BSBHRM602: Manage Human Resource Strategic Planning
Part A: HR STRATEGIC PLAN FOR A SMALL BUSINESS
The report consists of a Human Resource strategic plan that should be implemented in a small business enterprise. The chosen business for the report is a furniture retail store known as Jardan Furniture located in NSW, Australia. Due to some major operational issues in HR management, the company is planning to implement a new strategic HR plan that should be evaluated and analysed before putting it in practice.
1. Company Overview and Description
Built-in 1987, Jardan Furniture is a family-owned furniture business that sells furniture made from care and precision by hand. The company has four retail stores in Melbourne, Sydney, Brisbane and Perth and also sells furniture online (Jardan 2019). The company has increased its manufacturing capacity in recent years through state-of-the-art machinery that has allowed them the scope to produce commercial and residential projects in Asia, Europe and America other than Australia. The company employs about 900 staff members across the 4 retail stores, research lab and online operations.
2. Mission Statement
The company is a design-led business and believes that good design has a profound impact on the lives of the customers. The company maintains a research lab where their growing team of designers can evolve their ideas, solve design problems, create prototypes and move their collection through production.
3. Aim of the HR Strategic Plan
The aim of the HR strategic plan is to advance flexibility, innovation and competitive advantage, develop an appropriate organizational culture and improve business performance.
4. Stakeholders Involved in the Planning Process
The major stakeholders involved with the planning process include the owner of the company, its employees and staff members and the insurance companies. Each of these stakeholders should be consulted to make the new HR strategic plan successful in context of this business organization. The owners are the primary stakeholders in the planning process as they are in charge of implementing the new strategic plan that would help them improve their business performance (Tyson 2014). The employees consist of the HR manager, line managers and other general staff members. The HR manager would develop the new strategic plan from which the employees can benefit in terms of their activities, the line managers and HR manager himself can manage the other employees working under them with better efficiency. All the risks involved with the new HR strategic plan will be handled by the insurance companies and thus makes them a key stakeholder.
5. Rationale for the Strategic Plan (Internal and External Business Environment)
The development of the new HR strategic plan is necessary due to issues related to the internal and external business environment as well as other legal and ethical issues that the company is facing currently (Vivares-Vergara et al. 2016). SWOT analysis of the company has been provided to determine the necessity of the new HR strategic plan.
Employees and Managers: The employees are presently suffering a great deal due to the excessive demand for furniture and the managers are unable to guide the staff members, which has resulted in a lot of unsatisfied customers.
Money and Resources: Although the company has gained enough capital and financial resources from the international projects, the utilization of the other resources is not done adequately which has resulted in inefficient production of furniture which is unable to cope with the demands of customers.
Company Culture: The company lacks a proper organizational culture that would motivate the employees to work diligently, and thus, they are falling short of their expectations (Jardan 2019).
The Economy: The market economy in the furniture business is quite satisfactory, although the team requires better human resource management to generate more revenue from the market.
Competition from other Businesses: There are other small furniture businesses in Australia that are slowly surpassing their market share. Hence, a new HR strategic plan would help them gain a competitive edge over rival businesses.
Customer and Suppliers: The customers are satisfied with the designs of Jardan Furniture but are not happy with the late service and delivery. The suppliers of the company's raw materials also have other channels of selling their goods, which makes their bargaining power high. A strategic plan is necessary to mitigate these issues.
Legal and Ethical Issues in HR:
The ethical issues faced by the current HR plan are:
- Employment Issues
- Cash and Incentive Plans
- Employee Discrimination
- Performance Appraisal
- Safety and Health
- Restructuring and Layoffs
The legal issues faced by the current HR plan are:
- Special Company Strategies
- Workplace Policies on Different Health Issues
- Labour Rights and Implications
- Tax Laws of Organization
- Laws of the Organization
Table 1: SWOT analysis
Source: Developed by author
6. Overview of Current Human Resource Functions and Policies
The current human resource functions and policies include the following which needs to be improved with the new strategic plan.
Hiring and Recruiting: The company does not have a proper hiring and recruiting structure, which has resulted in the hiring of many employees who are not appropriate for their job roles.
