Internal & External Factors that Influence Employee Behavior

Employee behavior, also called organizational behavior, is a result of factors that influence the
ways employees respond to their work, leadership and customers. Identifying the internal and
external factors that affect their behavior can help the company understand why employees are
committed and motivated. Internal factors include leadership, organizational structure and the
corporate culture. External factors include family life and other business relationships.
Internal Factors that Influence Employee Behavior
Leadership
 Leadership plays a key role in setting the tone of an organization. According to
allbusiness.com, the one quality that influences employee behavior in a positive way is trust in
leadership. When employees perceive leadership perceived as trustworthy, full of integrity and
honorable, it motivates them to be more productive. The rest of the organization will mirror what
leadership does.
Organizational Structure
 Lamar University defines organizational structure as, “the formal system of task and
reporting relationships that controls, coordinates, and motivates employees so that they cooperate
to achieve an organization's goals.” This includes the organization's policies, procedures and
expectations. A healthy organizational structure will enable employees to be more efficient,
while an unhealthy structure can keep employees from reaching their potential.
Corporate Culture
 An organization's intangible norms make up its corporate culture. For example, the
corporate culture of Starbucks includes friendly service, a welcoming atmosphere and flexibility
in the hours an employee can work. This culture is very different than the corporate culture of a
local police department, which is more focused on getting things done and protecting the public.

Harassment and Discrimination

Harassment and discrimination are a constant risk. This can be external, resulting from broader
social prejudices or the psychological problems of specific employees. It can also be internal,
resulting from company policies that favor certain groups at the expense of others. If an
employee has to worry about being mistreated, he's not going to live up to his potential -- nor
will your company. Make it a top priority to watch for these dynamics and uproot them
immediately. Most of all, take your employees seriously when they report harassment.

Compensation and Advancement

Perhaps the clearest internal motivator on an employee's behavior is whether she feels the
company pays her what her work is worth and provides her with the opportunities for career
advancement that she has earned. That's because income and career prospects are vital to a
person's livelihood, and so can profoundly motivate behavior. If the company falls short on either
pay or promotion, an employee may begin to suspect the company is taking advantage of her --
especially if she sees her colleagues getting better treatment. You can stop this from taking root
by making it clear to an employee early on exactly how she can demonstrate her worth, and then
giving her the opportunity to do so.

Workplace Culture
Workplace culture is prone to cliques and office politics that divert people's energy away from
the mission. Discourage selfish opportunism and destructive rivalry by making them liabilities,
through discipline and disincentives. In their place promote cooperation, constructive rivalry and
respect for people's individuality. Even though workplace culture is a human factor, it's still an
internal one, and you can do a lot to control it.
Strategic Plans

Companies are wise to anticipate and plan for both internal and external changes, say the experts.
According to a Medscape article on the impact of change on health-care organizations, "a
thorough and ongoing assessment of external and internal factors exerting an influence on the
organization is expected of senior leadership to define a proactive plan of action in anticipation
of strategic threats." By remaining aware of how these internal and external factors could impact
employees, organizations, their HR departments and managers can be prepared to respond to
changing employee behavior. Negative behavior could be dictated by feelings of anger,
confusion and depression.
Locus of Control

Employees are influenced by both internal and external forces, but the impact of these forces
depends a great deal on their own levels of internal and external locus of control, says Al Siebert,
Ph.D., author of "The Resiliency Advantage," at ResiliencyCenter.com. Those who have an
external locus of control are looking for people to tell them what to do. These are the employees
who need a great deal of direction and expect managers to give clear and detailed feedback at all
times. Those with an internal locus of control feel empowered to make decisions and act on their
own---they feel in control of their destiny rather than at the mercy of external factors. These
employees may sometimes act too independently and are not as concerned about the opinions or
expectations of others.

External Factors that influence the employee behavior

 Family Life
 Employees' family life can have a direct impact on their behavior. If there's a conflict in
the family life, it can affect the employee’s behavior at work. The employee may respond
negatively to criticism at work and interaction with the leadership. Happiness at home can result
in a motivated and happy employee.
Business Relationships
 Other business relationships have an impact on employee behavior. For example, if a
company has a partnership with another business and the other business has high expectations,
employees may respond in their performance because of those high expectations.

