Free Essay on Strategic Human Resource Management

An upward trend in the sales of the recording industry both in the audio and video section has been observed in the past few months.

This is contained in the report issued by the London Music Corporation in the occasion of its 10th year anniversary in the music business. The said firm has maintained its leadership in the industry for the past few years and its CEO states that they owe their success to their highly motivated employees particularly people in the sales department.The Fantastic Audio & Video Corporation, however, is experiencing the opposite. Its sales performance has been a dismal since the start of the year. The company, for the first time in its seven years of operation, has been in critical situation following major changes in its operation policies.

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The major changes that the company has taken are geared toward its expansion program that has been delayed due to management’s inability to act decisively. The problems, which bother the company, can be felt in almost all departments. The employees are becoming restless.The ProblemsThe newly hired manager of the Human Resources Management Department, who was tasked to look into the problem and recommend effective solutions, presented the HRM findings to the executive committee. The following brings about the headache that has been bugging the organisation:Difficulty in retaining highly skilled employees resulting to high turnover rate of sales executives,Low sales production,Lost of motivation among employees lead to poor work performance,Difficulty in hiring employees with talent in music and skill in video productionCustomer service needs improvement together with training in music, event management, video production and assessment of cost involved in video recording,Increase sales through incentives for staff and good customer service to retain customer loyalty to the retail outlet.The HR Manager started her report by showing the period where the downward curve in the sales performance graph began.

In the history of its operation, the company had not experienced a downward sales trend except during the time and after the company has implemented an organisational change. This was also followed by resignation of some of the most trusted employees of the organisation. Those who choose to remain in the company developed a habit of either tardiness or absenteeism. The joyful atmosphere that uses to pervade the workplace was replaced by silence, sometimes almost deafening. An air of restlessness now seems to permeate the working environmentProposed SolutionsThe HR Manager points out that an organisational change is a major event in the life of a company and it has to be managed well. It is usually a painful process and the management should have been very careful in presenting the needed change to employees particularly those pioneers in the organisation.

Usually, resistance meets proposed change. Old timers seem to reject the idea that their usual way of conducting business is no longer effective. They feel there’s no need for changes.  It was obvious, base on the present situation that the employees did not like, or are not prepared for the change. But since the proposed changes need to be implemented to lead the company to a new direction, they have to be fully explained. The feeling of the employees that they are being taken for granted resulted to the lost of motivation.

At this point, it is not yet too late to recover the trust and confidence of the employees in the organisation. “Let us call a general meeting as soon as possible and explain to the people the significance of the proposed change in the company’s existence and the crucial role that each employee will play in the transition. We have to win them back”, the HR Manager said.Other Tasks of HRM – Recall and Attract Best TalentsThe next move that HRM will do is to recall skilled and trusted employees who left the company out of refusal to change. At the same time, compensation has to be repackaged in order to attract the best talent. The company needs people who have ears for music and eyes to see beautiful and appropriate scenes that can be incorporated in the video production.

People who will be assigned in the management and recording of important events such as weddings, parties and product promotions should have the capacity to ensure the smooth and accurate flow of activities that will send great and lasting impact to the audiences. Creative individuals can put the company to a higher level. People like them are rare commodities and being able to bring them into the organization is a key HRM challenge (Gupta 2006).Retention and Motivation of WorkforceAnother challenge that HRM faces is the retention and motivation of the workforce. Others should not leave behind an employee in the same industry in terms of compensation and rewards.  In the IT industry, it has been observed that the average stay of most IT professionals in a company is less than three years.

It is possible that this also applies to recording industry. It has been noted too, that companies, who are on a constant search and use of new technologies, send their employees to seminars and trainings to acquire new knowledge and exposing their people in a challenging environment, are better ways to retain people than the giving of higher salaries. Although, some HR managers believe that salary and career satisfaction are the key to retention, money is a prime motivator only for ‘starters’. Those who have gone to three or more jobs know the importance of being in a position highly valued by the company (Gupta 2006).The Use of Contingent WorkforceTechnology and globalization drive organizations to be more flexible.

A contract relationship is not inexpensive, but it’s more flexible. The use of contingent workforce affords companies to be more competitive. Randy Floyd, program manager of the Office of Contingent Workforce Management said, “Those that push for the use of contingent workforce may see greater benefits. “We’re in our sixth year, and it’s now paying big dividends” (Contingent Workforce Strategies 2005).Seminars and Trainings for ImprovementIn a highly competitive business environment brought about by the fast-paced, unpredictable technological advancement and increased emphasis on quality of services, companies in the recording industry are compelled to send their employees to various venues to attend seminars and trainings to upgrade their skills so they can acquire new skills and techniques that will give them advantage over their competitors. Highly talented individuals are a bit discouraged if they feel that they are being left behind.

Once they have gained a new knowledge and have disseminated it to their subordinates, they start to look for yet other new things. That’s what motivates them. It is another challenge for HR personnel to keep those bright and talented people highly motivated (Gupta 2006).The Role of HRMIn an article published in the Northeast Human Resources Association paper, Michael Andrew, Principal, Strategic Impact Learning, said that “It is high time to elevate HR’s role to that of a Chief Development Officer who is bent on increasing the capabilities which are vital to the attainment of company’s goals and objectives. For HR to become a business partner to the executive team, it should speak about the language of business rather than the language of HR. There is a clear call for HR professionals to redefine themselves as business partners by being business person first and HR professional second” (Andrew 2006).

HRM plays a vital role in the overall operation of a company. It supplies all departments with the manpower they need and conduct training for employees to ensure the effectiveness of every personnel. It aims for the retention of competent personnel and keep them highly motivated.  The HRM also conduct team building to develop harmonious relationship among employees.