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Strategic human resource management
SCHOOL OF ENGINEERING
MASTER OF ENGINEERING PROJECT MANAGEMENT
PROJECT REPORT
IN
STRATEGIC HUMAN RESOURCE MANAGEMENT
(Construction of oil and gas processing industry)
BY
ALAGARSAMY NAVANEETHAKRISHNAN B.E, M.TECH
15882005
23-10-2015
SUPERVISOR
Dr. NICOLA NAISMITH BSC HONS, MRICS
Strategic human resource management
FACULTY OF DESIGN AND CREATIVE TECHNOLOGIES
AUCKLAND UNIVERSITY OF TECHNOLOGY
TE WANANGA ARONUI O TAMAKI MAKAU RAU
SCHOOL OF ENGINEERING
MASTER OF ENGINEERING PROJECT MANAGEMENT
Name ALAGARSAMY NAVANEETHAKRISHNAN
ID Number 15882005
Paper Name PROJECT IN ENGINEERING PROJECT MANAGEMENT
Assignment Project report : STRATEGIC HUMAN RESOURCE MANAGEMENT
Number of words (excluding appendices) 14025
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Strategic human resource management
DECLARATION
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Date - 23.10.2015
Strategic human resource management
ABSTRACT
All organizations in this world irrespective of their size need to adopt some strategies to
achieve its organization goals. More often questions arise from reader’s point of view, why
strategic human resource management (SHRM) is essential for an organization. In such cases,
many researchers investigated and revealed their studies about SHRM in marketing industry,
civil construction industry and production industries but no author has revealed their research
studies about strategic human resource management practices in construction of oil and gas
processing industry.
Strategic human resource management (SHRM) suggests a strategic framework to manage
the people in the organisations and that helps the organisations to improve the performance,
increase the productivity, innovations and competitiveness. This study attempts to analyse
the key concepts of SHRM’s planning and implementation in oil and gas processing plants in
areas of recruitment and selection process, performance management process, reward
management process and training and development processes in the organization. The overall
aim of the research project was to explore the types of HRM strategies used by oil & gas
construction industry and suggest best practices to improve their organisation’s performance.
The objectives of the research project were:
• The research project aims to critically review the literature concerning strategic
human resource management in construction industry, which involves the matrix of
strategic planning process, strategic recruitment and selection methods, strategic
performance management process, strategic reward management process, strategic
training and development process.
• Secondly, it identifies the current practices of strategic human resource management
process in construction of oil and gas processing plants and analysis the gaps in the
current SHRM.
• Finally the research reviews and analyses the current practices and recommend the
best SHRM practices for construction of oil and gas processing industry to align with
their business objectives and to enhance their business performance.
The study explored the current SHRM practices in construction of oil & gas processing
industry using qualitative methods. The semi-structured interviews were conducted to the HR
Strategic human resource management
Manager, Project Manager, Construction Manager, Construction Engineer, Supervisors and
to the Manual employees (foreman, technician, labour). The results of the interviews were
analysed to find the commonalities and differences of each interviewee. Identified the gaps in
the current SHRM practices and suggested best practices to enhance their SHRM practices to
achieve their business goals strategically.
Strategic human resource management
ACKNOWLEDGEMENTS
First I would like to thank God for giving me strength and knowledge. I would like to thank
my supervisor Dr. Nicola Naismith (Senior Lecturer) for invaluable support, encouragement
and guidance throughout the research project process. Then I would like to thank Professor
John Tookey, Dr. Dave Moore and Dr. Jeff Seadon for their invaluable support and
encouragement during my earlier studies in Auckland University of Technology.
I would like to acknowledge the support of the organisation and all the individuals in the
organisation spent their invaluable time and provided resources to do this research project,
without this input this research project would not have been possible.
Finally I would like to thank my dad, mom, wife, my son and my friends for their emotional
support and practical advice.
Strategic human resource management
Table of Contents
Chapter 1....................................................................................................................................1
1.0 Introduction..........................................................................................................................1
2.0 Methodology........................................................................................................................2
3.0 Research Question ...............................................................................................................4
3.1 Research Objectives .........................................................................................................4
Chapter 2....................................................................................................................................5
4.0 Literature review..................................................................................................................5
4.1 SHRM Planning ...............................................................................................................5
4.2 Strategic Recruitment.......................................................................................................7
4.2.1 Recruitment Activities...............................................................................................8
4.2.2 Internal Recruitment..................................................................................................9
4.2.3 External Recruitment...............................................................................................10
4.2.4 Recruitment Policy ..................................................................................................11
4.3 Strategic Selection..........................................................................................................11
4.3.1 Steps to be followed in Selection Process ...............................................................12
4.3.2 The Selection Decision............................................................................................13
4.4 Strategic Performance Management & Measurement ...................................................14
4.4.1 Rater of Employee Performance..............................................................................15
4.5 Strategic Training and Development..............................................................................16
4.5.1 Orientation...............................................................................................................17
4.6 Rewarding Human Resources ........................................................................................18
4.6.1 Employee Motivation ..............................................................................................18
4.6.2 Money and Motivation ............................................................................................19
4.6.3 Pay -for-Performance ..............................................................................................19
4.6.3 Compensation schemes............................................................................................19
4.7 Conclusion......................................................................................................................20
Chapter 3..................................................................................................................................21
5.0 Results & Discussion.........................................................................................................21
5.1 HRM Planning Strategies...............................................................................................21
5.2 Recruitment & Selection Strategies ...............................................................................22
5.3 Strategic performance Management & Measurement....................................................24
5.4 Strategic training & development ..................................................................................26
Strategic human resource management
5.5 Rewarding human resources ..........................................................................................27
Chapter 4..................................................................................................................................29
6.0 Recommendation & Conclusion........................................................................................29
7.0 Limitations of the research.................................................................................................32
8.0 References..........................................................................................................................33
9.0 Appendix............................................................................................................................37
Appendix A1: Staff requisition form (SRF).........................................................................37
Appendix A2: Application form ..........................................................................................39
Appendix A3: selection method...........................................................................................40
Appendix A4: Employee performance evaluation form ......................................................41
Appendix B1: Strategic human resource planning...............................................................44
Appendix B2: Strategic recruitment & selection process ....................................................45
Appendix B3: Strategic performance management & measurement...................................46
Appendix B4: Strategic training & development.................................................................47
Appendix B5: Rewarding human resources.........................................................................48
Appendix B6: Research questions and interview questions.................................................49
List of figures
Figure 1: Research Framework..................................................................................................2
Figure 2: Model of Strategic human resource planning.............................................................6
Figure 3: model of Strategic human resource planning.............................................................7
Figure 4: Successive Hurdles Method .....................................................................................14
Figure 5: model of Strategic performance management & measurement ...............................15
Figure 6: Herzberg two factor model.......................................................................................19
Figure 7: performance appraisal and training needs................................................................30
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Chapter 1
1.0 Introduction
The concept of Human Resource Management and strategic
management provide the basis for Strategic Human Resource Management. Wright and
McMahan (1992) explained that the field of human resource management has integrated with
strategic management process to form a new discipline referred to as strategic human
resource management (Wright & McMahan, 1992). Michael Armstrong (2011) explained that
strategic human resource management is an approach for managing human resource that
helps organizations to achieve long- term goals and objectives with a strategic framework
(Armstrong, 2011b, p. 48). Terhalle (2009) argued, many researchers assume that the HRM
strategy of an organization corresponds with the implementation of those strategies.
However, those strategies are implemented without clear direction. This leads to big
difference between the developed strategy and actual implementation. A well-developed
HRM practices is equally good to contribute in this current technology world that needs to be
implemented due to competitive business growth. The responsibility for the SHRM
implementation lies with the line managers of an organization since they have to execute the
HRM practices on the work floor. The line manager and HR manager participation is
important while setting the human resource objectives like strategy development followed by
resource planning, HRM outcomes and evaluating the performance strategies. In short,
human resource professional are responsible for the design and development of HRM
practices in an organization, while the line managers are responsible for implementation of
these practices (Terhalle, 2009, p. 125).
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Strategic human resource management
2.0 Methodology
The academic research project follows qualitative research methods. The
qualitative content analysis is one of the best method used to analyse the transcripts. Research
using qualitative content analysis mainly concentrates on the attributes of language as
communication with attention about the content (Tesch, 1990) (McTavish & Pirro, 1990). In
this research method, the data’s are collected in verbal, text or in the electronic form from
interviews, open-ended survey questions or from books and manuals (Kondracki & Wellman,
2002). The aim of the research project is to do in-depth analysis of strategic human resource
management practices followed in construction of oil and gas processing industry. A
framework has been designed to outline the sequence of the research events explained in
figure 1.0. Because it is important to understand the relationship between the aim and
objectives, expected outcomes, and the data collection and analysis methods employed.
Figure 1- Research Framework
The research project report starts with collecting literatures data about strategic human
resource and its core components. The literature review covers the keys elements of strategic
human resource management such as strategic human resource planning (SHRP), strategic
recruitment and selection, strategic performance evaluation, strategic human resource training
and development process and employee motivation. After critically reviewing the literature
ideas, a set of questions were formed from the literature review to conduct the semi-
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structured interviews to the employees in organisation. The semi-structured interviews were
highly structured with questions and will go on open conversation with manual and non-
manual employees of the organisation (Kvale, 1996). The semi-structured interviews are
conducted in two phases. First phase interviews has been conducted to the HR manager and
project manager of the organisation to collect the relevant data for the research questions
shown in Appendix B6. The second phase interviews are conducted to the construction
managers, manual and non-manual employees of the organisation to collect the relevant data
for the research questions shown in Appendix B6. The data has been collected in regular
intervals and the contents of the transcripts were analysed to allow the commonalities and
differences that existed between each interviewee. A simple table shown below to collect the
data from employees and to check for commonalities and differences
SHRM
planning
Recruitment
and selection
Performance
evaluation
Training and
development
Employee
motivation
HR manager
Project
manager
Line manager
Engineering
supervisor
Manual
employees
Through this approach, the results of the interviews are tabulated and analysed for the
commonalities and differences between one and another interviewee (Naismith, 2007). Then
discussed elaborately about the related information’s got from the employees in the
organisation. Clearly sorted out the gaps and then compared with the literature ideas. At last
the research project suggested some best practices to enhance the SHRM in construction of
oil and gas processing industry in chapter 4.
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Strategic human resource management
3.0 Research Question
What are the strategic human resource management practices to be followed in the
construction of oil and gas processing plants?
3.1 Research Objectives
• The research project aims to critically review the literature concerning strategic
human resource management in construction industries which includes planning,
recruitment and selection, performance management, reward management, training
and development and employee welfare.
• Secondly, to identify the current practices of strategic human resource management
process in construction of oil and gas processing plants.
• Finally review and analyse the current practices, find the gaps and recommend the
best SHRM practices for construction of oil and gas processing plants to align with
their business objectives.
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Strategic human resource management
Chapter 2
4.0 Literature review
4.1 SHRM Planning
Raymond J Stone stated that, setting an organisation mission
statements and key objectives is an important task. According to the developed organization
strategy, the human resource department focuses on planning the human capitals. The
strategic human resource planning involves in acquisition of potential workforce, employee
skill development and the role extends until exit of an employee from organization. It is not
only the HR activity, the project manager and department managers are also involved in it.
HR managers and project managers focus on linking all HR activities with organizations
strategic objectivities (Stone, 2005, p. 47). Parker and Caine (1996) suggested that strategic
human resource planning (SHRP) is about identifying and ensuring that the correct amount
and mix of employees obtained and their availability at the right place at the right time (B.
Parker & Caine, 1996, p. 30) . Beardwell (2004) defined the SHRP as, “ it is the process of
identifying organization’s present and future human resource needs, developing and
implementing the strategic plans to meet these requirements and monitoring the overall
performances” (Beardwell, 2004, p. 159). Braton and Gold (2003) writes that SHRP is the
process of systematically forecasting the future requirements and supply of employees and
use of their skills within the strategic objectives of the organization (Bratton & Gold, 2003, p.
191). Raymond J Stone commented that project manager will review the organization
objectives and strategies to determine what job needs to be done and by whom. According to
that, an organisational structure will be produced and employee will be allocated for the
designations. The project manager and department managers decide the manpower
requirements to finish the project. They follow quantitative and qualitative approaches to
match people with jobs in terms of numbers, abilities, knowledge, skills and qualification and
they produce a clear job design and job specifications. In turn to that, the human resource
department produces its strategic plans towards staffing, selection, performance evaluation,
training and development, reward and benefits, motivation and employee departure (Stone,
2005, p. 46) . Torrington, Hall & Taylor (2005) stated that the demand for man power is
influenced by company strategies and objectives by examining the environment and its
requirements. According to that, the current employees will be mobilized from the old project
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Strategic human resource management
to the new projects. If the man power demands are high for the proposed new project then
with the help of HR professionals the organization will search for the required skills in the
labour market (Torrington, Hall, & Taylor, 2005, p. 51). Marchington and Wilkinson (2002)
addressed that SHRP provides a method for predicting labour requirements against internal
and external supply in terms of numbers, knowledge, skills and attitudes (Marchington,
Wilkinson, & Sargeant, 2002, p. 280). Raymond J stone suggested, the human resource
manager should have clear idea about the future organization requirements and determine
from where they will be obtained. The HR manager should follow three sets of forecast
methods
• Estimate the demand for manpower within the organisation.
• Forecast of the supply of external human resources.
• Forecast of the supply of human resources available within the organization.
A strategic human resource planning model is shown below in Figure 1 describes, the
HR professionals are in need to evaluate and determine number and types of jobs that to be
filled and they produce a demand for the required man power number with expected skills,
qualification, past work experience and employee performance in the past (Stone, 2005, pp.
46-52).
Figure 2: Model of Strategic human resource planning (Stone, 2005, p.51)
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Strategic human resource management
Torrington et al., suggested a model (figure 2) for SHRP which describes, analyse the
organization’s environment (strengths, weakness, opportunity and threats) and determine the
organizational objectives and strategies. Fulfilling the project manpower supplies by
analysing the internal manpower status, if the demands are high then assess the external
manpower supply market (Torrington et al., pp. 51-54) .
Figure 3: model of Strategic human resource planning (Torrington et al., p. 51)
Gardner & Palmer commented, the outcome of the planning will be(Smith, 1956)
• The company will get the right people in the right place
• They will placed in right designations at right time
This will give positive outcomes to the organization in terms of productivity, profitability,
employee motivation, employee job satisfaction, employee performance, employee
competence and employee well- being (Gardner & Palmer, 1997, pp. 269-272). Beardwell
commented that the integration of SHRP practices with the organization business strategy
will produce better organizational performance (Beardwell, 2004, pp. 180-181).
4.2 Strategic Recruitment
Recruitment and selection strategies flow eventually from the organization’s mission and
strategic objectives (Nankervis, Compton, & Baird, 2002). Salaman, Storey & Billsbery
(2005) stated that recruiting and selecting new talented staff is a core HRM activity in an
organization. Recruitment is the process of seeking and attracting a pool of qualified
candidates for the job vacancies while selection is the process of choosing the best candidate
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Strategic human resource management
who meets the organization requirement (Salaman, Storey, & Billsberry, 2005). For Miller
(1984) the purpose of strategic ‘staffing’ is to identify and choose the talented employees
who will best run the organization and business objectives in the long run (Miller, 1984, p.
68). The role of the HR department is to analyse and select an individual who is well
qualified, highly motivated and able to work alongside colleagues and likely to remain in post
for reasonable time. Recruiting and selecting the best applicants makes an anticipate changes
in the organization environment. Strategic recruitment does this by linking the recruiting
activities to the organizations business objectives. The human resource planning team
sketches the number and type of jobs to be filled. The line manager will clearly give the
details about the requirements including job description and job specification to the HR
department personals(Stone, 2005, p. 188). Bresnan (1985) found that in construction
industries the line managers are directly involved in the selection of employees and
employment issues. The recruitment and selection decision of manual and non-manual
employees for the construction industry was done by line manager aligned with HR
professionals (Bresnen et al., 1985). Drucker & White (1994), mostly in private sector
construction industries the line management covers six areas namely pay and benefits,
recruitment and selection, training and development, industrial relations, work expansion and
reduction are the Primary responsibilities of line management and HR department. Thus the
HR manager will make different steps for selection process(J Druker & White, 1994) .
