1. Organization and Human Resource Management
Introduction
The purpose of this report is to explore the advantages and benefits of strategic human
resource management in a multinational corporation that manufactures sports apparel, which
had experienced a steady growth in the last few years. The corporation had recently become a
public limited company. According to Eigenhuis and Rob Van Dijk (2008) HRM “proactively
contribute to support the execution of business strategy in a growing organization through
inspired performance” (A. P. Eigenhuis and Rob van Dijk, 2008). Good HRM practice motivates
employees and increase productivity of an organization. Charles R. G. states “that a focus solely
on investment in physical recourses, as opposed to human recourses, is short sighted” (R.Greer,
2000). Strategists have found that having superior production facilities or superior product are
usually not enough to sustain an advantage over competitors (R.Greer, 2000). With all being
said from many schools of HRM practice sound human resources management is pivotal for the
success of an organization.
“Strategic human resource management (SHRM) is the process of linking the human resource
function with the strategic objectives of the organization in order to improve performance”
(John Bratton and Jeffrey Gold, 2007). According to Armstrong, “SHRM is defined as a strategic
and coherent approach to the management of an organization’s most valued assets – the
people working there who individually and collectively contribute to the achievement of its
objectives” (Armstrong, 2006). Storey defined SHRM as “A distinctive approach to employment
management which seeks to achieve competitive advantage through strategic deployment of
highly committed and capable work force using an array of cultural, structural and personnel
techniques” (Storey, 2001). The SHRM looks at the important aspect of human resources in an
organization for its success.
Background
Our organization has experienced steady growth over the past years. We are now a well-
known multinational corporation manufacturing sports apparel. Currently our work force is
comprised of 500 employees and 20 managers and our organization structure is comprised of
different departments such as Production, R and D, Marketing, Finance, and HRM. This growth
comes with new challenges which need to be addressed with modern HR policies and proper
management. We need to reflect on our progression from inception up to now putting into
consideration recent experiences and lessons learned within our organization when formulating

2. new strategic policies. If we restructure our organization to conform to new challenges we are
facing these day, we will be better equipped to address the increasingly complex sportswear
manufacturing industry of the modern society. We need to be prepared for the upcoming world
cup in June 2014 in Brazil. Currently, we are facing stiff competition from seasoned sports
regalia manufactures such Nike, Adidas, Reebok, Puma, Fila, just to mention a few. In order for
us to make it in the industry we need to differentiate our products. This will give us a superior
advantage in the market. This can be brought about by innovative, highly skilled, flexible,
motivated workforce that that fits the needs of global sports fanaticismand personalities. We
need a flexible team that responds quickly to evolving environment.
Our organization has grown and needs a strategic partner in the form of human resources
manager to look at the welfare of our increasing workforce. The HR specialists are viewed as
business partners rather than administrators for business strategy to be effective. As the new
HRM I will introduce strategic measures that will give us competitive advantages over our
competitors. I will look into ways that increase productivity and high quality of our sports
apparel by hiring appropriate workers, manage and motivating our employees. Our
organization needs an HRM strategy that matches its growth and demand of our products. We
need to evaluate our HR policies and adjust them or formulate new policies to meet our
challenges. As the new HRM manager I “will elaborate main actions managers have to carry out
to get things done through people, namely managing effectively overall, leading, motivating,
team building, delegating, interviewing, managing performance, developing and rewarding
people, managing change and handling people problems” (Armstrong, 2011).
The objectives of this report are:
 To examine the roles of strategic HR management.
 To provide guidance and formulate a sustainable, progressive and strategic HR policy
that sets a clear direction and is aligned with both current needs and reality. The policy
will elaborate on work design, job analysis, employment, preservation of highly skilled,
separation, performance management, training , selection, capacity development,
compensation, legal requirements employee relations, equal opportunity and
environmental sustainability.
 To have workforce that is flexible, mobile, motivated, innovative, highly performing and
fully trained.
 “To have competitive advantage in the market” (Storey, 2001)
 To sensitize the management on affirmative action.
The role of strategic HR management

