Solution
Question 2
In contemporary business sector, Human Resource (HR) and people management strategy could be vertical or alternatively horizontal. According to Waseem et al. 92019), it is evident that the HRM could be proactively used in assisting in designing an entity strategy with a reactive role inclusive of HRM being anchored on overall organisation strategies. This is also identified as HRM engaging people management and strategy making process through appropriate positioning in developing holistic systems for implementing specific business practices.
Primarily, the vertical integration is part of the HR and people management strategy and include an approach of HR policies/practices being involved in the overall HR policies/practices with all the organisation approaches. Additionally, in Han et al. (2019), vertical integration in the modern business environment is core and guided by essential of acquisition of knowledge of business strategy, skills and behaviours essential for strategy implementation. Further, the HRM is also found as being in a position of integrating knowledge of their ability for a prompt development and implementation of projected HRM practices systems.
In order to evaluate the vertical integration meaning and evaluate extent of its adoption in my organisation (MNGHA) in Saudi Arabia (KSA), a set of practices could be put into account which entail;
Human Resource Management (HRM) Representation in Boards of Management– As evidenced in Luederitz et al. (2021), for successful organisations, HRM ought to be appropriately positioned in making main decisions linked to people practice. This is main area in the strategy making and make sure that an organisation is well placed to acquire a professional and personalised organisation success. This is a trend affirmed by Chanland and Murphy (2018) inclusive of a research focusing on more than 3100 boards and noted the involvement of HR leaders as part of their directors. A same issue is evident in MNGHA where albeit the increased board of management representation of the employees, there is an increased trend of increasing how organisation prioritise on the talents and human capital. Further, in MNGHA case, their board of management is mandated with a responsibility of making decisions of the entity. In this regard, through an increased MNGHA inclusive in their goals of management, they are appropriately positioned in contributing to their organisation operations which link to people management strategy making.
Participating and formulating an organisation strategy– As noted earlier, the vertical integration is an approach pursued through HR strategy and corporate strategy being joined together. For HRM, CIPD (2022) highlight the vertical integration as guiding development of a framework linking people management and HRM development initiatives for long-term goals achievement and outcomes. A case example is in MNGHA where their operations are informed by dynamism of their business sector after COVID-19 pandemic. This is characterised by the organisation having to grapple with issues on resourcing in their health networks overseen by the organisation. Owing to the implementation of vertical integration, they have been in a position of initiating a program informed by need for improvement of long-term resourcing approaches in the case of the organisation goals and their evolving features. For MNGHA, they have been in a position of prioritising the findings in Gholamzadeh and Jalali (2013) which identify the necessity to align priority to the internal labour market and external labour market other than the quantity and quality controls on the labor process and product. The importance of this is to integrate HRM strategies to organisation strategy directly impacting the corporate and business units practices. This is core for MNGHA successfully embracing change which is evidenced by their capacity to external and internal environment. When COVID-19 pandemic was reported, as a result of the increased MNGHA job description, they have come up with appropriate rewards which are associated with employees quality level of performance and achievement of increased customer services standards. This is at the same time in detail reviewing the entire reward strategies to ensure they provide immense standards for customer services. Also, the entire reward strategies are reviewed to ensure they provide good value for money results which is different from unnecessary expenditure being incurred.
Prescence of Mission Statement– In a collaborative practice, mission, vision, values and strategies are identified in Vasudeva and Mogaji (2020) as moral compass dictating behaviours which can be accepted and actions. Mission statement is done in a brief manner but broad statement which highlight the scope of goals achievement. Therefore, in vertical integration, HRM is noted in Singhal and Arora (2018) as being engaged in development of an entity mission since it assures the staff a good understanding and articulation of mission set. For MNGHA case organisation, this is attained by pursuing a consistent engagement of employees to appreciate the mission and direction taken by an organisation. The organisation mission is identified as “delivering preventive and accessible care to veterans in safe, sustainable and innovative system”. For achieving this, an entity HRM ensure that they play a core role in guiding the organisation in aligning their corporate strategy with set goals. This is by implementation of a holistic resourcing and people development with holistic performance management. This lead to HRM teams leveraging on the capacity of provision of services in various care levels with a target being on a total of 50 healthcare organisations.
HR Development Policy Making and Strategic HRD Aligned–
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