1.1 AC 1.1 Explain the importance of strategic human resource management in
organizations
Strategic human resource management is related to the development of human resources
strategies in synchronization with the mission, vision and objectives of an organization in a
way such that the organization’s goals are accomplished. An organization should have the
ability to frame such human resource strategies which will enhance the overall productivity
of the organization (Durai 2010) .
The strategic human resource management in Tesco has been like the backbone of the
company in achieving success at the time of diversification into different sectors for business
activities. The organization through its strategic HRM has been able to develop its business
embedded with technical expertise, integrity and customer oriented globally (MacLachlan
2009) . For developing a vibrant strategic linkage of human resource with its corporate
strategy the company had designed a transformational coaching programme for the growth
and capability development of its mangers followed by an effective feedback procedure. The
programme aimed at communicating business priorities of the organization to its personnel
and building effective leaders as its competitive advantage (Churchard 2010) . In order to
augment the customer value the organization invests highly on recruitment, employee’s
training and infrastructures (TESCO 2012) . Tesco maintains a healthy relation with its union
partner and believes in employee’s participative decision making process for the
accomplishment of organizational goals (Wilton 2010) .
With a change in organizational culture Dell has been able to build a strong position in the
market. The company shifted its focus from just attaining growth to talent management,
leadership building and framed global vision (Scott 2006) . Dell strives for building a
competitive strategy for becoming a low cost player in the market. To have an alignment with

its business strategy the company renders its human resource services with the help of
technology that is through web. Through the company’s intranet its HR team have been able
to carry out various HR activities with the help of a variety of web applications such as
hiring applications or tools, management reports, automatic employee reference system,
updating of employee’s information to cite a few. This has helped the organization to
increase the performance of its employees in many ways such as development in
productivity, self-service, outsourcing as well as self-service. Along with these the company
has been also able to reduce its cost of carrying out human resource operations as less
manpower is required in performing automated activities and it is less time consuming as
well (Gary & Varkkey 2010) .

1.2 AC 1.2 Assess the purpose of strategic human resource management activities in
an organization (Siemens case study)
The key purpose of developing a strategic human resource management is to have an
alignment between the human resource strategies and organization’s business strategies. Such
integration will help an organization in attaining sustainable competitive advantage.
Integration in human resource signifies an alignment between the human resource policies
and the policies of other business operations in an organization such as finance, informational
technology, marketing, production to cite a few (Vedd 2003) . However, the purpose of
designing a strategic human resource management is not only having an integration between
HR and corporate strategy rather the aim is also to have an integration between decisions
regarding the organization’s personnel with the expected output of the organization. An
organization need to align human resource management with the corporate planning system,
focus on the human resource activities that will help in the accomplishment of organizational
goals and should undertake actions that will help in building strong personnel-management
relationships (Dhar 2008) .

The main purpose of Siemens behind designing a strategic human resource management is to
meet global challenges. Siemens operates in highly competitive technological market which
is continuously developing which makes it imperative for the organization to have an
effective HR strategy so as to develop and grow its personnel on continuous basis through
frequent trainings. Various trainings imparted by the organization are like class room
training, apprenticeship training to cite a few. The organization also organizes management
development and education program so as to keep its employees up to date regarding the
changing market trends and requirements. Siemens encourages global team work as part of its
human resource strategy. The employees in the organization are expected to understand work
and perform across every departments, disciplines and regions. The main purpose of Siemens
behind such strategy is to enable its employees to handle multiple responsibilities in the
global market and infuse a feeling of oneness and a vital part of corporate among its
employees. In order to compete in the global market Siemens also redesigned its performance
management system which constitutes of assessing its employee’s performance on regular
basis followed by an effective feedback system. This will help its employees to augment their
competencies and potentiality. The management will also be in a position to identify the
existing competency gap and the remedial measures that needed to be taken to bridge such
gap. The organization believes that in order to attain long term growth and increase
shareholder value it is inevitable to build a motivated and satisfied human resource pool.
Therefore Siemens provides career development and growth opportunities, fair compensation
benefits, cordial work culture to cite a few to its employees by developing a strategic human
resource policies and practices. This will in turn help the organization to prosper in the
market. To gain success in the global market it is vital for an organization to have an effective
cultural diversity management system. Therefore Siemens promotes a culture of transparency, openness and fairness in its organization to deal with the culturally diversified
workforce in its system (Bhatia 2005) .