3. Armstrong states that “top management is there to provide visionary leadership, define
purposes and values and set the direction” (Armstrong, 2006). He eluded that “it develops the
overall business strategies and ensures that functional strategies for marketing, product/service
development, customer service, operations, IT and HR are prepared and implemented in ways
that provide sustained support to the achievement of business goals” (Armstrong, 2006). The
HR department needs to work with forefront managers when formulating or reviewing HR
policies that are responsible for implementing them. Organizational performance can be
defined as the actual output relative to the projected output which can be subdivided into
“shareholder value, financial performance, market performance” and sometimes production
capacity performance (Stephen N.M Nzuve and Ngeny Emily Chelangat, 2014). Organizational
performance can be increased by effective, strategic HR policies. If proper policies are in place,
workers are motivated to work and meet their deadlines. The motivation could be in the form
of financial rewards, promotions, token of appreciation, shares or capacity development.
Motivated, flexible workers tend to be innovative and more creative which in turn results in
organizational success. In addition to that, when workers are happy wastage of resources is
reduced, idle time is reduced and quality products are produced as they tend to be more alert.
When line managers are motivated, they strive to produce quality products in time.
The organizational performance management can be achieved by optimization of company’s
resources in pursuit of our goals. In order for us to achieve this, there is need to develop our
workforce in appropriate skills through training, refresher course, workshops and capacity
development trainings. We also need to put in place monitoring tools and systems that charts
and records the progress of our organization and determine when we need to redefine our
policies or strategies. We can be successful as an organization if we reduce our overheads cost
by reducing electricity, water and diversifying our products. In order for us to do this we need
to hire seasoned consultants who can develop a strategy to lower our overheads. The aim of
our ongoing performance management is to raise profit which can be achieved through many
ways. We can increase our sales, lower our production cost, reduce our distribution cost and
lower our storage cost for us to be profitable. In view of this, we need to develop cost-efficient
performance management systems and monitor their progress over time. If a systemis not
profitable, we need to re-evaluate it and the redefine it until we meet our goals. We need to
perform a SWOT analysis on the overall organizational performance. We need to determine our
strength and reinforce it, to establish our weakness and turn them into strengths, to identify
opportunities and take advantage of them and be prepared for our threats. After a SWOT
analysis, we can make changes to be more competitive, formulate performance guidelines to
measure success or failure of these changes and then make necessary adjustments. Since our
Organization is growing, we need to carefully plan and monitor the growth. With proper
organizational performance management we can sustain a planned growth. This include

4. quarterly reports on manufacturing, unit sales and capacity development, planned expansion of
organization, new product introduction and many other indicators.
“As an organization we need to formulate HRM strategy by defining our mission and vision, set
objectives and conduct internal and external environmental scans to assess internal strengths
and weaknesses and external opportunities and threats (a SWOT analysis)” (Armstrong, 2006).
These HR strategies should try to address our weakness, take advantages of opportunities such
as world cup in Brazil, safeguarding our markets from competitors and reinforcing our area of
strength. We need to share our vision with all stakeholders.
According to Armstrong “we need to analyze existing strategies to determine their relevance in
the light of the internal and external appraisal” (Armstrong, 2006). “This may include gap
analysis, which will establish the extent to which environmental factors might lead to gaps
between what could be achieved if no changes were made and what needs to be achieved”
(Armstrong, 2006). “The analysis would also cover resource capability, answering the question:
Have we sufficient human or financial resources available now or that can readily be made
available in the future to enable us to achieve our objectives?” (Armstrong, 2006). He further
eluded that “we need to define distinctive capabilities of our organization, define the key
strategic issues emerging from the previous analysis” (Armstrong, 2006). “These will be
concerned with such matters as product-market scope, enhancing shareholder value and
resource capability” (Armstrong, 2006). Armstrong (2006) states that “we need to determine
corporate and functional strategies for achieving goals and competitive advantage, taking into
accounts the key strategic issues” (Armstrong, 2006). “These may include business strategies
for growth or diversification, or broad generic strategies for innovation, quality or cost
leadership; or they could take the form of specific corporate/functional strategies concerned
with product-market scope, technological development or human resource development”
(Armstrong, 2006). Lastly we need to prepare integrated strategic action plans and implement
the strategies. After implementation we need to monitor implementation, revise existing
strategies and redefine strategies in response to our present circumstances.
For example, the ministry of health of Namibia has initiated a performance management policy
in the management of HIV-AIDS patients. The ministry formed partnership with many
nongovernmental organizations to provide quality health care services to ordinary Namibians.
The ministry’s strategy was to employ qualified health worker within Namibia and beyond. They
attracted highly skilled, highly performing, innovative, talented and committed workers into the
ministry by offering a competitive remuneration. In addition, they have retained the talented
by renewing their contracts and offering affordable accommodation, enabling working
environment. The ministry ensured career development by offering workshops and trainings
among its stuff. The ministry’s employee’s shows diversity as they come from all over the

