Importance And Purposes Of Shrm

The importance of human resource management cannot be undervalued in today’s intensely competitive global market place. The reason for this is that there is a very small margin for error from becoming a market leader to becoming a market joke. A lot of emphasizes is now put on good human resource management, as it is the difference between employing a qualified work force and hiring inept workers. Human resource management nowadays is not just about employing people or drafting work policies; it is also about being able to rapidly respond to customer’s needs and competitor’s moves.

In Abbey Nation Bank human resources is viewed as a source of having a competitive advantage in this competitive market situation. What this means is that human resources is now playing a more vital role than ever in the organizational hierarchy of a company. This is because a carefully implemented human resource policy can obtain a high quality workforce

More and more these days the importance of strategic human resource management is coming to the forefront of many businesses. Here the word ‘strategic’ means keeping in view the long term results or the so called ‘bigger picture’. Strategic human resource management focuses is human resource programs that can lead Abbey National Bank to long term on right track

In strategic human resource management, an HR manager becomes a very important player in the company, the reason for this being that rather than acting as passive administrators, they play a more proactive role in policy formulation. The HR manager thus becomes a resource manager as he or she will utilize the full potential of their human resources From the above we can thus see that strategic human resource management is now coming to play a very important role in today’s business world. Strategic human resource management is all about strategically managing a business. For Abbey National Bank human resources management is important for improve employees skills and competent advantage.
(Smallbusinessbible 2008)

(10.1.2) Assess the impact of strategic human resource management activities in AbbeyNational

The impact of strategic human resource management activities in Abbey National Bank as follow:

High Skills Employees

As impact of SHRM activities in Abbey National Bank is to improve employees skills and provide best customers services to its customers on improve employees learning about their tasks which can helpful for them.

Best services to customers.

Customers are a base for any organization and we cannot forget this factor. With SHRM we can provide best services to customers and can get feedback from customers that how we serve you.

New innovative and reliable organization performance

Innovation and reliable performance of Abbey National Bank can possible by using SHRM theories apply on employees and provide best training to employees and give them reward in bounce and other packages to employees.

Revise employee’s performance according to organizational goals.

With the help of SHRM, we can measure performance of employees on the basis of settle goals which are settle to achieve these goals and provide best information structure which can improve communication among employees.

Provide new skills to employees to get competent advantage over competitors.

By using SHRM practices, employees of Abbey National Bank can improve professional skills and provide new ideas that can get competitive advantage over other banks in the market.

(10.1.3) Evaluate the contribution of Strategic Human

Resource Management to the achievement of Santander’s objectives at Abbey

National Bank

Improve business performance

Contribution of SHRM is in Abbey National Bank for the objectives of Santander Bank is first to improve business performance on the basis of mission statement and provide right people for right job in all departments.

Develop organizational culture

To achieve Santander’s objective there should be improve cultural environment of Abbey National Bank so that it can helpful to employees and provide right information with communication channels.

Competitive advantage

As competitive advantage, there should be hire such people who are more skilful and professional basis are strong and that can participate to achieve objectives of Santander Bank.


(10.2.1) Analyse the business factors that underpin the new human resource planning in

Abbey National

Government policies:

UK Government policies are changing policies for banking industry due to current economic conditions in the world. There should be develop new policies for employees and develop their skills according to requirements of bank.  Because Government has cut HSMP immigration system and no more high skilled people can enter in UK due to current recession and pressure of population. 

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Business Competition

As business competition, Abbey National Bank should be hire such people which are more educational and high skills who can achieve requirements of jobs. There should be made a strategy to develop employees skills according to 

Location of operation

In UK, in some areas are not more business type, for example in towns there are not more business activities and while in these are there should be opened new branches for customers and provide best services to public.

(10.2.2) Assess the human resource requirements for next

Two years

In the next two years Human Resource requirements will be as well:

Identifying personnel requirements (numbers, skill sets, experience, qualifications)

Match personnel to organisational requirements;

Internal factors:

Employees’ development

For Abbey National Bank, in next two years Human Resource requirements are basis market situation and compete competitors.  While employees’ development is very important so that we can get competence advantage over competitors. For example, Barclays, HSBC, Nationwide and other banks in UK are use different policies for development of employees.

