Strategic Human resource Management or SHRM has become one of the most important aspects or sub-sets of strategic objectives in the recent times. While the businesses all around the world has become more & more dynamic, managing people or to be precise making good use of the skills of the people has become one of the most important requirements for any organization under consideration. Hence aligning the business objectives with that of the SHRM objectives has become the requirement of the day.
The company Google Inc. is one of the most sought after organization when the ranks for the best places to work is being considered. A closer inspection it is being found that the company follows a robust SHRM when it comes to managing talent & workforce across the world. However being in the technology industry, the company is always faced with the problems of talent getting lost to the competitors & thus the company is poised with the challenge of increasing the retention rates.
The evaluation of SHRM along with determining the KSF for the organization has resulted in finding out the factors which are being most stressed by the organization. For example the company has developed algorithms for almost everything starting from recruitment to selection to retaining employees, but in the whole process misses out somewhere on the human factor. While the company's practice of piloting the effectiveness of the HRM policies before rolling out is appreciable, but the company also needs to be flexible in terms of modifying the organization structure to suit the needs of the projects. Although this has been practiced in many places, but in many conservative countries the Google Inc. offices still do not prefer private time over the office time.
The employee satisfaction survey consisting of 20 employees being interviewed through online channels have also supported some of the views as expressed through the literature reviews. Hence recommendations would be framed by taking into consideration the survey results & the literature review.
Hence some of the recommendations include more focus towards understanding the individuals, more focus towards understanding the background of the people rather than relying on only analytics, a slightly hierarchical structure& change in the brand image of the company for the potential employees.
Strategic Human Resource Management or SHRM is one of the focused areas under the umbrella of HRM, which helps in aligning the HRM objectives of the company to that of the strategic goals, objectives and directions of the company under consideration(Alam, 2010). SHRM comprises of the different array modules or components such as recruitment, on-boarding, payroll management, work force development, employees retention programs, training the employees etc. For any growing company in a dynamic environment, managing the human work force will not only help in building efficiency but will also help in forecasting the future effectively.
It nicely depicts the role of SHRM in the context of the broader perspectives of the organization. As evident the SHRM also goes hand in hand with the operational & the strategic objectives for any organization. SHRM are mainly followed by the leadership who try to align the same with that of the business strategy(Guerci, et al., 2013).
Importance of Strategic Human Resource Management
- SHRM would act as a strategic enabler or rather a catalyst for the broader organization perspectives(Adresi & Darun, 2017).
- With successful implementation it could bring about exponential benefits by improving & workforce, retaining the experienced employees and thereby creating a dynamic work culture which could even further foster innovation & creativity.
- Strategic Human Resource Management could also help in aligning the company objectives with that of the Govt. regulations, rule & procedures.
- SHRM could also act as strategic tool for managing the labour union problems, staff problems etc.
Purpose of the Report
This report has been made with a view of providing the importance of SHRM with respect to the organizational strategies and correspondingly evaluating the same with respect to a real life organization in the world. At first an organization is being chosen, which in this case is Google Inc. All the relevant theories and models would be discussed with respect to the same. The report starts with an extensive literature review which analyses the different aspects of the SHRM starting from Key Success Factors, Culture, organizational design etc. on one hand & therefore critically evaluating the significance of these components across the organizational value chain. On the other hand a detailed SHRM plan has been evaluated with a clear focus of aligning the same with that of the organization's broad strategy. A five year Structured HRM plan will focus on the immediate, mid-term & the long term goals with a focus on increasing the efficiency & the efficacy of the organization. Finally the incumbent HR processes of the organization is being analysed followed by a recommendation section on the current areas of improvement for the company Google Inc.
Company Background (Google Inc.)
The company Google Inc. develops and delivers products and solutions that manage information and database. The company is famous for its Google search engine on the internet. The company was founded by Sergey Brin and Larry Page in the year 1998. This is a subsidiary of the company Alphabet Inc. The company is headquartered in California(Google, 2018)a. According to many analysis, the company handles more than 70% of the search requests that is generated on the internet every day.
