The Strategic Human Resource Management

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* Evaluate the extent to which 2 -3 key HRM strategy/policies used by your nominated firm contribute to organisational performance

Strategic human resource management is the concept of evolving human resource practises and policies into the organisational gaols, strategies and foundations. It involves the long term planning based on a number of predictions of future conditions, not only business but also the context in which the business operates, e.g. global context, technological context, environmental context and legal context. With this operation of syncing human resource practise in line with organisational strategies, organisations are able to alter performance, idealistically for the better. Colgate Palmolive has employed the human resource strategies of employing a smarter and efficient workforce, a workforce leading to win and an innovative workforce. These Strategic human resource management schemes have impacted the organisation’s performance; in particular, financial growth, International growth and building brand awareness with profession, customer to achieve international growth Smarter and Efficient workforce:

The way in which Colgate Palmolive introduces a smarter and more efficient workforce is through the means of efficiency programs, centred on investigating which areas of the business are able to increase savings as well as finding ways to increase production and capabilities. The saving made are re invested into Colgate Palmolive to improve products and other .areas of the organisation. More specifically in Vietnam and China, Colgate Palmolive introduced new toothbrush plants which used state of the art technology allowing workers and production to become more efficient. These workpractises are not unrecognized, the Chairman’s “You Can Make a Difference Award” motivates employees to follow business strategies.

The way in which the strategy of having a smarter and efficient workforce contributes to the organisation performance is based on output and profit. As a result of becoming more efficient, costs are reduced and output is increased, this has a building effect on profit as more units are available to comply with demand and costs are reduced, leading to an increased in profits. This is shown in the figures produced at the end of the 2011 financial year, 7.5% increase in net sales worldwide occurred from 2010, the new Vietnam facility produces alone 500 million brushes annually for 62 markets worldwide. However gross profit decreased from 59.1% to 57.3% as a result of the costs injected into the new business alignments and cost saving schemes. Operating profits increased from $3,796 million to $3,858 million though. After analysis of the figures produced at the end of the 2011 financial year, it can be proved that the strategic human resource management employed by Colgate Palmolive contributed to the organisations performance. The human resource management strategies executed did not have dramatic shifts apart from gross profit as most figures followed the present trend of the last five years.

A sustainable workforce:
Colgate Palmolive also try to construct an ethical culture which on turn leads people on the right track, ensuring positive work output. Colgate has over 150 training courses, these are aligned to the Company’s strategic goals. This can be especially translated into the environmental efforts which the organisation pursuits. Colgate Palmolive tries to pursue the notion of each employee being transformed into leaders in order to be able to strive for the best in themselves and also fellow employees. This approach to work leads to ethical view of the organisation in the public eye whilst also maintaining sustainable work practices.

This strategy has contributed to organisational performance in terms of reaching ecological sustainability goals. The new Vietnam plant is the first LEED-certified plant in the country, a result of the workforce adopting the environmental...
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