Personal Life Issues

A professional employee should maintain a strong level of work-life separation, but it's
inevitable that external issues will sometimes spill over into the workplace. This isn't necessarily
a bad thing. Positive life events, like getting married or having a book published, can be a boon
to an employee's work ethic. But he can also suffer on the job if he's dealing with negative events
like sickness or debts. People need time and energy to deal with their problems, so, to the extent
you're able, try and help out a stressed employee by offering him personal leave, a flexible
schedule, a reduced workload or a telecommuting option.
Technology

Technology is a significant factor that can have both positive and disruptive influences on
employee behavior. While technology can often help streamline processes and make work easier
for employees, learning how to use new technology while remaining productive can be stressful.
Factor in the rapid advent of technology, in general, and employers seem to be faced with an
almost ongoing need for new training, process improvement and documentation.
Customer Demands

Customer demands can be an external force that exerts pressure on organizations to continually
stay ahead of the competitive curve. Lin Grensing-Pophal, a marketing consultant and author of
"Marketing With the End in Mind," suggests that companies must always monitor the external
environment to be alert to changes that can impact their operations—and their very existence.
Employees must adapt to the changing needs of customers, the growing savvy of customers and
the heightened expectations of customers, says Grensing-Pophal.
Question no.2. Importance of human capital in organization
Introduction

In this fast moving day and age, organizations place emphasis on having that competitive

advantage above all others in the market. The important elements that contribute to this added

advantage stem from technology, marketing strategy, excellent customer service and many more.

However, human resource is still the most important element/asset in an organization that links

back and is the core to those elements mentioned. The success or failure of an organization is

largely dependent on the calibre of the people working therein. Bontis et al (1999) suggests that

undeniably human resource in the organization is the combination of knowledge, intelligence,

skills and expertise which provide each organization with its distinctive character. Furthermore,

to ensure the long-term survival of an organization, it is through proper motivation that

encourages human resource, change, innovation and the capability to learn. We will discuss

further the importance of human resource, how it can impact an organizations performance as

well as certain strategies organizations can implement to address this issue.

The Importance of Human Resource

The abilities of human resource can’t be replaced by any machine and is largely linked to an

organization’s profitability. They are also regarded as the prime asset of each organization and

businesses need to invest into it to ensure their survival and growth. Organizations have to ensure

that they obtain and retain a committed, well-motivated and skilled team. By providing

opportunities for learning and continuous development, organizations will be able to address and

grow future talent as well as develop the inherent capacities of each individual. Armstrong and

Baron (2002) states that the many organizations are recognizing the fact the it is the people
coupled with their individual skills, knowledge and experience that play a significant part in the

involvement of providing organizations with the competitive advantage as well as growth and

success. Organizations today are now focusing on the human factor to provide insight and

contributions to improve productivity. Consecutively, one of the key roles of an organization is

strategic human resource management. In reference to Purcell et al (2003), HRM practices

include the following:

· Attracting, developing and retaining high-quality people

· Talent management

· Working environment – core values, managing diversity, leadership, work/life

balance, employment security

· Job and work design

· Learning and development

· Managing knowledge and intellectual capital

· Increasing motivation, commitment and role engagement

· High-performance management

· Reward management

What we can see clearly is that it boils down to people – human resource which is the asset and

backbone that drives the goals and directions of each organization. Moreover, all aspects above
point to facts that show how without a doubt, human resource is associated in generating

performance outcomes.

Impact to an Organization’s Performance

By practicing the above mentioned points effectively, organizations will be able to match the

right people based on the strategic and operational needs of the organization. Furthermore,

having the right person who ‘fits’ the culture and strategic requirements of an organization will

increase performance, productivity, innovation and a higher level of personal customer service.

Research by Huselid (1995) suggests that the link between human resource and organizational

performance is shown through productivity, in turn, this is influenced by employee motivation,

an employee’s financial performance is largely connected to the reward structures, motivation

and training provided. To achieve this, many successful organizations provide individuals the

flexibility and independence coupled with a stimulating and interesting work environment.

