Case Study HR Strategic Tool for Growth
The changes implemented by HR made for a better work life for Gratterpalm’s employees. This resulted in the highest satisfaction score among Gratterpalm’s employees to date and cut employee turnover in half.
Happier employees translates to more productive employees which allow a business to grow. An example of this is that HR identified each employees’ roles within the company, eliminating confusion as to what is expected of them and who they report to.
This allows for better time management as the employees know exactly what to do and to whom they should report. HR put in place a clear career structure showing employees how they can move up to the next level along with systems for posting employee praise and job vacancies which led to 10% of employees being promoted internally in one year along. With internal promoting, less training is needed saving the company time and money.
The HR manager introduces flexible work schedules, a “justification to recruit” process and child care support allowing for the employees to better balance their work/life schedules. HR also implemented cultural audits to better understand the employees’ views. If a company understands how their employees regard it, it aids the company in successfully maintaining its strategy.
As a result of HR, Gratterpalm has become a desired place to work and more and more people are taking notice of the company. The HR activities are driving business growth by increasing productivity through improved time management, internal promoting and employee satisfaction. Reference: Managing Human Resources, 15th Edition by George Bohlander and Scott Snell Answer 2:
HR functions are sometimes difficult for small firms to execute because more often than not, small companies do not have a full-time HR manager.
The HR responsibilities are often left to someone in the company with limited knowledge of the complicated requirements. HR policies may also be hard to implement if they are not in accordance with the firm’s strategic goals. Further complications can occur when the policies may not be supported by management or the policies are not fair or consistent.
There may also be resistance to change in a company especially if the HR implements policies that differ from what employees have become accustomed to. For instance, a family-run company is far less structured than a company that has grown to a 70 person team and undergone a management buyout.
Globalization further complicates matters by bringing different cultures into the mix. Once an HR manager is on-board, either internally or outsourced, she must understanding the required amount of structure for the company along with how much flexibility is needed and then develop a company specific HR policy that takes this into account to allow for a successful implementation of HR policies.
To be successful, HR policies must also align the firm’s strategic goals with what it hopes to achieve. Additionally, they must have the support of management. Finally, training must take place and people made accountable so that policies are managed fairly and consistently. Reference: Managing Human Resources, 15th Edition by George Bohlander and Scott Snell
HR effectiveness is closely linked to the success of the business. Many factors determine whether or not the results of HR activities are successful.
To measure HR achievements, one would need to not only consider employee satisfaction, absenteeism and turnover, but also staffing costs and compensations, revenue, sales and customer satisfaction. To see the results of HR activities, one must analyze how well the HR undertakings have supported the organization’s strategic objectives.
It is one thing to develop a strategy but it is another thing to actually implement it. There is often a gap between an organization’s ability to cultivate a strategy and an organization’s ability to execute a strategy. Moreover, HR functions are constantly shifting as a business develops and is further complicated by globalization. Reference: Managing Human Resources, 15th Edition by George Bohlander and Scott Snell