Nature of Business
The company started off as a search firm but over the years it started developing and selling many other products. Google currently offers above 50 products and services in mostly the digital world. The company’s Google mail and android operating systems are very famous globally. Google acquired Motorola mobility recently and thus recently marked its foray into mobile handset business. Google is currently regarded as one of the most successful technological companies in the world. In the high tech market Google is at par with IBM, Apple and Microsoft(Google, 2018). Most of the revenue of the company is earned from its online search engine and through its advertisement platform called AdSense.
Strategic Business Plans
Google has been looking at intensive growth strategies from a long time. The company primarily focusses on innovation and new product development as the major strategic business strategy. Google came out with Google glass and is currently working on driverless cars that are poised to be disruptors and game changers in the modern world with implications across multiple business domains and verticals.
Competitive Strategy & Goals
The major strategy of Google is to develop innovative products and leverage Blue Ocean Strategy. Google is coming out with newer versions of Google chrome, cloud and analytics services that are currently being leveraged by multiple companies although in very nascent stage these products have been able to deliver considerable business values to the companies that are currently using the products(Abc.xyz, 2018). The major competitors of Google are not Yahoo or Bing search but as per the founders the main challenge being faced by Google is from the company Amazon. Amazon does not provide search engine based solutions as a whole but it is so much into the retail and ecommerce business that if customers want to buy something then he or she will most likely search it on amazon and not on Google.
Purpose of Strategic Human Resource Management (SHRM) for an organization
Strategic Human Resource Management or SHRM aims to optimize the HR Practices in an organization along with evaluating the solutions & support which provides the operational support for SHRM. For any well-centred & structured organization, the need of SHRM lies in the fact that it provides a guideline with respect to the future activities. Having a close alignment with that of the business strategy, SHRM also helps in understanding the recruitment strategies, retention plans along with the compensation benefits which could provide help in improving the company’s revenue.
Purpose of SHRM for Google Inc.
Google Inc. is one of the favourite places for the employees to work for in any country. Year after year, the company has been ranked within the top 5 places where employees love to work, rather than performing their day to day duties. But contrary to the expectations that the employees would be staying there for a long period of time, it has been noticed that the employees soon leave the organization in the need for better challenging opportunities in other companies(Rhatigan, 2016). Thus in the technology industry Google Inc. has one of the lowest retention rates and it closely rivals Amazon in this respect. One of the major reasons behind the same is that the technology industry is very much competitive in nature & when it comes to poaching the talented employees, these companies often go out of their capabilities to hire companies with huge compensation packages. Hence it is instrumental for the technology companies like Google Inc. to have focused SHRM in places which not only recruits & grooms talented people but also retain most of the talent. There have been cases, where the employee has joined the organization, gone through the training period and then left the company for pursuing better opportunities(Prabhu, 2014). This actually means a loss for the company in the form of training costs, employee retention costs and recruitment costs. Despite the company’s best efforts the best talented employees are gone to join the rivals. Thus Google Inc. should have SHRM in place which not only integrates the operational objectives and help in running the day to day activities but also help in achieving efficient practices in the future.
Definite Purposes of Google Inc. SHRM
• To increase the retention rate of the employees.
• To save on the training & the development costs by engaging talent for long term engagements.
• Structured recruitment plan followed by grooming of the talent.
• To integrated the operational metrics to that of the strategic objectives.
• To create a culture of innovation & creativity.
• To instill motivation which in turn would help in increasing efficiency.
Evaluation of SHRM
One of the major reasons of SHRM is to improve upon the organization’s performance. It could be evaluated through analysing the effective HRM practices & their implementation and thereby mapping the same with the benchmark practices in the industry. One of the quick ways to evaluate the SHRM in any organization is to study the reports of the various analysts and thereby understand their criticisms or debates with respect to the SHRM challenges and practices. SHRM evaluation could be envisaged by the following diagram below:
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