This Assignment is in two parts.
Part A (Discussion)
• How does using a framework such as resource-based view (RBV) or Porter’s Five Forces enable an organization to achieve a competitive advantage, by implementing strategic HRM practices throughout the organization?
• Argue which framework you think is most important for HR professionals to employ: RBV, Porter’s Five Forces, or another strategic HRM framework of your choice based on your research this week.
• Then respond to someone that advocated for a different framework than you, adding value to the discussion by exploring the value of each.
Considering this work
Operations in the global market call for strategies that ensure costs are highly minimized and performance is improved. Many metrics are used to determine the level in which policies in HRM are implemented and objectives are achieved. Lawler & Mohrman, 2003) notes that organizations are interested in minimizing costs in attracting, training and developing employees, encouraging knowledge management, retaining highly skilled employees, and ensuring that the rate of returns on investment of employees are positive. Since there are many metrics, organizations often use only the metrics that are related to achievement of its HRM strategies. The major metrics that Shell Petroleum should consider in the measurement of the level of achievement of its HRM strategies include Cost-per-hire, diversity, and workforce productivity. These will improve the level of the company’s competitive advantage. The following paper examines organization metrics at Shell Petroleum that it may consider in measuring the success of the its HRM policies and practices.
Proposed Metrics for Shell Petroleum
Cost-per-hire is a common HR metric in the current competitive business environment where companies are striving to minimize costs with the aim of ensuring sustainability. Employers often use the cost-per-hire metric to determine the expenses incurred in recruitment, training, and the maintenance of a permanent workforce. The factors that are considered in the metric are the time spent in sourcing and interviewing potential job applicants, costs incurred in pre-employment assessments, new-hire orientation costs, costs of processing new employee packets, and the cost of lunches, materials, as well as uniforms. Examples of specific HR metrics for cost-per-hire are interview ratio, average time to fill, new hire failure factor, and applicant interview rate among others (Competitive Edge Technology, 2012). The cost-per-hire metrics are able to help Shell Petroleum formulate and implement strategies that would ensure their costs of new hires are minimized and thus profitability improved. MacMillan for example faced a challenge of incurring many costs on hiring new employees. Use of the metrics since 2011 made the firm strategize its hiring activities and by 2013, it managed o half its recruitment costs.
Diversity measurement within the top management and among the workforce is a common practice among socially conscious organizations (MacMillan, 2014). The significance of diversity has gone beyond a mere practice of ethics within a firm to achievement of strategies in knowledge management, change management, and improvement of creativity and innovation. Calculation of metrics for employee diversity involve the generation of the census reports of employees and sorting data related to sex, race, veteran status, age and disability. Comparisons are made between the findings and the available labor market determines is the organization is an actual representative of the surrounding community. Examples of specific Diversity HR metrics include Job Category Staffing breakdown, staffing rate-multilingual, staffing rate-minority, and staffing rate-female and staffing rate-disability among others (Competitive Edge Technology, 2012). The implementation of metrics for diversity will ensure that Shell Petroleum demonstrate the presence of business ethics, improve innovativeness and improve success rates of knowledge management as well as change management initiatives. Balter, Chow and Jin (2014) stated the use of diversity metrics in Sodex and Cummins has led to rise in performance in the companies.
Metrics for workforce productivity are used in determination of the rate in which an organization meets the demands of its business (Lawler & Mohrman, 2003). The metrics are often based on scenarios that are related to employees’ numbers, positions of employees, and their production levels. The metrics of workforce productivity also help in predicting capabilities in production as well as forecasting the needs of the workforce in case attrition of turnover occurs. The forecasts of attrition and turnover are often done using historical data like the number of voluntary resignations in the previous years. The workforce productivity metrics are important in development of workforce strategies that ensure skilled employees are retained and productivity is improved. Examples of specific employee productivity metrics are the employee engagement index, retention rates, termination rate, and turnover cost rate among others (Competitive Edge Technology, 2012). Workforce productivity metrics would ensure that Shell International raises the return on investment of every employee and reduces turnover intentions among employees. A perfect example is the success achieved by Nextel Communication Inc. in 1999 when it saved $3,204,000 by implementing employee productivity metrics, which helped in improving ROI of employees and reducing turnover rates (Balter, Chow & Jin, 2014).
For this week’s Assignment, in a 3- to 4-page paper: Still Using Shell Petroluem
• Describe what business(es) the organization is currently in, laying a foundation for the paper.
• What are the organization’s main strengths, weaknesses, opportunities, and threats (SWOT), based on its current status?
• In what business(es) do you anticipate the organization might collaborate with in the future if it were to expand, globalize, or enter another market?
• What recommendations would you offer for the organization as a result of your SWOT analysis for utilizing HR to align its practices with the organizational strategy?