Assessment 1 BSBHRM501 Manage human resources services

Assessment 1: Develop a human

resources strategy
Submission details

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Assessor’s Name Phone No.

Assessment Site

Assessment Date/s Time/s

Assessment description
Using the case study provided complete a written report describing the HR strategy approach,
two options for the delivery of HR services, a strategy for the delivery of one of the options
and a written report detailing the analysis and decision-making process involved in your
recommendations.

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Assessment 1 BSBHRM501 Manage human resources services

1. Human resource requirement

JKL has developed strategic and operational plans to occupy prominent

position in Australian heavy vehicle industry. The strategic plans of JKL Industries is
to become prominent supplier of forklifts, small, medium and large trucks in
Australia. And operational plans are to withdraw from rental market in next 18
months, expansion of existing branches in next 1 year and expand their market share
of forklifts.

External business environment has impacts on working of JKL, thus effecting

their requirement of human resource. Firstly, there is visible decline in rental market
since three years. This happened due to decline in prices of vehicles and taxation
benefits to buy these vehicles. This will impact 75 people due to closing of rental
departments. Besides this, JKL got the right to sell medium as well as large trucks
from a foreign supplier, thus they will have edge over the competitors. Thus, the sales
and goodwill of JKL will be increased.

JKL requires diversity in their workplace. This feature is visible in its vision
and core part of the policies of JKL. They also affirm Commonwealth – Legislation
and Anti-discrimination and equal opportunity laws that promote diversity in
workplace. For example,

● Disability Discrimination Act 1992

● Equal Employment Opportunity Act 1987

● Equal Employment Opportunity for Women in the Workplace Act 1999

● Racial Discrimination Act 1975

● Sex Discrimination Act 1984

● Anti-Discrimination Act 1977 (NSW).

Thus the human resource requirement by JKL would be personnel with degree
and skills in marketing, supply chain, and automotive adviser, detailers, quality
assurance, sales representative mechanics, senior sales managers, line managers,
service Manager and accountants.

Best HR strategy approach for JKL is High performance management. High

performance management (HPM) impacts the overall efficiency of the organization
due to its heavy impacts on human resource of organization. High performance

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management is fully involved during recruitment, performance management,

remuneration decisions and trainings[ CITATION Abd12 \l 1033 ]. HR department of
JKL can make recruitments of the employees by comparing their skills, aptitude and
qualification with the job description of vacant position. This will allow JKL to have
comparative advantage over its competitors by selecting best fit for particular position.
Besides this, high performance management approach makes it possible to have
throughout the year communication between employees and HR section. This will
allow JKL to have efficient and timely performance management. Performance
management is necessary for JKL to develop targets and making check on employees
to make sure that they are working to achieve these defined targets[ CITATION
Cha93 \l 1033 ]. Moreover, High performance management approach allows HR
manager of JKL to keep check on employees regularly thus they can decide
remuneration and benefits accordingly. In addition to this, High performance
management approach promotes education and trainings to employees if they are
lacking required skills.

2. Options and models for the delivery of HR services.

Two options available to JKL for delivery of HR services are employee

self-service (ESS) and Tirade. ESS will allow the human resource of JKL to
perform any of job related task online, which is possible through the portal or
intranet of the employer[ CITATION Bon13 \l 1033 ]. This option will help JKL to
create a positive culture in organization because the employee will be able to
update their information by themselves. Whereas, Tirade will allow the employees
of the JKL to find any job related information online through intranet or
portal[ CITATION Bon13 \l 1033 ]. Thus both options will allow HR department to
communicate with staff and offer them services.

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These aforementioned options will deal with award and enterprise agreements
of JKL effectively. Awards are minimum standard that are set for vehicle industry for
specific position and it includes salary, overtime rates, leave arrangements, allowances
and work hours. And enterprise agreements includes wage rates, employment
conditions like work hours, breaks etc. a consultation process, methods to resolve
dispute and salary deductions. Tiered and ESS allows the HR department of JKL to
deliver information about standard awards and enterprise agreements of vehicle
industry to its employees so that they can ask their HR department to deal with them
according to vehicle industry’s set standards. Besides this, these options also allows
the HR of JKL to disburse information about industry relationship instruments to staff
through portals and intranet of employer. Where Industrial instrument means any
instrument that defines minimum prerogatives of employee and has legal application. Thus,
HR department, and all staff can communicate and make access to information about these
through tiered and ESS. Moreover legislations related to Occupational Health and Safety
(OHS), industrial relations and anti-discrimination, Workplace harassment,
victimisation and bullying and equity policy are made available to employees by HR
through intranet and employer’s web portal. Thus, EES and tired allows the staff to
have access to all these important information about JKL and can make comparison
with set standards of industry to avoid discrimination or unfairness.