4.2.1 Recruitment Activities
Mathis & Jackson (2011), HR manager should undertake some necessary methods to perform
as follows
Find out and sort out the organisations long-term and short-term HR needs.
• Keep aware to changing conditions in the labour market.
• Develop suitable recruitment advertisements.
• Maintain a proper record about the number and quality of applicants from each
recruiting resource.
• Follow up on applicants to evaluate the efficiency of the recruiting effort (Mathis &
Jackson, 2011, p. 189).
Franco and Diaz gave an action plan for the strategically integrated recruitment and selection
systems they are:
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• Analyse, identify and formulate the core values and capability of the organization.
• Establish the job profiles based on core values and competence.
• Evaluate the validity of job profiles and prepare a policy for the recruitment and
selection process which should meet organization’s requirements.
• Communicate those policies to the line manager and get the feedback from them.
• Finalise the policy and prepare the procedures for recruitment and selection process.
• Execute the action plan (Luisa Arenas Franco & Iniguez Diaz, 1995).
4.2.2 Internal Recruitment
Mathis & Jackson stated, whenever the job vacancy exits, the first replacement source to
consider is within the organization. Most of the organizations have a policy of filling the
vacancy through internal transfers or by promoting the employees to the higher positions
(Mathis & Jackson, 1997, p. 220). Newell & Shackleton (2000), many organizations favours
to invite applications from internal employees before they look to their external labour
market for new candidates. Internal recruitment will help organizations to save the hiring cost
and efficiency gains can be made because internally recruited employees clearly know the
organization goals and its culture. So they will get adopted easily into the new positions than
people being brought from outside. The main disadvantage is that only few applicants will be
able to apply for the position that it permits an organization to consider (Shackleton &
Newell, 2000, pp. 116-117) .Raymond J Stone (2005), clearly plotted the advantages and
disadvantages of internal recruitment
Advantages:
• Candidates clearly know about the organization and its strength and weakness.
• Employee morale and motivation enhanced.
• Training cost will be reduced.
• Can generate succession of promotions.
• Return on investment will get increased.
Disadvantages:
• Excellent training and development program is necessary.
• System can become intrusive.
• Employee infighting for promotions can affect morale.
• Employee promoted beyond the level of capability (Stone, 2005, p. 192) .
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Organization use different techniques to locate skilled internal candidates and to inform
existing employees about the job openings and opportunities (Stone, 2005, p. 191).
Computerised Record System:
The HR manager will have the data bank in the computer which contains personal details,
qualification details and work history of each employees. This permits the HR manager to
quickly locate potential candidates within the organization after consulting the project
manager and getting approval from him (Stone, 2005, p. 191).
Job Posting:
Sheila Connelly (1975) & stone (2005), the principle of job posting is to inform the internal
employees about the job vacancies via computerised positing programs, bulletin boards,
newsletters and personal letters which make the internal employees to match the job vacancy
with their skills, qualification and experience. Successful job posting programs have the
following characteristics
• The job vacancy information is posted in information boards or advertised so that the
interested employees are likely to see them.
• All internal promotions and transfer opportunities are posted
• Before external recruitment, all job openings are posted.
• The job vacancy is described with the job specification and the necessary knowledge,
skills, qualification and personal recruitment will be posted. The interested internal
employee who meets the requirements as briefed can apply for the positions (Stone,
2005, p. 191) (Connelly, 1975).
4.2.3 External Recruitment
The HR department will use various approaches to locate and attract external candidates. The
HR manager should know which recruitment channel is likely to be most successful in
targeting particular labour group. The approach can be made through government
employment agencies, educational institutions, private employment agencies, recruiting
consultants and even use popular sources like advertisements and employee referrals (Stone,
2005, p. 192). Torrington et al., briefed that, if the employer has decided that external
recruitment is necessary, the employer must prepare the cost- effective and appropriate
method for recruitment activities. Different organizations use different recruitment methods
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Strategic human resource management
at different times (Torrington et al., 2005, pp. 125-126).Raymond J Stone (2005) plotted
some advantages and disadvantages of external recruitment
Advantages:
• The pool of talent is bigger.
• Fresh skills, talents, new insights and know-how can be introduced in to the
organization.
• It is often cheaper and easier to hire employee from outside the organization.
Disadvantages:
• Attracting and selecting new employee is more difficult.
• New employee training and orientation takes longer.
• Morale may suffer from existing employees.
• Cannot guarantee the employee performance (Stone, 2005, p. 192).
4.2.4 Recruitment Policy
An organizations recruitment policy provides the framework for recruiting action and it
reflects the organizations recruitment objectives and culture. In general the HR manager and
the line management follow those policies for the recruitment process. The recruitment
differs from one organization to other organizations(Stone, 2005, p. 189). In construction
industry sector there is a sharp difference in policies employed for manual and non-manual
employees. According to the labour market requirements the policy was employed for the
various categories of employees. In many organizations the employees are recruited in
contract basis initially with the collective agreements (Janet Druker, White, Hegewisch, &
Mayne, 1996, pp. 412-413).
4.3 Strategic Selection
Selecting the skilled and talented employees for the company is a part of organization’s HRM
objectives. Strategic selection aligns employment activities with the organization’s business
objectives. According to the project requirements the selection will be made (Williams &
Dobson, 1997, p. 242). Pfeffer found that high-performance organization’s employ accurate
selection procedures that have been refined and developed over time to identify the people
with attitudes and skills they required(Pfeffer, 2005, pp. 74-79) . He further states that the
poor selection decisions results in
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Strategic human resource management
• Increased training time
• Labour throughput
• Absenteeism
• Accidents
• Industrial unrest
• Job dissatisfaction and poor performance(Pfeffer, 2005, pp. 73-74)
4.3.1 Steps to be followed in Selection Process
Selection process and procedures differs from organization to organization. Selection process
will be conducted according to the company objectives, culture and size, type of industry,
state of labour market and the type. The selection steps shown below represent the full scale
of selection process (Stone, 2005, p. 229). Derek Torrington, Laura Hall & Stephen Taylor
(2005) stated that selection is a two- way process in which the potential employer and
potential employee will make selection decisions. The selection decision can be made by
integrating all the selection information available. Most of the organizations use different
selections methods like application forms, interviews, tests, assessment centres and
references (Torrington et al., 2005, p. 141).
Step 1: Reception of Applicants
The importance of giving the applicants a positive feeling at this stage cannot be
overemphasised. Disrespect, lack of interest at the reception may cost the organization a good
applicant and encourage negative attitudes about the company (Stone, 2005, p. 229).
Step 2: Telephone Screening
When there is large number of applicants are expected, primary screening may be done over
the telephone to abstain from filtering through many applications. Applicants can be asked
few simple questions about the job requirements (Stone, 2005, p. 230). According to the
Chartered Institute of Personnel and Development survey, nearly 28% of the organizations
used this method for selection (CIPD (2003)).
Step 3: Preliminary Interview
The initial screening interview is conducted by organizations is to check the employee skills,
language, qualification and willingness (Stone, 2005, p. 230).
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Step 4: Application Form
The application form is the primary source for all employment information for the use in later
steps of the selection process. It is also a valuable tool used for filtering out the unqualified
employees (Heneman, Heneman, & Judge, 1997). According to the CIPD survey, it is found
that, nearly 80% of the organization used this method in selection process (CIPD, 2003).
Step 5: Tests
Procedures in conducting test for applicants differ from organizations and its nature of
selection process. Each organization will follow the own company policy when conducting
tests (Posthuma, Morgeson, & Campion, 2002, p. 80). HR managers need to demonstrate to
job applicants about the selection techniques employed. Some organizations conduct test in
different aspects like Employment tests, interest tests, aptitude tests, intelligence tests and
personality tests (Bauer, Maertz Jr, Dolen, & Campion, 1998).
4.3.2 The Selection Decision
Torrington et al., (2005), suggested a useful tool to do the selection process. They introduced
the matrix format of selection in which each employee will be assessed and selected against
each selection criteria (Torrington et al., 2005, p. 158). The selection decision matrix is
shown below
Selection
criteria
Candidate 1 Candidate 2 Candidate 3 Candidate 4
Criterion A
Criterion B
Criterion C
Criterion D
General
Comments
(Torrington et al., 2005, p. 158)
Raymond J stone (2005) writes that some organizations use successive hurdles approach. In
successive hurdles approach, the selected applicants are ranked according to their
effectiveness and intelligence. Hurdles approach is very economical. A successive hurdles
approach is shown below
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Strategic human resource management
Successive Hurdles Approach
Figure 4: Successive Hurdles Method
(Stone, 2005, p. 255)
4.4 Strategic Performance Management & Measurement
Storey and Sisson define performance management as “an interlocking set of policies and
practices which have as their focus the enhanced achievement of organizational strategic
objectives through a concentration on individual performance” (Storey & Sisson, 1993).
Performance management and performance appraisal are typically designed on a central basis
by HR function and require each line manager to appraise performance of their staff. These
measurements are done in annual basis (Torrington et al., 2005, p. 259).The evaluation of
organizational and employee performance permits the manager to check that the strategic
objectives are valid, are being successfully communicated throughout the organisation and
are being achieved. In short, performance management ensures that the jobs are designed
accurately and that eligible persons are hired, trained, rewarded and motivated to achieve the
organizations business objectives. By managing the better employee performance, the
organization gains better cash flow, productivity increases and overall better financial
performance (Mcdonald & Smith, 1995). Baron & Armstrong state that the nature of
measuring employee performance in organization will increase the effectiveness of the
organization, by improving the people performance who work in them and by developing the
capabilities of teams and individual contributors(Baron & Armstrong, 1998, pp. 38-39).
Lebas (1995) writes that the difference between performance measurement and performance
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management, performance measurement includes measures based on the key performance
indicator (KPI) set and key success factors which includes: measures to track the past
achievements; measures of output and input, Whereas performance management involves in
issues as training, teamwork, management method, employee involvement and rewards
(Lebas, 1995, pp. 23-35). Appraising and managing performance are the critical management
responsibilities and it’s a vital part of the organizations strategic management process.
Performance appraisal system are impermanent and divorced from organisations business
strategy when comes to practices. Many companies do not link their strategic objectives with
individual employee performance criteria (haygroup, 2001; Nankervis & Leece, 1998).
Figure 5: model of Strategic performance management & measurement (Stone, 2005, p. 295)
4.4.1 Rater of Employee Performance
In most of the organizations, evaluation of employee performance is done by immediate
supervisor. In fact, performance appraisal can be done by anyone who is familiar with the job
responsibilities and performance objectives and he has to know –how to distinguish
behaviours that produce effective or ineffective performance. Consequently, immediate
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supervisors, peers and employee themselves can all provide information on employee
performance. The major types of performance appraisal system used in the organisations are
ranking and grading (Scarpello, Ledvinka, & Bergmann, 1995, p. 608). In 1992, Kaplan &
Norton introduced a ‘balance scorecard’ approach to measure the employee performance in
the organization (Kaplan & Norton, 1992, pp. 71-79). Ranking is one of the methods used for
rating the employee’s performance in the organisations. Line Managers and supervisors are
the responsible persons to rate the employee performance and by following such criteria’s
such as job knowledge, quality of work, quantity of work and attendance of the employee
(Stone, 2005, p. 295). Employee performance levels can be graded such as superior, good,
acceptable, marginal and unsatisfactory. Employee’s performance is compared with the
grade definitions, and then the employees are placed in the grades to describe their
performance (Grote, 1998, p. 4).
4.5 Strategic Training and Development
Garger (1999) writes that, implementing training and development programs for employees
has become one of the important aspects of human resource department in an organization.
Implementing training and development programs will boost the organization’s productivity
and international competitiveness. Now a days, most of the employees working in an
organization looking for their growth and learning opportunities to improve their
employability (Garger, 1999, pp. 10-17). Pfeffer (1998) state that, to maintain and improve
the employee performance and productivity then the organization must implement and
emphasis training and development programs (Pfeffer, 1998, p. 85). Armstrong writes that,
learning and development is part of strategic human resource development (SHRD) practices
which has policy and procedures and by implementing learning and development programs
will help the organization to achieve its business goals. The main thrust of SHRD is to
provide an environment in which the employees are encouraged to learn and develop their
skills (Armstrong, 2011a, p. 248). Keep (1989) says that, one of the primary objectives of the
human resource management is to retain the talented employees and their commitments to the
organization should be secured (keep, 1989, pp. 109-125). The HR manager of an
organization should rise the question about,
1. What are the strategic business objectives of the organization?
2. What steps to be taken or what needs to be done to develop the employee skills and
knowledge?
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A well-designed human resource development programs will help the organization to
increase their employee performance and productivity (Stone, 2005, p. 331). Training
typically emphasises immediate improvements in job performance and development, aims to
prepare the employee for the future job responsibilities (Werther & Davis, 1996, p. 282). The
new employees will be given entry level training with the skills necessary to meet the
performance standards of the job. If employee performance and productivity is high, then he
will be trained and developed with additional skills to promote him for the higher positions.
This encourages the employee personal growth. Measuring the performance of employees
and highlighting their weakness in job skills and giving skill oriented training to improve the
employee performance. Few organizations linked performance appraisal information with
training (Taylor & Driscoll, 1992, pp. 593-603).
4.5.1 Orientation
Employee orientation is a key part of training and development. Newly recruited employee
should be given training on organisational activities, its culture and how to do their jobs. By
giving training about the job skills will make the new employees to perform well (Wanous &
Reichers, 2001). Researchers have found that, providing orientation to the new employees
will make positive attitudes, job satisfaction and sense of commitment at the start of
employment relationship (Halton, 1996).
Formal Orientation Programs:
If the numbers of employees are more for the orientation program then it is worthwhile
having a formal orientation program. In formal orientation programs the company can
include the presentations from CEO, Project managers, public relation materials such as
corporate videos and presentation from recent entrants about their experiences working in the
organisation. The major benefits of conducting such orientation will reduce the individual
anxiety, employee can share their experience and opportunity to rise matters of concern
(Stone, 2005, p. 352) .
Informal Orientation:
Some organisation prefers informal orientation approach to employee orientation, believing it
makes for a more relaxed and personalised introduction to colleagues. Mentors or sponsors
will act as adviser for the new employee in this approach (Stone, 2005, p. 352) .
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4.6 Rewarding Human Resources
Armstrong (2002) defines reward as ‘how employees are rewarded in accordance with their
value to the organization. It is concerned with both financial and non-financial rewards and
embraces the plans, strategies, policies and processes used by the organization to develop the
and maintain the reward system’ (Armstrong, 2011b). Reward strategies differ from one
organization to the other. Of course, similar methods and aspects of reward will be covered in
the strategies of different organization but they will be treated differently in accordance with
variations between organizations in their context, strategies and cultures (Armstrong &
Murlis, 2004, p. 33). In construction industries, a successful reward strategy is one that gives
clear guidance on development planning and implementation and achieves its objectives
when implemented. It’s the duty of HR to develop and initiate new reward policies and
practices but the line manager has the main responsibility for implementing them
(Armstrong, 2011b, p. 270).
4.6.1 Employee Motivation
Cowling (1996) commented strategic business objectives seeking competitive advantage
through higher performance and higher productivity can be achieved only if employees are
strongly motivated to perform. Job design, the system of rewards, management style,
corporate culture, organization structure and change management all interrupt on employee
motivation. If management downgrades employee motivation, then the organization will face
risks in executing their business objectives. Employee motivation is one of most challenging
aspects of HRM. It shows itself through employee morale, output, absenteeism, effort, labour
turnover, loyalty and achievement (Cowling, 1996, pp. 296-302). Emery & Philips (1976)
found that Herzberg’s two factor theory has gained wide acceptance in management circles
and it has a major impact on job design.
Motivators are higher order achievements like recognition, intrinsic interest in the work,
responsibility and advancement. These determine job satisfaction and performance.
Hygiene factors are the lower order needs which are come across by pay, working
conditions, interpersonal relations, supervision, company policy and administration. Herzberg
argued that these factors are not the real employee motivators. Job satisfaction is the true
employee motivators. If the employee satisfied with the job then the performance gets
increases and productivity also increases (Emery & Phillips, 1976).
