for all the workers through plan design. |
Developing competitive and sustainable HR programs. |
Stabilization of the cost curve. |
Employee relations:
Strategic Goal: To operate as a perfect employer.
Mission: Build a favorable environment for worker engagement, involvement, and empowerment where employees can offer their best, equip directors with resources, tools and policy models that ensure maintenance of the efficient operating environment.
|
Strategies |
Objectives |
Implications |
|
Ensure worker relation strategies lead to labor relation strategies |
To build a healthy culture that promotes self-reliance, accountability, and responsibility |
Sets the conducive environment for attracting and retaining the best talents in the business |
|
Improve interface with the unrepresented workers |
To continue improving our reputation with all the employees |
Formation of an enabling culture that encourages respect, trust, and inclusivity. |
|
Inculcate the importance of regular increment in salaries and wages. |
Ensure that the employee fee is valued and appreciated |
Drive productivity by involving all the employees |
Situational Analysis (SWOT)
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Internal Factors |
|
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Strengths Availability of resources The company has financial, human and technological resources. Financial resources: These are the sources of finance available to the enterprise, (De Waal, 2013). Silver Fern Farms is old-established hence has an excellent credit rating. It has also amassed a lot of profits making it have the important technical base. Technological Resources: These are innovative instruments available in a firm, (Daley, 2012). Silver Fern Farms has the relevant machinery to aid the workers in processing the Food products which are sold in the market. Human resource: These are the personnel available in a firm, (Daley, 2012). Silver Fern Farms Ltd, has experienced human resource staff who carry out human resource planning. |
Weaknesses Weaknesses are the loopholes Time: time is a major factor in the implementation of any strategy. There may be lack of enough time to incorporate all the employees in HR strategy implementation Experience: There must be experienced staff to inculcate all the strategies described above. This may be lacking in The firm. Organization of work: organization of work brings about the quicker accomplishment of strategies. There may be confusion on the best way to organize work in the company so as to implement the strategies. |
|
External Factors |
|
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Opportunities Training: Training aims at enabling the employees to have enough skills to better accomplish tasks in the firm, (Ahsan & Khan, 2013). Silver Fern Farms Ltd, have the opportunity to train its HR personnel on better ways to accomplish the strategic plan. Diversification: This refers to expanding operations into the global world, (Buller & McEvoy, 2012). Silver Fern Farms, have the opportunity to diversify its recruitment programs so as to inculcate international expertise and innovation. |
Threats Competition: Competition is a major determinant of profitability. It is still not clear whether the above strategies will enable the company to compete favorably in the market. Turnover: Employee turnover mainly refers to the rate at which the employees leave the organization. It’s still not clear whether the Strategy implementers in the HR department will remain in the organization during the strategic implementation period. |
Strategic control is mainly concerned with tracking the plans as they are being implemented. It enables the management to recognize any deviations or potential problem areas and then to make the required adjustments, (Young, Tsai, Wang, Liu & Ahltron, 2014). The environmental factors keep on alternating. They are never constant. This may form one of the reasons for the variances between the expected outcomes and actual results obtained from a particular strategy.
According to Theodosioul, Kehagias & Katsikea (2012), performance metrics can be used to evaluate variances between the expected performance level of a strategy and the actual level of return. It may take a quantitative or qualitative approach. After establishing the deviations, an organization may administer budgetary controls, marketing controls, financial controls or information and computer controls, (Schaap, 2012). The following diagram reflects the control measures that may be advanced to the HR strategic plan so as to ensure it is fully executed. It has been prepared using a balanced scorecard approach.
|
Strategic objective |
Key performance indicators |
Actual results |
Control measure |
Timeline (Days) |
|
Improve employee remuneration |
% of employee wages increasing over time |
Budget constraints impedes salary increment |
Revise the budget gradually and develop a compensation formula |
70 days |
|
Enhancing employee reputation. |
Employees are gaining recognition in the firm |
Some employees are still undermined by the managers |
Formulate clear regulations to prevent workplace discrimination. |
90 days |
|
Improve accountability and responsibility among employees. |
Employees are becoming keen in handling their duties, and there is a reduction in the number of errors made. |
Some employees get confused and make errors when handling their duties. |
Initiate an on the job training program |
121 days |
|
Establishment of sustainable working programs. |
Employees find it easier and flexible to handle their duties. |
Some employees still strain in their jobs. |
Revise the number of working hours to accommodate all employees. |
100 days. |
|
Initiating accountability in the organization. |
Most workers are being held accountable for their negligent acts. |
Some workers still get away with mistakes. |
Revise the internal control systems. |
185 days |
Managers may face many problems in their attempt to implement the relevant formulated strategies. These challenges may be environmental. Environmental problems may arise from both external and internal business surrounding, (Ehrenhard, Mntslag & Wilderom, 2012). Managers should, therefore, carryout thorough environmental scanning before settling on strategies. These can be accomplished by SWOT and PESTEL analysis. Some of the problems the managers of Silver Fern Farms Ltd, may face in implementing the above-described strategic plan are as discussed below:
Relationship between HR Strategy and Business Strategy
A well-evaluated strategy would be useless if it is not implemented successfully. One of the factors that may inhibit successful implementation of a strategy is cost and time considerations, (Schaap, 2012). Strategies may turn to be too expensive for the company to implement as required in the strategic plan. In the case of Silver Fern Farms, it may not be able to achieve the cost of applying the above strategic plan. This may render the program useless.