5. world. This has brought about different approach to management of patients. There is gender
balance in employment criteria. The ministry is collaborating with many stake holders to
achieve its goals. The ministry has money, but the quality of health delivery services remains
poor. This has prompted the ministry to adapt the quality improvement in HIV care (Hivqual)
model. Health workers were trained on hivqual to help them build capacity for quality
improvement. Health workers formulated their indicators and set targets and implemented the
HIVQUAL program. They periodically monitored the hivaqual indicators over time and redefined
them to meet the goals of the ministry of Health. As a result of this strategic HR intervention,
the uptake of antiretroviral medication improved, health workers comment improved and
patients’ quality of life improved. When the ministry saw the success of hivqual program, they
have decided to widen the performance management tool to include the whole health sector
and call it quality improvement in health care (healthqual). This is just an example of a
successful organizational performance management in a nut shell.
HR STRATEGIES
In Armstrong’s words, “HR strategies set out what the organization intends to do about its
human resource management policies and practices, and how they should be integrated with
the business strategy and each other” (Armstrong, 2006). “The purpose of HR strategies is to
guide development and implementation programs and provide a means of communicating to
all concerned the intentions of the organization about how its human resources will be
managed” (Armstrong, 2006). The HR strategies give a platform to measure progress and
evaluate outcome against objectives.
TYPES OF HR STRATEGIES
According, to Armstrong there are two basic types of HR strategies.
Namely:
1. “overarching strategies
2. Specific strategies relating to the different aspects of human resource management”
(Armstrong, 2006).
Armstrong described “Overarching strategies as the general intentions of the organization
about how people should be managed and developed and what steps should be taken to
ensure that the organization can attract and retain the people it needs and ensure so far as
possible that employees are committed, motivated and engaged” (Armstrong, 2006). “They are
likely to be expressed as broad-brush statements of aims and purpose, which set the scene for
more specific strategies” (Armstrong, 2006). “They are concerned with overall organizational

6. effectiveness – achieving competitive advantage by employing the right people and creating
conducive work place” (Armstrong, 2006).
Specific HR strategies are intervention directed to specific areas for improvement in an
organization. For example talent management, continuous improvement, knowledge
management, human development capacity building, reward, recognition, compensation, pay
and benefits, recruitment and retention, training, performance management, health and safety,
absence management, equal opportunities, resourcing, organizational effectiveness and
employee relations. Strategies are directed to specific areas for improvement and are
implemented separately. They all should align with the main business strategy to give our
organization “competitive advantage” over its competitors (Storey, 2001). For a strategy to be
effective, it has to accomplish what it set out to achieve by meeting the needs of all
stakeholders. These specific strategies can be interrelated or applied concurrently. The specific
strategies aimto address short term challenges or clearly defined areas.
Core function of HR
The core functions of HRM are mainly to oversee the effective management of human
resources. They aim to create an enabling work environment, meet legal requirements and
much more strategic function.
In an organization the HR has to define jobs or work. The main aim of job design is to improve
job satisfaction, to boost productivity, to improve quality and reduce employment problems. It
is the specification of contents, methods and relation of jobs in order to satisfy organizational
requirements and personal requirements of the Job holder. It also puts into consideration skills,
time and innovation needed for the job to be done. Work design is aimed increasing
productivity by improving work satisfaction. Work satisfaction can be improved in many ways
namely: flexibility, working environment, good leadership, good working team just to mention a
few. It mainly focuses on how the nature of person’s job affects their attitudes and behavior at
work. It is linked to distinctiveness in skill and sovereignty. It increases accountability,
responsibility and commitment among workers.
The job characteristic theory proposed by Hackman & Oldham) stated that “work should be
designed to have five core job characteristics, which engender three critical psychological states
in individuals—experiencing meaning, feeling responsible for outcomes, and understanding the
results of their efforts” (Hackman J. R. and Oldham G. R, 1976). “This will enhance employees’
intrinsic motivation, job satisfaction, quality of work and performance, while creating loyal
workforce. The core job characteristics are as follows:
1. Skills variety: where more skills bring more satisfaction.
2. Task identity: employees are more satisfied by seeing production for start to finish.