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Figure 6: Herzberg two factor model
4.6.2 Money and Motivation
Money plays an important role in employee motivation. Many researchers argue that money
is not only the motivator in the organizations. But theories like equity, expectancy and
reinforcement theories all show money as the motivator in organizations (Ivancevich, 2001,
pp. 298-299). Employees compare money earned to determine how they rank. Thus the result
of such ranking can affect the employee motivation(Milbourn, 1980, p. 33) .
4.6.3 Pay -for-Performance
Raymond J Stone (2005), the relationship between pay and performance is especially
effective, when an individual employee performs well in the project and achieves the target
within the given time period then that employee will be rewarded for his good performance.
The line manager and supervisor is the responsible to evaluate and select the best performer
in the project (Stone, 2005, p. 493). In addition to the pay for performance at the individual
level, there is a considerable interest in pay-for-performance on small groups. Those types of
rewards are planned by the top management in the organization (G. Parker, McAdams, &
Zielinski, 2000, pp. 37-38).
4.6.3 Compensation schemes
Medical insurance: Raymond J Stone (2005) says that some organisations provides basic
medical insurance for the employees and their families. It covers all the health allied bills of
the employee and families (Stone, 2005, p. 519). Organisations are started focusing more on
managing healthcare by creating awareness to the employees about the wellness health
programs to educate and motivate employees to adopt healthier lifestyles (Wachsman &
Swanson, 1992, p. 11).
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Payment for time not worked: This category includes annual leave, sick leave, public
holidays and educational leaves. On those categories the employees are paid even if they are
not working in the organisation(Stone, 2005, p. 520). .
Retirement benefit plan: Some organisations have retirement benefit plans for the
employees. The organisation will take 1.5% of the monthly salary amount from employees
and return it lump sum at end of the employee service period. These type of plans would
benefit the employees (Gibbs, 2003, p. 91).
4.7 Conclusion
Many literature ideas has been critically reviewed to understand the concepts of strategic
human resource management and its core components in the different construction industry
sectors. Different types of organisations in this world follows its own SHRM policies and
procedures for staffing and managing people and those strategies are aligned with their
organisation business goals and objectives. The study gave the clear concepts and ideas about
the strategic human resource management practices in human resource planning involves in
quantitative and qualitative analysis for manpower requirements, recruitment and selection
methods involves in analysing the external and internal manpower resources, performance
management and measurement methods, training and development process and reward
management process. It is clearly understood that the HR management and the line
management team should work jointly to enhance the SHRM and its practices. Therefore,
based on this discussion of literature, few research questions were designed, and selected an
oil and gas construction organisation to analyse the status of SHRM practices.
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Chapter 3
5.0 Results & Discussion
This section outlines the results and discussion part of the research study in relation to the
core components of SHRM, human resource planning, recruitment & selection strategies,
performance management & measurement strategies, training & development strategies and
employee motivation methods. The interviews were semi-structured in nature and undertaken
to the human resource manager, project manager, construction manager, construction
engineers, supervisors and manual employees in the organisation.
5.1 HRM Planning Strategies
Results
Appendix B1 shows the results of the strategic human resource planning in the organisation.
Whereas the interviews has been conducted to the top management personals like HR
manager, project manager and the department construction managers. In that, the results are
similar in attending group meetings, reviewing the scope of the project and client
requirements, discussion about the cost, starting time and deadlines to finish the project,
analysing the manpower demands, sharing information, analysing the internal manpower
supply and requirement of external resources. While developing and setting the policy and
procedures for the organisation the project manager and department construction manager
had not participated with the HR management.
Discussion
The initial plan involves taking part in the project execution team meeting involving project
Director, Project Manager and Department Managers; in which a detailed mobilization plan
is drawn for HR’s implementation. The organisation follows the quantitative and qualitative
approach at the initial stage of the project. In these approaches, the HR manager and HR
professionals uses statistical and mathematical techniques to predict the manpower
requirements. To calculate the total manpower requirements the HR professionals designed
and developed a manpower requisition application form showed in Appendix A1. The
project manager and the department construction managers manipulate the manpower
requirements with the help of planning engineer and fill the manpower request form by
stating the requirements in numbers, position, category, qualification, experience and salary
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scale. Once receiving the manpower requisition forms, the HR professionals forecast the
demand for manpower to complete the project successfully. This supports the work of
Raymond J Stone (2005) regarding quantitative and qualitative approach in planning for
human resources. Then they analysed the internal sources available within the organisation to
fulfil the project requirements. If the project manpower requirements are high then they
search for the talented professionals in the external labour market. This statement supports
Torrington et al., (2005) and Marchington and Wilkinson (2002) regarding analysis of
internal and external manpower supply.
Conclusion: The research questions (Q1 & Q2) are clearly supported in this part because the
level of participation of project manager and department construction managers during
planning with human resource department is high. But they are not involved in design and
developments of policies and procedures in the organisation.
5.2 Recruitment & Selection Strategies
Results
Appendix B2 shows the results of the strategies adopted by human resource department in
recruitment and selection process. The organisation has structured procedures for recruitment
& selection process. The interview has been conducted to the strategic managers and to the
senior construction engineer. The results obtained from the discussion is similar in all aspects
like mobilisation plans, internal & external recruitment methods, recruitment policy &
procedures, selection methods and selection decision making process within the organisation.
This supports the research question two (Q2) indicating that, according to the project
requirements recruitment and selection process will take place.
Discussion
A particular gas processing booster station construction project is taken for this discussion.
In that
Total man power of the project = 4191 employees
Internal transfers = 2558
Externally recruited = 1633
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The HR manager stated that the organisation has the policy to accommodate internal
employees first. About 61% of the total manpower in a particular project are internally
transferred and remaining 39% of manpower is externally recruited. This shows that the
organisation mostly concentrated in internal transfer rather than external recruitment. This
clearly indicates that, to reduce the external recruitment cost the organisation preferred
internal transfers. This supports the work of Mathis & Jackson (1997), Newell & Shackleton
(2000) and Raymond J Stone (2005) regarding internal transfers and benefits. When
organisation plans for an external recruitment they follow certain policy and procedures.
Initially the organisation advertise about job vacancies in their company website. If they
require more manpower for the project then the organisation will select a private recruitment
agency and make a mutual agreement between them to hire the employees. Those employees
are hired on contract basis initially. This supports the work of Torrington et al., (2005) and
Raymond J Stone (2005) regarding job vacancy advertisements and recruitment through
private agencies. Initially the organisational develops a selection panel consisting of HR
professionals, Project manager, department construction managers and department senior
engineers to select the talented employees from the labour market. The interviews are
conducted by senior engineers with his team. Here the organisation follows two stages of
selection methods (appendix A3)
Stage 1: 1.application forms, 2. Personality test, 3. Communication, 4. Relevance of
education, 5. Job knowledge, 6. Practical skill test, 7. Knowledge of tools & equipment’s and
8. Safety awareness.
Stage 2: Background career history investigation & medical examination. This supports the
work of Henemen & Judge (1997), Raymond J Stone (2005) and Bauer et al., (1998)
regarding selection methods.
internal tranfer
61%
externally recruited
39%
100%
Recruitment
internal tranfer externally recruited
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The organisation follows a band structure A to H where non-manual and manual employees
are separated. Band A to E categories are non-manual employees (managers, engineers,
office professionals and supervisors) and will have different pay scale. Band F to H
categories are manual employees (foreman, technicians, labour, helpers and drivers) and will
have different pay scales. The initial selection decision in this organisation is taken by the
group of members like project manager, construction manager, senior engineer and
superintend and final decision is taken by project manager by taking the advice from
department construction managers. This discussion clearly supports the successive hurdles
approach.
Conclusion: The research questions (Q3, Q4 and Q5) is clearly supported in this part because
the policies and steps followed in recruitment and selection process are highly effective in the
organisation but there is a minor change in the selection decision process found compared to
successive hurdles approach. The initial selection decision is taken by the line management
team and the final selection decision is in the hands of project manager in the organisation.
5.3 Strategic performance Management & Measurement
Results
Appendix B3 shows the result of performance management and performance measurement
strategies in an organisation. The interview has been conducted with the strategic managers,
department engineers and the department supervisors in the organisation. The results obtained
regarding the policy and procedures which the company follows, method used for measuring,
on what aspects the performance is measured, responsible person to measure the employee
performance, and performance measurement will be rated for team or individual and
measures taken by HR professional and line management on the poor performers. The result
obtained from each interviewee is almost similar apart from handling the poor performers.
The HR manager says that the poor performers have been picked up from each project and
they will be sent for on-site training to gain the knowledge about the work. In contrast, the
line management stated that the poor performers will be terminated.
Discussion
The organisation follows policies and procedures to rate the employee performance and to
manage the performance. The organisation measures the employee performance on annual
basis to rate the performance upon given targets achieved by employees and to check the
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work efficiency, employee attitude & behaviour in the construction site. The HR
professionals in the organisation have designed and developed an employee performance
evaluation form shown in Appendix A4. The organisation uses ranking methods to rate the
employee performance in some categories such as job knowledge, productivity, quality of
work, commitment, initiative, dependability, planning, flexibility and co-operation. These
statements support the work of Storey and Sisson (1993), Torrington et al., (2005), Baron &
Armstrong (1998), Raymond J Stone (2005) and Lebas (1995) regarding performance
management and measurement methods and uses of measuring performance. Each
supervisor has a team of various hierarchical level working under him. While evaluating the
performance, the organisation is evaluating individual performance of each employee in the
construction site. The organisation follows a protocol to measure the performance. In that the
line manager of each employee will fill this evaluation form. Project manager rates the
performance for construction manager, construction manager rates the performance for
engineers and supervisors and at last the supervisor rate the performance of each employee in
his team. This is the method followed in this organisation. These statements support the work
of Scarpello (1995) and Raymond J Stone (2005) regarding ranking methods and
responsibilities for supervisors in rating the employee performance. In contrast, within the
organisation the HR management and the strategic line managers gave different answers
about the poor performers in the organisation. The HR management says, they analyse the
results and pick the poor performers and those poor performers will be sent for practical
onsite training to clear their doubts regarding the job and to increase their performance
parameters in future. But the line management says, having the poor performers in the
construction site will reduce the productivity and increases labour overheads so that they
recommend termination for the poor performers.
Conclusion: This research question (Q6) is partially supported. The organisation follows a
better policy and procedures to rate the employee’s performance in different categories. The
comments given by HR manager and line management team regarding poor performers is
totally different. This shows that the line management team is not aware of policy and
procedures of the organisation.
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5.4 Strategic training & development
Results
Appendix B4 shows the results for training and development strategies in the organisation.
The answers given by the top management team regarding Technical Training for the fresh
graduates are similar. In contrast, the results obtained from top management and line
management employees are different in training for poor performers and staff development
programs. It shows that policies and procedures are created but not implemented in effective
way.
Discussion
A number of issues were discussed in this section including types of training & development
process undertaken, the plans and the policies that exists, formal orientation process for the
new employees and policies and procedures followed by the organisation for employee
orientation programs. The HR manager of the organisation clearly stated that the organisation
has the training and development methods to motivate the employees. The organisation
believes that by giving such learning opportunities to the employees based on their profile
which increases the productivity and overall performance of the organisation. This supports
the work of Garger (1999), Pfeffer (1998) and Armstrong (2011) regarding training and
development strategies. Based on the continuous performance in the projects, the employee
will be given job based technical training before promoting him to the higher positions. The
project manager and construction manager should recommend employee for additional
training and promotions. This discussion supports the work of Taylor & Driescol (1992
linking performance appraisal with training. However the project managers and construction
manager has not supported some activities like additional training for the poor performers.
This makes a big difference between the implementation and the actual policy and procedures
formed by the organisation. The low level employees are not aware of such process and this
shows the policy & procedures are formed but not implemented. The organisation is
conducting orientation programs for newly recruited employees on first day of their
employment. The formal orientation programs on Introduction about the company and its
operations, company’s quality management system, introduction about the cost centre
manager & project manager and at last safety orientation for the new employees. The HR
manager and his team are conducting the orientation programs. These statements partially
support the work of Wanous & Reichers (2001 and Raymond J Stone (2005) about formal
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orientation programs. The HR professionals in the organisation are giving the orientation for
the new employees. An impressive thing about the organisation is, recruiting fresh graduates
and giving technical training to them. Those fresh graduate are employed temporarily for
three months (probation period). Upon their individual performance the graduates will be
appointed permanently in the organisation.
Conclusion: The research question (Q7 & Q8) is partially supported. The organisation have
better policy & procedures in training and development process but they are lagged in
implementation and follow-ups. The comments given by top management and the site
employees are not similar with one another in some aspects of training & development
process.
5.5 Rewarding human resources
Results
The results of the interviews are attached in Appendix B5. The comments given by HR
management, line management and manual employees are similar regarding pension plans,
medical insurance for employee and his family, accommodation assistance, free
transportation, car allowances, paid annual leave, paid sick leave, retirement savings plan and
promoting employees to higher position. In contrast, the comments given strategic managers
and manual employees differs regarding bonus at the end of successful project completion
and job satisfaction of employees in the organisation.
Discussion
The organisation has policy and procedures to motivate the employees. The company is
paying bonus to all the employees at the end of successful project completion. The bonus
payment differs according to the employee grades in the organisation. The company has the
compensation schemes for the employees. They are pension plans, medical insurance for
employee and his family, accommodation assistance, free transportation, car allowances, paid
annual leave and paid sick leave. Once employees reach a higher position, they are eligible
for the company’s Children’s Education Allowance program. This allowance is paid while
your children are still in school up to the age of 21. The organisation promotes retirement
savings plan where the company matches employee’s contributions up to 1.5% of monthly
salary. Employees have a wide range of investment options to choose from. The organisation
strives to provide long term career opportunities for its employees. The Retirement Savings
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Plan is provided as a vehicle for employees to augment their retirement income. The
organisation provides free medical insurance to all its employees. Family coverage under the
plan is available to all employees and at some levels in the company, this family coverage is
provided free. Life insurance for the employee is provided free by the company. This
supports the work of Raymond J Stone (2005), waschman & Swanson (1992) and Gibbs
(2003). Apart from project bonus plan to the employees, the organisation does not follow
any rewards and recognition schemes in the company. That show the company has poor
reward management system. Secondly, strategic managers says that, all the employees are
satisfied with their jobs and as the result of that the performance and productivity is
increasing. These statements differs from strategic managers and manual employees. Manual
employee says that, no job satisfaction is there because in the absence of higher officials, the
employees are overloaded with more responsibilities and the work time changes every six
months because of the climate conditions. When it comes to the promotion part, all the
employees are promoted to higher positions based on their performance in the construction
site.
Conclusion: This research question (Q9) is partially supported because the organisation have
good compensation schemes for the employees but it has weak reward system and manual
employees are not satisfied with their job timings and work culture.
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Chapter 4
6.0 Recommendation & Conclusion
HRM Planning Strategies: (“poor line management contribution with HR management
while developing strategies”)
The line management participation is important while HR management is setting the policies
and procedures for the organisation due to the fact that the operations team clearly knows the
extent to which they can follow the policy and procedures in projects. So initially, setting a
team to prepare policies and procedures is an important task. The team members should have
project director, HR manager, Project manager and department construction managers. The
line management team and HR management team should clearly understand the policies and
procedures prepared by analysing the organisation strengths and weakness to reduce the
miscommunication between them. Then it is easy for the line managers to implement policies
and procedures in their teams. This helps the line management team and HR management
team to achieve the organisational goals strategically. The HR management expects the line
managers to address the employee concerns whenever there are queries from the employees
of the team.
Strategic performance management & measurement: (“line management recommends
termination for the poor performers”)
Recommendation 1:
This recommendation section gives positive and negative feedbacks. Recommending
termination for the poor performers will de-motivate the employees in the organisation. Even
such hard decisions affects the lives of employees. The line manager should follow HR
procedures when evaluating the performance of each employee. In a positive way, the line
manager should identify the employees’ deficiencies and how they can be overcome, to know
what type of specialised training or job oriented trainings can be given to improve the
employee performance. Such positive attitudes will motivate the employees in the
organisations.
