Strategic Human Resource Management

The case of Cadhla Solutions suggests that human resource functions should be expected to introduce better systems for managing the organization’s human resources. The problems identified by Cadhla Solutions’ managers are lack of trust and poor communication between the Contact Centers and Line Managers and Team Leaders. In addition, the human resources function does not continually look for ways to more closely align human resources systems and procedures with the evolving direction of Cadhla Solutions. Cadhla Solutions restructures and reengineers itself into new shapes and operating arrangements (Baron and Kreps 2000). The purpose of such reorganization is often to capitalize on improved communications and better responsiveness for competitive advantage. Again, such changes in structure produce significant changes in the jobs and the kinds of skills people need to perform those jobs (Barney, 1991)

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Lack of communication and open-plan offices, a system of random checks and part-time employment of the Contact Centers employees can lead to failure of the company’s future plans. As this situation unfolds, the company should look at the changing nature of job requirements for both the Contact Centers and Line Managers and Team Leaders (Daniels et al. 2008). The assessment of the supply of talent available to Cadhla Solutions as projected into the future is the companion piece of this phase of human resources planning. Here, the current Contact Centers a population of the organization is inventoried to determine how well the supply can meet the demand. Together, demand and supply forecasting shows inadequate manpower planning in Ireland (Brewster1993).

The main risks of starting two new centers in Mumbai and Cape Town involve cultural knowledge and language differences, importance of additional training and adaptation of the service to local needs of the population. The HR manager should look at the costs and likely benefits of various possible courses of action to help guide the decision-making process (Carter et al 2008). Cadhla Solutions does not have the right people in Mumbai and Cape Town so it will have to invest in additional training for HR managers. In a foreign country, human resources planning is a procedure that seems to make a great deal of sense. One would expect that such a procedure would be widely practiced, mainly among larger companies with the size and resources to support such planning. Possibly for this reason alone, one further step recommended is to obtain the support and involvement of top management in the human resources planning process. In all countries, Cadhla Solutions would have to reeducate 30% of its staff. The most difficult task will be to find employees speaking both English and native dialects (Budhwar and Debrah 2001). Thus, it is important to mention that India has two official languages, Hindu and English, so it would be possible to resolve this communication problem. It is supposed that 95% of employees will speak both Hindu and English. In India, HR planning cannot yield perfect predictions, so it does give the organization the ability to think through what kinds of personnel will be needed in the future. Further, such planning gives the organization an opportunity to prepare to meet that future in a more proactive manner (Boxallm and Purcell, 2002). Cross-cultural management will be viewed as either a reactive tool (i.e., problem fixing) or a proactive process for system improvement (Druker and White 1996). The proactive application of organizational principles, related to cross-cultural communication, should be tied to corporate strategies for creating superior customer value. Cross-cultural management is valuable in that the process forces managers to look externally at what clients’ value and how other practices meet those needs (Boehnke and Bontis, 2003). In India, the proposed strategies will help to analyze and examine competitive moves and create unique practices in order to compete on the Indian market (Henderson 2008). The primary objective of applying strategic management practices is to supply management with the practices that deliver unique customer value. The increased competitive pressures created by global service markets have led to a number of new analytic techniques. Modern corporation have use cross-cultural technique to compare various aspects of its products, services, and processes against various referents (Grant, 1991). These strategic goals will help Cadhla Solutions to maintain positive atmosphere and create friendly human relations in a new country (Levine, 2008).

The strategic HR plan will involve the following short-term actions in Cape Town:

  1. Environmental scan (related to HR)
  2. Development of job design and needs analysis
  3. Development of job specifications
  4. SWOT analysis (determination of weaknesses threats, opportunities and strengths of HR in India)
  5. Recruiting and selection of employees
  6. Cross-cultural training for all employees (Ulrich and Lake, 2000).

The medium-terms in Cape Town goals will be:

  1. Implements in corporate culture
  2. Positive climate and morale
  3. Changing nature of checks and relations between the Contact Centers and Line Managers and Team Leaders

The long-terms goals in Cape Town will involve:

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  1. Introduction of quality management circles
  2. Retaining a skilled, high performing and diverse workforce
  3. Career promotion and training for native population
  4. Creation of a learning organization
  5. Benchmarking

The proposed strategies will help Cadhla Solutions to deliver the particular desired outcome and introduce changes. The nature and focus of the HR practices process ensures that the means of creating and delivering value to the customer are improved. Thus, the first theme, customer value, will be integrated with the second theme, continuous improvement of systems, which are the means of satisfying customer requirements (Johnson, 1992). One major point of difference in the figure is that benchmarking focuses on “practices” that satisfy customer needs. While market research focuses on identification and competitive analysis is usually employed at the strategic level, benchmarking is unique contribution is in examining “how” things are done to satisfy diverse needs (Winch and Schneider 1993). The proposed changes n India will provide a logical and equitable change approach. Unique environment can be used to introduce strategic perspectives of what is required to obtain market leadership.