7. 3. Task significances: Employees are more satisfied in doing influential jobs which they
believe make a difference, and are adding real value to colleagues, the organization, or
the community at large.
4. Autonomy: Employees needs to be self-sufficient in making decision and
discretion involved in a job they are involved in. More autonomy leads to more
satisfaction. People are more satisfied if they are involved in decision making rather
than simply being told what to do.
5. Feedback: This aspect measures the quantity of information an employee receives
about his or her performance. People who receive feedback about their performance
will be satisfied than those who do not” (Hackman J. R. and Oldham G. R, 1976).
If the above-mentioned job characteristics are meet, workers experiences meaningfully of the
work, experiences responsibility for the outcomes of work and information of the actual
outcome of the work activity.
Job rotation is a job design method which enhances motivation and increase productivity. In
addition to this it also potentiates organizational performance, develop workers outlook and
provides new challenges. Workers are prompted to have different thoughts, capabilities and
skills. Above all, it improves attitudes of workers. Other forms of job design include, job
enrichment, job enlargement and work reforms. To conclude, job design influences,
satisfaction, motivation and job performance
Job analysis is a process of evaluating the job requirements and attributes needed to perform
activities. It identifies the content of the job i.e. what needs to be done. This in turn provides
necessary information to the organization on characteristics, skill and qualification required for
specific jobs. When analyzing a job, we need to understand the task, process of the job to be
done, human qualities needed to complete the job effectively. The duties, job description, job
worth and roles of the employee should be clearly defined. In addition, nature, conditions of
service and basic qualifications of work should be clearly stated. The duty station, job position
and expectations are also included. Skills, knowledge attitudes, education and experience are
also stated. The compensation is clearly stated. Job analysis helps the HR to recruit suitable
candidates in an organization. It also helps the works with career development by taking
appropriate training for the jobs available. Proper job analysis encourages equal opportunities
and equal pay for the same job to workers. If jobs are clearly defined institutes of education are
more likely to align their curriculum to the need of industry. This in turn will better equip future
employees with relevant qualifications and skills. Information obtained can be used to identify
job requirements, training needs, position grades, performance appraisal and promotion.
It is the foundation of assessment and selection to identify the best candidates for the job. It is
used during recruitment of new workforce. Workers can use job analysis to target areas of
career development. To sum it up all a job analysis is a vital exercise that an organization need
to have for recruitment and for legal purposes.

