Human Resourse Management Issues in U.K

INTERNATIONAL

HUMAN

RESOURCE MANAGEMENT

ASSIGNMENT

(PROFESSOR CLIFF LOCKYER)

Group No. 7

Kwesi

Gift Anderson

Rajendra Kumar

Sahil Kumar Jain

Hitesh Ahuja

Introduction:

In the 1980’s there was a vigorous and academic debate about the nature of the American models of HRM and their relevance to UK situation. The US value system which is not truly reflected in the UK, and is certainly not reflected in continental Europe. There were a number of similarities in 1980’s between the UK and the US. Despite its cultural distance from many European countries, the nature of HRM in the UK is significantly different from the rest of Europe. As a member of European Union and a significant target for Foreign Direct Investment practisers in the UK are undergoing as much change as are those in continental Europe.

As a wholly-owned large fabrication plant based in the Filton, United Kingdom, we would be producing core components (turbine blades) for a broad range of aero and related engines. In order to gain a competitive advantage over our competitors, it is very important for us to develop and encounter key human resource issues and strategies. After a long series of researches, United Kingdom was an easy choice as the ideal location to set up our plant due to the various reasons. Firstly, in the United Kingdom, the government laws relating to setting up a new plant are quite flexible, compared to most other countries in the European Union. Also, the infrastructure, as in, the technology, communication and transport systems are highly developed. Thus setting up a new plant would be easier and faster as compared to other under-developed countries. Secondly, the trade unions in the United Kingdom are not as strong as they are in a few other European Union countries (For example, Germany). So, it is easier to deal and negotiate with trade unions. Thirdly, there is easy availability of skilled labour. With the European Union working for close integration between countries, it is also easy to acquire labour and staff from all over the European Union. Fourthly, language is not going to be a barrier in United Kingdom, as English is widely spoken all over the country. Cost of production is obviously, one of the most important issues when considering setting up a new unit. We believe that cost is going to be an issue in the United Kingdom, but the corporate strategy model we have implemented is a low cost model because we do not have a large requirement for skilled labour, expatriate staff and senior level executives. We would employ more fresh graduate engineers and managers. This is due to the fact that our assembly and maintenance plant is based in Shanghai, China, where we require more skilled labour and senior executives. As the level of education in the United Kingdom is extremely sound, it would be easier for us to employ fresh and talented graduate engineers and managers, thus reducing cost. We would now like to elaborate on the key employment issues in the UK and discuss the strategy we have adopted to combat the various human resource issues we would be facing.

Key employment issues in the U.K:

The trends in the UK human resource management (HRM) are shaped by its cost-driven and competitiveness-enhancing nature. The development and implementation of HR policies is crucial to obtaining and retaining a high performing workforce. The policies need to reflect the strategic objectives of organizations together with recognizing the impact of wider demographic, sociological and technological trends and consider the medium and longer-term implications of these. The intro of new labour government since 1997 there has been signs of more protective values towards employees. However, it is the influence of EU membership that has become a greater source of initiatives aimed at employee welfare and involvement. This scene must be placed in context, with an ageing population and an uneven distribution of employment, to gain some understanding of the challenges facing HRM in the UK.

The drive for leaner organizations has led to increased use of labour flexibility, downsizing and outsourcing, whilst rewards have become more performance related and benchmarking is seen as a tool for HRM practitioners. Such trends have received strong government support. The workforce requirements need to be considered strategically and help deliver national