Training and Development: Jardan Furniture lacks any training and development program to improve the skill sets of the new and current staff members.
Handling Compensation: The company lacks an electronic payroll and database system to handle the salaries and compensation of the employees (Jardan 2019).
Employee Benefits: The health and dental insurance and other such employee benefits are handled well by the company HR and do not require much modification.
Employee Relations: The managers of Jardan Furniture are unable to build strong bond and relationship with the employees so that they can be motivated and focused on their jobs (Jardan 2019).
Legal Responsibilities: The labour and employment laws are pursued properly by the company management and do not require much modification or improvement.
7. Legal Issues Applicable to HR Strategic Plan
There are two major legal issues in the new HR strategic plans that the company must discuss with the stakeholders before implementing it in the workplace. They are confidentiality and organizational laws.
Confidentiality: As Jardan Furniture maintains a research lab for its designers, it is vital to keep the confidentiality of the trade secrets and designs. The new strategic HR plan does not involve any boundaries for the employees to maintain the confidentiality of the workplace (Giannakis & Harker, 2014). This might lead to the disclosure of trade secrets to other rival companies and result in a decrease in revenue of the company.
Organizational Laws: As the HR manager is responsible for handling how the organizational laws impact the employees, it is essential for Jardan Furniture to properly inspect trivial laws like break timings and serious laws like remuneration and bonuses before implementing them.
8. Strategic Operational Details of the HR Strategic Plan
The new strategic HR plan has the following operational details that should be implemented in the workplace.
- The new strategic HR plan includes setting up a new service team for the workplace that would help come up with the increasing demands of Jardan Furniture.
- The company requires a new electronic payroll and database system for HR, which would help properly manage employee salaries and compensation (Jardan 2019).
- Developing a new training program is also essential to improve the skill sets of new and current staff members.
- It is crucial to set new legal, organizational boundaries in the workplace to ensure the confidentiality of trade secrets and furniture designs.
- A new deal with the suppliers is necessary to check the price of the raw materials which results in manufacture of cheaper furniture.
- An hour-by-hour analysis of customer numbers and orders to the review and evaluate their staffing level and ensure they have an adequate number of workers (Trullen et al. 2016).
- Develop a new hiring and recruitment policy to employ eligible and capable individuals who can properly execute their expected tasks.
- A new reward system policy and organizational culture of continuous learning to motivate employees to work efficiently that increases the overall company productivity.
9. Labour Requirements and Sourcing of People
As per the new strategic HR plan, the strategies for labour requirement and sourcing of people have been described below.
Defining the Job: Instead of relying on traditional job description, it is essential to source the best candidates by providing a compelling vision that the job entails (Bryson 2018). When a job has more growth opportunities, it is bound to attract the best candidates.
Compelling Advertising: It is necessary to be creative when advertising job descriptions instead of being traditional and boring. Instead of listing the skills and years required for the job, providing opportunities for learning and doing in the job would also help in people sourcing.
Networking: Similar to looking for a job, looking for a candidate is best done when searched through networks. If the job is compelling enough, it is easier to find the best candidates for the job who are passionate about it.
10. Performance Development Plans
Performance development plans can be implemented in the workplace of Jardan Furniture by following five simple steps. Developing a culture of this improvement plan among the employees and managers would help them improve their skill sets over the course of time. These steps are as follows.
- Requesting a self-assessment from other staff members.
- Developing the assessment of the individual’s skill level.
- Assessing the needs of the organization and the department.
- Exploring development opportunities with staff members and managers (Mello 2014).
- Recording, analysing and monitoring the progress of the staff member.
11. Key Performance Indicators for HR
Key Performance Indicators or KPIs are strategic metrics that have a direct link with the organizational strategies. These metrics indicate how much HR is contributing to the rest of the organization. The KPIs in Jardan Furniture are as follows.
