Delivery in day(s): 5
Diploma in Business
Unit Number and Title
Unit 21 Strategic Human Resource Management FMCG
HRM is a tool and approach which is adopted by companies to manage their human resource in effective manner and focuses on achieving organisational goals and objectives by empowering workforce of the company. Strategic management is an approach to take most effective decisions for execution of activities in most effective manner. Strategic Human resource management can be defined as a tool of strategic management in organisation which is improving organisational performance by managing employees in most effective manner by taking scientific decisions after analysing different factors. Unilever UK based FMCG Company having its business in different countries around the world and managing a huge number of employees which is making it one of the successful organisations in the world. There are explained different aspects of internal and external environment of the company which is important to be analysed before taking any kind of decision and their impact on outcomes. Analyses and evaluation is done of the approaches, concepts and models using in Unilever to manage their workforce in the most effective manner.A detailed study of effectiveness of strategic HRM is done in this report and areas which are lacking are identified and recommendations are made to improve them and increase ratio of employee retention in the organisation and effective implementation of strategic management in organisation.
Organisational performance and growth depends on different factors in which organisational environment plays important role. Every organisation analyse potential changes by analysing internal and external environment of the organisation.A successful organisation effectively observes and analyse its internal and external environment which ensures efficiency in activities to achieve organisational goals and objectives. There are two types of organisational environment internal organisational environment and external organisational environment. Internal organisational environment-
Internal organisational environment can be defined as those factors which exist within organisation and these are the factors which influences organisational activities and can be controlled and managed effectively (Poonamallee, 2011).
Following are examples if internal environment-
External organisational environment- External environment is defined as those factors which take place outside the organisation but influences organisational activities and decisions for running the company effectively.It is very difficult to estimate these factors and control them and make positive or negative impact on organisational growth (Poonamallee, 2011).
Following are examples of external environment.
Unilever a UK based company in FMCG sector is analysed for its internal and external environment. Company is having its business in more than 120 countries and having more than 400 stores around the world. Organisational environment is effectively analysed and considered in the company’s activities and strategic management decisions. Internal and external environment of the company can be analysed as follows (Lingard, 2012).
Internal organisational environment- Organisational structure and culture defines factors and status of internal environment of organisation. Ways in which company execute its activities and factors which influence them are internal environment. Unilever’s organisational structure and culture is defined as internal environment which can be controlled and altered if required (Lingard, 2012).For analysing internal environment and its components we will do SWOT analysis of Unilever.
SWOT Analyses- SWOT analyses is a part of strategic audit of internal environment of organisation in which mechanism and elements which are important for the company and make their impact on organisation’s effective running are identified and evaluated.SWOT involves Strength, Weakness, Opportunities and Treats for any organisation. SWOT of Unilever is as follows.
External organisational environment- Every organisation is influenced by different factors which exist in the external environment of the company and which should be considered. Unilever’s external environment will be analysed by doing its PESTEL analysis which is as follows.
PESTEL analysis- External environment of Unilever can be analysed by evaluating its political, economic, social, technological, environmental and legal factors.
Strategy word is driven from Greek noun “strategus” which means commander in chief.Strategic management defined as taking scientific decisions by analysing different factors which ensures long run performance of organisation and growth.Strategic human resource management can be defined as the integration of HRM with the strategic management and objectives of organisation which lead to improved performance of employees and organisation. Companies having their business on global level adopt strategic management on each level to increase effectiveness and certainty in business. In the process of creating policies and regulations for managing human resource of company it is important that strategic decision making should be adopted to ensure their success and empowerment of employees.Strategic HRM is a tool to achieve organisational goals with the help of people in organisation (FitzRoy, et. al 2012). There are using different models and concepts of strategic HRM in companies which are as follows.
There are three categories of SHRM which is helping in effectively manage human resource in organisation and achieve organisational growth which is universalistic, contingency, and configurational.
In organisations there are various policies and procedure which are applied to achieve organisational goals and objectives and help in empowering human resource in the company. These policies and procedures set a framework and standards which guides activities management of workforce to achieve positive results in organisational growth. Following are some example of effective HR policies and procedures applied in organisations (Ehnert, et. al 2014).
Unilever is one of the biggest FMCG Companies in the world. It is a UK based company having its business in more than 190 countries and having more than 400 products in its product line and employing more than 1,67,000 employees all around the globe. Every organisation like Unilever is having its organisational strategies and goals and objectives which should be achieved by human resource of company and for that strategic HRM is adopted by company which is integrated approach of HR policies and organisational strategies and results as positive for organisational growth. Unilever is effectively managing its workforce in different countries and employing skilled and specialised people in organisation but there can be some suggestions which can be proved beneficial for attracting new talent and retain employees in organisation for long and increase the employee loyalty and trust in the company (Ehnert, et. al 2014).
Following are the new approaches to strategic HRM for Unilever branding in its workforce.
Barriers to this approach are that there comes diversity in cultures, regulations of countries which lead to difficulties in managing human resource of multinational company on uniform basis. There are diversity in the beliefs, values, perspectives, needs and working patterns of employees of different countries and they requires management in which these factors are considered and suitable for them as in positive working environment. Unilever can adopt this approach by considering these barriers and planning to remove them and get positive results (Fong, et. al 2011).
The report is a study of strategic management of human resource by using different tolls and models. Effective analysis is done of internal and external environment of UK based multinational company in FMCG sector Unilever. Different tools and methods are used like SWOT for internal analyses and PESTEL for external environment is done and found that there are different factors which are influencing internal and external environment of company. Further we have studiedabout strategic HRM and analysed facts about that. Different models and concepts are identifiedand approaches like best practice, best fit are analysed in the study. HR practices which arehaving impact of strategic management of organisation are described which includes effective HR policies and procedures in organisation helping in achieving organisational growth (Reilly, et. al 2016).Now we can conclude that Unilever is having different strengths and weakness, opportunities and threats which are defining internal environment and external environment.
Unilever is having effective strategic HRM which is helping in improving performance and growth of the company and creating competitive advantage in market. Workforce is effectively managing with the consideration of different models and approaches of strategic HRM. As in in present business environment change is a must and organisation which are adopting new and unique are successful in making core competencies in competitors. There are some new approaches for strategically managing human resource in organisation which are increasing employee engagement and diversifying portfolio of employees in organisation and adopting strategic international HRM in the company(Weisbord, 2011). Unilever can adopt these approaches to enhance its quality of employee management and improve their performance by empowering them and effectively achieveits goals and objectives. But there are some barriers to these approaches which should be identified and managed to decrease any kind of risk and increase certainty in the company.
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