The biggest challenge faced by organizations is retaining talent. Employees have basic human

needs and the challenge to retain valuable employees would mean organizations taking the steps

to asses and satisfy the future needs of its people as well as providing the opportunity to develop

and enhance the natural abilities. Finding the cause and tackling them with the right strategies

would reduce employee turnover likewise create greater commitment to the organization. One of

the major causes of turnover is dissatisfaction with career prospects and it is something that

organizations should recognize. To address this issue, organizations which provide a climate of

learning in forms of coaching, mentoring and training will essentially allow employees to obtain

new skills and develop levels of competency required. Focusing on sharing learning
opportunities as well as sharing knowledge to both individuals and the organization will also

encourage a systematic flow and retention of information and learning within the organization.

Another way to ensure growth of human resource is by introducing a management succession

plan that identifies individuals who meet future requirements and indicate a development or

leadership plan required.

Developing an environment which encourages and recognizes high performance in areas such as

levels of customer service, growth, productivity, quality, profits, and value will empower

employees to establish a trust between managers and subordinates by associating themselves

with higher management issues. Creating opportunities to have open conversations with

employees is the key as well to have honest communication that would address that front.

Encouraging individuals to relate and carry out the core values, willingly contribute to achieving

organizational goals increases motivation, commitment and engagement in their role. Winning

the “hearts and minds” of employees is a sign of commitment as they will identify with the

organization, exert themselves more on its behalf, thus ensures and assures both the individual

and organization that the investment yields returns on both sides.

Conclusion

Each organization is dependent on various levels ranging from operations, sales, marketing,

accounts to management and so on to fully function. It is clear that an organization’s human

resources play a major part in having a competitive advantage. Therefore, it is the organization’s

responsibility to produce a framework which encompasses a learning culture within the

organization. As suggested by Reynolds et al (2002), how a person gathers new knowledge, skills

and capabilities is by learning, whereas the way to promote learning is the organization’s part to
carry out the necessary training. That said, a healthy and productive work environment that

encourages growth in each individual will definitely impact an organization’s performance.

Implementing the right strategic human resource development strategies, policies and practices

will in succession allow your human resource to perform at its optimum level and ensure that the

organization has that competitive advantage. To conclude, I agree that human resource is the

most important asset in an organization.

References

Bontis, N, Dragonetti, N C, Jacobsen, K and Roos, G (1999) The knowledge toolbox: a review of

the tools available to measure and manage intangible resources, European Management Journal,

17 (4), pp 391–402

Armstrong, M and Baron, A (2002) Strategic HRM: The route to improved business

performance, London: Chartered Institute of Personnel and Development

Purcell, J, Kinnie, K, Hutchinson, S, Rayton, B and Swart, J (2003) Understanding the People

and Performance Link: Unlocking the black box, London: Chartered Institute of Personnel and

Development

Question.no.4 role of simulation as training tool in HRD programs.

Business owners often have little time to spare for training, even though it's critical for the growth and
productivity of their companies. The time spent training often takes away from production and core business
activities because business owners or key employees must step away from core tasks to train. Virtual learning
and simulation training act as a bridge to close knowledge gaps while core business activities continue.
Description

Simulated training presents users with a game-like atmosphere. In a virtual environment, the application
includes images and graphics interlaced with voice, background music and special effects. In a live
environment, scenarios are recreated to resemble real-life situations. Typically, if users don't select the best
solution, they are remediated until they do so. With practice, learners identify suitable solutions to practical
issues and later incorporate these solutions in their daily activities. In some simulations, the learner receives
points for each decision he makes, helping him understand the effectiveness of his decisions.

Outcomes

Simulation-based training aims to reduce errors and cost and address knowledge and skill gaps. Such training
also can make training and assessment more consistent and skill-oriented as compared to traditional training
sessions. In its assessment of the effectiveness of simulation-based training, Alelo Inc. found that its trainees
performed as well as or better than seasoned professionals. This is because simulation-based exercises often
allow learners to explore several outcomes and thus get a better understanding of the scenario and available
solutions more immediately.

