OL 211 Final Project Milestone Two - Human Resource Management

Final Project Milestone One OL- 211 2

Final Project Milestone One OL- 211 5

Final Project Milestone One

OL-211

Jennifer Moore

Southern New Hampshire University

Final Project Milestone One HRM

In today's business environment, businesses move faster due to technological advancements in the industries. Consumers are continuously getting involved in digital markets forcing companies to shift their strategic plans to meet the pace. Changes in an organizational culture impact people because each business decision has real-life impacts on the organization and stakeholders. Therefore, human resource managers should be equipped to inform strategies and help employees navigate through the changes. Thus, HR functions should align with the organization's strategic planning because it helps the company and stakeholders move in lockstep, making it easier to achieve organizational goals. Aligning with the organization's strategic plan also give HR's initiative a strategic focus. We live in a changing economy; therefore, aligning with organizational strategic plans helps HRs prioritize goals and objectives.

The Moller-Maersk Group quickly globalized its business. This prompted the company to make changes in its human capital. Being a large oil company, Maersk faced a lot of challenges within its HR practices. In 2008, the company experienced a decline in oil, forcing HR to shift focus towards new markets while maintaining the old ones (Groysberg & Abott, 2013). The company changed its hiring practices, which later negatively impacted the entire business. The HR practices should be flexible to adapt to global conditions. For instance, the case study illustrates that Maersk hired young and untrained employees and allowed the company to train them; however, the company had to change its strategies within the global environment due to the increased turnover.

Generally, internal, and external recruitments have pros and cons. internal recruitment refers to sourcing or hiring employees from within the company. This is beneficial to the company because the candidates have already attained knowledge about the company goals and objectives. Another advantage of internal recruitment is peer acceptance. Colleagues can readily accept one of their own as compared to an outsider. This works best during succession planning and employee motivation (Snell & Morris, 2019). However, for global businesses, internal recruitment can be disadvantageous due to cultural differences and diversity.

On the other hand, external recruitment refers to hiring employees from outside the organization. It brings fresh and new talents into the company. It also provides broader opportunities for HRs to find the best fit for the positions. However, it is more costly because of the need to train them; some have higher salary demands, and others are likely to increase turnovers.

Over the years, Maersk recruited young and untrained candidates and allowed the company to train the selected candidates for two years to meet the company's requirements. The company also integrated its internal recruitment with external hires (Groysberg & Abott, 2013). The HR practices haunted the company because they led to increased employee turnovers over the years. Therefore, the company realized that it was losing its competitive advantage in the oil market. It resolved to change its HR practices to align with the company’s strategic objectives.

Maersk has made several hiring and selection mistakes over the years. However, currently, it has made several improvements to counter the lost opportunities. Today, the company has new leadership which recognized the setbacks that prevailed in the previous practices and has come up with new techniques to handle all the issues. Since the company had become a global entity, it had new demands that needed to be met (Groysberg & Abott, 2013). Therefore, Maersk had a new and more challenging structure which required the company to change its HR demands and issues. The previous recruitment and selection processes could not work in a global business because the employee base had expanded into a more diverse community. Thus, reconstruction of the HR practices and strategies helped the company recover and attain its competitive nature. The HR allowed the best-fit candidates to fill in advised positions regardless of whether they were from within the company or out of the company.

References

Snell, S. A., & Morris, S. S. (2019). Managing Human Resources 18th ed.

Groysberg, B., & Abott, S. (2013). A.P. Moller - Maersk Group: Evaluating Strategic Talent Management Initiatives. Harvard Business School, 1-20.