Strategic Function of Organizations

Questions: 1. Demonstrate an understanding of the scope, significance and legal framework of HRM in business organisations.2. Critically examine the factors affecting human motivation in business organisations and how motivation affects standards of performance.3. Analyse the causes of conflict and alienation at work and evaluate the methods of their resolution. Answers: Introduction: Human resource management regarded as a strategic function of organizations. Strategic human resource management reflects the process of linking the strategic objectives of the organization and the function of human resource management (Armstrong 2010). However, human resource strategy depends on companys mission and goals. In present time, majority of the organizations have to face lot of difficulties in retaining their employees for long time. As a result, many organizations fail to improve its business opportunity in the global market. Since, they are unable to retain their talented employees for a longer period. In order to retain employees for longer period, organizations will have to focus on two ingredients namely two-way communication and leadership style. From the case study, it can be assess that Frishco is presently facing huge amount of challenges in retaining their employees for a longer timeframe. However, the case study highlighted that Frishcos human resource department is focusing on constructing the structure of the organization to minimize the employee turnover problem. The HR department of the organization has been trying to enhance the engagement of the employees by introducing four steps including change in leadership, enhance communication, improving the organizational structure and living the brand values. In addition, HR department of Frishco is focusing on three easy steps including selection, recruitment and performance development to cover up all the factors related to employee turnover. 1. From the above case study, it can be assess that Frishcos values are British, Service, Luxury and Sensation. The HR management of Frishco believes that open and direct communication is one of the prime key that can have greater impact on the major components for developing healthy work environment where customers and employees will feel satisfied. Many studies have mentioned that employee satisfaction is the most important factor that influences employees to be associated with the organization for a longer time. Frishco has implemented different process for engaging with the employees to increase the satisfaction level. Selection and recruitment: Selection and recruitment process allows the company to engage with the potential employees. This process is very important, as it allows organization identify and recruit the best talent available in the market (Mondy and Mondy 2011). Frishco also have to attract new potential employees for improving the efficiency of the business in an appropriate manner. The higher management of Frishco think that bias recruiting process create huge amount of problems in recruiting skilled performers within the business. For that reason, Frishcos human resource management team focus on the transparent recruitment process for improving the opportunity of business. Performance: Performances of the employees are another key factor that can create huge amount of impact on the effectiveness of the businesses (Hancock et al. 2013) . Therefore, Frishcos management team is focusing on providing enough opportunities so that they can able to deliver excellent quality performance for the organization. In addition, Frishcos HR management will have to assess the performance level of the employees in order to recognize the best performers for the organization. Analyzing the performance level of the employees allows organization to provide performance appraisal for the deserving employees (Hom et al. 2012). Furthermore, it motivates the employees to give their best for the success of the organization. Frishcos HR management will also have to focus on providing different types of training and development program. Since, it can enhance the performance level of the employees. Furthermore, it improves the workflow process of the organization. Development: Career development is another key factor that organization will have to follow in order to keep their employees satisfied towards their work (Hausknecht and Holwerda 2013). Many studies have highlighted the fact that employees like to work on the company that provide enough opportunities to enhance the career. Therefore, Frishcos human resource management team also has to provide enough career development opportunities for their employees so that they can able to motivate themselves to give their best for the organization. Good quality managers: Managers hold the key in order to motivate their employees towards the organizational work. Particularly, line managers role is very important. Since, they directly communicate with the employees. Hence, it is necessary that line managers evaluate the major issues at the workplace that are reducing the satisfaction level of the employees (Stanley et al. 2013). The line managers will have to focus on many factors such as handling operational cost, monitoring the quality of the work done by employees, day-to-day employee management. Two-way communication: Communication is another major factor that can have greater impact on the retention of the customer. Therefore, Frishcos human resource management will have to develop transparent communication process among different level of the employees. Transparent communication process is necessary for keeping all the employees satisfied towards their work. Furthermore, transparent communication process encourages employees to share their views and ideas about different organizational issues. This is important not only to develop smooth workflow process but also motivate employees to give their best for the organization. Proper benefit and pay structure: In present competitive business environment, organizations have to provide lucrative benefit and salary for their employees. Since, proper benefit structure can have great impact in reducing turnover rate of the employees (Herman, Huang and Lam 2013). Furthermore, Frischcos human resource management team will have to provide other benefits for