Benefits

In simulated learning, HR staff can practice activities such as interviewing candidates, running
interdepartmental meetings and completing transactional employee processes. They even can practice handling
specific employee grievances. Apart from training newcomers, simulated learning can be beneficial for
retraining existing employees who are unable to grasp certain nuances of their jobs, and companies can use it
to introduce new practices within the company. After employees have mastered the given task, they can apply
it in their jobs. Simulated training allows learners to address common mistakes without having to face negative
consequences of these mistakes.

Limitations

Simulation-based training outcomes cannot replicate people’s reactions in actual environments. The games or
scenarios created in simulations can be only as thorough as the creator’s experience and imagination, and while
the simulation can contain a good number of options, the list is never exhaustive enough. If the training is in a
virtual environment, trainees may not have access to a trainer for clarification of task or skills. Also, these
learners must be computer literate to use the system effectively. Furthermore, poorly designed programs can be
boring and result in poor absorption and retention of concepts.

Question no.5. How to design effective HRD program by using action and
experiential techniques.
Experiential and action learning
In order to deliver high-impact learning that delivers tangible change
and sustainable improvements in performance we work with clients to
build experiential and action learning elements into the programs we
design. This creates powerful opportunities to practice skills, apply
 knowledge and work through business scenarios that are grounded in
reality.
Experiential learning
“Tell me, and I will forget. Show me, and I may remember. Involve me,
and I will understand.”
JSB Experiential Learning enables individuals and teams to make
discoveries and experiment with knowledge firsthand, practicing key
skills and receiving immediate, constructive feedback from our
experts and their peers. This enables learners to:
 Become actively involved in the experience
 Reflect on the experience
 Use analytical skills to conceptualize the experience
 Apply decision making and problem solving skills in order to use
the new ideas gained from the experience
We employ wide range of highly effective experiential techniques.
Chief among these is actor-led role-play. Our trusted team of
experienced and talented role-play actors provide a safe, positive
environment in which participants are encouraged to explore and
develop their own interpersonal, communication and management
skills.
This powerful technique is regularly used to enhance the development
of appraisal skills; interview skills; giving feedback; handling
challenging conversations; supervision and management skills;
managing under-performance; and conducting workplace hearings and
investigations.
MAKE A QUICK ONLINE ENQUIRY

Action learning
We advocate the use of action learning where appropriate as it allows
participants to work on real workplace scenarios. Flexible in terms of
both the timing and content, action learning elements can be built into
workshops or run as standalone sets as part of a wider program.
We work in collaboration with client partners to understand their
business challenges and create action learning around these, enabling
participants to:
 Learn from each other and engage in shared learning
 Think innovatively and creatively
 Reflect on current practice – whilst encouraging action
 Understand areas where they have special interest, strength or
weakness
 Build strong relationships and networks within their organization
through group projects

Designing Effective HRD Programs:

Designing Effective HRD Programs The purpose of this chapter is to discuss the second phase of
the HRD process: designing training and HRD intervention. Once TNA has been done, an HRD
professional faces a number of important questions, such as: 1. Whether the issue should be
addressed by training and HRD intervention. 2. How the results of TNA could be translated into
a specific training program or HRD intervention.

Designing Effective HRD Programs 3. If training is necessary the decision whether to “make or
buy” training program. 4. Who will be effective trainer? 5. What is the best way to organize the
training program or intervention? Defining the objectives of the HRD Intervention: After
completion of TNA, one of the first things that an HRD professional should do is to define the
training objectives.

Defining the objectives of the HRD Intervention: :

Defining the objectives of the HRD Intervention: Robert Mager defines an objective as a
“description of a performance you want learners to be able to exhibit before you consider them
competent” e.g.; Recent study measured the impact of training on company performance among
a sample of Chinese manufacturing organizations. Training effectiveness was measured in the
terms of perceived achievement of training objectives, as well as by comparing training
expenditures to company productivity.