Skill requirements:

On the basis of skills for the next two years HR requirements, provide high skills employees to organization and develop different approaches so that employees can achieve objectives of Abbey National Bank.

External factors:

Government policies:

UK Government policies are changing with the passage of time and during for next two years there should be hire highly skilled people who can contribute for success of Abbey National Bank.


For the HR requirements, there will be need to provide short term and long term courses to employees from different top ranking institutions of UK. So that, employees personal skills and professional development can achieve and there will be more chances of competency advantage over competitors in future. 


Training of employees is a base to provide better performance and achieve determine objectives.  In Abbey National Bank, there should be made more plans for employees training and for best results provide different methods for example customer care and customer feedback approaches also helpful for Abbey National Bank.

(10.2.3) Process of developing a human resources plan for Abbey National

First, we should understand demands of HR department and then we can determine a plan for  Abbey National Bank.  In current market situation and economic recession there should be hire high skills people who can understand and can drive Abbey National Bank in right direction and to achieve determine goals by HR policies and practices.  New employees should be hire only in this condition that there will be need more staff and there is no more chances to promote current employees means current employees cannot match job criteria. While there should be also provide best training to current employees and match their performance with determine standard which is defined in objectives of  Abbey National Bank.

(2000-2010, 2011

(10.2.4) Present a critical evaluation on how the human resources plan can contribute to

Meeting an Abbey National’s objectives

HR contribution to meeting can provide as follows:

Employees’ performance:

Human Resource plan can contribute to Abbey National’s objectives by improve employees’ performance and evaluate on different scales.

Customers’ feedback:

Provide best products and services to customers and consider them as basic and focus on customers’ satisfaction. Then take feed back from customers and comments of customers about products and services.

New ideas for workforce development

By using Human Resources plan, Abbey National Bank can drive its employees in right direction and can get its objectives which are determined in mission statement.

(10.3.1). Explain the purpose of Human Resource Management Policies in organisations

Human resource management is playing vital role in Abbey National Bank.  Its purpose not only select people for right job but utilize their competency and develop skills which can compete to other competitors in banking industry.  The skills that are necessary to meet the organizational goals are developed in employees. This point is considered during the planning phase and included in the policies devised for meeting goals.
Nowadays, the human resource department does much more than just recruiting employees for the company. Using the human resource effectively in order to give bank a competitive advantage and completing the set targets, are some of the priorities.
The mission statements reflect the strategies, goals and the overall approach of companies. The values inherited and the policies redefined  by firms are based on the mission statements; which are the driving force thatmotivatethe employees to move ahead.

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(10.3.2) Analyse the impact of regulatory requirements on human resource policies in an organisation

The effects and impacts of laws and regulations on the plans of businesses cannot be overemphasized as the above indicate. Recent insurance scandal in Britain’s oldest insurance company, Equitable, nearly caused its demise.  Equitable’s crisis is alleged to have started as a result of loopholes in regulation governing British insurance industry when it emerged that it did not have sufficient funds to honour guaranteed annuity policies to a large group of policyholders. The immediate impact on the Equitable insurance was that a court ruled that it closes all new businesses meaning a fall in services leading to huge debts and also lost of trust and market position to the insurance community and public as a whole which will inevitably force the mutual company to change its business plans and operations.  In the UK, the recent spate of financial scandals leading to loss of pensions for retired workers has prompted the government to put forward a bill in parliament to avoid future loss of pension funds to retired workers.

(10.4.1) Analyse the impact of organisational structure “Organizational structure” refers to the way people are organized Culture

The behaviors and beliefs characteristic of a workplace are itsculture. The culture and structure of an organization affect one another. A structure appropriate to the organization helps to develop a healthy culture.


In companies with rigid structures, communication tends to follow reporting lines. In companies with flatter structures, communication may occur more easily across departments.

Job Satisfaction

Studies have found arelationshipbetween job satisfaction and organizational structure. Organizations with flatter structures may foster more feelings of self-actualization and create less anxiety in employees.

Customer Relations

Relationshipswith customers may suffer if departmental relationships cause the customer difficulty in getting problems addressed. Multi-functional teams that can answer a customer’s questions and resolve issues have a positive effect on customer satisfaction.


