This report focuses on the primary issues and secondary issues of Banksia Health Service (BHS). BHS consist of about 500 employees and operates without a human resource department. This led to many issues that surfaced and causing BHS to be deemed as a poor performer by the state health department. Firstly, the report looks into what is strategic human resource management and uses the Harvard Analytical Framework for HRM to analyze the various issues in BHS. Primary issues such as the CEO management styles, a lack of human resource department, and mandatory compliance to the government policies were present within BHS. There were also secondary issues such as communication problems, lack of trust in the HR policies, sense of unfairness among employees. This report also explains the impact caused by the issues which are low employee morale, poor organization effectiveness. The report moves on to provide alternatives for solving the issues revolving BHS by establishing a HR department and implementing effective communication system. Benefits of such alternatives are further explained in the report and a conclusion for the report makes it stand on the importance of SHRM within an organization and emphasize on the advantages of SHRM. 1 Introduction
1.1 Strategic Human Resource Management and SHRM Model
Strategic Human Resource Management (SHRM) is one of the most impactful and convincing idea that have erupted in the contemporary context of organizations (Salaman, Storey and Billsberry 2005). It had become an important part of many organizations today as SHRM strives to increase organization performance through human capital and to satisfy the needs of the organization’s workers. SHRM is the process of developing and implementing Human Resource (HR) strategies that are integrated with the organization strategies, allowing the organization to meet its goals (Armstrong 2008). HR strategies include various functions such as HR planning, Recruitment and Selection, Training and Development, Performance Management, Employee Relations, and Reward management. Therefore, SHRM looks into how to integrate these functions with the organization strategies to be the organization’s strategic partner. One of the most recognized SHRM model will be the Harvard Analytical Framework for HRM created by Beer et al. (1984). The creation is based on the belief that issues of historical personnel management can only be fixed when managers establish a view point of how they hope to see workers involved in and groomed by the organization and of what HRM policies and practices may achieve those objectives. Without either a strategic vision or a central philosophy, which could be provided by the manager, HRM will likely remain as a set of independent activities, each led by its own tradition and practices (Pattanayak 2005). The model has incorporated the past and practice of HRM, especially highlighting HRM as a general management role rather than just personnel role. Figure 1.2 below illustrates that a HRM policy should consider the stakeholders interest (Internal environment) and situational factors (External environment) which leads to HRM outcomes such as competence, cost effectiveness, congruence, and commitment. Ultimately, it leads to long-term consequences such as organizational effectiveness, individual wellbeing, and societal wellbeing which in turn affect the situational factors, stakeholder interest and the choices of HRM policy. Figure 1.2 Harvard Analytical Framework for HRM
* Employee groups
* Employee groups
Source: The Harvard Framework for HRM, Beer et al. (1984)
* Cost effective
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