Defining the objectives of the HRD Intervention::

Defining the objectives of the HRD Intervention: TNA is very useful in defining program
objectives because they identify the gaps or challenges to be addressed. e.g TNA observed that in
brokerage house, many brokers were insensitive to client’s fear and concerns about the future.
The training program should be designed to promote the sensitivity of brokers and to support
their clients.
Qualities of Useful Objectives: Mager states that useful objectives include three critical aspects:
Performance: The performance that the trainee should be able to do. (e.g.; Write a product profile
for a proposed new product” Conditions: Conditions under which trainee will perform (e.g;
giving all available engineering data regarding proposed project, trainee will write a product
profile” Criteria: An objective identifies the criteria of acceptable performance. (e.g.; the product
profile must describe all the commercial characteristics of the product that are appropriate for its
introduction to the market”

Defining the objectives of the HRD Intervention::

Defining the objectives of the HRD Intervention: Example of program objective (Using the
information found on a completed loan application). Writing Objectives for behavior that is
directly observable & unobservable. It is very easy as to write objectives for behavior that can be
easily observed as compare to behavior that cannot be directly observed. e.g. Giving injection to
a patient e.g. Observe whether the painting is of high quality

Defining the objectives of the HRD Intervention::

Defining the objectives of the HRD Intervention: Questions to be Ask when Writing the
Objectives: 1. What is your main intent (what do you want the trainee to do?). 2. Have you
defined all the conditions that will influence the trainee performance?. 3. Have you defined how
well the trainee must perform for his or her performance to be considered acceptable?.

Make Versus Buy Decision: Creating or Purchasing HRD Programs:

Make Versus Buy Decision: Creating or Purchasing HRD Programs After identification of
program objectives the next important step is whether to make or buy decision. Factors to
consider before purchasing an HRD program: 1. Expertise (Level of KSAOs that organization
have) 2. Timelines. 3. Number of Trainees. (Greater number of trainees it is more likely to design
own program) 4. Cost 5. Size of HRD. 6. “X” Factor. (e.g nature of business)

Make Versus Buy Decision: Creating or Purchasing HRD Programs:

Make Versus Buy Decision: Creating or Purchasing HRD Programs Other Factors that influence
organization's decisions include: 1. Personal Contact/Past experiences. 2. Geographical
Proximity. (like twin cities) 3. Local Economic Conditions. 4. Presence of Govt. incentives to
conduct training.

Selecting the Trainer:

Selecting the Trainer Once decision has made to design or purchased the training program, the
next stage is to select the trainer. Trainer selection cab be fairly easy when organization has a
training staff with: Training Competence. (knowledge and skills needed to design training
program) Subject Matter Expert (SME). (mastery of subject matter/person who is an expert in a
particular area) e.g. SECP, Pakistan
Selecting the Trainer:
Selecting the Trainer Many experts like college professor make poor trainers. SME should be
able to train others. Individuals who lack the ability to design and implement effective training
programs heavily rely on single method of instructions. e.g. lectures

Selecting the Trainer:

Selecting the Trainer An ASTD study found that training was most effective when trainers
possessed an advanced level of expertise as instructors and facilitators. Train-The-Trainer
Programs (TTPs) The purpose is to provide the SME with necessary instructional knowledge and
skills to design and implement a training program. TTP are available through the local
professional associations, colleges, and consultants.

Selecting the Trainer:

Selecting the Trainer When organizations design their own TTP, these should be focus on: 1.
Developing trainee objectives and lesson plans 2. Selecting and preparing training materials 3.
Selecting and using training aids (e.g. MS office, presentation slides, videos etc) 4. Selecting and
using different training methods and techniques.

Preparing A Lesson Plan:

Preparing A Lesson Plan A lesson plan is a trainer’s guide for the actual delivery of the training
content. To translate program objectives into an executable training session, the development of a
lesson plan is recommended. Gilley and Eggland suggest that a lesson plan should specify:
Content to be covered. Sequencing of activities. Selection or design of training media. Selection
or development of experiential exercises, or both. Timing and planning of each activity. Selection
of the method of instruction to be used. Number and type of evaluation items to be used.

Selecting Training Methods and Media:

Selecting Training Methods and Media Training Methods: Following list of few training
methods: (Table 5.4) Classroom programs 91% Self-study, Web based 44% Job-based
Performance Support 44% Public Seminars 42% Case Studies 40% Role Players 35%
Simulations 25% Virtual Reality Programs 03% A 2003 survey conducted by Training magazine
revealed that, contrary to popular belief, classroom programs were still the most popular
instructional method.