the employees so that they can remain satisfied towards their work. For instance, Frishco will have to provide proper reward for the high quality work. Frishco also have to provide benefits like health insurance so that employees can able to feel more satisfied and relax regarding their work. However, Frishco need to focus more on the HR policies and practices in order to enhance the performance level of the employees and also retain employees for longer period of time. 2. In the present competitive business environment, employee engagement has emerged as one of the major problem that every organization is facing in order to conduct their business properly. Engagement issue often creates difficulties in the organizational process that eventually reduces the profit level of the organization (Mowday, Porter and Steers 2013). However, many organizations unable to solve the employee engagement issue due to ineffective HR management processes. The case study highlighted that Frishco is also facing lot of difficulties to implement effective workflow process due to low engagement rate of the employees. As a result, Frishco has failed to enhance its business in the world market. Furthermore, many studies have mentioned that low rate of employee engagement create negative impact on the job performances and morale of the employees. Many factors can have its impact on the low rate of employee engagement. These factors are as follows: Leadership style: Leadership style is one of the important factors that create negative impact on the employee engagement. Organizational culture has great influence on the leadership style. As per the article by Beardwell and Claydon (2010) leadership style has different types including autocratic, transactional, laissez-faire, participative and transformational. Therefore, organizations have to implement the right leadership style that will encourage employees to improve the engagement level of the organizations. In autocratic leadership style, management provides direction to the employees regarding the execution of the work. On the other hand, participative leadership style encourages employees to share their thoughts and believes about several complex organizational issues (Yang, Wan and Fu 2012). From the case study, it can be assess that Frishco utilize participative leadership style in order to gather as much information as possible that will help organization to improve its business process. This leadership style of Frishco has given several opportunities like mentoring coaching, talent spotting and support networks that eventually increase the effectiveness of the business process. Inconsistent style of management: It has been seen that inconsistent management style is not capable of measuring the business development. It is also obtained that inconsistency in the management style generate lot of difficulties for the companies to achieve objectives and goals of the business. Therefore, it creates difficulties in developing proper workflow process at the company (Torrington, Hall and Taylor 2008). Therefore, Frishcos management team will have to capture feedbacks of the employee in order to develop the business further. Inconsistent management style often creates stress, confusion, high turnover and increase cost. Thus, it can be evaluated that the inconsistent management style is one of the major factor that unstable the business on the global platform. Ineffective communication: Ineffective communication is another factor that can increase the confusion level of the employees. Ineffective communication system often restricts the information to flow among different level of the organization (Katsikea, Theodosiou and Morgan 2015). Thus, Frishco will have to implement effective communication system so that it can able to evaluate different strategies of the organization. It will also help the company to outline the aim and future direction of the business. It will also help Frishco much effective day-to-day operational plans. Work life imbalance: In present competitive business environment, work life balance is one of the major factors that organizations have to consider in order to reduce the rate of employee turnover. In the absence of work life balance, employees often lose their motivation towards the work. In fact, it eventually influences the employees to give resignation and switch to another organization. Thus, Frishco will have to maintain proper work life balance so that the employees remains motivated towards their work, which will increase the engagement of the employees in the business. Motivational theories: Motivational theories have two parts process theories and content theories. Process theories signify the actual process of motivation. On the other hand, content theory highlighted on a particular factor that will motivates individual to give their best at the workplace. Content theories include Alderfer, Herzberg, McClelland and Maslow theory. Process theories include equity theory, expectancy theory, attribution theory and goal theory. Maslows theory: Maslows theory illustrated five different stages of basic human requirements that can enhance the motivational level of the employees. The stages are Physiological, safety, belonging and love, esteem and Self-actualization needs. The theory highlighted that if organization failed to fulfill these needs, employees will not able to motivate themselves to give their best effort at the workplace. The first two stages focuses on the financial needs that organization has to fulfill to motivate their employees at the workplace. Third steps highlighted that employees have to provide with enough freedom so that they can able to share their thoughts and believes in an effective manner. The fourth step highlighted that every employee wants to be accepted by others in the organization. Self-actualization steps reflects situation where individuals evaluate their own potential in completing a particular task. Thus, Frishcos management team will have to fulfill all the mentions steps in the Maslows theory to motivate their employees in an effective manner. 