INTRODUCTION

            Human resource is one of the most important resource for the organisation which helps them to achieve the goals of the organisation. Also it help them to take the competitive advantage as an organisation can have unique and competent human resource. Strategic human resource is the process of attracting, developing, rewarding and retaining people in the organisation which can benefit both the employees and the organisation. They formulate various strategies and implement them in the organisation which help them to effectively meet the objectives of the organisation (Cascio and Boudreau, 2010). The organisation which is taken for this report is Burberry which is a luxury fashion house whose headquarters are in London. Their main products includes trench coats, fashion accessories, sunglasses, cosmetics etc. In this report various trends in the HR strategy, external and internal factors that has influence on the organisation, various theories and concepts of strategic HRM are taken into consideration. Apart from this various HR outcomes can be monitored and measured in context of the organisation.

TASK 1

Key current trends and developments that influences organisation's HR strategy

Strategic HR management in an organisation helps in building an efficient and talented workforce so that the goals and objectives of the company can be achieved. Human resources are one of the most important resources of an organisation that helps it in creating goods and services according to the needs of customers so that the competitiveness of the company can be maintained. However as the current trends are changing related to employment it is also important for Burberry to change its strategies so that the candidates with required abilities and skills can be attracted in the organisation. Some of the current trends are discussed below:

• Increase in globalisation: Due to globalisation the integration and interaction among businesses, people and the complete world has increased which means that Burberry has an opportunity to attract talented and skilled people from all across the world to work in the company (CHUANG and Liao, 2010).
• Workplace diversity: With the increase in integration of people from all across the world the company has a diverse workforce which belongs to different nations, religions, culture, expectations etc. This helps the company in having a variety of diverse ideas, talents and skills which will help the company in bringing innovation in its products.
• Changing skills and requirements: With the change in time there is also an increase in changing needs and requirements which means that the needs of the workforce keeps on changing so that the company goals and objectives can be efficiently achieved. Burberry for example needs innovation in ideas so that with changing fashion the requirements of the customers can be met.
• Continuous focus on improving customer experience: Customers have become the main focus point of the businesses as they are the ones who help the company in generating revenue. For this the company has to increase the productivity of workers so that the goods and services can be produced at low costs and with high quality which will help the company in increasing its revenue (Delery and Roumpi, 2017).

All these trends affect the HR strategies of Burberry so that the company can have efficient workforce which can help it in gaining high customer satisfaction. These trends thus affect the way in which employees are recruited in the company along with encouraging them so that their productivity can be increased.

Analysis of various internal and external factors that influence both HR strategy and practice

The strategies set by HR department so that the set objectives can be achieved on time are affected by various factors which influence the strategies formed by it. Both the internal and external factors that affect the strategies of HR are discussed below:

External factors

• Political: These are related to the rules and regulations of the government of the country which governs the organisations and also affect the way in which companies recruit their employees along with determining the kind of relation of employees with organisation and other employees. Burberry needs to follow these laws so that the strategies formed by it falls under the legal pursuit (Ehrnrooth and Björkman, 2012).
• Economic:  The economic policies of the country determines its unemployment rate, GDP etc. which helps the company in determining the strategies related to salaries and other allowances that are to be given to the employees. Burberry must develop its strategies so that the changing economic conditions does not affect the company strategies related to employment.
• Social: These are related to the composition of people of a country like age, education level, living standard etc. All these factors affect the HR strategies of Burberry so that recruitment process can be done efficiently which helps in recruiting potential employees.
• Technological: These are related to the rate of technological advancement of the nation which determine the forwardness of the people. Burberry HR strategies are affected by this factor as it helps in recruiting employees who have technological knowledge and can work efficiently.

Internal factors

• Policies: The company policies also influence the HR strategies as these are the guidelines which are to be followed before formulation of strategies. For example company policy of employee first helps in making HR strategies like performance appraisal, promotions etc.
• Organisational culture: The collective values, beliefs and assumptions of the people forms organisational culture. If the culture of unity exists in the company then HR strategies will be formulated which helps in integrating employees together so that good and friendly environment can be made (Ganopoulos and et. al., 2013).
• Organisational conflicts: Due to diverse workforce people belonging to varied ideas and beliefs work together which can lead to conflicts. In order to deal with this the HR strategies should be to increase training and development programmes of the company so that friendly environment can be built in the company.
• Organisational structure: There are various ways in which the relations among employees and managers of the company are established. Burberry follows flat type of organisational structure which reduces the number of stages between employees and managers and enables employees to contact directly with managers which help in taking effective and quick decisions.