Selecting Training Methods and Media:

Selecting Training Methods and Media Media: Workshops/Manuals Internet/Intranet/Extranet
DVD/CD-ROM Videotapes Videoconferencing Broad Categories of training approaches: On the
Job methods (learning by doing) Class room methods
 Selecting Training Methods and Media:
Selecting Training Methods and Media Factors to be considered while selecting Training
Methods and Media: 1. The objectives of the program (Objective is to improve the interpersonal
skills then more active approaches such as videoconferencing, role-playing rather than lecture of
CBT. 2. Time and Money available. 3. Availability of other Resources (e.g. specialized
equipments and facilities to be delivered effectively). 4. Trainee characteristics and preferences
(Literacy rate of employees)
Question.no.3.
Strategy word is driven from Greek noun “strategus” which means commander in chief.Strategic
management defined as taking scientific decisions by analysing different factors which ensures
long run performance of organisation and growth.Strategic human resource management can be
defined as the integration of HRM with the strategic management and objectives of organisation
which lead to improved performance of employees and organisation. Companies having their
business on global level adopt strategic management on each level to increase effectiveness and
certainty in business. In the process of creating policies and regulations for managing human
resource of company it is important that strategic decision making should be adopted to ensure
their success and empowerment of employees.Strategic HRM is a tool to achieve organisational
goals with the help of people in organisation (FitzRoy, et. al 2012). There are using different
models and concepts of strategic HRM in companies which are as follows.
Models of SHRM
Matching model- This model of strategic HRM focuses on effective matching of organisational
structure and strategies with HR policies and management. This model tries to get fit between the
external strategies of business and internal HR policies and strategies to achieve best results in
the organisation.According to this model human resource policies should be inspired from the
organisational strategies and should be developed strategically by taking scientific decisions.
 Control based model- This model is based on the human resource strategies in which the
employee management and control strategies and methods are in the direction to achieve
organisational performance and profitability (FitzRoy, et. al 2012). Employee behaviour and
activities are observed in this model to ensure effectiveness of organisational strategies and
goals. Potential capabilities and capacity of employees should be utilised according to this
model.
 Resource based model- This model defines efficiency of organisation based on the
effectiveness of resources and capabilities of workplace. There are divided organisational
resources within different categories like financial, technological, and human resources. The
model focuses on achieving organisational goals and application of strategies by improving skills
and capabilities of human resource in the organisation. This leads to achieve competitive
advantage in the competitors of organisation.

 Integrative model- This model is focused on two approaches in which one is the reward
motivation impact and other is strategy and management relationship. This is an integrated
process of control on management and effective resource based model. This model focuses on
 improving employees performance by providing them training and development programs by
maintain the locus of control by managing human resource (Woodburn, et. al 2014).

Approaches to Strategic HRM

There are three categories of SHRM which is helping in effectively manage human resource in
organisation and achieve organisational growth which is universalistic, contingency, and
configurational.
 Universalistic or best practice approach- This approach defines that there are various
practices and policies of HRM which can lead to positive results in organisation within different
circumstances. There are a huge range HR activities like recruitment and selection, training and
development, leadership and motivation in which there should be adopted best practices to
effective execute the activities (Woodburn, et. al 2014).
 Contingency or best fit approach- Best fit or contingency approach denies the universal
or best practice approach. According to this approach HR policies should be considering
organisational policies and strategies.These practices can be selected by taking effective decision
by scientific decision making process.
 Configurational approach- Configurational approach is integration of both the above
approaches as in it includes the best practices for HR management and also accepts adjustment
of various organisational policies and strategies. This makes him collaborative approach to
SHRM.