1.3 AC 1.3 Evaluate the contribution of strategic human resource management to the
achievement of an organization’s objectives (Siemens case study)
Siemens has repositioned as well as redesigned its organizational and human resource
strategy which contributed significantly in meeting the business objectives. Siemens has
divided its business strategy into organizational strategy and human resource strategy in
which human resource strategy has been framed in alignment with the organizational
strategy. While the business strategy of the organization was framed to augment the
organization’s capabilities, the human resource strategy was framed in a way to guide the
actions of the organization’s personnel and maximize the human potentialities so as to
achieve competitive advantage. For an effective execution of human strategy the company
has divided human resource activities into design and consulting services, service centres and
strategy. The service centre of human resource is concerned with carrying out daily human
resource functions effectively. The strategy and design division of human resource is
responsible for conducting an external environmental analysis. Based on such analysis the
group is expected to carry out the human resource activities such as recruitment,
communications, and appraisal to cite a few in a way so as to have a considerable
contribution on the organizational success. The consulting service group provides guidance to
the organization in respect to the formation and implementation of organizational strategies
(Chanda 2007) .
The human resource strategy of Siemens consists of imparting frequent training and
education to its personnel which is based as per the business requirements of the company for
building and developing competencies of its employees globally. This strategy acts as a pillar
of global success for the company (Siemens 2015a) . To have a strategic recruitment process

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Siemens PLM software has strategic affiliation with various organizations to build up the
future engineers, technologists and leaders. By this way Siemens will be able to recruit highly
skilled and qualified personnel in future which will in turn enhance the quality of business of
the organization hence leading to success (Siemens 2015c) .
Siemens had realized that recruiting right candidate, imparting training and retaining talent is
imperative to achieve success. Siemens therefore to have a valuable top-notch recruitment,
compensation, employee development, performance evaluation and retention process to cite a
few globally collaborated with the success factors solution. With these the organization has
been able to standardize and integrate its human resource process. Collaboration with success
factors solutions has enabled the organization to have global insight for growth and human
resource planning. Through these cross border managers are being able to exchange
information globally and take quality business decisions (Siemens 2015b) .

1.4 AC 2.1 Analyse the business factors that underpin human resource planning in an
organization (Either dell or tesco)
Human resource planning constitutes of application of planning procedure to the human
resource requirements of a firm. In order to have an effective human resource planning the
plan should be linked with the operational and strategic planning process of a company
(Prasad 2012) . The main objective of a human resource planning is to motivate personnel in
an organization, enhance customer experience quality and focuses on enhancing creativity,
commitment and development in an organization. Human resource planning enables an
organization in determining the future demand for labor as well so as to meet the projected
needs of an organization (Deb 2006) .
Various factors related to the external environment of an organization may influence the
objectives of an organization and the human resource requirements to meet the organization’s

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objectives. Some of the factors related to the business of an organization which acts as
influencing factors are like governmental control, economic circumstance of a place, and
prevailing competition in the market and changes in the labor force. Governmental control
includes rules and regulation framed by the state or local government. Economic condition of
a place implies the recession, inflationary condition, level of employment to cite a few of a
place. The prevailing competition refers to the major players or the number of exits and entry
of players in the market and business that strives for absorbing the same workforce whereas
changes in the labor force implies the composition of labor or supply and demand of labor in
a particular market (Byars & Rue 2008) .
One of the major objectives of human resource planning at Dell is to assist the organization in
the accomplishment of goals and attain competitive advantage thus enabling the organization
to beat various external and internal business factors. The organizational human resource
planning (OHRP) process has been the key factor behind the success of Dell. The
organizational human resource planning process enables Dell to forecast the demand for
labour well in advance so as to augment the growth of the organization. The human resource
planning process of Dell engages in identifying the vacancies for key jobs in the organization
well in advance. Along with these the process also involves competency mapping which is
done by measuring the performance and quality of the organization’s high performers. This
enables an organization in deciding what kind of skill sets can be expected from the new
recruits. The organization implements flexible deployment of its human resource personnel
for an effective operation of OHRP process. During the lean time of recruitment and peak
time of sales the recruitment team is deployed in the sales and customer service team to
contribute in the sales of the organization (Rao 2010 ; Holzner 2006) .

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