8. Recruitment is a process of attracting, selecting and filling of vacant jobs either permanently or
temporally, either paid or unpaid. After job analysis, areas of needs are identified and
recruitment process begins. When posts for recruitment are identified, adverts of the post are
made. They can be made internally or external through employment agents, public
newspapers, magazine, television, radios, social networks, educational institutions, commercial
recruitment agencies, specialist search consultancies or any media of communications. During
this period, proper job descriptions are used to streamline the potential candidate. Some
organization target certain population groups during this period like schools or even ethnic
groups however this should be discouraged for an organization to provide employment equal
opportunities. Internet- based services have revolutionized recruitment activities ranging from
recruitment agencies sourcing candidates through online job boards and social media. Human
resource professionals are using internet assessment or job simulation programs as part of the
selection process. The aim of recruitment is to reduce timeline of recruitment. Normally, the
advertising period has deadlines. Potential candidates will have to submit their applications and
supporting documents as stipulated in the advert.
After the advertising dead line, the recruiting organization goes through the candidate’s
application. The process is sophisticated and rigorous because of the high turnout. A selection
search committee comprised of more than two people to reduce bias is formed. The committee
should have diversity to ensure equal representation of the overall HRM strategy such as
affirmative action, employee involvement and many more. The committee looks at the
curriculum vita (CV) and tries to match suitable candidates to available jobs. Some organization
use CV bank in the selection phase of recruitment. After going through all the applications
submitted, a few candidates are shortlisted for interview. The shortlisted candidates are then
invited for an interview at a preset place and time. Those who did not make it are informed that
they did not make it for the interview. An interview panel is then formed. This panel should
comprise of HR personnel, job experts or even consultants.
The panel then formulates interview questions which are in line with the business and HRM
strategy. The team sits and discusses their expectations and draft a checklist. The interviews
can be contacted over the phone, on internet or even in person. The candidates can be
interviewed using different setting such as written examination, group discussion, oral
examinations or interviews. For example an oral interview a candidate is assessed on
confidence, communication skills, conflict management, leadership, competence, knowledge,
expertise, flexibility, ambition, innovation and all the HRM strategies required for his/her level.
The candidates are given the opportunity to ask question and clarification. By doing this,
assessment of confidence and depth of knowledge is done. This is sophisticated process which
needs time diligent and expertise. The aim is to recruit the best workers for the organization.
When all the shortlisted candidates have been interviewed, the committee evaluates their
findings and successful candidates are shortlisted in order of performance. The bigger the
committee the less bias the process becomes. The candidates who fail to meet the organization
strategy are regrettable informed. The committee preferred candidate are informed by HR
about their success. They are given an offer letter, conditions of service and all that is necessary

9. for them to perform the work. If the first candidates turn away the offer the committee might
opt for the second or third candidates to fill the vacant.
Recruitment should be done with care because if a wrong candidates are chosen it takes a lot of
time to replace those candidates. The recruiting period is long and therefore there is need to
recruit the right people to prevent services disruption. The successful candidates are given
induction period or orientation at their new job. During induction period, worker familiarizes
themselves with organizational norms. They will meet new teams and stages of team formation
begin which are forming, storming, norming and performing. Recruitment could be via referrals,
promotion within the organization or best students from educational institutions. In most cases
an interview will be done either formally or informally to choose the right people.
During the recruitment period, there is an element of selection which is a methodical approach
of finding the best matched person for the job. This selection is mainly based on credential,
experience, best suit and any organizational criteria. Selection is mainly done by management
and line managers in an organization. The selectors try to match the candidates to the jobs
available. Selection process involves psychological tests, preliminary interviews, selection tests,
employment interview, references and background analysis, medical or physical examination,
job offer and employment contract. It also involves completion of the application form. In most
cases frontline managers initiates the selection process and the senior managers completes the
process by offering the job. Big companies may engage the services of organizational
psychologist to assess potential employees using psychometric test.
Retention of workers is a pivotal HR function of an organization. An organization aims to
preserve its critical workers. These workers are highly accomplished, exceedingly refined,
pioneering and imaginative, on whose shoulders the organization depends. These workers have
distinctive capabilities needed for the survival of an organization. The organization cannot
afford to lose these workers. The organization uses retention instruments such as competitive
rewards, incentives, retention allowances, careers development opportunities, share
ownership, gain sharing and pensions. The above-mentioned intervention will help an
organization keep work for a long time. The companies also use incentive such as financial
loans, accommodation, study leaves and payment of school fees to employee dependents.
Some companies offer health insurance as a means of maintaining workers loyalty. Companies
also use binding contract to maintain its workforce. As a result of this, the organization achieves
“competitive advantages” over its competitors (Storey, 2001).
Separation between an organization and its employees could be as a result resignation,
termination of contract of employment, completion of contract, closure of company,
retrenchment or even death of employee. Retirement and medical boarding are other forms of
separation. This is a sensitive issue which needs to be handled with care. Depending on the
situation on the ground, HR policies need to be followed up. The worker can give a stipulated
notice if he/she intends to leave. The company may have to pay the employee separation
gratuity, pension and leave days. In retrenchment, employers may give the works some asserts
as a retrenchment package. A form of separation can occur when workers are absorbed by
another company after an organization sell part of the company. Separation is not usually easy