- Absence Rate
- Absence Cost
- Employee Productivity Rate
- Benefits Satisfaction
- Employee Satisfaction Index
- Employee Engagement Index
- Internal Promotion Rate
- Employee Innovation Index
- Net Promoter Score
- Quality of Hire
- Percentage of Cost of the Workforce
- Turnover Rate
- Involuntary Turnover Rate
- Training Effectiveness
- Voluntary Turnover Rate
- Unwanted Turnover Rate
- Quit Rate
12. Financial Requirements for Implementing HR Strategic Plan
There are certain financial requirements for implementing the HR strategic plan in Jardan Furniture. HR budgeting is essential to prevent hiring, understand staffing needs, helps in attracting new talent and reduces employee turnover. The financial requirements are provided below.
- Complex forecasting on the number of employees
- Employee turnover rates
- Salary data
- Recruitment budget
- New benefits programs
- Training and development
- Payroll costs
- Incentive compensation
- Strategic planning (data/consultants)
- HR databases
- Intranet design and maintenance
13. Technological Requirements for Implementing the Strategy
Similar to financial requirements, there are some technological requirements that are essential to implement the HR strategic plan. There are six major HR technological tools that help business operations. They are as follows.
- HRMS (Human Resource Management System)
- Performance Solutions
- Recruiting Software
- Payroll Service
- Benefits Management Platform
- Employee Engagement Tools
14. Monitoring and Evaluation of the HR Plan
Once the new strategic HR plan is implemented in Jardan Furniture, the next effective step is to monitor and evaluate the pan consistently to maintain its alignment with company goals and objectives. The frequency of monitoring and evaluation might depend on the situation of the business, although a 3-month monitoring gap is ideal (Jardan 2019). Reporting the results of monitoring and evaluation helps in tracking any deviation from plan and modifications can be made as per observations.
To summarize, the new strategic HR plan for Jardan Furniture is ideal for the company's present situation and if properly implemented, can be successful in achieving the company goals and objectives. The issues and drawbacks of the current HR plan should be replaced by the new plan to develop an organizational culture and motivated workforce.
Part B: EMPLOYEE RELATIONS STRATEGY REPORT
Managing the employee is very much important for the organization to get sustainable development in the market. In order to manage the employees, it is significant to provide effective policies and procedures so that employees can get job satisfaction. In this portion of the report, the Energex has been selected as a company, and the employee relation strategy of this company will be discussed.
1. Company introduction, overview and description
Energex is a company which controls the electricity distribution channels in South East Queensland. The company is a government undertaking and a subsidiary of Energy Queensland Limited. The company was formed in 1995 and used to operate under SEQEB (South East Queensland Electricity Board) (Energex 2019). They changed their name to Energex in the year 1997 (Energex 2019). The company merged with Ergon energy in the year 2016 under the current parent company. Energex is responsible for providing services to 1.4 million domestic as well as corporate electric connections and a population of 3.39 million heads. Energex has assets of $12 Billions that includes 54,200km of the underground electric network, 680,000 electric poles and so on. The company has a positive reputation in the market as well as its clients. Corporate responsibility and sustainability are the most important aspects of the company's mode of operation.
2. Company’s mission statement
Energex, as an organization is built on the basis of achieving a number of goals. These goals include providing services to customers that are completely safe in nature, the technology provided by the company should be efficient and helpful in everyday tasks of the clients, making their services affordable for the common people and Building a sustainable/reliable network of energy supply chain. The company provides services for both domestic and corporate clients and wants to make its services easy to avail and use (Energex 2019). Thus, based on these aims the organisation’s mission statement is as follows:
“The company is committed to creating a safe, reliable and affordable electricity supply to domestic and business entities in the South East Queensland region. Energex also aims to be the preferred supplier of connected electricity services in the region. The company aims to create a sustainable business model." (Energex 2019)
3. A brief on the company’s employee relations strategy
The main aim of the company is to make the business model sustainable. They want to make their model sustainable by making their services affordable, easily accessible and making their services easy to use for the domestic population in South East Queensland. This aim directly affects its employee relations strategy. Maintaining a positive relationship with employees is an important part of sustainability (Parliament 2019). Energex treats its employees fairly, and their key strategy in maintaining good employee relations is enforcing a positive work environment (Parliament 2019). The organization tries to create a positive environment for their employees to work in; the organization also keeps a regular check on the employees’ medical health and other issues (Parliament 2019). The employee relations strategy also encourages the employees to incorporate a positive, productive workplace attitude in their jobs. Energex further uses the various rules of positive, constructive and meaningful leadership and consultation as the fundamental aspects of their employment relationship strategy (Energex 2019).