Critically analyse the influence of the external and contextual development

The internal and external factors affect the HR strategies as these factors influence the company overall policies which must be changed or controlled so that the negative impact of these factors can be reduced. This helps in increasing the competitiveness of the company. Also these factors affect the way in which the human resources of the company are monitored and controlled which affects the productivity of employees of the company (Gupta, 2016).

Critically evaluate influence of  the external and contextual development

 

The external and contextual development of the strategies are important so that the efficient monitoring and control of the employees can be done. Burberry can use HR strategic model such as Dave Ulrich HR model which influences the integral functions of the organization and helps in strategy formulation. This helps the company in achieving its targets in an efficient manner.

 

Critical evaluation of effects of strategic management and workforce planning

 

Strategic management act as key base for all the decision of the organization. By changing the strategic management according to the dynamic environment it directly helps the firm to remain competitive among it's rivalry. Whereas proper work force planning assist the company in  attaining set goals and objectives in the set deadline. By this loyal customers can be build over the years towards their brand and product.

TASK

Theories and concepts relevant to the growth and development of strategic HRM

Various theories and concepts can be applied by companies so as to formulate the HR strategies which will help in enhancing employee enthusiasm so that their productiveness at work increases. This helps the company in efficiently executing its plans and developing the type of goods and services that are required by the customers. Burberry can use the following HR theories so that the profitability of the company can be increased which are discussed as below:

• Universalistic theory: This theory is concerned with the internal resources of the company and their relation with the performance of the business by formulating such strategies so that these can be efficiently used. Burberry can use this theory as it is simple to apply and also provides a simple framework for selection, recruitment, reward and development of employees of the company (Lim and et. al., 2017).
• Contingency theory: This theory is related with the uncertainties that are faced by the company which can be either a threat or an opportunity for the company. In this theory there are no universally accepted practices for managing the human resources which means that the HR strategies of Burberry can be formed according to the situation requirement.
• Flexible working arrangements: It means that the facility of flexible working hours is given to the employees which helps in increasing their efficiency as they can work as and when they want thus completing the projects with full efficiency on time. This also means that they can work from any locations all around the world which help them in adjusting their vacations as they want. Burberry can use this strategy so as to increase the efficiency and productivity of its employees and also helping them to manage a work-life balance which helps in improving their health.
• Performance management: It is related with paying the workers based on their level of performance. This helps the company in achieving better outcomes as in order to achieve these appraisals the employees use their skills and talents in an efficient manner so that their performance can help the company in achieving its goals and objectives (Mansour, 2015).

All the above mentioned theories can be used in Burberry so that the management of human resources can be efficiently done which will help the company in increasing the productivity and efficiency of employees.

Evaluation how these theories relate to organization

These theories can be applied in Burberry so that the management of human resources can be efficiently done which will help the company in achieving its goals on time as the workforce can be motivated to work efficiently by applying the theories along with the effective use of company resources.

Critical evaluation of HR department of the firm and external environment

            HR department of  Burberry is accountable to recruit right candidate in the vacant position. By doing so overall productivity and profitability of the company can be raised as compare to competitors. Also, skilled and capable employees assist firm to meet the set goals and objectives in the set time frame.  

            To remain competitive it is essential to it is very essential to scan external environment so that business activities can be mould according to them. By this Burberry is able to survive for longer time duration. Additionally, it will make them more competitive in the global market. In the present scenario environment is changing drastically so it is very important to  frame policies accordingly.

TASK 3

Change management models which support HR strategy

Change is a continuous and an important process which helps the company in meeting the dynamic requirements of the customers, employees and the company which can help in achieving the set goals and objectives. Some of the change management models that can be used by Burberry so that the HR strategies can be formulated which will help in managing the employees of the company in an efficient manner. Some of the models are discussed below:

Kotter’s 8 step change model: This model was given by John Kotter who was also a renowned professor of Harvard Business School who introduced the following 8 steps for change management:

