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 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 fanaticism and 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 managementArmstrong 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 system is 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 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 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 strategies2. 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 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 aim to 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. 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.

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 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 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 system or 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 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 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-HRM is 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-HRM is 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 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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