Two best models available to JKL for delivery of HR services are Ulrich’s
three-legged stool model of HR service delivery and Generalist model. JKL can
get various advantages if it uses Ulrich model because JKL is company having
branches in various cities, and is dealing with heavy vehicles like Forklifts, small
medium and large trucks. Thus it needs highly technical experts, partners for
medium and small trucks and shared services to work effectively and
collaboratively in all branches. Ulrich’s three-legged stool model is based on three
basic pillars that are HR business partners, HR expertise centers and shared HR
services[ CITATION Bog11 \l 1033 ].Thus, it will allow JKL to make better deals
with partners like suppliers of medium and large truck. JKL also need expertise
centers to know how to make their operational plans like expansion of existing
branches and start-up of new branches can be made functional. JKL need shared
services of experts as its branches are found in Brisbane, Melbourne, Perth,
Adelaide and the ACT. Thus, Ulrich’s three-legged stool model of HR service
delivery is best option available to it. Other suitable HR delivery model for JKL is

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generalist model. This is because, it will allow the culture of centralized decision
making. Thus all the decisions about branches and vehicles will be made by
central team who will make decisions for JKL after evaluating alternative
strategies to give JKL competitive edge over others. As turnover of JKL is high, so
it is better for it to have important from central team rather than new and untrained
new employees or other staff.

Various risks can be faced by JKL if they implement Ulrich’s three-legged

stool model of HR service delivery and Generalist model. The biggest drawback
of Ulrich’s three-legged stool model is that it will increase cost of business due to
regular meaning less meetings, hiring of technical and is very centralized so no
good suggestions of lower staff can be used. And the biggest drawback of
Generalist model is that the central team may not have technical and
comprehensive knowledge which is basic requirement for vehicle companies like
JKL

The cost to the implementation of Ulrich’s three-legged stool model is

high. This is because there would be need of increased staff as division of work is
increased. Regular meetings also increase expenses and hiring of technical staff
will also increase salary expense of JKL. Whereas, cost for the implementation of
generalist model is low. This is because no extra staff is needed, no technical
experts are needed and there is no need of formal meetings. This model need a
team that comprises of staff of JKL.

These models can support the strategic and operational goals of JKL. JKL
have strategic plans of JKL Industries is to become prominent supplier of forklifts,
small, medium and large trucks and operational plans are to withdraw from rental
market in next 18 months, expansion of existing branches in next 1 year and expand
their market share of forklifts. Firstly, Ulrich’s three-legged stool model will help to
acquire and use highly technical experts, partners for medium and small trucks and
shared services to work effectively and collaboratively in all branches. And generalist
model will allow the culture of centralized decision making thus the crucial decisions
about strategic and operational plans can be made by centralized seasoned staff of
JKL.

3. Strategies for the delivery of HR services

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Following strategies for the delivery of HR services can be used for

Employment self-services method. Firstly, HR department can ask the employees
to enter and update their newly hired employees. Central data base system can be
used which should be accessible to all employees via portal or intranet. JKL
should form a specific template for documentation of newly hired staff. This
method is better than old paper based documentation of hiring strategies. Because
it allows the HR to make necessary changes easily and continuously update these
strategies according to change in market.

Figure 1: Sample Document for hiring Strategies

Employee self-service ESS can be used to document the motivation and

retention strategy. First of all JKL must know that which elements will be helpful
for motivation, maintenance and retention of the employees. This can be evaluated
by developing strategies and getting feedback for them via using intranet or portal.
Employees can update all factors in central data base, which motivate them and
will compel them to work in JKL. Than HR department can evaluate which
strategy is best for them. Than this strategy can be documented in data base of
JKL which is accessible to employees for self service. Lastly, ESS can help JKL
regarding documentation of separation strategies. Employees can exit JKL

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voluntarily or involuntarily. In both cases, record need to get prepared. HR

department of JKL can make use of Intranet facility to make this process online.
Any employee who wants to quit, shows his intention in the portal and HR
department get update about it through data base. After this formal process for
separation strategy can be executed and all record can be prepared by employee
himself which decreases execution time for resignation.

4. Action Plan/Recommendations

An action plan is a document that in which JKL will jot down all the
necessary steps to achieve the best strategy for Hiring. Before developing action
play, HR of JKL needs to brainstorm about few relevant factors like:

i. Which section of JKL need employees?

ii. How should we offer job?

iii. How many candidates they need?

iv. What qualification they need?

v. Do they need skilled people or unskilled?

vi. How much time they have to hire candidates?

vii. Which hiring process they should use?

viii. Who should conduct interviews?

ix. Who should supervise whole hiring process?

x. On which basis to select or reject candidate?

xi. What tools should be used in hiring process?

xii. Benchmark for good or bad interview?

