When you consider that an organization’s strategy is designed to paint a picture of how resources will be allocated to drive positive results, it is sensible to align the human resource function to it. Bill Allen and Maria Pejter, of Maersk Group’s Human Resources Department, considered some key aspects of Maersk’s talent management strategy that focused on talent management, employee turnover, internal training and development programs, hiring experienced talent from outside the firm, rehiring former employees, and increasing employee diversity (Groysberg and Abbott, 2013). This idea of strategic human resource management directly involves the human resource function in achieving specific business objectives and plans. Teena Bagga and Sanjay Srivastava, both of Amity Business School, define human resource management as, “linking human resources with organizations’ strategic goals and objectives to improve business performance and develop an organizational culture that nurtures innovation, flexibility and competitive advantage (2014).” Human resource management and strategy can support the overall organization strategy through effective staffing, training and development, performance appraisals, and compensation.
Human Resource management plays a vital part in impacting management practices within an organization to address the challenges of globalization. In the case study A.P. Moller-Maersk Group: Evaluating Strategic Talent Management Initiatives, Maersk continued to grow into this enormous global organization, Bill Allen, the new head of HR, decided to shift the strategic focus of talent-management to five (5) key areas:
• Attraction – bring the right people into the HR Group
• Identification – identifying the major needs, and the required capabilities of talent
• Development – emphasis placed on the training needs of experienced employees
• Deployment – resources/skillset utilization –
• Scenario planning – reviewing the business plan and accessing the people’s needs
Organizations with a global presence should place greater emphasis on the key elements of attracting, identifying, and developing human capital. Global staffing and global leadership development are the two components of global human resources with the greatest potential for powerful leverage for global firms (Pucik, 1996). As businesses transition to a global structure to diversify and increase market-share, the human resources strategy will need to address diverse backgrounds, languages, social and cultural issues, and employment law specific to regions where the organization will have a footprint.
Along with global expansion, comes tremendous opportunity for economic growth. Organizations will expand its customer base as well gain additional employees in other regions around the world. Employers are faced with the decision to hire internally or externally based on several factors. Those factors include the job itself, the company’s needs, and what skills are available within the employer’s workforce and the regional labor market. Most companies try initially filling job vacancies above the entry-level position through internal candidates. These candidates are readily available, have decreased learning curves, and present less uncertainty about their performance (Snell, 2015). The promotion of internal candidates can have positive impacts on the organizational culture. Employees can be encouraged to perform well in the duties for the possibility of being promoted within the organization. Employers are using career development and training programs to increase employee retention. However, there are advantages to recruiting external candidates. Often seeking an external candidate increase the pool of skilled individuals, newer skills and creative input, as well as gaining greater insight into other organizations and industries. There are several external recruiting methods for organizations such as advertising job openings on websites to reach a large audience, walk-ins and unsolicited resumes, social media, mobile recruiting, job fair, etc.
Hiring inexperienced individuals and providing them with training had historically been the hallmark of Maersk’s recruitment program. The global expansion of Maersk impacted talent management practices. During the early 2000s the organization embarked on a series of training initiatives to facilitate employee development. A change in Maersk’s executive positions ushered in a shift in the internal training structure to emphasize leadership development. They employed leadership and development coaching. It would seem that the changes implemented to the organization’s recruiting, retention and training problems helped in their global expansion.
Consequently, identifying training needs within an organization can lead to improved process efficiencies, greater employee retention and morale, as well as the development of better organizational strategies. Training-needs assessment involves key players such as direct supervisor, employee, an executive team member and/or trainer. There are three analysis components to the assessments: organizational, task and person. Organizational needs analysis allows the company to consider training factors that affect efficiency, innovation and overall business strategies. It also includes a review of the corporate culture. Task analysis collects information on the job being performed and details the knowledge/skills required for effective performance. A gap between an employee’s capabilities and the knowledge/skills required for effective performance could be identified in a personal needs analysis. These inter-connected levels of analysis help measure the need of training, competencies required to perform job tasks, and the cognitive abilities required at a personal level without overlooking the organizational training big picture (Kumar, 2016).