10. because of modalities involved. In the event of death, the families of the deceased are given
their compensation.
Performance management is one of the mostly used HR function in organizations. This is a
process which ensures that goals are consistently being met in an effective and efficient
manner. In other words, it’s a process of motivating personnel through setting objectives,
evaluating growth, giving feedback, coaching for upgraded performance, and recompensing
achievements. It can focus on the performance of a business, a subdivision, worker, or even the
routes to build a product/actual of service, as well as many other areas. It is a method by which
organizations align their resources, systems and capabilities to strategic priorities or goals.
Performance management looks at the produced output in relation to the projected output and
addresses areas that need improvement. This is done by analyzing the process involved in
performance and giving feedback for further analysis and rectification of systemor goals. In so
doing, work efficient is bound to increase and hence better output.
Training is a process of equipping employees with new knowledge or reinforcement of the
existence knowledge. Training can be defined as acquisition of skills, knowledge and
competencies from vocational teaching or practical exercises on specific useful competence. It
can be done formally or informally. This forms the core of apprenticeship or internship. It is
mainly used at colleges, universities, institute of technology and school. The goals of training
are to improve one’s competence, capability, productivity, capacity, and performance. Training
is an ongoing process in which employees maintain, upgrade and update skills throughout
working life. Training can be conducted as workshops, seminars and discussion groups. Training
is also used during practices sessions. Training can be performed as short courses for career
development. They can also come in the form of problem solving. It requires training
instruments such as charts, projectors and computers. During training session, workers are
taught new skill.
Development is process of improving the market value of an individual through gaining new
skills, expertise, knowledge, innovation, wisdom, capabilities and problem solving acumen. This
requires proactive individuals who are keen to venture into new areas and risk takers. Career
that offers new challenges are the fertile ground of development in one career. Task shifting
and job rotation are ways that brings development in an individual. Individuals can develop
themselves by doing post basic course or advancement in their careers. Employers can initiate
career development by sending its workforce to do courses which are in line with their strategy.
Employers encourage career development by paying works on study leaves and also by paying
fees for the studies. Performances appraisals are done to motivate workers. They are also used
to reward highly performing workers. They are tools used periodically to assess the productivity
of an employee over time. Performance appraisal can be used to reward good workers and to
fire the bad workers.
Compensation in HRM can be something ranging from reward, salary, wages or even indemnity.
Workers are compensated for their effort in the form of salaries and wages. As part of
compensation, they are also given incentives, target bonuses, rewards for outstanding
performances. Some people work for more than the stipulated time and are paid overtime

11. which is very attractive. In organization compensation can mean indemnity in the form of
accident, loss, debt, injury or suffering at work. If workers are injured at work or have a
permanent disability resulting from an injury at work they are compensated with the
organization. In the event of a disaster, affected people or families are compensated.
Compensation can be given for a service or loss. Service compensation can be fixed or
performance based. It is a legal requirement for organization to compensate their workers
meeting the nation requirements such countries minimum wages. Other benefits such as
pension schemes and insurance are forms of compensation. They are given as a recognition or
appreciation for the employee’s contribution to the organization. Compensations are used to
motivate people. Companies that poorly compensate their works have high turnover of workers
and bound to have challenges. They may lose their skilled workers to their competitor and lose
competitive advantage.
Workers' compensation laws protect people who are injured on the job. They are designed to
ensure that workers who are injured or disabled on the job are provided with fixed monetary
awards, eliminating the need for litigation. They also provide benefits for dependents the
workers who are killed because of job-related accidents or illnesses. The companies are
required by law to provide protective clothing, safe working condition to reduce work related
accidents. If they fail to meet to the national requirements, they may be asked to close the
organization. If organization meet the legal requirements and worker do not use them, they
may risk no compensation in event of accident. Organizations are expected to meet certain
standards by law which is mainly monitored by environmental health officers. The organization
needs to meet public heath requirements. These requirements involve provision of disaster
plan, fire extinguishers and medical aid kits. In addition to this, companies are required to have
a name, operating licenses, valid registrations and authentic trademarks and patents. They may
be required to have injury and illness prevention program, bidding contracts, permits and other
forms of licenses required for specific industries.
An organization has to have good employee relationship. Works should be allowed to join labor
unions of their choice. These labor unions will help works to collectively negotiate better
working conditions. The aims of employee relations are to maintain employer-employee
relationships that contribute to satisfactory productivity, motivation and morale. It is mainly
concerned with preventing and resolving problems in an organization. Employee misconducts
are dealt in consultation with experts or disciplinary committee following a proper disciplinary
hearing or regulations. Workers are provided with information to promote better
understanding of organization‘s goals and policies. It also assists workers to correct poor
performance, misconduct and address person issues at workplace. Workers are informed about
regulations, legislation and bargain agreements. They are also, enlightened about their
grievances, appeal rights, discrimination and whistleblower protections. Labor unions represent
workers who are unfairly discharged of work.
Workers are motivated to work in an enabling working environment were successful
implementation HR strategy can be achieved. The aim of HR strategy is to produce the best
work place in an organization. An environment which is healthy reinforces good relationships,
respect for individuals and diversity of values. Work place should accommodate differences,
encourages effective communication, safe, free of discrimination and harassment, provide