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Recommendation 2: If an employee’s performance is found not up to expected level in an
organisation then the line managers are forced to take some hard decisions. Line managers’
states that, poor performance will reduce the productivity and it will increase the labour turn-
over. So it can be recommended to conduct performance review on all the poor performers
over a particular time period and then take possible decisions to keep the employee in the
organisation or not. In such cases, the HR management should co-operate with line managers
by overcoming the policies and procedures of the organisation.
Strategic training & development: (“lags in implementation and follow-ups for training and
development strategies”)
The organisation should create awareness about training and development methods to the
employees. The HR management and the line management should jointly form a team which
includes technical engineers, senior technicians and senior engineers of the department to
give training for the site employees for the future job requirements. The systemic approach
shown above for performance appraisal and training needs. After rating the employee
performance, the line management and HR management should separate the week performers
and select training and development activities to overcome the weakness.
Figure 7 - performance appraisal and training needs (Stone, 2005, p. 336)
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After rating the employee performance, the line management and HR management should
separate the weak performers and select training and development activities to overcome the
weakness. The highly performed employees are selected for the training session to upgrade
their knowledge (technical skills or job oriented training) and then they should be promoted
to the higher positions. Following these types of practices will reduce the labour turn over,
increase the performance and the productivity.
Rewarding human resources: (“reward system is weak and manual employees are not
satisfied with their jobs”)
To motivate and enhance the performance of the employee, the organisation should enhance
the reward and recognition systems like appreciation awards, Employee of the year awards
and Annual rating bonus.
Pay-for-performance: when an individual employee performs well in the project and
achieves the target within the given time period then that employee should be rewarded for
his good performance. The line manager and supervisor are responsible to evaluate and select
the best performer in the project and should recommend the employee. In addition to the pay
for performance at the individual level, there is a considerable interest in pay-for-
performance on small groups. Those types of rewards should be planned by the top
management in the organization. Implementing such type of reward system will motivate the
employees to perform well in the organisation and the productivity also increases.
Job satisfaction:
According to Herzberg two factor theory (hygiene factors)
“Job satisfaction is the true employee motivators”
The organisation should make better job design for the employees. The job design refers to
the responsibilities and tasks assigned to individuals. Reduce the workloads and assign them
according to the job design. Those aspects will motivate the employees to perform well in
the organisation.
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7.0 Limitations of the research
The research is based on the literature reviewed on strategy HRM and this is linked with the
answers received against the questionnaire from the oil and gas organisation. The limitation is
that the organisations are often not willing to share information regarding the company
policies and its effectiveness. Although the research is meant to be anonymous, but the
information received from the different managers is not in-depth and is difficult to correctly
pinpoint the gaps in the policies and its implementation. Secondly, the target for the
information was from one single oil and gas organization, the results would have been varied
had more oil and gas organizations covered to see their SHRM practices.
The focus of this study has been more concentrated on the relationship between HR manager,
project manager and line manager and revolved around employee policies. The study can
further be expanded to see other areas where SHRM policies have its alignment with the
business objectives.
On the other hand, the information gathered from secondary sources cover a large portion of
areas in the field of SHRM, the topic itself being enormous to cover. There are many
frameworks from different authors and it becomes difficult to adhere to all of them for study
and research purposes. This study has tried to focus on the main and popular frameworks that
are more readily adopted by different organisations.
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2. Armstrong, M. (2011b). strategic human resource management (fourth ed.). london:
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3. Armstrong, M., & Murlis, H. (2004). Reward management: a handbook of
remuneration strategy and practice. london: Kogan Page Publishers.
4. Baron, A., & Armstrong, M. (1998). Out of the box. People Management, 23, 38-39.
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11. Cowling, A. (1996). Strategic human resources management. london: Routledge.
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P a g e | 36
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P a g e | 37
Strategic human resource management
9.0 Appendix
Appendix A1: Staff requisition form (SRF)
STAFF REQUISITION FORM (SRF)
Cost Center No. Cost Center Manager Signature
Date Contact No. Required by (Date)
REQUEST DETAILS
Job Title Classification No.
Number Required
Years of
Experience
Age Limit
Tender / Budgeted
Salary
Recommended Salary Range
New Replacement From To
Remarks:
REQUIRED ONLY IF CV ATTACHED
Applicant Name (s): Recommended By:
Reason for Recommending to consider for interview:
Functional Department Manager’s Consent
(for matrix reporting personnel e.g. Planning Engineers,
QC Engineers, Storekeepers, Timekeepers, etc.)
Authorized Manager’s Approval :
(if different from Cost Center Manager)
Name : Name :
Signature : Signature :
P a g e | 38
Strategic human resource management
Date : Date :
Original: PCSD for budget confirmation; Copy: HRD for advance information
FOR PCS DEPARTMENT USE ONLY
Budget available : Yes No
Remarks :
Name: Signature : Date :
Original: HRD if budget is available; Cost Center if budget is not available with copy to HRD
FOR HR DEPARTMENT USE ONLY
HR Job Ref. ERP Ref# : SRF CANCELLED
Name of the candidate : Reason :
Date of Joining :
ID# : CV#: FILLED BY INTERNAL TRANSFER
ISR Reference# : Date : Name of the employee :
Offer Reference# : Date : ID# : From (Cost Center) :
Remarks Remarks
HR Manager ___________________ Date: HR Manager _____________________ Date:
P a g e | 39
Strategic human resource management
Appendix A2: Application form
P a g e | 40
Strategic human resource management
Appendix A3: selection method
P a g e | 41
Strategic human resource management
Appendix A4: Employee performance evaluation form
EMPLOYEE
PERFORMANCE EVALUATION FORM
ID No. Name Cost Center 1664
Class. No. Classification
Review Period From 01-Jan-2014 To 31-Dec-2014
Reason of Evaluation √ Annual Other
s
Work Duties & Responsibilities as per Employee Duties Worksheet
PERFORMANCE CATEGORIES PERFORMANCE RATING ( one)
ALL EMPLOYEES 10 9 8 7 6 5 4 3 2 1
Job Knowledge:
Knowledge of specialized methods and techniques in current job area,
comprehension of information and ideas.
Productivity - Quantity of Work:
Volume of work produced.
Quality of Work:
Thoroughness, neatness and accuracy of work regardless of volume.
Commitment:
Punctuality, response and readiness of employee to work in any
situation to meet deadlines and targets, and in particular hard times.
Initiative:
Ingenuity, resourcefulness, initiating actions and following through
when appropriate, working towards self-improvement.
P a g e | 42
Strategic human resource management
Dependability:
Ability of employee to work productively on given tasks without
continuous direct supervision and follow-up.
Planning:
Planning and organizing work and modifying as required,
responsibility to duties, and awareness of budget and cost.
Flexibility:
Consider how quickly employee learns and adapts to new procedures
and tasks, willingness to take on new assignments.
Cooperation:
Communicating information and ideas, ability and willingness to work
with others.
MANAGERS / SUPERVISORS ONLY 10 9 8 7 6 5 4 3 2 1
Planning / Controlling
Decision Making & Execution
Leadership
Delegating Work
Employee Development
Employee Relations
Performance Category Rating
The performance requirement for the employee in relation to his duties and responsibilities in his specific
assignment is:
10 - Always exceeded 9 - Consistently exceeded 8 - Often exceeded 7 - Sometimes exceeded 6-
Fully met
5 - Usually met 4 - Sometimes not met 3 - Often not met 2 - Consistently not met 1 - Never met
OVERALL RATING
As each position carries different responsibilities, equal weight should not be assigned to each of the
performance categories.
The final rating should be the overall assessment based on guidelines given in Attachment 3.
Comments: 10 9 8 7 6 5 4 3 2 1
Note: The Supervisor shall first do a preliminary rating of the employee and then meet with the Senior
Manager to agree and finalize the rating.
P a g e | 43
Strategic human resource management
Supervisor
Name:
Senior Manager
Name:
ID No. :
Classification
: ID No. :
Classification
:
Signature : Date:
Signature
: Date:
EVALUATION DISCUSSION WITH EMPLOYEE
EFFECTIVENESS OF TRAINING ATTENDED DURING THE EVALUATION PERIOD (By Supervisor) :
S. No. Description of Training Remarks
KEY ITEMS AND FUTURE TRAINING NEEDS (By Supervisor) : Comp. Systems & Procedures Management English
Computer Technical Others (Pls. Specify):____________________________________ No need for training
EMPLOYEE COMMENTS (Please tick one box and specify your comments): Satisfied with Evaluation Unsatisfied with Evaluation
EMPLOYEE SIGNATURE: DATE :
PLACEMENT / ACTION (By Supervisor)
Ready for a Supervising / Management responsibility (The employee should be considered with others who are ready, for suitable vacant positions)
Has the capacity to move to a position of greater responsibility (The employee should be given additional responsibility in his current position)
Well placed now (The employee should continue to receive on-the-job or other training and gain experience for future career development)
Not suited to present position (The employee should be given specific time-based objectives to meet, and given close supervision and training)
SUPERVISOR SIGNATURE: DATE :
COMMENTS BY SENIOR MANAGER
P a g e | 44
Strategic human resource management
Appendix B1: Strategic human resource planning
HR Manager Project Manager Construction Manager
Team meeting: project Director,
Project Manager and Department
Managers.
Group meeting: project director,
department managers & HR
professionals.
Team meeting with top
management personnel’s.
Understanding the scope of the
project and client requirements.
Understanding the scope of the
project and client requirements.
Reviewing scope of the project and
client requirements.
Analysing the strengths and
weakness of the company. Project
cost and its deadlines.
Discussions about: the cost of the
project, client requirements, project
starting time and its deadlines and
total manpower requirements.
Analysing strength and weakness.
Analysing the cost and deadlines of
the project. Analysing strength and
weakness.
Preparing Policy and procedures. Policy and procedures by HRM. Not involved while developing
Policy and procedures
Receiving manpower requirement
list from project manager.
Preparing manpower requests with
the help of department manager and
planning engineer.
Analysing the total manpower
requirements and mapping it with
the help of department engineers
and planning engineer.
Analysing and finding the qualified
and experienced employee inside
the company who meets the client
requirements. If manpower
requirement is high, then
employees are recruited externally.
Clearly stating about the category of
employee required with qualification
and experience requirements for the
project to do recruitment.
Clearly stating about the category
of employee required with
qualification and experience
requirements for the project to do
recruitment.
Set of policies and procedures are
created for the internal & external
recruitment.
Not involved Not involved
No specific models or approaches
followed
No specific models or approaches
followed
No specific models or approaches
followed
P a g e | 45
Strategic human resource management
Appendix B2: Strategic recruitment & selection process
HR manager Project Manager Construction manager Construction
Engineer
Company has the policy to
accommodate internal
employees first. Mostly
internal transfer. To cut the
cost of external recruitment.
Mobilization from old
project to new project.
To reduce the cost.
Internal transfer from old
project to new project.
Internal transfers.
External recruitment:
initially advertising in
company website. For large
numbers: private agencies.
Company website &
Private Agencies.
Company website &
Private Agencies.
Company website &
Private Agencies.
Company recruitment policy
& procedures
Follows company policy. Follows company policy. Follows company
policy and superiors
decision.
Recruiting employees in
contract basis.
In contract basis. Recruited in contract basis. Recruited in contract
basis.
Selection panel: HR
professional, Project
manager, department
construction managers and
department senior
engineers.
HR professional, project
manager, department
construction managers
and department senior
engineers.
HR professional, Project
manager, department
construction managers and
department senior
engineers.
HR professional,
Project manager,
department
construction managers
and department senior
engineers or
superintendents.
Selection methods in two
stages: application forms,
personality test,
communication, relevance
of education, job
knowledge, practical skill
test, knowledge of tools &
equipment and safety
awareness.
Background investigation &
medical examination.
Follows HR procedures
and as per skill test form.
As per skill test form and
procedures.
Follows HR procedure
& skill test form.
The company follows a
band structure (A to H). So
Employees are separated
Follows a band structure
to separate manual and
non-manual employees.
Follows a band structure to
separate manual and non-
manual employees.
Follows a band
structure to separate
manual and non-
P a g e | 46
Strategic human resource management
according to their respective
bands
manual employees.
Selection decision: project
manager, construction
manager & senior engineer.
Project manager,
construction manager &
senior engineer.
Project manager,
construction manager &
senior engineer.
Project manager,
construction manager
& senior engineer.
Appendix B3: Strategic performance management & measurement
HR manager Project Manager Construction
manager
Construction
Engineer
supervisors
The company
follows a policy and
practices to check
and rate the
employee
performance
(employee
performance
evaluation form).
The company has
employee
performance
evaluation form.
The hr department
asks to fill the
employee
performance form
each year
Employee
performance
evaluation form.
Through
employee
evaluation form.
Once in a year Yearly once One time in a year Yearly once Yearly once
To rate the employee
performance upon
the targets given to
each employee and
to improve the work
efficiency and to
increase the
productivity.
To check how the
employees are
performing in the
project towards
targets.
To check employee
performance towards
targets and identify
weak performers
To rate the
performance of
each employee and
to identify weak
performers.
Usually to give
marks for the
employee
performance on
each categories.
Individual
performance
Individual
performance
Individual
performance
Individual
performance
Individual
performance
Construction
managers, engineers
and supervisors of
each team.
construction
manager, engineer
and supervisor
construction
manager, engineer
and supervisor
construction
manager, engineer
and supervisor
construction
manager,
engineer and
supervisor
P a g e | 47
Strategic human resource management
Weekly targets Weekly targets for
each department
managers.
Weekly targets for
department
engineers.
Weekly targets for
supervisors & team
Weekly targets to
the manual
employees.
Poor performers will
be sent for training
sessions.
Poor performers will
be terminated.
Poor performers will
be dismissed from
the company with
project manager
approval.
Immediate
termination.
Dismiss
Appendix B4: Strategic training & development
HR manager Project Manager Construction
manager
supervisors Manual
employees
Yes the company has
formal training and
development process
Formal training and
development
process.
Yes No awareness of
such process
Don’t know
The company has the
policy and
procedures.
Policy and
procedures are there.
The company
follows policy and
procedures
May be they have. N/A
Technical Training
for the fresh
graduates.
Fresh graduates
training sessions are
conducted by the
organisation.
The company use to
select fresh graduates
and gives training in
related field.
N/A N/A
Job oriented training
for poor performers.
It depends on HR
and top management.
Depends on HR. No No
Formal staff
development plans
are there.
Formal staff
development plans
are there.
Formal staff
development plans
are there.
Only promoted to
higher levels.
No programs
were conducted
to develop the
skills and no
promotion
Up on employee high
performance
continuously
Recommended upon
employee
performance in the
site.
Based on employee
performance
Based on employee
performance
N/A
The company
follows policy and
Yes. Orientation has
been given to all
Orientation for new
employee is
Orientation sessions
are there on the first
Orientation
sessions are
P a g e | 48
Strategic human resource management
procedures to give
orientation for new
employees.
employees. conducted in the
organisation.
day of employment. there.
Conducted by HR
professionals
Conducted by HR
professionals
Conducted by HR
professionals
Conducted by HR
professionals
Conducted by
HR
professionals
Introduction about
the company and its
operations,
company’s quality
management system,
introduction about
the cost centre
manager and project
manager and at last
safety orientation for
the new employees.
HR professionals
will give the formal
orientation.
Orientation on health
and safety will be
given by site safety
manager.
HR professionals
will give the formal
orientation.
Orientation on health
and safety will be
given by site safety
manager.
HR professionals
will give the formal
orientation about
company’s
operations.
Orientation on health
and safety will be
given by site safety
manager.
HR
professionals
will give the
formal
orientation
about
company’s
operations.
Orientation on
health and
safety will be
given by site
safety manager.
Appendix B5: Rewarding human resources
HR manager Project
Manager
Construction
manager
Construction
supervisor
Manual
employees
The organisation
motivates the
employees by
paying bonus at the
end of successful
project completion.
The organisation
motivates the
employees by
paying bonus at the
end of successful
project completion.
The organisation
motivates the
employees by
paying bonus at the
end of successful
project completion.
The organisation
motivates the
employees by
paying bonus at the
end of successful
project completion.
