The human resource plays a crucial role in recruiting, training, performance management, compensation and evaluation of organizations’ man power. These functions are very essential for an organization’s performance and therefore, they form part of an organization critical plan for service delivery. According to Kapoor (2015), empowering human resource department add values to an organization strategy and it make sure that it can carry its responsibilities in a way that support the development and success of an organization. However, an effective human resource should have a clear relationship with the organization’s strategy to allow an organization to support its function better within its human resource. Mostly, human resource understands what a company’s business strategy demands and it make sure that a company has the right people in place (Kapoor, 2015). People who can help an organization achieve its objectives and support the growth as well.
It is important to align the human resource functions with a company strategic plan because HR department is department which lays down the groundwork for the building of the strategic plan. The human resource derived the vision, so that all the HR policies can be applied to outline the strategic plan for the company which can benefit the organization. Therefore, the human resource outlines the strategic vision and strategic goals of a company and hence allows the organization to achieve its set strategic goals.
Aligning human resource function with Maersk strategy would allow the company to have the right manpower with ability, skills and experienced to drive the growth plan of the company. It would also makes sure that Maersk’s human resource department is integrated into the highest rank of the organization, which is a senior strategic management committee and therefore, HR can work across the company to ensure that human resource needs are given consideration with other organizational investments plans. It would make sure HR requirements are included in the Maersk’s strategy so that the company does not feel the lack of certain HR requirement during the process of implementation of the strategies. The human resource would provide trainings and assessment to ensure that everyone recruited meets the demand of the Maersk strategy. It would make sure the company achieves the objectives and goals set without setbacks.
However, for success alignment of the business strategy with HR the use of Maslow’s Hierarchy of Needs could address issues which can improve the performance hence smooth implementation of Maersk’s strategy. Maslow’s Hierarchy of Needs addresses the needs of employees through motivation and this can be implemented as the organization align itself strategy with HR department. Without motivation the key organization[s strategy would be realization since working with demoralized employees is not an easy task. Therefore, besides conducting staffing, performance evaluation, trainings and the performance management the HR department will also motivate employees to ensure that set strategies are achieved with the given time frame.
The latest or current global condition in the Maersk’s which impact the human resource management (HRM) practices within the organization. First, due to the fact that the Maersk is an international company it should be fully aware of global conditions which affect human resource and the kind of effects which such condition can cause the company. It is therefore, advisable for the human resource department to remain flexible to allow it to be ready to adapt to any global condition which might take place. It will help the organization to do away with policies which are very stagnate. For example, Maersk had always hired a pool of young graduates with little experience then subject to training before assigning them responsibilities. However, due to high turnover expected from employees the company must reevaluate their training hiring policies. The actions taken to conduct reevaluation indicates that Maersk human resource department can adapt to any changes which is realized in the global condition to make sure that the company stands vibrant in the industry in service provision.
Staffing
Staffing is an important part of HR responsibilities and the quality of employees depends on the methods applied by an organization to recruit workers. However, Maersk has developed a tendency of hiring young and inexperienced employees the train them to gasp the working ethics and adapt to the working environment to help drive the company’s agenda. The company has built an atmosphere where employees will work for over forty years without leaving. The company management usually found it very difficult to hire underperforming employees because of the family atmosphere which have been built in the company. This aligned with Maersk vision and goals by having a homogenous family focused culture.
It makes sure that employees serve the company for a longer time and enjoy working without getting worried of getting fired as happens in other companies. It is not whether to buy or build employees to be able to deliver service required by the company; it is about to maintain employees to feel motivated to perform better. Therefore, Maersk took advantages of its internal and external recruiting strategy to hire talented, experienced and skilled employees. After recruitment of employees Maersk provide efficient trainings to ensure that new employees have grasp to the goals and objective of the company.
Therefore, Maersk believes in creating a family environment where employees do not feel threaten. Internal recruitment is the idea of promoting employees who are already working for the company to fill the newly created positions. The most advantage of practicing internal hiring is that the internal employees are already aware of an organization practices and therefore, extra trainings or coaching might not be needed and it will be easily for an internal employees to adapt to the new position than a newly recruited employee from outside. Internal candidate might limit the company, though an internal candidate understands the working around the company, such a candidate might not understand the global business and therefore, it might make the company to loss having all around employees who can face the new global conditions. The internal recruitment of employees might disadvantage the company since the employees might not understand the global operations such as tax law, global shipment law and other laws which guide the international business operations.