3. Frishco can apply several strategies in order to enhance the engagement of the employees. Frishco need to implement survey process in order to understand the major factors that are forcing employees to left the organization. In order to improve the employee engagement and reduce employee turnover, organization will have to focus on two process including fair benefit structure and two way communication system. Fair benefit structure has the key role in enhancing the satisfaction level of the employees. As a result, it induces employees to give their best at the workplace so that the organization can able to meet its objectives. Thus, it will eventually create positive impact on the engagement level of the employees (AlBattat and Som 2013). Therefore, Frishcos human resource management team will have to implement similar pay structure for the employees working in the same designation. Otherwise, it can create disparities among the employees. Furthermore, HR management of Frishco will have to provide other benefits like recognition, reward so that employees remain associated with the organization for a longer time (Nouri, and Parker 2013). By introducing proper benefit structure, Frishcos management can easily motivate their employees to give their best at the workplace. Thus, it will help the organization to develop an effective workflow for the organization. However, before providing rewar d to a particular employee, Frishco will have to analyze the performance level of all the employees. Otherwise, it can create great amount of dissatisfaction among the employee (Price 2011). Furthermore, HR team will have to provide enough opportunity for the employees so that they can able to share their view and ideas about the benefit structure. Frishco will also have to give importance to the suggestion of the employees before implementing any changes in the benefit or pay structure. Two way communication system is another factor that Frishco have to consider in order to reduce the turnover rate of the employees. Since, it allows management to gather feedback and suggestion of the employees (Grissom, Nicholson-Crotty and Keiser 2012). Effective two way communication allows management to share any important business related information much more effectively. In addition, Frishco can achieve creative and vibrant workplace by developing effective communication within the organization. Frishco also have to ensure that the two way communication system is open to all the employees in order to diminish the possibility of any confusion. Furthermore, Frishco can implement day-to-day communication plan so that all the employees remain updated about any changes in the workplace. Conclusion: From the above discussion it can be assessed that HR management team play a key role in developing perfect workplace for the employees. Maintaining proper atmosphere in the workplace is very important, as it can create huge amount of positive impact on achieving organizational objectives and goals. HR team is responsible in providing training to the selected employees so that they can able to fulfill the organizational objectives. On the other hand, HR team of the organization also have major role to play in reducing the turnover rate of the employees. In this case study, HR management team of Frishco has implemented different strategies in order to increase the engagement level of the employees. The HR management team of Frishco focuses on four major factors such as changing structure of the organization, improved communication system, living the brand values and change in the leadership styles. The management team of Frishco focuses on these factors, as it can create huge amount of impact in enhancing the engagement level of the employees. Moreover, Frishco has developed effective communication structure so that every employee in the organization can able to feel satisfied. This will eventually induce employees to keep associated with the organization. References: AlBattat, A.R.S. and Som, A.P.M., 2013. Employee dissatisfaction and turnover crises in the Malaysian hospitality industry.International Journal of Business and Management,8(5), p.62. Armstrong, M.(2010) Hand book of Human Resource Management Practice 12th edition: Kogan Page ltd. Beardwell, J., and Claydon T. (2010) Human Resource Management: a Contemporary Approach 6th edition Harlow: Pearson Education Limited Grissom, J.A., Nicholson-Crotty, J. and Keiser, L., 2012. Does my boss's gender matter? Explaining job satisfaction and employee turnover in the public sector.Journal of Public Administration Research and Theory. Hancock, J.I., Allen, D.G., Bosco, F.A., McDaniel, K.R. and Pierce, C.A., 2013. Meta-analytic review of employee turnover as a predictor of firm performance.Journal of Management,39(3), pp.573-603. Hausknecht, J.P. and Holwerda, J.A., 2013. When does employee turnover matter? Dynamic member configurations, productive capacity, and collective performance.Organization Science,24(1), pp.210-225. Herman, H.M., Huang, X. and Lam, W., 2013. Why does transformational leadership matter for employee turnover? A multi-foci social exchange perspective.The Leadership Quarterly,24(5), pp.763-776. Hom, P.W., Mitchell, T.R., Lee, T.W. and Griffeth, R.W., 2012. Reviewing employee turnover: focusing on proximal withdrawal states and an expanded criterion.Psychological bulletin,138(5), p.831. Katsikea, E., Theodosiou, M. and Morgan, R.E., 2015. Why people quit: Explaining employee turnover intentions among export sales managers.International Business Review,24(3), pp.367-379. Mondy, R., and Mondy, j. (2011) Human Resource Management 12th Global edition: Pearson Education Mowday, R.T., Porter, L.W. and Steers, R.M., 2013.Employeeorganization linkages: The psychology of commitment, absenteeism, and turnover. Academic press. Nouri, H. and Parker, R.J., 2013. Career growth opportunities and employee turnover intentions in public accounting firms.The British Accounting Review,45(2), pp.138-148. Price, A. (2011) Human Resource Management 4th edition: South Western Cengage Learning Stanley, L., Vandenberghe, C., Vandenberg, R. and Bentein, K., 2013. Commitment profiles and employee turnover.Journal of Vocational Behavior,82(3), pp.176-187. Torrington, D., Hall, L. and Taylor, S.(2008) Human Resource Management 7th edition: Harlow Pearson Education Limited Yang, J.T., Wan, C.S. and Fu, Y.J., 2012. Qualitative examination of employee turnover and retention strategies in international tourist hotels in Taiwan.International Journal of Hospitality Management,31(3), pp.837-848.