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Human Resource Case Study

The human resource management is at the heart of the organization operations. The ability to recruit, training, and retain employees is based on the Human resource department. For an organization to be successful; the functioning of the HRM must be aligned with the organization vision, missions and objectives must be clearly outlined. Most importantly, the HR must also be aligned with the organization strategic plan. Alignment is a critical aspect that helps the organization to identify if new hiring is required and its best fit or whether to keep looking. This is central in identifying the workforce gaps and important position in the business, it guides on to effectively identify and train potential employees and leaders. In addition, aligning HR with strategic plan plays a crucial role in recognizing any given employee who is no longer fit for the organization.   

HRM Function and Practices

Explain Why the Human Resource (HR) Function Should Be Aligned with an Organization’s Strategic Plan

Aligning the HR strategy with the overall strategic plan of the company is fundamental since it helps in creating a competitive advantage that the organization seeks or needs over its competitors. The Society for Human Resource Management articulates that “to be successful business or organization, it is important for business leaders together with the human resource management professionals to grippe, understand and agree on the various variables that affect the ability of the organization to realize its strategic objectives (Society for Human Resource Management, 2018).” A well-organized HR department has been established to be the main reason for employee’s retention. This is because, if employees feel appreciated and cared for and upon realizing that they can make a difference in the organization, they tend to be committed to their work and demonstrates loyalty.

Explain How Current Global Conditions in This Industry Impact Human Resource Management (HRM) Practices Within Organizations

Maersk is a Danish business conglomerate and has been established to be among the world leading companies in container shipment (Groysberg & Abbott, 2012). Following the global economic recession of the year 2008, Maersk become a more globalized company and the company has been on the verge of accommodating the increasingly negative impacts on its workforce due to the current global condition experienced in this industry. As a result, the head of the HR and the senior director of Maersk Group Human Resource Department agreed to carry out an evaluation of what was going astray. This is vital because it will help the organization to determine a plan that will enhance it to address arising issues. These issues include the company culture, external hiring, gaps in training and development and employees turnover (Groysberg & Abbott, 2012). To address these issues, the organization needs to come up with a comprehensive and effective plan.

Staffing

Describe A Process to Recruit and Select New Employees Who Are Aligned with The Organization’s Vision and Goals from The Case Study

The analysis of the case study reveals that Maersk organization hires young and untrained employees who are considered as a fresh graduate from high school. The newly recruited personnel are taken through a two years training program and they are posted in different countries to carry out the respective jobs. The employees develop a family atmosphere with the company where most of them spend an estimated 40 to 50 years working in the organization (Groysberg & Abbott, 2012). In this regard, the management of Maersk Company finds it challenging or difficult to lay off its underperforming employees due to this closely knit family structure. Pantouvakis and Karakasnaki note that Maersk Company has worked towards aligning its goals and vision by adopting a homogenous and strong company focused culture (Pantouvakis & Karakasnaki 2018). Moreover, the two authors articulate that it does not depend on whether you buy or build it is figuring out under which condition you buy or build (Pantouvakis & Karakasnaki 2018).  Thus, the company maintains on recruiting people without special skills but engages then in training and development to ensure that they are up to the task of handling the company’s duties and responsibilities.  

Compare and Contrast Recruitment and Selection of Internal Versus External Candidates Using Best Practices from The Society for Human Resource Management (SHRM) Website.

Recent research on SHRM has established that employees are the most valuable assets in an organization. This is because they take a central responsibility for the success or failure of a business (Bohlander, Morris & Snell, 2016). Thus, when an organization is hiring, its main focus is bringing on board the greatest set of skills either through internal or external hiring approaches. Internal hiring is the process of identifying and existing staff in the organization that has the ability, experience, and knowledge that is required to move to a new role while external recruitment refers to the process recruiting employees from external sources (Surbhi, 2015).

Internal and external recruitment has both pros and cons and compares as follows. Internal recruitment according Surbhi (2015) underscores recruiting candidates from staffs who are already workers within the organization.  On the other hand, external recruitments refer to sourcing employees outsides the organization’s staffs.   During internal recruitment, merit is given on seniority while external recruitment merit is given based on qualification. Internal recruitment is quick and does not require to induce training while external training is a lengthy process and induction training is a must (Surbhi, 2015). The internal recruitment is a cost-effective process, the choices of candidates are limited and sources include transfer, references, and promotion. External recruitment is a costly process, the choice of candidates is unlimited and has various sources including; recommendations, management consultant, employment agencies, casual alert, and advertisement (Surbhi, 2015). The most appropriate recruitment for Maersk Company is internal recruitment as it will be time and cost effective and eliminates the need for induction training. However, in case the choice of candidates is limited, the company should not hesitate to undertake external recruitment.