However, the external employees have positive views and ready to adjust to deliver so that they can meet the goals set. The external employees must learn about the company, working culture, and the corporate structure to be able to deliver. The company is likely to benefit from new ideas, skills and experiences which can help the company achieve its objectives. Once they learn about the company way of operations and can effectively discharge their duties, the company can benefit from diversity which shall be brought in by the newly recruited employees. It is important to include both internal and external process of approach when recruiting doing staffing so that the people coming are diversify and also have enough experience to face the new global conditions.
In order to recruit new employees, Maersk created a recruitment team called human Resource Business Development which comprised of twenty four experienced staff. This team consulted the board of directors often the type of employees which were needed since they were in charge of recruiting one hundred and twenty employees. The consultation was also done with the board to determine their positions and other terms of contract and therefore, this helped the company to recruit the best employees which could align with the company’s strategic objectives.
Training
The need assessment is important to the organization since it determines which employee needs training and which specific area. The HR must identify the gaps in the personal and the current capabilities to assess whether an employee needs training or not. The company must also conduct the analysis if those gaps which to be trained the new employees are needed or not. The trainings should be based on what the company desires so that every employees trained by the company adds value the workforce.
The organization must make sure that every department is properly access to come up with the needs of the company. So that employees are trained on the specific issues or field which are required by the company? The venue of the training would be close and accessible so that the identify employees can access and get trained without any delay. The assessment on deciding the venue to be conducted based on the number of people to be trained and the cost which shall be used to cover the training.
The learning activities are importance because they make sure that the right information is provided to the employees. It contains detailed training schedules and materials and therefore, it makes training easy and efficient.
Compensation
The compensation policy is a philosophy which contains the way an organization plans to make certain payment and benefits. The company compensation philosophy is derived from the Danish Companies Act of 2010. The act illustrates that the agreement there must a set agreement for incentive pay for members of the board and there must be away to decide on the payment methodology which should be through vote. The decision of all payment should be made by the board in the executive board meeting and must be decided by a vote. This philosophy is affected by the status of the market in several ways and it always based on the market performance and the profit generated by company. It is therefore, affected by the market success and the profit margin which the company has generated in a given period. The compensation agreement should therefore, includes all payments which an organization intends to pay an employee which include bonuses, incentives and other allowances which might be decided at a later time. The compensation philosophy is also affected by the market performance and the payment to the employees is also determined by the market performance. However, when the market performance is well or success the compensation is high and reduces when any changes happen to the market.
Salary Survey
The salary survey is usually conducted by an organization so it can understand the payment criteria being used by other organization to pay employees. This survey is usually focused on how other organizations pay for specific job group with specific qualification. It also help in understanding the way bonus, incentives allowances and other payment are done by similar organizations in the market. This salary survey adds a lot of value to the company since it makes the company understand the gaps in the payment so that it can implement competitive payment to employees. However, it is important to conduct salary survey at the beginning to make sure that salary standard is set to indicate the strength of the organization when compared with other companies. The utilization of this survey provide an employee with an opportunity to gauge whether the company is worth being employed to and therefore, survey is very essential in the organization for the growth of employees and the company as well.
Advantages of discretional benefit which Maersk may benefit
Discretionary is beneficial to the company if it is utilized properly. And this can be achieved when the detail information is given to personal. The discretionary includes the child care benefits, pension plan and health insurance cover. However, Maersk global company might utilize the discretionary benefit to help in uplifting the morale of employees and therefore, it helps in building good relationship in the company and therefore, it likely to make employees to perform better so that they can keep their work.
Evaluation
Role in performance management
The HR plays a critical role to make sure that employees are developed so that they can perform and deliver. The HR focuses organizational development, employee development, relations skills and promotion. These functions are actively done by the HR managers to ensure that all employees are up to task and can deliver specific assignments. It also manages the relations between employees and also record performance of every employee which is used for evaluation. This is because the world is constant revolved and the business changes and therefore, the role of human resource must also revolve to meet the expectation in the market. The human resource is also responsible in ensuring that the process of management is aligned to the strategic plan of the company. It is because it determines the direction which the company intends to take. The need of the company must be identify so that the recruit must be individuals who can help address those needs.
Bibliography
Kapoor, B. (2015). Impact of Globalization on Human Resource Management. Professor and Chair, Information Systems & Decision Sciences, , 2-34.