• Increase urgency: It relates to increasing the importance of the project so that an urgency can be created in the company for the implementation of change. By creating the urgency the skills of employees can be efficiently utilized as they try to achieve the goals as early as possible. This also helps in determining the potential threats and opportunities in the market for Burberry so that change in HR strategies can be efficiently made.
• Build guiding team: In this step the employees of the company are convinced that change is important to be implemented which means that an effective team needs to be formulated which can help in the efficient implementation of change. Burberry can form an effective team which will help in execution of the change management plan so that effective results can be achieved (Taylor and et. al., 2015).
• Develop the vision: After formation of team comes forming of vision so that the objectives that are to be achieved after implementation of change can be made clear so that effective strategies and policies can be formed which will help in achieving the set objectives on time.
• Communication of vision: The vision so formed needs to be communicated among team members so that they can all be made aware about what is to be achieved and how they can be achieved. It also helps in integrating the team members so that they can work together in order to execute change management plan. Burberry must have efficient communication channels so that the team members can be updated about the progress of the implementation of plan.
• Removal of challenges: The challenges or obstacles that are faced by the company during the implementation of change management needs to be identified so that they can be removed which will help in effective implementation of plan. Burberry needs to have an effective check methods so that the difficulties can be identified which can help in getting rid of the obstacles.
• Create short term wins: It means that short-term goals must be set as they are faster and easier to be achieved which helps in boosting up the morale and confidence of workers so that they can work with more efficiency.
• Don’t let up: It means that the management must not give up on plan execution and implementation as this creates a negative image about the non-seriousness of the managers towards the company which increase their casual behavior towards company and affects change management.
• Make change stick: The change that is implemented must not be changed quickly. The company must stick to the implemented change as the results of the change can be achieved over a long time and also change it helps in saving the cost of company related to frequent changes in the implementation of change management (Kotter’s 8-Step Change Model. 2018).

Nudge theory: This theory relates to the behavioral science under which positive behavior can help in changing the behavior of individuals and groups which can help the company to change the behavior of its employees so that the objectives of change management can be efficiently achieved. Burberry can use this model so that the change in behavior of individuals can be achieved which helps the company in gaining its objectives.

Example: Burberry's  HR strategy is impacted by  Kotter’s 8 step change mode in positive way. The effective implementation of this model in the working premises has aid the firm to retain skilled and potential employees for longer time span. By this HR strategy adopted by company changes according to the external environment requirement so that best and capable nominee can be placed in the vacant position. It help in raising overall workforce efficiency of the workers.

 

TASK

Monitoring and measuring the HR outcomes

The outcomes of HR can be measured by evaluating the performance of the employees of the company, their productivity, efficiency and willingness to complete their work on time. These will help the company in achieving its objectives on time and within the stipulated budget so that the costs of the company can be reduced however the profits can still be increased. The outcomes of HR will help in developing further strategies so that improvement in the employee performance can be done which will help in increasing their efficiency and productivity. In Burberry the HR outcomes can be measured by evaluating the profits that are earned by the company and the revenues generated by it which will help the company to determine if the objectives that were desired to be achieved by the HR strategies are achieved efficiently or not. Monitoring the HR strategies will help in identifying the weak areas which needs improvements in the implementation of HR strategy so that the execution of plan can be efficiently done.

Evaluation of effective HR management and development which can support sustainable performance

HR management and development plays an important role in recruiting efficient and skilled employees who can work together in order to achieve the organizational goals. The human resources of the company help in making the performance of the company better so that a competitive position can be gained in the market. Some effective tools which can be used for this purpose are:

• Benchmarking: This is business process which helps the company in comparing its performance with the performance of other business which is the market leader in the same industry. This helps the company in determining its performance in the market and also helps in identifying the ways in which the performance of company can be improved. For example Burberry can thus compare its performance with the market leader in the same industry so that improvement can be done in the company strategies which can help in increasing the company performance. It can help the company in efficiently managing and developing the human resources of company so that it can remain competitive in the market.
• Key performance indicators: These are some of the key indicators which can help thee business in evaluating its performance in the market so that improvements can be made which can help in improving the performance of the company. Some of the KPIs are number of customer retained, market share etc. For example Burberry can use this to determine the key factors which will help it in improving the company performance by managing the human resources in an efficient manner.
• 10-C checklist of HRM: This relates to 10 basic Cs like credibility, communication, cost-effectiveness, creativity, coherence, competence, control, commitment, change and comprehensiveness which helps in determining the relation between employees, organization and society so that the performance of the company can be measured. For example Burberry can use this so that the 10Cs of employees can be developed which will help in making them efficient in their work hence improving their performance and enhancing the company profitability.

CONCLUSION

From the above report it can be concluded that strategic management of the human resources of the company help in improving its performance in the market so the revenue and sales of the company can be increased. Also the current trends must be considered before formulation of HR strategies so that eligible candidates can be selected who can help in achievement of company goals and objectives on time. Various theories can be used by companies so that strategic management of human resources can be done which will help the company in improving its performance. Further the effectiveness of HR strategies must be evaluated so that improvements can be made which will help in efficiently achieving company goals on time.