Non-manual are not
getting bonus at the
end of the project
Compensation
schemes: pension
plans, medical
insurance for
employee and his
family,
accommodation
assistance, free
pension plans,
medical insurance
for employee and
his family,
accommodation
assistance, free
transportation, car
allowances, paid
pension plans,
medical insurance
for employee and
his family,
accommodation
assistance, free
transportation, car
allowances, paid
pension plans,
medical insurance
for employee and
his family,
accommodation
assistance, free
transportation, car
allowances, paid
pension plans,
medical insurance
for employee and his
family,
accommodation
assistance, free
transportation, car
allowances, paid
Strategic human resource_management
Strategic human resource_management
Strategic human resource_management
Strategic human resource_management

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Strategic human resource_management

  • 1. Strategic human resource management SCHOOL OF ENGINEERING MASTER OF ENGINEERING PROJECT MANAGEMENT PROJECT REPORT IN STRATEGIC HUMAN RESOURCE MANAGEMENT (Construction of oil and gas processing industry) BY ALAGARSAMY NAVANEETHAKRISHNAN B.E, M.TECH 15882005 23-10-2015 SUPERVISOR Dr. NICOLA NAISMITH BSC HONS, MRICS
  • 2. Strategic human resource management FACULTY OF DESIGN AND CREATIVE TECHNOLOGIES AUCKLAND UNIVERSITY OF TECHNOLOGY TE WANANGA ARONUI O TAMAKI MAKAU RAU SCHOOL OF ENGINEERING MASTER OF ENGINEERING PROJECT MANAGEMENT Name ALAGARSAMY NAVANEETHAKRISHNAN ID Number 15882005 Paper Name PROJECT IN ENGINEERING PROJECT MANAGEMENT Assignment Project report : STRATEGIC HUMAN RESOURCE MANAGEMENT Number of words (excluding appendices) 14025 • Please read and tick the boxes below before handing in your assignment • If you are uncertain about any of these matters then please discuss them with your lecturer. Assignments will not be accepted if this section not completed. Where I have used someone else’s words or images, we have clearly indicated this by putting them inside speech marks (if appropriate) and adding an in-text reference Where I have used other people’s ideas or writing, we have clearly indicated this by putting them into our own words and adding and adding the reference at the end of the sentence/paragraph.  Other than the above, this assignment IS NOT copied from another student or previous assignment  IS NOT directly copied from books, journals or other materials  IS NOT cut and pasted from the internet  HAS NOT been handed in by one of us or anyone else in any other course  HAS NOT been done by someone else (e.g. friends, relative, professional)  I agree to this assignment being used (or copied) for academic purposes which shall include amongst other things, external moderation, promotional work, sharing with fellow colleagues and others works of good quality (and if I have any concerns, I will keep the lecturer informed) Signature Date…23/10/2015…
  • 3. Strategic human resource management DECLARATION This research project report has been written by me and represents my own work. This work has not previously been submitted by myself or anyone else. All sourced information has been properly acknowledged and referenced. I have maintained and will continue to maintain the confidentiality of any persons/organisations referred to in this research project report. I permit this assessment to be copied for academic processes (such as moderation). I have retained a copy of this research project report electronically. Signature Date - 23.10.2015
  • 4. Strategic human resource management ABSTRACT All organizations in this world irrespective of their size need to adopt some strategies to achieve its organization goals. More often questions arise from reader’s point of view, why strategic human resource management (SHRM) is essential for an organization. In such cases, many researchers investigated and revealed their studies about SHRM in marketing industry, civil construction industry and production industries but no author has revealed their research studies about strategic human resource management practices in construction of oil and gas processing industry. Strategic human resource management (SHRM) suggests a strategic framework to manage the people in the organisations and that helps the organisations to improve the performance, increase the productivity, innovations and competitiveness. This study attempts to analyse the key concepts of SHRM’s planning and implementation in oil and gas processing plants in areas of recruitment and selection process, performance management process, reward management process and training and development processes in the organization. The overall aim of the research project was to explore the types of HRM strategies used by oil & gas construction industry and suggest best practices to improve their organisation’s performance. The objectives of the research project were: • The research project aims to critically review the literature concerning strategic human resource management in construction industry, which involves the matrix of strategic planning process, strategic recruitment and selection methods, strategic performance management process, strategic reward management process, strategic training and development process. • Secondly, it identifies the current practices of strategic human resource management process in construction of oil and gas processing plants and analysis the gaps in the current SHRM. • Finally the research reviews and analyses the current practices and recommend the best SHRM practices for construction of oil and gas processing industry to align with their business objectives and to enhance their business performance. The study explored the current SHRM practices in construction of oil & gas processing industry using qualitative methods. The semi-structured interviews were conducted to the HR
  • 5. Strategic human resource management Manager, Project Manager, Construction Manager, Construction Engineer, Supervisors and to the Manual employees (foreman, technician, labour). The results of the interviews were analysed to find the commonalities and differences of each interviewee. Identified the gaps in the current SHRM practices and suggested best practices to enhance their SHRM practices to achieve their business goals strategically.
  • 6. Strategic human resource management ACKNOWLEDGEMENTS First I would like to thank God for giving me strength and knowledge. I would like to thank my supervisor Dr. Nicola Naismith (Senior Lecturer) for invaluable support, encouragement and guidance throughout the research project process. Then I would like to thank Professor John Tookey, Dr. Dave Moore and Dr. Jeff Seadon for their invaluable support and encouragement during my earlier studies in Auckland University of Technology. I would like to acknowledge the support of the organisation and all the individuals in the organisation spent their invaluable time and provided resources to do this research project, without this input this research project would not have been possible. Finally I would like to thank my dad, mom, wife, my son and my friends for their emotional support and practical advice.
  • 7. Strategic human resource management Table of Contents Chapter 1....................................................................................................................................1 1.0 Introduction..........................................................................................................................1 2.0 Methodology........................................................................................................................2 3.0 Research Question ...............................................................................................................4 3.1 Research Objectives .........................................................................................................4 Chapter 2....................................................................................................................................5 4.0 Literature review..................................................................................................................5 4.1 SHRM Planning ...............................................................................................................5 4.2 Strategic Recruitment.......................................................................................................7 4.2.1 Recruitment Activities...............................................................................................8 4.2.2 Internal Recruitment..................................................................................................9 4.2.3 External Recruitment...............................................................................................10 4.2.4 Recruitment Policy ..................................................................................................11 4.3 Strategic Selection..........................................................................................................11 4.3.1 Steps to be followed in Selection Process ...............................................................12 4.3.2 The Selection Decision............................................................................................13 4.4 Strategic Performance Management & Measurement ...................................................14 4.4.1 Rater of Employee Performance..............................................................................15 4.5 Strategic Training and Development..............................................................................16 4.5.1 Orientation...............................................................................................................17 4.6 Rewarding Human Resources ........................................................................................18 4.6.1 Employee Motivation ..............................................................................................18 4.6.2 Money and Motivation ............................................................................................19 4.6.3 Pay -for-Performance ..............................................................................................19 4.6.3 Compensation schemes............................................................................................19 4.7 Conclusion......................................................................................................................20 Chapter 3..................................................................................................................................21 5.0 Results & Discussion.........................................................................................................21 5.1 HRM Planning Strategies...............................................................................................21 5.2 Recruitment & Selection Strategies ...............................................................................22 5.3 Strategic performance Management & Measurement....................................................24 5.4 Strategic training & development ..................................................................................26
  • 8. Strategic human resource management 5.5 Rewarding human resources ..........................................................................................27 Chapter 4..................................................................................................................................29 6.0 Recommendation & Conclusion........................................................................................29 7.0 Limitations of the research.................................................................................................32 8.0 References..........................................................................................................................33 9.0 Appendix............................................................................................................................37 Appendix A1: Staff requisition form (SRF).........................................................................37 Appendix A2: Application form ..........................................................................................39 Appendix A3: selection method...........................................................................................40 Appendix A4: Employee performance evaluation form ......................................................41 Appendix B1: Strategic human resource planning...............................................................44 Appendix B2: Strategic recruitment & selection process ....................................................45 Appendix B3: Strategic performance management & measurement...................................46 Appendix B4: Strategic training & development.................................................................47 Appendix B5: Rewarding human resources.........................................................................48 Appendix B6: Research questions and interview questions.................................................49 List of figures Figure 1: Research Framework..................................................................................................2 Figure 2: Model of Strategic human resource planning.............................................................6 Figure 3: model of Strategic human resource planning.............................................................7 Figure 4: Successive Hurdles Method .....................................................................................14 Figure 5: model of Strategic performance management & measurement ...............................15 Figure 6: Herzberg two factor model.......................................................................................19 Figure 7: performance appraisal and training needs................................................................30
  • 9. P a g e | 1 Strategic human resource management Chapter 1 1.0 Introduction The concept of Human Resource Management and strategic management provide the basis for Strategic Human Resource Management. Wright and McMahan (1992) explained that the field of human resource management has integrated with strategic management process to form a new discipline referred to as strategic human resource management (Wright & McMahan, 1992). Michael Armstrong (2011) explained that strategic human resource management is an approach for managing human resource that helps organizations to achieve long- term goals and objectives with a strategic framework (Armstrong, 2011b, p. 48). Terhalle (2009) argued, many researchers assume that the HRM strategy of an organization corresponds with the implementation of those strategies. However, those strategies are implemented without clear direction. This leads to big difference between the developed strategy and actual implementation. A well-developed HRM practices is equally good to contribute in this current technology world that needs to be implemented due to competitive business growth. The responsibility for the SHRM implementation lies with the line managers of an organization since they have to execute the HRM practices on the work floor. The line manager and HR manager participation is important while setting the human resource objectives like strategy development followed by resource planning, HRM outcomes and evaluating the performance strategies. In short, human resource professional are responsible for the design and development of HRM practices in an organization, while the line managers are responsible for implementation of these practices (Terhalle, 2009, p. 125).
  • 10. P a g e | 2 Strategic human resource management 2.0 Methodology The academic research project follows qualitative research methods. The qualitative content analysis is one of the best method used to analyse the transcripts. Research using qualitative content analysis mainly concentrates on the attributes of language as communication with attention about the content (Tesch, 1990) (McTavish & Pirro, 1990). In this research method, the data’s are collected in verbal, text or in the electronic form from interviews, open-ended survey questions or from books and manuals (Kondracki & Wellman, 2002). The aim of the research project is to do in-depth analysis of strategic human resource management practices followed in construction of oil and gas processing industry. A framework has been designed to outline the sequence of the research events explained in figure 1.0. Because it is important to understand the relationship between the aim and objectives, expected outcomes, and the data collection and analysis methods employed. Figure 1- Research Framework The research project report starts with collecting literatures data about strategic human resource and its core components. The literature review covers the keys elements of strategic human resource management such as strategic human resource planning (SHRP), strategic recruitment and selection, strategic performance evaluation, strategic human resource training and development process and employee motivation. After critically reviewing the literature ideas, a set of questions were formed from the literature review to conduct the semi-
  • 11. P a g e | 3 Strategic human resource management structured interviews to the employees in organisation. The semi-structured interviews were highly structured with questions and will go on open conversation with manual and non- manual employees of the organisation (Kvale, 1996). The semi-structured interviews are conducted in two phases. First phase interviews has been conducted to the HR manager and project manager of the organisation to collect the relevant data for the research questions shown in Appendix B6. The second phase interviews are conducted to the construction managers, manual and non-manual employees of the organisation to collect the relevant data for the research questions shown in Appendix B6. The data has been collected in regular intervals and the contents of the transcripts were analysed to allow the commonalities and differences that existed between each interviewee. A simple table shown below to collect the data from employees and to check for commonalities and differences SHRM planning Recruitment and selection Performance evaluation Training and development Employee motivation HR manager Project manager Line manager Engineering supervisor Manual employees Through this approach, the results of the interviews are tabulated and analysed for the commonalities and differences between one and another interviewee (Naismith, 2007). Then discussed elaborately about the related information’s got from the employees in the organisation. Clearly sorted out the gaps and then compared with the literature ideas. At last the research project suggested some best practices to enhance the SHRM in construction of oil and gas processing industry in chapter 4.
  • 12. P a g e | 4 Strategic human resource management 3.0 Research Question What are the strategic human resource management practices to be followed in the construction of oil and gas processing plants? 3.1 Research Objectives • The research project aims to critically review the literature concerning strategic human resource management in construction industries which includes planning, recruitment and selection, performance management, reward management, training and development and employee welfare. • Secondly, to identify the current practices of strategic human resource management process in construction of oil and gas processing plants. • Finally review and analyse the current practices, find the gaps and recommend the best SHRM practices for construction of oil and gas processing plants to align with their business objectives.
