HUMAN RESOURCE MANAGEMENT

Human Resource Management

Human Resource Management

Introduction

Human resource plays an important role in the success of an organization. The field of strategic human resource management (HRM) has been defined as 'the pattern of planned human resource deployments and activities intended to enable an organization achieve its goals. The key objective of HR strategy is to guide the process by which firms develop and deploy people, relationships, and capabilities to enhance their competitiveness.

HRM is very important for achieving performance outcomes in every business field due to the direct customer/provider interface. Expansions and growth in business is associated with increased management of employees (Paul, 2008). This paper aims at exploring the role of HRM in improving the performance of an organization.

Brief Overview of Case

Environmental factors have significant impact on the success of an organization. Franklin's business gained momentum in 1850 when they received Royal Warrant to manufacture chocolate and cocoa for Queen Victoria. Franklin's sons expanded the business to a higher level after merging with their biggest rival Belby's. A sequential change was observed in the business operations and strategies in the early 20th century. Business strategies were moved from conventional practice towards addressing employee needs to increase business performance.

To improve the working environment condition and boost employee performance, an in-house clinic and pension program for employee welfare was initiated in 1903 and 1906 respectively. Franklin's business was expanded overseas after World War I with a remarkable change in the workforce structure. Female workforce was increased in proportion to the men. Mergers and acquisition in 1950s era increased the workforce of the company significantly. Tristam Franklin focus on achieving the success by the efforts of employees took the business to next level. An offset was observed in 2010, when newly formed CEO Sheraton emphasized on streamlining the staff level, rationalizing the decisions in favour of organization irrespective of its impact on employees, and cost cutting measures.

Role of HRM and HR Department at Franklin's

Developments at Franklin's during the 20th century have been supported in context of globalization. As business has continued to globalize, one of the most challenging aspects had been management of employees to sustain a competitive advantage. The role of HR Department at Franklin's is characterized by three broad approaches. Initial approaches of the HR Department emphasized a cross-cultural approach to towards employees' management in organizations. Another approach is related to the comparative role of HRM practices in managing the business operations within home and global countries (Hong, 2009). Third significant role of HR Dept. is related to the functional aspects of HRM deployed by the department at Franklin. HR Department strategies at Franklin's integrate the orientations of strategy, culture, and HRM practices. However, recent transformation in the management bodies of Franklin after acquisition by Hampshire Bronte shifted the role of HR Dept. from a functional perspective towards general management.

Clive Sheraton emphasized on rationalizing the business decision making in favour of organization by shifting the orientation from value of human capital towards organization leadership. Cost cutting measures, shut down of production sites operating under losses, and shift ...