After brainstorming on these questions, HR needs to develop action plan. JKL

begins hiring process when they think that there are vacant positions in company. HR
personnel sit and discuss thoroughly about vacant positions and type of staff required
for these vacant positions. JKL have some strategic goals to expand the sales and
niche. For 12 years JKL focused on selling forklifts and small trucks, and its sales
averaged at 10%. Now JKL got the right to sale medium and large trucks which he
will get from a foreign supplier. Now the strategic goal of JKL is to be among top

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supplier of forklifts, small, medium and large trucks in Australia. So it needs to hire
professional to achieve its strategic goals.

First step of action plan of Hiring is to make planning. The hiring

personnel of HR approve the job opening after discussing recruitment budget, and
deciding job description. Second step is to attract competent candidates. JKL need
professionals with skills and qualification of marketing, supply chain, and
automotive adviser, detailers, quality assurance, sales representative mechanics,
senior sales managers, line managers, service Manager and accountants. They
should give relevant job description to attract relevant candidates. Next step is to
arrange time and place for interview. Lastly, job is offered to candidates who best
fit the vacant position.

JKL will need third party service providers for hiring. Various third party
agencies are available for this purpose. They can use search firms who screen
candidates according to requirements and job description. They can also use online
job posting or resume referral services which collect data about candidates online,
and send details of prospective employers. So it would be easy for JKL to hire
candidates from all over the globe by using this service. JKL don’t need third
party services of employment agencies or contractor because they already have
well developed HR. They only need to attract candidates through third parties, rest
selection and shortlisting is done by themselves.

After hiring staff, JKL need to develop service agreement. The service
agreement contains various elements. Firstly, it contains details about basic
provisions that is working hour, work location, salary, holiday and right. Secondly,
it contains details about Bonus or Rewards which will elaborate the type and
amount of bonus that JKL will give to its candidates. It also includes the
performance targets, insurance, and pension details. Thirdly, it contains details of
duties that need to be performed by the employees. Fourthly, it contains details
about terminations or resignations. It will explain the procedures and notice period
for resignations. Fifthly, it contains details about time duration for which
candidate is hired.

JKL may need to give training to its newly hired candidates especially in
case of hiring fresh people. JKL need to pursue their strategic goals, so they to
train the new staff that what would be their aims and targets and how they will

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achieve their strategic goals. Doing so will help new staff to know about culture
and functioning of JKL. And it will also tell them that what would be requirement
of their position. For example, new salesperson will be trained about pricing
competition etc., and accountant will be trained about accounting software being
used in JKL and steps of recording transactions.

Roles and responsibilities of newly hired staff is told to them at the time of
their appointment. Even job description in ad for job also highlights that what JKL
would expect from their staff. Later on training will further elaborate the roles and
responsibilities to their staff. These roles and responsibilities are also the part of
service agreement with employee.

The communication and gain agreement are foremost part for JKL to be
successful in achieving their goals. This is because, JKL works through their
employees, and if they cannot communicate their aims properly and gain
agreements with them effectively, they will lag behind in competition. To make
this possible, firstly JKL needs to make their aims clear, than communicate the
goals and gain agreement, and lastly cooperate with them. Effective
communication is key to success and gaining agreement is must because it is not
necessary that staff agree to what JKL wants. So JKL needs to gain agreement
with employees for achievement of their requisite targets. And lastly ask for their
cooperation as no company can survive without cooperation from their human
power. JKL will survive if their communication is strong and they are able to gain
agreements with employees. This is possible only if their HR is active and work
on developing positive relation with newly hired employees.

1. Make your aims

understandable

2. Communicate and Gain

3. JKL needs to: agreements

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Ask for their cooperation

In short, JKL needs to work on their human resource, alternative options and models
for HR delivery, strategies for HR deliveries and action plan in order to pursue their
strategic and operational plans.

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References

Boglind , . A., Hällstén, F. & Thilander, P., 2011. HR transformation and shared services:
Adoption and adaptation in Swedish organisations. Personnel Review, vol. 40, no. 5, pp. 570-
588.
Bondarouk, . T. & Jeroen, M., 2013. Exploring the central characteristics of HR shared
services: evidence from a critical case study in the Netherlands. The International Journal of
Human Resource Management, vol. 24, no. 3, pp. 487-513 .
Champagne, P. J. & McAfree, R. B., 1993. Performance Management: A STRATEGY FOR
IMPROVING EMPLOYEE PERFORMANCE AND PRODUCTIVITY. JOURNAL OF
MANAGERIAL PSYCHOLOGY, vol. 8, no. 5.
Raziq, A., 2012. High Performance Management Practices: Definition and Measurement.
Journal of Applied and Emerging Sciences, vol. 3, no. 2.

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