  • 13. P a g e | 5 Strategic human resource management Chapter 2 4.0 Literature review 4.1 SHRM Planning Raymond J Stone stated that, setting an organisation mission statements and key objectives is an important task. According to the developed organization strategy, the human resource department focuses on planning the human capitals. The strategic human resource planning involves in acquisition of potential workforce, employee skill development and the role extends until exit of an employee from organization. It is not only the HR activity, the project manager and department managers are also involved in it. HR managers and project managers focus on linking all HR activities with organizations strategic objectivities (Stone, 2005, p. 47). Parker and Caine (1996) suggested that strategic human resource planning (SHRP) is about identifying and ensuring that the correct amount and mix of employees obtained and their availability at the right place at the right time (B. Parker & Caine, 1996, p. 30) . Beardwell (2004) defined the SHRP as, “ it is the process of identifying organization’s present and future human resource needs, developing and implementing the strategic plans to meet these requirements and monitoring the overall performances” (Beardwell, 2004, p. 159). Braton and Gold (2003) writes that SHRP is the process of systematically forecasting the future requirements and supply of employees and use of their skills within the strategic objectives of the organization (Bratton & Gold, 2003, p. 191). Raymond J Stone commented that project manager will review the organization objectives and strategies to determine what job needs to be done and by whom. According to that, an organisational structure will be produced and employee will be allocated for the designations. The project manager and department managers decide the manpower requirements to finish the project. They follow quantitative and qualitative approaches to match people with jobs in terms of numbers, abilities, knowledge, skills and qualification and they produce a clear job design and job specifications. In turn to that, the human resource department produces its strategic plans towards staffing, selection, performance evaluation, training and development, reward and benefits, motivation and employee departure (Stone, 2005, p. 46) . Torrington, Hall & Taylor (2005) stated that the demand for man power is influenced by company strategies and objectives by examining the environment and its requirements. According to that, the current employees will be mobilized from the old project
  • 14. P a g e | 6 Strategic human resource management to the new projects. If the man power demands are high for the proposed new project then with the help of HR professionals the organization will search for the required skills in the labour market (Torrington, Hall, & Taylor, 2005, p. 51). Marchington and Wilkinson (2002) addressed that SHRP provides a method for predicting labour requirements against internal and external supply in terms of numbers, knowledge, skills and attitudes (Marchington, Wilkinson, & Sargeant, 2002, p. 280). Raymond J stone suggested, the human resource manager should have clear idea about the future organization requirements and determine from where they will be obtained. The HR manager should follow three sets of forecast methods • Estimate the demand for manpower within the organisation. • Forecast of the supply of external human resources. • Forecast of the supply of human resources available within the organization. A strategic human resource planning model is shown below in Figure 1 describes, the HR professionals are in need to evaluate and determine number and types of jobs that to be filled and they produce a demand for the required man power number with expected skills, qualification, past work experience and employee performance in the past (Stone, 2005, pp. 46-52). Figure 2: Model of Strategic human resource planning (Stone, 2005, p.51)
  • 15. P a g e | 7 Strategic human resource management Torrington et al., suggested a model (figure 2) for SHRP which describes, analyse the organization’s environment (strengths, weakness, opportunity and threats) and determine the organizational objectives and strategies. Fulfilling the project manpower supplies by analysing the internal manpower status, if the demands are high then assess the external manpower supply market (Torrington et al., pp. 51-54) . Figure 3: model of Strategic human resource planning (Torrington et al., p. 51) Gardner & Palmer commented, the outcome of the planning will be(Smith, 1956) • The company will get the right people in the right place • They will placed in right designations at right time This will give positive outcomes to the organization in terms of productivity, profitability, employee motivation, employee job satisfaction, employee performance, employee competence and employee well- being (Gardner & Palmer, 1997, pp. 269-272). Beardwell commented that the integration of SHRP practices with the organization business strategy will produce better organizational performance (Beardwell, 2004, pp. 180-181). 4.2 Strategic Recruitment Recruitment and selection strategies flow eventually from the organization’s mission and strategic objectives (Nankervis, Compton, & Baird, 2002). Salaman, Storey & Billsbery (2005) stated that recruiting and selecting new talented staff is a core HRM activity in an organization. Recruitment is the process of seeking and attracting a pool of qualified candidates for the job vacancies while selection is the process of choosing the best candidate
  • 16. P a g e | 8 Strategic human resource management who meets the organization requirement (Salaman, Storey, & Billsberry, 2005). For Miller (1984) the purpose of strategic ‘staffing’ is to identify and choose the talented employees who will best run the organization and business objectives in the long run (Miller, 1984, p. 68). The role of the HR department is to analyse and select an individual who is well qualified, highly motivated and able to work alongside colleagues and likely to remain in post for reasonable time. Recruiting and selecting the best applicants makes an anticipate changes in the organization environment. Strategic recruitment does this by linking the recruiting activities to the organizations business objectives. The human resource planning team sketches the number and type of jobs to be filled. The line manager will clearly give the details about the requirements including job description and job specification to the HR department personals(Stone, 2005, p. 188). Bresnan (1985) found that in construction industries the line managers are directly involved in the selection of employees and employment issues. The recruitment and selection decision of manual and non-manual employees for the construction industry was done by line manager aligned with HR professionals (Bresnen et al., 1985). Drucker & White (1994), mostly in private sector construction industries the line management covers six areas namely pay and benefits, recruitment and selection, training and development, industrial relations, work expansion and reduction are the Primary responsibilities of line management and HR department. Thus the HR manager will make different steps for selection process(J Druker & White, 1994) . 4.2.1 Recruitment Activities Mathis & Jackson (2011), HR manager should undertake some necessary methods to perform as follows Find out and sort out the organisations long-term and short-term HR needs. • Keep aware to changing conditions in the labour market. • Develop suitable recruitment advertisements. • Maintain a proper record about the number and quality of applicants from each recruiting resource. • Follow up on applicants to evaluate the efficiency of the recruiting effort (Mathis & Jackson, 2011, p. 189). Franco and Diaz gave an action plan for the strategically integrated recruitment and selection systems they are:
  • 17. P a g e | 9 Strategic human resource management • Analyse, identify and formulate the core values and capability of the organization. • Establish the job profiles based on core values and competence. • Evaluate the validity of job profiles and prepare a policy for the recruitment and selection process which should meet organization’s requirements. • Communicate those policies to the line manager and get the feedback from them. • Finalise the policy and prepare the procedures for recruitment and selection process. • Execute the action plan (Luisa Arenas Franco & Iniguez Diaz, 1995). 4.2.2 Internal Recruitment Mathis & Jackson stated, whenever the job vacancy exits, the first replacement source to consider is within the organization. Most of the organizations have a policy of filling the vacancy through internal transfers or by promoting the employees to the higher positions (Mathis & Jackson, 1997, p. 220). Newell & Shackleton (2000), many organizations favours to invite applications from internal employees before they look to their external labour market for new candidates. Internal recruitment will help organizations to save the hiring cost and efficiency gains can be made because internally recruited employees clearly know the organization goals and its culture. So they will get adopted easily into the new positions than people being brought from outside. The main disadvantage is that only few applicants will be able to apply for the position that it permits an organization to consider (Shackleton & Newell, 2000, pp. 116-117) .Raymond J Stone (2005), clearly plotted the advantages and disadvantages of internal recruitment Advantages: • Candidates clearly know about the organization and its strength and weakness. • Employee morale and motivation enhanced. • Training cost will be reduced. • Can generate succession of promotions. • Return on investment will get increased. Disadvantages: • Excellent training and development program is necessary. • System can become intrusive. • Employee infighting for promotions can affect morale. • Employee promoted beyond the level of capability (Stone, 2005, p. 192) .
  • 18. P a g e | 10 Strategic human resource management Organization use different techniques to locate skilled internal candidates and to inform existing employees about the job openings and opportunities (Stone, 2005, p. 191). Computerised Record System: The HR manager will have the data bank in the computer which contains personal details, qualification details and work history of each employees. This permits the HR manager to quickly locate potential candidates within the organization after consulting the project manager and getting approval from him (Stone, 2005, p. 191). Job Posting: Sheila Connelly (1975) & stone (2005), the principle of job posting is to inform the internal employees about the job vacancies via computerised positing programs, bulletin boards, newsletters and personal letters which make the internal employees to match the job vacancy with their skills, qualification and experience. Successful job posting programs have the following characteristics • The job vacancy information is posted in information boards or advertised so that the interested employees are likely to see them. • All internal promotions and transfer opportunities are posted • Before external recruitment, all job openings are posted. • The job vacancy is described with the job specification and the necessary knowledge, skills, qualification and personal recruitment will be posted. The interested internal employee who meets the requirements as briefed can apply for the positions (Stone, 2005, p. 191) (Connelly, 1975). 4.2.3 External Recruitment The HR department will use various approaches to locate and attract external candidates. The HR manager should know which recruitment channel is likely to be most successful in targeting particular labour group. The approach can be made through government employment agencies, educational institutions, private employment agencies, recruiting consultants and even use popular sources like advertisements and employee referrals (Stone, 2005, p. 192). Torrington et al., briefed that, if the employer has decided that external recruitment is necessary, the employer must prepare the cost- effective and appropriate method for recruitment activities. Different organizations use different recruitment methods
  • 19. P a g e | 11 Strategic human resource management at different times (Torrington et al., 2005, pp. 125-126).Raymond J Stone (2005) plotted some advantages and disadvantages of external recruitment Advantages: • The pool of talent is bigger. • Fresh skills, talents, new insights and know-how can be introduced in to the organization. • It is often cheaper and easier to hire employee from outside the organization. Disadvantages: • Attracting and selecting new employee is more difficult. • New employee training and orientation takes longer. • Morale may suffer from existing employees. • Cannot guarantee the employee performance (Stone, 2005, p. 192). 4.2.4 Recruitment Policy An organizations recruitment policy provides the framework for recruiting action and it reflects the organizations recruitment objectives and culture. In general the HR manager and the line management follow those policies for the recruitment process. The recruitment differs from one organization to other organizations(Stone, 2005, p. 189). In construction industry sector there is a sharp difference in policies employed for manual and non-manual employees. According to the labour market requirements the policy was employed for the various categories of employees. In many organizations the employees are recruited in contract basis initially with the collective agreements (Janet Druker, White, Hegewisch, & Mayne, 1996, pp. 412-413). 4.3 Strategic Selection Selecting the skilled and talented employees for the company is a part of organization’s HRM objectives. Strategic selection aligns employment activities with the organization’s business objectives. According to the project requirements the selection will be made (Williams & Dobson, 1997, p. 242). Pfeffer found that high-performance organization’s employ accurate selection procedures that have been refined and developed over time to identify the people with attitudes and skills they required(Pfeffer, 2005, pp. 74-79) . He further states that the poor selection decisions results in
  • 20. P a g e | 12 Strategic human resource management • Increased training time • Labour throughput • Absenteeism • Accidents • Industrial unrest • Job dissatisfaction and poor performance(Pfeffer, 2005, pp. 73-74) 4.3.1 Steps to be followed in Selection Process Selection process and procedures differs from organization to organization. Selection process will be conducted according to the company objectives, culture and size, type of industry, state of labour market and the type. The selection steps shown below represent the full scale of selection process (Stone, 2005, p. 229). Derek Torrington, Laura Hall & Stephen Taylor (2005) stated that selection is a two- way process in which the potential employer and potential employee will make selection decisions. The selection decision can be made by integrating all the selection information available. Most of the organizations use different selections methods like application forms, interviews, tests, assessment centres and references (Torrington et al., 2005, p. 141). Step 1: Reception of Applicants The importance of giving the applicants a positive feeling at this stage cannot be overemphasised. Disrespect, lack of interest at the reception may cost the organization a good applicant and encourage negative attitudes about the company (Stone, 2005, p. 229). Step 2: Telephone Screening When there is large number of applicants are expected, primary screening may be done over the telephone to abstain from filtering through many applications. Applicants can be asked few simple questions about the job requirements (Stone, 2005, p. 230). According to the Chartered Institute of Personnel and Development survey, nearly 28% of the organizations used this method for selection (CIPD (2003)). Step 3: Preliminary Interview The initial screening interview is conducted by organizations is to check the employee skills, language, qualification and willingness (Stone, 2005, p. 230).
  • 21. P a g e | 13 Strategic human resource management Step 4: Application Form The application form is the primary source for all employment information for the use in later steps of the selection process. It is also a valuable tool used for filtering out the unqualified employees (Heneman, Heneman, & Judge, 1997). According to the CIPD survey, it is found that, nearly 80% of the organization used this method in selection process (CIPD, 2003). Step 5: Tests Procedures in conducting test for applicants differ from organizations and its nature of selection process. Each organization will follow the own company policy when conducting tests (Posthuma, Morgeson, & Campion, 2002, p. 80). HR managers need to demonstrate to job applicants about the selection techniques employed. Some organizations conduct test in different aspects like Employment tests, interest tests, aptitude tests, intelligence tests and personality tests (Bauer, Maertz Jr, Dolen, & Campion, 1998). 4.3.2 The Selection Decision Torrington et al., (2005), suggested a useful tool to do the selection process. They introduced the matrix format of selection in which each employee will be assessed and selected against each selection criteria (Torrington et al., 2005, p. 158). The selection decision matrix is shown below Selection criteria Candidate 1 Candidate 2 Candidate 3 Candidate 4 Criterion A Criterion B Criterion C Criterion D General Comments (Torrington et al., 2005, p. 158) Raymond J stone (2005) writes that some organizations use successive hurdles approach. In successive hurdles approach, the selected applicants are ranked according to their effectiveness and intelligence. Hurdles approach is very economical. A successive hurdles approach is shown below
  • 22. P a g e | 14 Strategic human resource management Successive Hurdles Approach Figure 4: Successive Hurdles Method (Stone, 2005, p. 255) 4.4 Strategic Performance Management & Measurement Storey and Sisson define performance management as “an interlocking set of policies and practices which have as their focus the enhanced achievement of organizational strategic objectives through a concentration on individual performance” (Storey & Sisson, 1993). Performance management and performance appraisal are typically designed on a central basis by HR function and require each line manager to appraise performance of their staff. These measurements are done in annual basis (Torrington et al., 2005, p. 259).The evaluation of organizational and employee performance permits the manager to check that the strategic objectives are valid, are being successfully communicated throughout the organisation and are being achieved. In short, performance management ensures that the jobs are designed accurately and that eligible persons are hired, trained, rewarded and motivated to achieve the organizations business objectives. By managing the better employee performance, the organization gains better cash flow, productivity increases and overall better financial performance (Mcdonald & Smith, 1995). Baron & Armstrong state that the nature of measuring employee performance in organization will increase the effectiveness of the organization, by improving the people performance who work in them and by developing the capabilities of teams and individual contributors(Baron & Armstrong, 1998, pp. 38-39). Lebas (1995) writes that the difference between performance measurement and performance
  • 23. P a g e | 15 Strategic human resource management management, performance measurement includes measures based on the key performance indicator (KPI) set and key success factors which includes: measures to track the past achievements; measures of output and input, Whereas performance management involves in issues as training, teamwork, management method, employee involvement and rewards (Lebas, 1995, pp. 23-35). Appraising and managing performance are the critical management responsibilities and it’s a vital part of the organizations strategic management process. Performance appraisal system are impermanent and divorced from organisations business strategy when comes to practices. Many companies do not link their strategic objectives with individual employee performance criteria (haygroup, 2001; Nankervis & Leece, 1998). Figure 5: model of Strategic performance management & measurement (Stone, 2005, p. 295) 4.4.1 Rater of Employee Performance In most of the organizations, evaluation of employee performance is done by immediate supervisor. In fact, performance appraisal can be done by anyone who is familiar with the job responsibilities and performance objectives and he has to know –how to distinguish behaviours that produce effective or ineffective performance. Consequently, immediate
  • 24. P a g e | 16 Strategic human resource management supervisors, peers and employee themselves can all provide information on employee performance. The major types of performance appraisal system used in the organisations are ranking and grading (Scarpello, Ledvinka, & Bergmann, 1995, p. 608). In 1992, Kaplan & Norton introduced a ‘balance scorecard’ approach to measure the employee performance in the organization (Kaplan & Norton, 1992, pp. 71-79). Ranking is one of the methods used for rating the employee’s performance in the organisations. Line Managers and supervisors are the responsible persons to rate the employee performance and by following such criteria’s such as job knowledge, quality of work, quantity of work and attendance of the employee (Stone, 2005, p. 295). Employee performance levels can be graded such as superior, good, acceptable, marginal and unsatisfactory. Employee’s performance is compared with the grade definitions, and then the employees are placed in the grades to describe their performance (Grote, 1998, p. 4). 4.5 Strategic Training and Development Garger (1999) writes that, implementing training and development programs for employees has become one of the important aspects of human resource department in an organization. Implementing training and development programs will boost the organization’s productivity and international competitiveness. Now a days, most of the employees working in an organization looking for their growth and learning opportunities to improve their employability (Garger, 1999, pp. 10-17). Pfeffer (1998) state that, to maintain and improve the employee performance and productivity then the organization must implement and emphasis training and development programs (Pfeffer, 1998, p. 85). Armstrong writes that, learning and development is part of strategic human resource development (SHRD) practices which has policy and procedures and by implementing learning and development programs will help the organization to achieve its business goals. The main thrust of SHRD is to provide an environment in which the employees are encouraged to learn and develop their skills (Armstrong, 2011a, p. 248). Keep (1989) says that, one of the primary objectives of the human resource management is to retain the talented employees and their commitments to the organization should be secured (keep, 1989, pp. 109-125). The HR manager of an organization should rise the question about, 1. What are the strategic business objectives of the organization? 2. What steps to be taken or what needs to be done to develop the employee skills and knowledge?
  • 25. P a g e | 17 Strategic human resource management A well-designed human resource development programs will help the organization to increase their employee performance and productivity (Stone, 2005, p. 331). Training typically emphasises immediate improvements in job performance and development, aims to prepare the employee for the future job responsibilities (Werther & Davis, 1996, p. 282). The new employees will be given entry level training with the skills necessary to meet the performance standards of the job. If employee performance and productivity is high, then he will be trained and developed with additional skills to promote him for the higher positions. This encourages the employee personal growth. Measuring the performance of employees and highlighting their weakness in job skills and giving skill oriented training to improve the employee performance. Few organizations linked performance appraisal information with training (Taylor & Driscoll, 1992, pp. 593-603). 4.5.1 Orientation Employee orientation is a key part of training and development. Newly recruited employee should be given training on organisational activities, its culture and how to do their jobs. By giving training about the job skills will make the new employees to perform well (Wanous & Reichers, 2001). Researchers have found that, providing orientation to the new employees will make positive attitudes, job satisfaction and sense of commitment at the start of employment relationship (Halton, 1996). Formal Orientation Programs: If the numbers of employees are more for the orientation program then it is worthwhile having a formal orientation program. In formal orientation programs the company can include the presentations from CEO, Project managers, public relation materials such as corporate videos and presentation from recent entrants about their experiences working in the organisation. The major benefits of conducting such orientation will reduce the individual anxiety, employee can share their experience and opportunity to rise matters of concern (Stone, 2005, p. 352) . Informal Orientation: Some organisation prefers informal orientation approach to employee orientation, believing it makes for a more relaxed and personalised introduction to colleagues. Mentors or sponsors will act as adviser for the new employee in this approach (Stone, 2005, p. 352) .