Training

Describe The Components of Needs Assessment Used to Determine the Training Requirements of the Organization

To address this question, Needs Analysis articulates that it is important to ask the following music “what is the overall mission or goal that the organization trying to achieve (Denby, 2010).”  In this regard, one of the things that need to be addressed is to carry out organization analysis. In correspondence to this request, Maersk Company undertakes a responsibility to list the job vacancies that they desire to fill and this is done alongside the qualification required from a suitable applicant. In addition, the company gives some key information while advertising for the suitable applicants including key information factored in the job description. For instance, informing the applicants that they should be able to work in the United States and as such, they are not entitled to any relocation benefits. 

Explain The Importance of Developing Learning Activities

Developing learning activities is an important undertaking for an organization to ensure that is it up to date with the changing corporate operation across the world (Bohlander, Morris & Snell, 2016).  Developing learning activities helps to keep up with innovation activities and enhance employee development and career growth which is replicated in value delivered to organization operations in the realization of its set objectives, goals, vision and mission. Also, it has been established that the main objective for developing learning activities in a Company is to facilitate the delivery of quality goods and services to customers (Bohlander, Morris & Snell, 2016). Thus, it can be argued that the main aim of developing learning activities is to help Maersk Company to deliver quality services to its customers (Sommer, 2012).

Incorporate Adult Learning Principles and Methods of Experiential Learning from This Course

The Human Resource manager can incorporate adult learning methods and principles using various methods. As discussed in OL 211 course, Maersk customer service can integrate adult training through the care business partner training program. For instance, the program should start by evaluating the learner’s population, identifying their needs, and bring forward good activities for the learner and not forgetting those of experiential or adult learners. This is important because it helps in integrating the experimental learning among the adult learners in the company. Consequently, this will help the employees to feel appreciated and will escalate their commitment to the organization activities (Sommer, 2012).

Illustrate The Value of a Training Needs Assessment in an Organization

To realize the effectiveness of its recruitment process, Maersk Company should ensure that all the recruited employees are trained in various aspects of the organization’s operations. This will help to avoid previous mistakes where the company did a shoddy job by focusing on the needs of the individuals as opposed to those of the employees by considering them as an asset to the Company. Moreover, the company should emphasize on individual development through HR initiatives such as career development and management alongside personal goals (Bohlander, Morris & Snell, 2016).

Describe The Importance of Creating SMART Objectives for A Training Plan

Creating SMART objectives for a smart training plan is important. SMART is an acronym used to refer to Measurable, Achievable, and Realistic and time-oriented goals. This helps to enrich the training plan and thus all business should set objectives because an organization that has specific goals is better placed to succeed since it has a clear and specific target and knows what needs to be achieved is known (Pantouvakis & Karakasnaki, 2018). Again, it is easy to tell when a given objective has been achieved because they are measurable and it is used as a way of measuring the completion. SMART objectives have a higher probability to be attained because they are achievable. Most importantly, before setting SMART objectives, various critical factors must be taken into account including; time scale which is required to keep track of task taken to attain the set objectives (Pantouvakis & Karakasnaki, 2018).  

Compensation

Describe The Compensation Philosophy and How the Market Influence This Philosophy

Compensation philosophy is an important tool that helps organizations to develop their compensation policies. This philosophy underpins organizations decisions based on benefits and compensation process reached. According to Carver (2013), a compensation philosophy refers to commitment or a formal statement that an organization creates with respect to the compensation of its workforce. This statement acts as a framework for both the employees and the organization with regard to salary negotiation and pay strategy (Carver, 2013).

Maersk Company has a compensation strategy that is based on Danish Companies act of the year 2010. This philosophy articulates that before an agreement can be reached on based on the member’s incentive involving the employees or members of the company, there is need to set guidelines on how the incentives will be paid involving the board and the management (Groysberg & Abbott, 2012).  The guidelines to this philosophy are determined through voting by the board members during meetings or through a consensus reached by the executive officers. Maersk compensation strategy is affected by the current market systems and environments. For instance, the pay to workers is affected by the market progress of the company including; the market success of the company, the level of profit margin.

Determine The Value of Salary Surveys and Describe the Advantages of Discretionary Benefits

The salary survey is an established method that is used in accessing the payment levels attained by specific organizations depending on the particulars of the job as well as the job class (Bohlander, Morris & Snell, 2016). Salary surveys are focused on collecting data t based on organization benefits, salary, bonus, and compensation. The use of salary survey is vital because it helps an organization to effectively define the required salary gap associated with each position. Salary survey also helps in building employee loyalty which enables the retention program. Besides, it helps to set the workplace pay standards since it identifies the organizations new venue of strengths as compared to other companies (Bohlander, Morris & Snell, 2016). Finally, it helps to evaluate the worthiness of employment in a given company.  

Evaluation

HRM’S Role in The Performance Management Process and How to Ensure the Process Aligns with The Organization’s Strategic Plan?

The ever-changing business environment has necessitated the SHRM to take a central role in the performance management process. In the dynamic business world, the HRM has seen a further expansion of its activities to underpin management and development. In the performance management process, SHRM extends it activities towards employee’s management and development, promotions, skills development, employee’s relations, and organization enhancement and development (Farndale & Kelliher, 2013). Also, SHRM takes a central role in ensuring that there are a fair performance system training managers on the same, recording performance reviews and managing employe