The managers may not be very active in ensuring that the above strategic plan is implemented. This is always a great challenge especially if there is no particular director, vested with the responsibility of ensuring the plan is implemented, (Jiang, Lepak, Hu & Baer, 2012). In Silver Fern Farms Ltd, the entity’s management may be reluctant in executing policies relevant to the successful implementation of the strategic plan. This may incapacitate the strategy implementation process. The managers should always ensure they enforce conditions to be followed by the employees in implementing the program, and the repercussions of deviating from the set plans and instructions.
Financial constraints may result from inappropriate budgeting for projects. The managers may underestimate the cost of the project, making them unable to accomplish it due to financial inadequacies, (Ehrenhard, Muntslag & Wilderom, 2012). The managers should, therefore, ensure they involve financial and project experts to evaluate the feasibility of the strategic plans and draft an appropriate budget. This is also relevant to Silver Fern Farms Ltd, as the managers of the company should ensure that they properly carry out budgeting procedures so as to allocate enough funds for successful implementation of the strategic plan.
Accountability is one of the challenges that may impede successful project implementation. The managers should, therefore, take responsibilities for ensuring the execution of the project is done in the right way. The managers are always charged with the responsibility of delegating duties, (Van De Voorde, Paauwe & Van Veldhoven, 2012). They can, therefore, delegate the supervision duties to specific employees, so as to ensure that successful implementation of the strategic plan is achieved.
Silver Fern Farms Ltd is also not an exception to this. The management of the entity should provide proper supervision of the implementation phase of the plan so as to ensure it is done in the right manner. The managers may supervise employees directly or delegate such duties to other employees.
Human resources are the most important elements of an organization. This is because they have unique characteristics. They can think, innovate and adapt to changes, (Daley, 2012). Human beings have emotions and individual behaviors and personalities. People should, therefore, be handled with respect in every organization. In this course, I have gained versed knowledge about strategic planning. This is critical to me especially in my area of interest which is human resource management, due to the following reasons.
Human Resource Strategic Plan
Human resource planning involves developing strategies to acquire new employees and retain them in the organization. The knowledge I have gained in this particular course is necessary for executing better human resource plans. This ranges from human resource budgeting, an advertisement for recruitment, selection process, training and compensation, (Alfes, Schantz, Truss & Soane, 2013). For all these activities to be conducted favorably, the managers must have knowledge of proper strategic planning so as to allocate enough finance, machinery, and personnel.
Employees vary in performance according to the level of expertise, experience, motivation and intelligence. In this particular course, I have learned that Proper control of employees is inevitable in human resource management. This requires knowledge of human resource planning, as there must be well-developed schedules for carrying out human resource control, (Purce, 2014). Control of personnel can be achieved through performance appraisal. The human resource managers need to allocate resources for conducting evaluations, (Saebi & Foss, 2015). These resources may range from finance, appraisal staff, and the valid assessment documents.
Organizations should determine whenever it is appropriate to acquire new employees. Whenever there are vacancies, the managers must conduct a thorough environmental scanning so as to identify potential employees with unique capabilities to fill such vacancies, (Hallstedt, Thompson & Lindahl, 2013). This can only be done through preparing a proper strategic plan. I have therefore gained accurate knowledge of human resource planning, which will enable me to formulate recruitment plans so as to obtain competent workforce in my company in future. Whenever an organization recruits new employees, the human resource managers must formulate a substantial remuneration plan, (Alfes, Schantz, Truss & Soane, 2013). This requires the knowledge of human resource planning. The reward schedules should be commensurate with the level of experience and skills of the employees.
When promoting employees, the human resource managers must conduct a performance evaluation of all the workers so as to identify the employee to be promoted. This requires the knowledge of strategic planning. The managers must plan adequately, regarding funds, time schedules, and personnel to be used in conducting the exercise, (Ronda-Pupo & Guerras-Martin, 2012). The knowledge I have received in human resource planning is therefore valuable as it will enable me to adequately plan for appraisal of employees in future when I become a human resource manager of a firm.
The employees are always assigned duties about their experiences and areas of specialization. The human resource managers should always monitor the employees as they perform various tasks so as to determine any learning gaps, in the organization, (Purce, 2014). Employees with lighter duties in the organization may be added other functions. To conduct this, proper human resource planning is required so as to allocate time for employee inspection. I have therefore reaped enough knowledge on human resource allocation which is critical in ensuring the right personnel is assigned matched with the right job.
This report has evaluated human resource strategy as one of the functional strategies of an organization. Concerning Silver Fern Farms, a human resource strategic plan has been developed and the challenges to its successful implementation explained. The report has also discussed in detail, the control measures available to the managers so as to solve the strategic implementation challenges. Strategic management is important in every organization as they ensure the organizational missions, visions and goals are achieved. In particular, a clear human resource strategy is important in human resource management as it enables human resource managers to appropriately carry out human resource planning, promotion, and staffing.
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