  • 26. P a g e | 18 Strategic human resource management 4.6 Rewarding Human Resources Armstrong (2002) defines reward as ‘how employees are rewarded in accordance with their value to the organization. It is concerned with both financial and non-financial rewards and embraces the plans, strategies, policies and processes used by the organization to develop the and maintain the reward system’ (Armstrong, 2011b). Reward strategies differ from one organization to the other. Of course, similar methods and aspects of reward will be covered in the strategies of different organization but they will be treated differently in accordance with variations between organizations in their context, strategies and cultures (Armstrong & Murlis, 2004, p. 33). In construction industries, a successful reward strategy is one that gives clear guidance on development planning and implementation and achieves its objectives when implemented. It’s the duty of HR to develop and initiate new reward policies and practices but the line manager has the main responsibility for implementing them (Armstrong, 2011b, p. 270). 4.6.1 Employee Motivation Cowling (1996) commented strategic business objectives seeking competitive advantage through higher performance and higher productivity can be achieved only if employees are strongly motivated to perform. Job design, the system of rewards, management style, corporate culture, organization structure and change management all interrupt on employee motivation. If management downgrades employee motivation, then the organization will face risks in executing their business objectives. Employee motivation is one of most challenging aspects of HRM. It shows itself through employee morale, output, absenteeism, effort, labour turnover, loyalty and achievement (Cowling, 1996, pp. 296-302). Emery & Philips (1976) found that Herzberg’s two factor theory has gained wide acceptance in management circles and it has a major impact on job design. Motivators are higher order achievements like recognition, intrinsic interest in the work, responsibility and advancement. These determine job satisfaction and performance. Hygiene factors are the lower order needs which are come across by pay, working conditions, interpersonal relations, supervision, company policy and administration. Herzberg argued that these factors are not the real employee motivators. Job satisfaction is the true employee motivators. If the employee satisfied with the job then the performance gets increases and productivity also increases (Emery & Phillips, 1976).
  • 27. P a g e | 19 Strategic human resource management Figure 6: Herzberg two factor model 4.6.2 Money and Motivation Money plays an important role in employee motivation. Many researchers argue that money is not only the motivator in the organizations. But theories like equity, expectancy and reinforcement theories all show money as the motivator in organizations (Ivancevich, 2001, pp. 298-299). Employees compare money earned to determine how they rank. Thus the result of such ranking can affect the employee motivation(Milbourn, 1980, p. 33) . 4.6.3 Pay -for-Performance Raymond J Stone (2005), the relationship between pay and performance is especially effective, when an individual employee performs well in the project and achieves the target within the given time period then that employee will be rewarded for his good performance. The line manager and supervisor is the responsible to evaluate and select the best performer in the project (Stone, 2005, p. 493). In addition to the pay for performance at the individual level, there is a considerable interest in pay-for-performance on small groups. Those types of rewards are planned by the top management in the organization (G. Parker, McAdams, & Zielinski, 2000, pp. 37-38). 4.6.3 Compensation schemes Medical insurance: Raymond J Stone (2005) says that some organisations provides basic medical insurance for the employees and their families. It covers all the health allied bills of the employee and families (Stone, 2005, p. 519). Organisations are started focusing more on managing healthcare by creating awareness to the employees about the wellness health programs to educate and motivate employees to adopt healthier lifestyles (Wachsman & Swanson, 1992, p. 11).
  • 28. P a g e | 20 Strategic human resource management Payment for time not worked: This category includes annual leave, sick leave, public holidays and educational leaves. On those categories the employees are paid even if they are not working in the organisation(Stone, 2005, p. 520). . Retirement benefit plan: Some organisations have retirement benefit plans for the employees. The organisation will take 1.5% of the monthly salary amount from employees and return it lump sum at end of the employee service period. These type of plans would benefit the employees (Gibbs, 2003, p. 91). 4.7 Conclusion Many literature ideas has been critically reviewed to understand the concepts of strategic human resource management and its core components in the different construction industry sectors. Different types of organisations in this world follows its own SHRM policies and procedures for staffing and managing people and those strategies are aligned with their organisation business goals and objectives. The study gave the clear concepts and ideas about the strategic human resource management practices in human resource planning involves in quantitative and qualitative analysis for manpower requirements, recruitment and selection methods involves in analysing the external and internal manpower resources, performance management and measurement methods, training and development process and reward management process. It is clearly understood that the HR management and the line management team should work jointly to enhance the SHRM and its practices. Therefore, based on this discussion of literature, few research questions were designed, and selected an oil and gas construction organisation to analyse the status of SHRM practices.
  • 29. P a g e | 21 Strategic human resource management Chapter 3 5.0 Results & Discussion This section outlines the results and discussion part of the research study in relation to the core components of SHRM, human resource planning, recruitment & selection strategies, performance management & measurement strategies, training & development strategies and employee motivation methods. The interviews were semi-structured in nature and undertaken to the human resource manager, project manager, construction manager, construction engineers, supervisors and manual employees in the organisation. 5.1 HRM Planning Strategies Results Appendix B1 shows the results of the strategic human resource planning in the organisation. Whereas the interviews has been conducted to the top management personals like HR manager, project manager and the department construction managers. In that, the results are similar in attending group meetings, reviewing the scope of the project and client requirements, discussion about the cost, starting time and deadlines to finish the project, analysing the manpower demands, sharing information, analysing the internal manpower supply and requirement of external resources. While developing and setting the policy and procedures for the organisation the project manager and department construction manager had not participated with the HR management. Discussion The initial plan involves taking part in the project execution team meeting involving project Director, Project Manager and Department Managers; in which a detailed mobilization plan is drawn for HR’s implementation. The organisation follows the quantitative and qualitative approach at the initial stage of the project. In these approaches, the HR manager and HR professionals uses statistical and mathematical techniques to predict the manpower requirements. To calculate the total manpower requirements the HR professionals designed and developed a manpower requisition application form showed in Appendix A1. The project manager and the department construction managers manipulate the manpower requirements with the help of planning engineer and fill the manpower request form by stating the requirements in numbers, position, category, qualification, experience and salary
  • 30. P a g e | 22 Strategic human resource management scale. Once receiving the manpower requisition forms, the HR professionals forecast the demand for manpower to complete the project successfully. This supports the work of Raymond J Stone (2005) regarding quantitative and qualitative approach in planning for human resources. Then they analysed the internal sources available within the organisation to fulfil the project requirements. If the project manpower requirements are high then they search for the talented professionals in the external labour market. This statement supports Torrington et al., (2005) and Marchington and Wilkinson (2002) regarding analysis of internal and external manpower supply. Conclusion: The research questions (Q1 & Q2) are clearly supported in this part because the level of participation of project manager and department construction managers during planning with human resource department is high. But they are not involved in design and developments of policies and procedures in the organisation. 5.2 Recruitment & Selection Strategies Results Appendix B2 shows the results of the strategies adopted by human resource department in recruitment and selection process. The organisation has structured procedures for recruitment & selection process. The interview has been conducted to the strategic managers and to the senior construction engineer. The results obtained from the discussion is similar in all aspects like mobilisation plans, internal & external recruitment methods, recruitment policy & procedures, selection methods and selection decision making process within the organisation. This supports the research question two (Q2) indicating that, according to the project requirements recruitment and selection process will take place. Discussion A particular gas processing booster station construction project is taken for this discussion. In that Total man power of the project = 4191 employees Internal transfers = 2558 Externally recruited = 1633
  • 31. P a g e | 23 Strategic human resource management The HR manager stated that the organisation has the policy to accommodate internal employees first. About 61% of the total manpower in a particular project are internally transferred and remaining 39% of manpower is externally recruited. This shows that the organisation mostly concentrated in internal transfer rather than external recruitment. This clearly indicates that, to reduce the external recruitment cost the organisation preferred internal transfers. This supports the work of Mathis & Jackson (1997), Newell & Shackleton (2000) and Raymond J Stone (2005) regarding internal transfers and benefits. When organisation plans for an external recruitment they follow certain policy and procedures. Initially the organisation advertise about job vacancies in their company website. If they require more manpower for the project then the organisation will select a private recruitment agency and make a mutual agreement between them to hire the employees. Those employees are hired on contract basis initially. This supports the work of Torrington et al., (2005) and Raymond J Stone (2005) regarding job vacancy advertisements and recruitment through private agencies. Initially the organisational develops a selection panel consisting of HR professionals, Project manager, department construction managers and department senior engineers to select the talented employees from the labour market. The interviews are conducted by senior engineers with his team. Here the organisation follows two stages of selection methods (appendix A3) Stage 1: 1.application forms, 2. Personality test, 3. Communication, 4. Relevance of education, 5. Job knowledge, 6. Practical skill test, 7. Knowledge of tools & equipment’s and 8. Safety awareness. Stage 2: Background career history investigation & medical examination. This supports the work of Henemen & Judge (1997), Raymond J Stone (2005) and Bauer et al., (1998) regarding selection methods. internal tranfer 61% externally recruited 39% 100% Recruitment internal tranfer externally recruited
  • 32. P a g e | 24 Strategic human resource management The organisation follows a band structure A to H where non-manual and manual employees are separated. Band A to E categories are non-manual employees (managers, engineers, office professionals and supervisors) and will have different pay scale. Band F to H categories are manual employees (foreman, technicians, labour, helpers and drivers) and will have different pay scales. The initial selection decision in this organisation is taken by the group of members like project manager, construction manager, senior engineer and superintend and final decision is taken by project manager by taking the advice from department construction managers. This discussion clearly supports the successive hurdles approach. Conclusion: The research questions (Q3, Q4 and Q5) is clearly supported in this part because the policies and steps followed in recruitment and selection process are highly effective in the organisation but there is a minor change in the selection decision process found compared to successive hurdles approach. The initial selection decision is taken by the line management team and the final selection decision is in the hands of project manager in the organisation. 5.3 Strategic performance Management & Measurement Results Appendix B3 shows the result of performance management and performance measurement strategies in an organisation. The interview has been conducted with the strategic managers, department engineers and the department supervisors in the organisation. The results obtained regarding the policy and procedures which the company follows, method used for measuring, on what aspects the performance is measured, responsible person to measure the employee performance, and performance measurement will be rated for team or individual and measures taken by HR professional and line management on the poor performers. The result obtained from each interviewee is almost similar apart from handling the poor performers. The HR manager says that the poor performers have been picked up from each project and they will be sent for on-site training to gain the knowledge about the work. In contrast, the line management stated that the poor performers will be terminated. Discussion The organisation follows policies and procedures to rate the employee performance and to manage the performance. The organisation measures the employee performance on annual basis to rate the performance upon given targets achieved by employees and to check the
  • 33. P a g e | 25 Strategic human resource management work efficiency, employee attitude & behaviour in the construction site. The HR professionals in the organisation have designed and developed an employee performance evaluation form shown in Appendix A4. The organisation uses ranking methods to rate the employee performance in some categories such as job knowledge, productivity, quality of work, commitment, initiative, dependability, planning, flexibility and co-operation. These statements support the work of Storey and Sisson (1993), Torrington et al., (2005), Baron & Armstrong (1998), Raymond J Stone (2005) and Lebas (1995) regarding performance management and measurement methods and uses of measuring performance. Each supervisor has a team of various hierarchical level working under him. While evaluating the performance, the organisation is evaluating individual performance of each employee in the construction site. The organisation follows a protocol to measure the performance. In that the line manager of each employee will fill this evaluation form. Project manager rates the performance for construction manager, construction manager rates the performance for engineers and supervisors and at last the supervisor rate the performance of each employee in his team. This is the method followed in this organisation. These statements support the work of Scarpello (1995) and Raymond J Stone (2005) regarding ranking methods and responsibilities for supervisors in rating the employee performance. In contrast, within the organisation the HR management and the strategic line managers gave different answers about the poor performers in the organisation. The HR management says, they analyse the results and pick the poor performers and those poor performers will be sent for practical onsite training to clear their doubts regarding the job and to increase their performance parameters in future. But the line management says, having the poor performers in the construction site will reduce the productivity and increases labour overheads so that they recommend termination for the poor performers. Conclusion: This research question (Q6) is partially supported. The organisation follows a better policy and procedures to rate the employee’s performance in different categories. The comments given by HR manager and line management team regarding poor performers is totally different. This shows that the line management team is not aware of policy and procedures of the organisation.
  • 34. P a g e | 26 Strategic human resource management 5.4 Strategic training & development Results Appendix B4 shows the results for training and development strategies in the organisation. The answers given by the top management team regarding Technical Training for the fresh graduates are similar. In contrast, the results obtained from top management and line management employees are different in training for poor performers and staff development programs. It shows that policies and procedures are created but not implemented in effective way. Discussion A number of issues were discussed in this section including types of training & development process undertaken, the plans and the policies that exists, formal orientation process for the new employees and policies and procedures followed by the organisation for employee orientation programs. The HR manager of the organisation clearly stated that the organisation has the training and development methods to motivate the employees. The organisation believes that by giving such learning opportunities to the employees based on their profile which increases the productivity and overall performance of the organisation. This supports the work of Garger (1999), Pfeffer (1998) and Armstrong (2011) regarding training and development strategies. Based on the continuous performance in the projects, the employee will be given job based technical training before promoting him to the higher positions. The project manager and construction manager should recommend employee for additional training and promotions. This discussion supports the work of Taylor & Driescol (1992 linking performance appraisal with training. However the project managers and construction manager has not supported some activities like additional training for the poor performers. This makes a big difference between the implementation and the actual policy and procedures formed by the organisation. The low level employees are not aware of such process and this shows the policy & procedures are formed but not implemented. The organisation is conducting orientation programs for newly recruited employees on first day of their employment. The formal orientation programs on Introduction about the company and its operations, company’s quality management system, introduction about the cost centre manager & project manager and at last safety orientation for the new employees. The HR manager and his team are conducting the orientation programs. These statements partially support the work of Wanous & Reichers (2001 and Raymond J Stone (2005) about formal
  • 35. P a g e | 27 Strategic human resource management orientation programs. The HR professionals in the organisation are giving the orientation for the new employees. An impressive thing about the organisation is, recruiting fresh graduates and giving technical training to them. Those fresh graduate are employed temporarily for three months (probation period). Upon their individual performance the graduates will be appointed permanently in the organisation. Conclusion: The research question (Q7 & Q8) is partially supported. The organisation have better policy & procedures in training and development process but they are lagged in implementation and follow-ups. The comments given by top management and the site employees are not similar with one another in some aspects of training & development process. 5.5 Rewarding human resources Results The results of the interviews are attached in Appendix B5. The comments given by HR management, line management and manual employees are similar regarding pension plans, medical insurance for employee and his family, accommodation assistance, free transportation, car allowances, paid annual leave, paid sick leave, retirement savings plan and promoting employees to higher position. In contrast, the comments given strategic managers and manual employees differs regarding bonus at the end of successful project completion and job satisfaction of employees in the organisation. Discussion The organisation has policy and procedures to motivate the employees. The company is paying bonus to all the employees at the end of successful project completion. The bonus payment differs according to the employee grades in the organisation. The company has the compensation schemes for the employees. They are pension plans, medical insurance for employee and his family, accommodation assistance, free transportation, car allowances, paid annual leave and paid sick leave. Once employees reach a higher position, they are eligible for the company’s Children’s Education Allowance program. This allowance is paid while your children are still in school up to the age of 21. The organisation promotes retirement savings plan where the company matches employee’s contributions up to 1.5% of monthly salary. Employees have a wide range of investment options to choose from. The organisation strives to provide long term career opportunities for its employees. The Retirement Savings
  • 36. P a g e | 28 Strategic human resource management Plan is provided as a vehicle for employees to augment their retirement income. The organisation provides free medical insurance to all its employees. Family coverage under the plan is available to all employees and at some levels in the company, this family coverage is provided free. Life insurance for the employee is provided free by the company. This supports the work of Raymond J Stone (2005), waschman & Swanson (1992) and Gibbs (2003). Apart from project bonus plan to the employees, the organisation does not follow any rewards and recognition schemes in the company. That show the company has poor reward management system. Secondly, strategic managers says that, all the employees are satisfied with their jobs and as the result of that the performance and productivity is increasing. These statements differs from strategic managers and manual employees. Manual employee says that, no job satisfaction is there because in the absence of higher officials, the employees are overloaded with more responsibilities and the work time changes every six months because of the climate conditions. When it comes to the promotion part, all the employees are promoted to higher positions based on their performance in the construction site. Conclusion: This research question (Q9) is partially supported because the organisation have good compensation schemes for the employees but it has weak reward system and manual employees are not satisfied with their job timings and work culture.