PESTEL for a short-term plan

Political trends:

  • types of goods and services supported by the government
  • the level of support of foreign companies by the state
  • priorities in terms of business
  • the workforce relations

Economic factors will involve:

  • interest rates
  • inflation
  • taxation changes,
  • economic climate and stability

Social Factors will touch:

  • demographic trends
  • cultural diversity
  • employment rates
  • willingness to work in a foreign company
  • ability of population to buy products

Technological factors:

  • availability and acceptance of technologies by population
  • types of technologies used by Indians
  • the Internet access
  • mobile communication

Environmental factors:

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  • impact of the company on the environment
  • changes in temperature

Legal Factors:

  • protection of foreign companies by the legislation
  • attitudes towards discrimination issues
  • labor unions
  • labor relations

PESTEL for a medium-term plan

Political factors:

  • new consumer laws and regulations
  • stability of the country
  • political changes
  • international trade relations

Economic factors:

  • Customer loyalty
  • Inflation
  • unemployment
  • Black market operations

Social factors:

  • Aging of the population
  • population growth rates
  • attitudes towards work and income
  • involvement

Technologies factors:

  • the Internet development
  • wireless technologies
  • geographical access to mobile and Internet communication
  • willingness to introduce new technologies

Environmental factors:

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  • housing
  • food provisions in the region
  • sustainable development policies
  • Local distinctiveness

Legal factors:

  • High quality regulations
  • legal and industry standards applied to foreign companies
  • development of support and management policies
  • protection of clients

Long term political plans will depend upon the following political issues:

  • political stability of the country
  • the quality of the national infrastructure
  • political climate of the country
  • membership of India is trade unions and international trade organizations

Economic issues:

  • possible taxation changes,
  • opportunities of economic growth,
  • inflation
  • national income,

Social trends:

  • population composition
  • desire to consume foreign products and services
  • income dissatisfaction
  • motility rates

Technological trends:

  • desire to acquire and introduce new technologies and innovate
  • perception of online shopping
  • new product development,
  • degree of technological obsolescence

Environmental factors:

  • global warming
  • regional development

Legal factors:

  • competition regulations
  • health and safety regulations
  • employment legislation
  • provisions of safety equipments

Bibliography

Barney, J. 1991. Firm resources and sustained competitive advantage In Journal of Management, 17 (1) 99-120.

Baron, J., Kreps, K. 2000, Strategic Human Resources; Frameworks for General Managers. Wiley; 1 edition.

Brewster, C. 1993. Developing a ‘European’ model of human resource management. International Journal of Human Resource Management. 4 (4) 765-784.

Boehnke, K., Bontis, N. 2003. Transformational leadership: An examination of cross-national differences and similarities Leadership & Organization Development Journal. Bradford. 24 (1). p. 5.

Boxallm P., Purcell, J. 2002, Strategy and Human Resources Management. Palgrave Macmillan; illustrated edition edition.

Budhwar, P. S., Debrah, Y. 2001. Rethinking comparative and cross-national human resource management research. International Journal of Human Resource Management. 12 (3), 497 – 515.

Carter, Ch., Clegg, S. R., Kornberger, M. A 2008, Very Short Fairly Interesting and Reasonably Heap Book about Studying Strategy. Sage Publications Ltd; 1 edition.

Daniels, K. et al. 2008, Strategic Human Resources Management. Chartered Institute of Personnel and Development.

Druker, J., White, J. 1996. Between hard and soft HRM: human resource management in the construction industry Construction Management and Economics 14, 405-416.

Grant, R.M. 1991, ”The resourced based theory of competitive advantage”. California Management Review, #33. pp. 114-35.

Henderson, I. 2008, Human Resources Management for MBA Students. Chartered Institute of Personnel & Development.

Johnson, G. 1992. Managing strategic change: strategy, culture and action. Long Range Planning, 25, 28-36.

Levine, D.L. 2008. Working in the Twenty-First Century: Policies for Economic Growth through Training, Opportunity, and Education. M. E. Sharpe.

Winch, G., Schneider, E. 1993, Managing the Knowledge Based Organization,” Journal of Management Studies, 30, 923-937.

Ulrich, D., Lake, D. 2000, Organizational Capability: Competing from the inside out, John Wiley, New York.

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