Several major changes and challenges are affecting Jane’s organization’s human resource management: Strategic Human Resource Management Assignment, SU, Malaysia


Sunway University (SU)

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Strategic Human Resource Management

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Question 1

Several major changes and challenges are affecting Jane’s organization’s human resource management. The points below show how the company is changing.

Expected Revenue Growth

Revenue is expected to rise 10% and up 30% in individual quarters, indicating a need to expand the workforce or increase productivity to meet the company’s growing demand. This will impact HR management’s recruitment, onboarding, and talent management strategies to ensure companies can sustain and capitalize on this growth. Organizational development significantly impacts human resource management, and rapidly growing organizations tend to benefit from increased investment in human resources and a deeper understanding of which HRM practices and programs are most likely to be critical to their success (Das, 2012).

Upcoming Retirements

The retirement of five long-standing employees represents a loss of institutional knowledge and experience. HRM will need to focus on knowledge transfer, succession planning, and possibly recruiting new talent to fill these gaps. Retaining these employees in part-time or advisory roles could also be an option to preserve their expertise. These retiring employees are the subject expert matter (SME) for the core of the business. Their retirement will definitely strike the operation of the business if the knowledge transferred is not well conducted. Coping with the aging workforce is a major challenge for human resource management. When five of Jane’s employees retired, they brought with them a wealth of knowledge and company experience, leaving the burden on Human Resources to find, hire, and train replacements for the experienced employees. This process requires a significant investment of time and resources and the patience required to adapt to the learning curve of new and less experienced employees (McQuerrey, 2016).

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Expanding Diverse Workforce

Once the retired employees exit the organization, Jane’s workforce will become even more diverse. This evolving diversity landscape has raised a red flag for Jane, emphasizing the urgency of prioritizing diversity management within her company. To secure the organization’s long-term survival, it is imperative to consistently and effectively oversee its diverse workforce. Acknowledging and valuing diversity is not merely important; it’s a fundamental necessity for maintaining a competitive edge. Adopting diversity management practices bolsters productivity and amplifies overall effectiveness, contributing to the organization’s sustained competitiveness (Kaur & Mittal, 2014).

Telecommuting and Virtual Work

The idea of Jane implementing telecommuting options or transitioning to a virtual organization can bring cost savings but pose productivity and communication challenges. The potential benefits of telecommuting are more likely to manifest when these setups are efficiently executed and backed by supervisors. Nevertheless, the mere establishment of official telecommuting guidelines is insufficient to alleviate work-family conflict or enhance performance (Lautsch & Kossek, 2011). HRM must develop clear policies and performance management systems to ensure employees remain productive while working remotely. Additionally, they must address concerns about maintaining communication and motivation in a virtual setting.

Revise benefit package and type of employment

Jane’s concerns about the potential elimination of employee benefit plans and the shift in employment status to contract positions raised concerns about the future well-being of the organization. Consideration to reduce health care costs by cutting benefits or changing working conditions may impact employee satisfaction and the ability to retain talent. HR management must carefully evaluate the impact of these decisions on the company’s ability to attract and retain top talent. Exploring alternatives like offering a diverse benefits package or implementing a wellness program can help manage healthcare costs while keeping employees satisfied. It’s important to realize that contract work may not be suitable for everyone and may require additional commitment to be successful. As Jane considers these options, it is crucial to carefully consider the pros and cons and give each aspect the attention it deserves (Wooll, 2022).

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