  • 37. P a g e | 29 Strategic human resource management Chapter 4 6.0 Recommendation & Conclusion HRM Planning Strategies: (“poor line management contribution with HR management while developing strategies”) The line management participation is important while HR management is setting the policies and procedures for the organisation due to the fact that the operations team clearly knows the extent to which they can follow the policy and procedures in projects. So initially, setting a team to prepare policies and procedures is an important task. The team members should have project director, HR manager, Project manager and department construction managers. The line management team and HR management team should clearly understand the policies and procedures prepared by analysing the organisation strengths and weakness to reduce the miscommunication between them. Then it is easy for the line managers to implement policies and procedures in their teams. This helps the line management team and HR management team to achieve the organisational goals strategically. The HR management expects the line managers to address the employee concerns whenever there are queries from the employees of the team. Strategic performance management & measurement: (“line management recommends termination for the poor performers”) Recommendation 1: This recommendation section gives positive and negative feedbacks. Recommending termination for the poor performers will de-motivate the employees in the organisation. Even such hard decisions affects the lives of employees. The line manager should follow HR procedures when evaluating the performance of each employee. In a positive way, the line manager should identify the employees’ deficiencies and how they can be overcome, to know what type of specialised training or job oriented trainings can be given to improve the employee performance. Such positive attitudes will motivate the employees in the organisations.
  • 38. P a g e | 30 Strategic human resource management Recommendation 2: If an employee’s performance is found not up to expected level in an organisation then the line managers are forced to take some hard decisions. Line managers’ states that, poor performance will reduce the productivity and it will increase the labour turn- over. So it can be recommended to conduct performance review on all the poor performers over a particular time period and then take possible decisions to keep the employee in the organisation or not. In such cases, the HR management should co-operate with line managers by overcoming the policies and procedures of the organisation. Strategic training & development: (“lags in implementation and follow-ups for training and development strategies”) The organisation should create awareness about training and development methods to the employees. The HR management and the line management should jointly form a team which includes technical engineers, senior technicians and senior engineers of the department to give training for the site employees for the future job requirements. The systemic approach shown above for performance appraisal and training needs. After rating the employee performance, the line management and HR management should separate the week performers and select training and development activities to overcome the weakness. Figure 7 - performance appraisal and training needs (Stone, 2005, p. 336)
  • 39. P a g e | 31 Strategic human resource management After rating the employee performance, the line management and HR management should separate the weak performers and select training and development activities to overcome the weakness. The highly performed employees are selected for the training session to upgrade their knowledge (technical skills or job oriented training) and then they should be promoted to the higher positions. Following these types of practices will reduce the labour turn over, increase the performance and the productivity. Rewarding human resources: (“reward system is weak and manual employees are not satisfied with their jobs”) To motivate and enhance the performance of the employee, the organisation should enhance the reward and recognition systems like appreciation awards, Employee of the year awards and Annual rating bonus. Pay-for-performance: when an individual employee performs well in the project and achieves the target within the given time period then that employee should be rewarded for his good performance. The line manager and supervisor are responsible to evaluate and select the best performer in the project and should recommend the employee. In addition to the pay for performance at the individual level, there is a considerable interest in pay-for- performance on small groups. Those types of rewards should be planned by the top management in the organization. Implementing such type of reward system will motivate the employees to perform well in the organisation and the productivity also increases. Job satisfaction: According to Herzberg two factor theory (hygiene factors) “Job satisfaction is the true employee motivators” The organisation should make better job design for the employees. The job design refers to the responsibilities and tasks assigned to individuals. Reduce the workloads and assign them according to the job design. Those aspects will motivate the employees to perform well in the organisation.
  • 40. P a g e | 32 Strategic human resource management 7.0 Limitations of the research The research is based on the literature reviewed on strategy HRM and this is linked with the answers received against the questionnaire from the oil and gas organisation. The limitation is that the organisations are often not willing to share information regarding the company policies and its effectiveness. Although the research is meant to be anonymous, but the information received from the different managers is not in-depth and is difficult to correctly pinpoint the gaps in the policies and its implementation. Secondly, the target for the information was from one single oil and gas organization, the results would have been varied had more oil and gas organizations covered to see their SHRM practices. The focus of this study has been more concentrated on the relationship between HR manager, project manager and line manager and revolved around employee policies. The study can further be expanded to see other areas where SHRM policies have its alignment with the business objectives. On the other hand, the information gathered from secondary sources cover a large portion of areas in the field of SHRM, the topic itself being enormous to cover. There are many frameworks from different authors and it becomes difficult to adhere to all of them for study and research purposes. This study has tried to focus on the main and popular frameworks that are more readily adopted by different organisations.
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  • 45. P a g e | 37 Strategic human resource management 9.0 Appendix Appendix A1: Staff requisition form (SRF) STAFF REQUISITION FORM (SRF) Cost Center No. Cost Center Manager Signature Date Contact No. Required by (Date) REQUEST DETAILS Job Title Classification No. Number Required Years of Experience Age Limit Tender / Budgeted Salary Recommended Salary Range New Replacement From To Remarks: REQUIRED ONLY IF CV ATTACHED Applicant Name (s): Recommended By: Reason for Recommending to consider for interview: Functional Department Manager’s Consent (for matrix reporting personnel e.g. Planning Engineers, QC Engineers, Storekeepers, Timekeepers, etc.) Authorized Manager’s Approval : (if different from Cost Center Manager) Name : Name : Signature : Signature :
  • 46. P a g e | 38 Strategic human resource management Date : Date : Original: PCSD for budget confirmation; Copy: HRD for advance information FOR PCS DEPARTMENT USE ONLY Budget available : Yes No Remarks : Name: Signature : Date : Original: HRD if budget is available; Cost Center if budget is not available with copy to HRD FOR HR DEPARTMENT USE ONLY HR Job Ref. ERP Ref# : SRF CANCELLED Name of the candidate : Reason : Date of Joining : ID# : CV#: FILLED BY INTERNAL TRANSFER ISR Reference# : Date : Name of the employee : Offer Reference# : Date : ID# : From (Cost Center) : Remarks Remarks HR Manager ___________________ Date: HR Manager _____________________ Date:
  • 47. P a g e | 39 Strategic human resource management Appendix A2: Application form
  • 48. P a g e | 40 Strategic human resource management Appendix A3: selection method
  • 49. P a g e | 41 Strategic human resource management Appendix A4: Employee performance evaluation form EMPLOYEE PERFORMANCE EVALUATION FORM ID No. Name Cost Center 1664 Class. No. Classification Review Period From 01-Jan-2014 To 31-Dec-2014 Reason of Evaluation √ Annual Other s Work Duties & Responsibilities as per Employee Duties Worksheet PERFORMANCE CATEGORIES PERFORMANCE RATING ( one) ALL EMPLOYEES 10 9 8 7 6 5 4 3 2 1 Job Knowledge: Knowledge of specialized methods and techniques in current job area, comprehension of information and ideas. Productivity - Quantity of Work: Volume of work produced. Quality of Work: Thoroughness, neatness and accuracy of work regardless of volume. Commitment: Punctuality, response and readiness of employee to work in any situation to meet deadlines and targets, and in particular hard times. Initiative: Ingenuity, resourcefulness, initiating actions and following through when appropriate, working towards self-improvement.
  • 50. P a g e | 42 Strategic human resource management Dependability: Ability of employee to work productively on given tasks without continuous direct supervision and follow-up. Planning: Planning and organizing work and modifying as required, responsibility to duties, and awareness of budget and cost. Flexibility: Consider how quickly employee learns and adapts to new procedures and tasks, willingness to take on new assignments. Cooperation: Communicating information and ideas, ability and willingness to work with others. MANAGERS / SUPERVISORS ONLY 10 9 8 7 6 5 4 3 2 1 Planning / Controlling Decision Making & Execution Leadership Delegating Work Employee Development Employee Relations Performance Category Rating The performance requirement for the employee in relation to his duties and responsibilities in his specific assignment is: 10 - Always exceeded 9 - Consistently exceeded 8 - Often exceeded 7 - Sometimes exceeded 6- Fully met 5 - Usually met 4 - Sometimes not met 3 - Often not met 2 - Consistently not met 1 - Never met OVERALL RATING As each position carries different responsibilities, equal weight should not be assigned to each of the performance categories. The final rating should be the overall assessment based on guidelines given in Attachment 3. Comments: 10 9 8 7 6 5 4 3 2 1 Note: The Supervisor shall first do a preliminary rating of the employee and then meet with the Senior Manager to agree and finalize the rating.
  • 51. P a g e | 43 Strategic human resource management Supervisor Name: Senior Manager Name: ID No. : Classification : ID No. : Classification : Signature : Date: Signature : Date: EVALUATION DISCUSSION WITH EMPLOYEE EFFECTIVENESS OF TRAINING ATTENDED DURING THE EVALUATION PERIOD (By Supervisor) : S. No. Description of Training Remarks KEY ITEMS AND FUTURE TRAINING NEEDS (By Supervisor) : Comp. Systems & Procedures Management English Computer Technical Others (Pls. Specify):____________________________________ No need for training EMPLOYEE COMMENTS (Please tick one box and specify your comments): Satisfied with Evaluation Unsatisfied with Evaluation EMPLOYEE SIGNATURE: DATE : PLACEMENT / ACTION (By Supervisor) Ready for a Supervising / Management responsibility (The employee should be considered with others who are ready, for suitable vacant positions) Has the capacity to move to a position of greater responsibility (The employee should be given additional responsibility in his current position) Well placed now (The employee should continue to receive on-the-job or other training and gain experience for future career development) Not suited to present position (The employee should be given specific time-based objectives to meet, and given close supervision and training) SUPERVISOR SIGNATURE: DATE : COMMENTS BY SENIOR MANAGER
  • 52. P a g e | 44 Strategic human resource management Appendix B1: Strategic human resource planning HR Manager Project Manager Construction Manager Team meeting: project Director, Project Manager and Department Managers. Group meeting: project director, department managers & HR professionals. Team meeting with top management personnel’s. Understanding the scope of the project and client requirements. Understanding the scope of the project and client requirements. Reviewing scope of the project and client requirements. Analysing the strengths and weakness of the company. Project cost and its deadlines. Discussions about: the cost of the project, client requirements, project starting time and its deadlines and total manpower requirements. Analysing strength and weakness. Analysing the cost and deadlines of the project. Analysing strength and weakness. Preparing Policy and procedures. Policy and procedures by HRM. Not involved while developing Policy and procedures Receiving manpower requirement list from project manager. Preparing manpower requests with the help of department manager and planning engineer. Analysing the total manpower requirements and mapping it with the help of department engineers and planning engineer. Analysing and finding the qualified and experienced employee inside the company who meets the client requirements. If manpower requirement is high, then employees are recruited externally. Clearly stating about the category of employee required with qualification and experience requirements for the project to do recruitment. Clearly stating about the category of employee required with qualification and experience requirements for the project to do recruitment. Set of policies and procedures are created for the internal & external recruitment. Not involved Not involved No specific models or approaches followed No specific models or approaches followed No specific models or approaches followed
  • 53. P a g e | 45 Strategic human resource management Appendix B2: Strategic recruitment & selection process HR manager Project Manager Construction manager Construction Engineer Company has the policy to accommodate internal employees first. Mostly internal transfer. To cut the cost of external recruitment. Mobilization from old project to new project. To reduce the cost. Internal transfer from old project to new project. Internal transfers. External recruitment: initially advertising in company website. For large numbers: private agencies. Company website & Private Agencies. Company website & Private Agencies. Company website & Private Agencies. Company recruitment policy & procedures Follows company policy. Follows company policy. Follows company policy and superiors decision. Recruiting employees in contract basis. In contract basis. Recruited in contract basis. Recruited in contract basis. Selection panel: HR professional, Project manager, department construction managers and department senior engineers. HR professional, project manager, department construction managers and department senior engineers. HR professional, Project manager, department construction managers and department senior engineers. HR professional, Project manager, department construction managers and department senior engineers or superintendents. Selection methods in two stages: application forms, personality test, communication, relevance of education, job knowledge, practical skill test, knowledge of tools & equipment and safety awareness. Background investigation & medical examination. Follows HR procedures and as per skill test form. As per skill test form and procedures. Follows HR procedure & skill test form. The company follows a band structure (A to H). So Employees are separated Follows a band structure to separate manual and non-manual employees. Follows a band structure to separate manual and non- manual employees. Follows a band structure to separate manual and non-
  • 54. P a g e | 46 Strategic human resource management according to their respective bands manual employees. Selection decision: project manager, construction manager & senior engineer. Project manager, construction manager & senior engineer. Project manager, construction manager & senior engineer. Project manager, construction manager & senior engineer. Appendix B3: Strategic performance management & measurement HR manager Project Manager Construction manager Construction Engineer supervisors The company follows a policy and practices to check and rate the employee performance (employee performance evaluation form). The company has employee performance evaluation form. The hr department asks to fill the employee performance form each year Employee performance evaluation form. Through employee evaluation form. Once in a year Yearly once One time in a year Yearly once Yearly once To rate the employee performance upon the targets given to each employee and to improve the work efficiency and to increase the productivity. To check how the employees are performing in the project towards targets. To check employee performance towards targets and identify weak performers To rate the performance of each employee and to identify weak performers. Usually to give marks for the employee performance on each categories. Individual performance Individual performance Individual performance Individual performance Individual performance Construction managers, engineers and supervisors of each team. construction manager, engineer and supervisor construction manager, engineer and supervisor construction manager, engineer and supervisor construction manager, engineer and supervisor
  • 55. P a g e | 47 Strategic human resource management Weekly targets Weekly targets for each department managers. Weekly targets for department engineers. Weekly targets for supervisors & team Weekly targets to the manual employees. Poor performers will be sent for training sessions. Poor performers will be terminated. Poor performers will be dismissed from the company with project manager approval. Immediate termination. Dismiss Appendix B4: Strategic training & development HR manager Project Manager Construction manager supervisors Manual employees Yes the company has formal training and development process Formal training and development process. Yes No awareness of such process Don’t know The company has the policy and procedures. Policy and procedures are there. The company follows policy and procedures May be they have. N/A Technical Training for the fresh graduates. Fresh graduates training sessions are conducted by the organisation. The company use to select fresh graduates and gives training in related field. N/A N/A Job oriented training for poor performers. It depends on HR and top management. Depends on HR. No No Formal staff development plans are there. Formal staff development plans are there. Formal staff development plans are there. Only promoted to higher levels. No programs were conducted to develop the skills and no promotion Up on employee high performance continuously Recommended upon employee performance in the site. Based on employee performance Based on employee performance N/A The company follows policy and Yes. Orientation has been given to all Orientation for new employee is Orientation sessions are there on the first Orientation sessions are
  • 56. P a g e | 48 Strategic human resource management procedures to give orientation for new employees. employees. conducted in the organisation. day of employment. there. Conducted by HR professionals Conducted by HR professionals Conducted by HR professionals Conducted by HR professionals Conducted by HR professionals Introduction about the company and its operations, company’s quality management system, introduction about the cost centre manager and project manager and at last safety orientation for the new employees. HR professionals will give the formal orientation. Orientation on health and safety will be given by site safety manager. HR professionals will give the formal orientation. Orientation on health and safety will be given by site safety manager. HR professionals will give the formal orientation about company’s operations. Orientation on health and safety will be given by site safety manager. HR professionals will give the formal orientation about company’s operations. Orientation on health and safety will be given by site safety manager. Appendix B5: Rewarding human resources HR manager Project Manager Construction manager Construction supervisor Manual employees The organisation motivates the employees by paying bonus at the end of successful project completion. The organisation motivates the employees by paying bonus at the end of successful project completion. The organisation motivates the employees by paying bonus at the end of successful project completion. The organisation motivates the employees by paying bonus at the end of successful project completion. Non-manual are not getting bonus at the end of the project Compensation schemes: pension plans, medical insurance for employee and his family, accommodation assistance, free pension plans, medical insurance for employee and his family, accommodation assistance, free transportation, car allowances, paid pension plans, medical insurance for employee and his family, accommodation assistance, free transportation, car allowances, paid pension plans, medical insurance for employee and his family, accommodation assistance, free transportation, car allowances, paid pension plans, medical insurance for employee and his family, accommodation assistance, free transportation, car allowances, paid