The BrokersThe Business report identifying and analyzing the Strategic HR issues faced by D.S. & H

Presented by Juliana AgwunobiGenevieve MorttyKunjun ZaveriTaslim AhammadIkenna Okike – Team Lead

January 2009

INTRODUCTION

D.S& H is one of the largest insurance firms established in the midlands in fifties. It was the preferred choice of the local industrialist.

Their customer service at that time was excellent, their strength laid on the trust, integrity, of the firm and the local industrialist who preferred their services to their counterparts in the city.

The firm was very profitable until the recession of the 80s hits them and volumes went down and they started looking for a way to cut cost.

THE HR ISSUES IDENTIFIED IN DS&H.

Poor Structure and Culture (Baird & Meshoulam ,1988, quoted in Boxall 2003:51) Vertical and horizontal integration are not properly integrated, within HR and business strategy. (Armstrong, 2000, Marchington & Wilkinson 2000)No Clear HR strategies/functions Poor individual Attitudes and BehavioursPoor Employment security and internal marketsLack of Selective hiring and sophisticated selection policies and system, (Boxall 2003: 48) Poorly managed Employee involvement , information sharing and workers voiceLack of harmonisation /High status differences .Poor performance management system.

ANALYSING THE HR ISSUES IDENTIFIED IN D.S & H.

We adapted the Paul Iles ‘best fit’ model of strategic human resource management as the basic framework we used to analyse the HR issues of DS & H. To help us explain the issues better, It is important to note that for any organisation to achieve its corporate and business goals, through its employees, the business and HR strategies should be effectively integrated: ( The “fit” in this model is unique to the organisation as it focuses on its processes and how they relate with each other. SWOT : used to analyse the internal strengths and weaknesses of DS &H.PESTEL: We used PESTEL to analyse the external influence of the environment on the strategies, processes and policies of DS &H.McKinsey’s 7s Strategy Framework: used to analyse the impact of the internal environment on the firm.Performance Model: We used this to determine the link between HRM and performance.

No recruitment and selection, strategy in place.Unclear reward strategy and policiesLack of training and development of their staff.Poor and ineffective Performance management systemNone existence of retention strategy.

No job improvement preparation

High performance low cost operation.Release potentials of staff.Maintain corporate, trust & client relationships.

Horizontal integration

Link

References1. Armstrong M (2003) Human Resource Practice (8th ed) virginia CPI 2. Peter Boxall & John Purcell( 2003(1st ed) Palgrave Macmillian.3. Marchington M. & Wilkinson A (2005) Human Resource Management at work- People Management

&Development(3rd ed). (Wiltshire. Chartered Institute of Personnel Development.4. Mark Burley (2008) Lecture Notes- Strategic People Management & Development.

Appendix

McKinsey’s 7S Framework

David Guest Performance management Module

PESTEL Analysis used to analyse external environment