4. Brief on Recruitment and Selection strategy
The company has an effective selection process and has trained a number of apprentices since its inception. The training module is a very important part of the company's selection process (Energex Annual Performance Report 2019). The company interviews their candidates and selects only those applications who will be able to complete the training process effectively and successfully. The training process is rigorous and practical in nature and equips the candidates with proper and required knowledge about the working process of the organization. Energex has trained a total of 730 trainees under various levels and departments in the last ten years (Aer 2019). These 730 pupils consist of both men and women. At a given time, the company has about 200 trainees at various levels of their training hierarchy. The trainees are first given training specific to their trade, and all the trainees are then all the trainees go through a general EsiTrain and TAFE training modules (Aer 2019).
5. Brief on Employee Benefits of the organization
Energex provides a number of benefits to their employees, which keep the employees happy and inspired all the time. Energex realises the efforts of its employees and tries to give them various facilities and opportunities. Some of the benefits provided by the company are:
1. The company tries to incorporate various family-friendly policies that help the employee to maintain their personal relationships, which ensures better employee performance (Energex 2019).
2. Energex also provides the employees with perfect working conditions suited to their needs. They provide part-time employment, suitable leaves such as paternity leaves and maternity leaves to their employees.
3.The company started a program called “Energizing Energex”, that aimed towards increasing awareness about physical and mental health issues of the employees. The program incorporated various seminars on the subject, encouraging employees to maintain a positive mental and physical health.
4. The company started an assistance program that helped the employees and their families to get free counselling. The counselling services were short term in nature.
5. The company organized various social events and programs that help the employees and families rejuvenate from their stress and other mental issues. Energex tries and provides every practically possible benefit to their employees and regularly encourages them positively.
6. Employee Safety and well being
The company conducts various regular seminars on maintaining good mental and physical health. The company has created various health awareness programs such as "Energizing Energex" to support mental health. Energex also conducts regular social and cultural activities to help the employees in good shape. The company also provides free short term counselling services to their employees as well as families (Energex 2019). The company also tries to keep its workplace positive to reduce conflicts as much as possible. The employees of Energex are always happy. The workplace dynamics of the company is also healthy and keep the employees focused on their work.
7. Performance development and training
Energex regularly conducts various seminars for developing the skills of their employees. Moreover, the training process of the company is very rigorous as well. The training process of the company is dependent upon a set of guidelines and aims to develop the skills of their employees. These aims are,
a. Putting Safety First
Energex encourages its employees to put safety first before doing any job or learning new skills (Celik & Ozsoy 2016). The safety measures should always be the first priority before starting any new task.
b. Delivering Balanced Results
As the main aim of Energex is to create a sustainable model for itself, the company encourages a balanced performance in their employees. The performance should always be optimal, but the sustainability aspect of a certain job and the overall outcomes should always be kept in mind (Celik & Ozsoy 2016).
The company's performance and development training are based on the above aspects.
8. Discuss strategies for collective employment agreements, contracts and Awards
Energex has the following strategies for the collective development of employee agreements, contacts as well as awards,
a. Pertaining to Minimum Service Standards
Energex aims to abide by all the twelve Minimum Service Standards as set by the state in their project (Energex 2019). They encourage their employees to do the same.
b. Delivery Index of Program of Works
Energex aims to deliver 96% of the total customer as well as business initiated programs pertaining to work in their targets which they have planned for the upcoming year (Energex 2019)
c. Maintaining a positive Customer Enablement Index
The company wants to achieve its target in such methods, which also makes their customers appreciate their effort.
d. Maintaining an Employee Management Survey result of more than 67%
Energex wants to increase its employee interaction percentage to more than 67% from the current 51% (Energex 2019).