Organizational structure impacts the success of a company’s projects. If project personnel also perform routine operational work, it may be difficult for them to focus on projects and meet schedules. If the flow of information across departments is difficult, it may affect ability to share resources effectively.

(10.4.2) Analyse the impact of organisational culture

Analyzing organizational culture can occur on many different levels. On the theoretical level, one of the foremost individuals on the study and analyzing organizational culture is Dutch sociologist and writer Geert Hofstede. Hofstede’s studies of how corporations and companies function most effectively is compared to how a good company had many comparisons to a successfully run nation, and how the culture of a people had an effect on organizational culture, and vice-versa.

When a company is not running to its full potential, there are various reasons that a culture may not be working. The CEO may want to chart an aggressive course looking to be willing to take chances and to exploit every little opportunity, while the mid level managers might be prone to avoiding uncertainty–and thus play it way too safe.

The organizational culture can be one of the most important factors in whether a large corporation succeeds or fails, but it is also one of the hardest things to change about a company since by its very definition organizational culture is shared throughout the entire company. This is why success tends to breed success while a sinking company is so hard to turn around, even if huge changes are made at the top.

On a practical level, especially with a quick turnaround or shift in culture as the eventual goal, there are a few things to keep in mind. One is feedback. Setting up a system of quick feedback means someone at the top can get a quick, if not instant, response to a program or situation.

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Sometimes if a bad situation, such as a CEO who tended to over micro-manage, gets removed, then that simple action can provide an instant “feedback,” or in that case an instant response to the removal of bad influence. A good leader will be able to ride this early momentum to at least set the base of a new style of organizational culture.

When analyzing organizational culture, you also want to figure out what types of managers and workers you have on every level, and: a) what type of organizational culture can maximize their abilities for the larger good of the company, or b) if the workers and supervisors already in place simply do not have the ability to shift to the organizational culture that is best. Analysing both strengths and weaknesses can help determine where a company is, and what direction it can most effectively head towards.

A company with a very strong culture wants to make sure it doesn’t go so far that no new ideas are let into the conversation. This would kill innovation. Likewise, in a company with a weak culture, if bureaucracy is a problem, while eliminating the unnecessary layers, your company still has to function. Analysing organizational culture can be difficult, but it is a process that is well worth undertaking.

(10.4.3)Examine how the effectiveness of human resources management could be monitored in Abbey National Bank

An important aspect of Abbey National Bank’s focus and direction towards achieving high levels of competency and competitiveness would depend very much upon their human resource management practices to contribute effectively towards profitability, quality, and other goals in line with the mission and vision of the bank

Staffing, training, compensation and performance management are basically important tools in the human resources practices that shape the organization’s role in satisfying the needs of its stakeholders. Stakeholders of an organization comprise mainly of stockholders who will want to reap on their investments, customers whose wants and desires for high quality products or services are met, employees who want their jobs in the organization to be interesting with reasonable compensation and reward system and lastly, the community who would want the company to contribute and participate in activities and projects relating to the environmental issues.

A comprehensive Human Resource Strategy plays a vital role in the achievement of Abbey National Bank’s overall strategic objectives and visibly illustrates that the human resources function fully understands and supports the direction in which the organisation is moving. A comprehensive HR Strategy will also support other specific strategic objectives undertaken by the marketing, financial, operational and technology departments.

Right people in right place

There should be select right people for right job while there should be select talented people to achieve objectives of bank.

Right mix of skills:

In Abbey National Bank employees’ skills should also be evaluate according to achieve competency advantage in market.

Employees are developed in the right way:

For the development and rise up performance of employees there should also be use different tools and training programmes so that employees can compete and doing their jobs according jobs descriptions.

(2011 EzineArticles)

(10.4.4) Make justified Recommendations to improve the effectiveness of human resources Management

Work of Human resource management is not end on reqruite people and pay them and discharge rather than which people are working in Abbey National Bank they should be utilised them according to objectives of organization. While there should also get competence advantage over competitors in market by provide best customer focus strategy.

Employee attitude surveys:

For the effectiveness of human resources management in Abbey National Bank there should be surveys about employee that they are satisfied about their jobs and they are working according Abbey National Bank objectives.

Benchmarking HR performance:

To achieve human resource effectiveness there should be benchmarking system for HR performance and evaluate and redefine all activities which are determined in objectives of Abbey National Bank.

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