12. equal opportunity. It is an environment that fosters professional satisfaction and growth of
employees enabling them to work to their full potential, thus achieving desired results. It is
influenced by the type of leadership, the strengths and weaknesses of the work force, physical
working condition and health and safety considerations. The environment affects the degree of
people’s empowerment, employee involvement, performance recognition, moral, participation
and motivation.
Organizations that address all the core functions of HR are bound to succeed. These functions
help to create high performance work systems (HPWS) through motivation and self-fulfillment.
As an organization grows, there is diversity in ideas, products and operating principles.
Companies expand conquering new territories and creating new international involvement.
These changes cause some challenges to the organization. For organization to increase its
profitability, they may have to diversify their business. Proper diversity will increase profitability
by increasing sales at relatively similar fixed overheads. However, when an organization wants
to initiate diversity they are bound to face resistance from workers and management that is
used to tradition way of doing things. This may reduce productivity or results in sabotages from
individuals against the diversity. Companies should be open to diversity of ideas as this brings
innovative ideas and propagation of an organization. These new challenges may reduce
productivity in the learning curve which may affect the profitability at the beginning. However,
if diversity is successful in an organization, people are motivated and there is career
development. In our organization we can diversify our production to supplement our current
activities. Diversity brings about new challenges to employees, which in turn motivates them
and results in personal development.
E-HRM involves the use of information technology to achieve HRM function. It can be used in
planning, implementation, recruitment, monitoring and evaluation of HRM functions. It can be
used for both networking and supporting and sharing HR activities within an organization. It is
also a form of information management which can be used for training, storage and
transmission of organizational goals. E-HRMis in essence the devolution of HR functions to
management and employees which can be accessed via intranet or other web-technology
channels. If proper E-HRMis in place, it empowers management and employees to perform
certain HR function and thus reduce the burden from HR department of those tasks and
allowing HR staff to focus less on operational issues. The HR can thus focus more on strategic
element of HRM and reducing HRM staffing. However HRM has its challenges. Many workers
are not computer literate and will tend to resist. The process needs investments in the form of
software, computers and internet which may be costly to some organization.
Our organization is now a multinational company and there is a need for us to employ
international workers. We can do this using many methods which include internet recruitment,
forming partnership with other companies in those countries, involving affiliate who can help
us achieve our goals. We can have representatives in these countries. Howe this has many
challenges because the supervision of international workers can be a challenge. We may have
call center that supports our activities in foreign countries address challenges faced by our
customers. In the advent of internet, we can develop a sale website that will be available in

13. target countries to market our products. However, many customers do not trust to buy on
internet because they are afraid or have no credit or debit cards to do so.
In conclusion strategic HRM plays a pivotal role in the success of an organization by effectively
applying the key HR function. The functions motivate workers to give their maximum potential
and hence increase output. Motivated workers tend to increase both production and quality.
When workers are motivated, they tend to be innovative and stay longer at that workplace. The
aim of HRM is to create a better working place. For effective implementation of HR strategic,
line managers and supervisors need to be involved from formulation, processing, setting
systems and evaluation. Organization should value human recourses as an appreciative asset
that is rare to find and difficult to groom not as variable overhead. The success of an
organization depends on people. SHRM defines where an organization wants to be and how
they go there.

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