9. Highlight on conflict and negotiation
Energex always tries to build and incorporate a sustainable business model in its organisation's structure. The first priority of completing this task is always given to maintaining a positive and healthy work culture. By maintaining a positive and healthy work culture, Energex makes sure that conflict is minimized as much as possible (Glendon & Clarke 2015). The conflict resolution techniques used by the company are also based on making the work environment healthy, and that is why they have created various employee support programs as mentioned in the above sections such as employee counselling program, social and cultural activities and so on. Energex also applies other strategies to avoid conflict in the first place, such as forming short term goals that encourage teamwork. These short term goals are very ambitious in nature, and the employees are encouraged accordingly.
10. Review of diversity policy with recommendations
Energex has strict diversity policies. They discourage discrimination on the basis of caste, gender, colour, religion, and so on. Employees who are found guilty of such charges are terminated instantly according to the company rules (Lawrence 2012). But the policies are far from perfect. The diversity policies are not that effective, though such scenarios are minimum in Energex. Regardless, the organisation can go ahead and conduct various seminars to the diversity of the company and instead of terminating the employees at one go. Hence, it may be stated in this context that Energex should create a standard framework to encourage positive behaviour among workers related to diversity. The seminars and programs on diversity policies can again help in avoiding various conflicts.
11. Highlight on work-life balance practices or otherwise suggest
There are no suggestions to be made in the Work-Life balance maintained in Energex. The company provides ample breathing room to their employees. Energex provides various facilities such as part-time employment, maternal and paternal leaves and other facilities which help their employees to balance their work and life. The company also conducts various seminars on the importance of mental health and promotes it. The company also provides ample opportunities for its employees to spend quality time with their family (Glendon & Clarke 2015). The work environment is always kept positive to avoid conflict and thus helps the employee to keep a positive attitude towards their work as well as personal lives.
12. Develop an employee relations risk management strategy. Use risk analysis.
Energex pays a majority of its attention to the mental and physical health issues of their employees, but still, there is a risk that these issues might occur in spite of taking such initiatives. Moreover, as the company pays a lot of attention these health risks, they have become Expected and Insignificant, but mental health issues, on the other hand, are possible and carry a moderate risk because mental health is very sensitive (Hopkin 2018). Moreover, the goals set by the company of being sustainable might not be fulfilled due to various unknown external factors. Risk analysis matrixes of Energex keeping all these points in mind have been provided below.
|Level of likelihood||Level of impact|
|A (Expected)||Employees not able to maintain Work –Life balance by themselves.||Inability to create a sustainable business model|
|B (Probable)||Physical Health Issues in Employees|
|C (Possible)||Mental Health Issues in Employees|
|D (Improbable)||Energex not being able to comply by the 12 Minimum Service standards|
Table 1: Risk analysis matrix
(Source: Author’s creation)
13. Review of organizational HR services to employees
Organisational HR services are optimal in nature. This can be said about Energex by looking at the various efforts the company puts towards making their employees comfortable in the workplace. The programs and seminars conducted by the organization are mostly conducted and managed by the Human Resource team (Hopkin 2019). Further, the Human Resource Team also plays a major role in supervising these activities as well
14. Termination and disciplinary issues. Include processes for unfair dismissal rules
The policies in Energex are completely legal and are obliged to all the instructions set by the State. They have strict policies regarding discrimination and similar offences. Moreover, they also have optimal guidelines for unfair dismissal rules. One such rule is that if a company employee is dismissed on unfair grounds, and this is noticed by the company, then the company will take actions so that the employee can regain their position. Furthermore, Energex also provides the employee with proper compensation.
15. Overall recommendations
The working process and algorithm of the internal processes of the company are optimal in nature. Energex provides a lot of effort in marinating the workplace. Energex encourages its employees to keep a balance between their personal and work life. But the company can improve its policies on diversity. Instead of firing an employee at one goes, the employee can be put through various training modules created by the company to increase awareness about the same.
From the analysis, it has been evident that the company has an effective selection process and has trained a number of apprentices since its inception. The training module is a very important part of the company's selection process. This would enable the employees to perform at their optimal level. Improvising on the policies for making the employees satisfied towards their job would help the company in decreasing the employee turnover and at the same time increasing the productivity of the organisation as well.