Human resource policies and procedures

In organisations there are various policies and procedure which are applied to achieve
organisational goals and objectives and help in empowering human resource in the company.
These policies and procedures set a framework and standards which guides activities
management of workforce to achieve positive results in organisational growth. Following are
some example of effective HR policies and procedures applied in organisations (Ehnert, et. al
2014).
 Statement of responsibility- Responsibility of employees should be effectively
distributed within them which make them clear about their role in achieving organisational goals
and objectives. Strategic HRM is integration between HR policies and organisational strategies.
Responsibilities should be effectively allotted considering strategies of organisation and structure
and culture of organisation. Employees who are members of employee union should consider
their contract for guidance for any policy and procedure.
 Recruitment and selection policies- Every organisation should make policies for
recruitment and selection which have impact of organisational strategies and most effective
selection should be made by which organisational goals and objectives can be achieved
effectively.Tools and methods should be used to best selection and proper training and
development program should be conducted and new selection should be introduced with
organisational strategies and goals.

Unilever is one of the biggest FMCG Companies in the world. It is a UK based company having
its business in more than 190 countries and having more than 400 products in its product line and
employing more than 1,67,000 employees all around the globe. Every organisation like Unilever
 is having its organisational strategies and goals and objectives which should be achieved by
human resource of company and for that strategic HRM is adopted by company which is
integrated approach of HR policies and organisational strategies and results as positive for
organisational growth. Unilever is effectively managing its workforce in different countries and
employing skilled and specialised people in organisation but there can be some suggestions
which can be proved beneficial for attracting new talent and retain employees in organisation for
long and increase the employee loyalty and trust in the company (Ehnert, et. al 2014).
Following are the new approaches to strategic HRM for Unilever branding in its
workforce.
 Employee engagement- In strategic HRM the new approach is emerged to increase
involvement of employees in organisation. By engaging employees in organisation employee’s
enthusiasm can be increased and this leads to enhanced performance of employees. Effective
communication and awareness for goals and objectives helps in leading employee’s efforts in
direction of organisational growth. This approach helps in increased sales and customer
satisfaction and increased profits in the organisation. This approach also helps in attracting new
talents. Unilever can manage its employees by increasing their involvement and ensuring their
role in organisation. There are some barriers for this new approach like threat of misuse of
leniency and ineffective management in the organisation and lack of confidentiality in
organisation.
 Workforce diversity- Unilever is having its business in different countries which is
having different required employability skills and talents to effectively manage and execute
activities and help in achieving organisational goals and objectives. According to this approach
company should make portfolio of its employees in which employees with different skills and
specialisations are included this will help in creating competitive advantage to company in
market and also helps in increasing innovative and creative atmosphere in company which leads
to success. Barrier to this approach is there emerges huge cost of recruitment and selection of
employees and making portfolio and training them effectively. Clashes and conflicts also emerge
between employees in this approach (Fong, et. al 2011).
 Strategic International HRM- Multinational companies like Unilever are using
international HRM to manage its human resource all around the globe. Strategic management of
international HRM is new approach which should be adopted by Unilever to effectively manage
its employees internationally with integrating organisational strategies and goals and objectives.
This also helps in positioning of employer branding in international market to attract new
employees in organisation.This helps in providing unanimous approach towards management of
employees in multinational companies like Unilever and also provides growth to organisational
performance.

Barriers to this approach are that there comes diversity in cultures, regulations of countries which
lead to difficulties in managing human resource of multinational company on uniform basis.
There are diversity in the beliefs, values, perspectives, needs and working patterns of employees
of different countries and they requires management in which these factors are considered and
suitable for them as in positive working environment. Unilever can adopt this approach by
considering these barriers and planning to remove them and get positive results (Fong, et. al
2011).
Conclusion
The report is a study of strategic management of human resource by using different tolls and
models. Effective analysis is done of internal and external environment of UK based
multinational company in FMCG sector Unilever. Different tools and methods are used like
SWOT for internal analyses and PESTEL for external environment is done and found that there
are different factors which are influencing internal and external environment of company. Further
we have studiedabout strategic HRM and analysed facts about that. Different models and
concepts are identifiedand approaches like best practice, best fit are analysed in the study. HR
practices which arehaving impact of strategic management of organisation are described which
includes effective HR policies and procedures in organisation helping in achieving organisational
growth (Reilly, et. al 2016).Now we can conclude that Unilever is having different strengths and
weakness, opportunities and threats which are defining internal environment and external
environment.