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As opined by Brewster (2017), the focus of the business enterprises on the aspect of employee performance had made the job roles of the HR professionals related to the effective management of the human capital within the enterprises an important. Nankervis et al. (2016) are of the viewpoint that an important trend seen within the present-day business world is the fact that the business enterprises are increasingly opting for the process of strategic human resource management (SHRM) because of the plethora of benefits offered by it. For example, the effective usage of this framework offers the opportunity to the HR professionals to align the individual goals of the employees with the overall strategic goals of the enterprise and this in turn not only improves the performance of the employees but also the enterprise as well (Emerson et al., 2016). Furthermore, this also helps the enterprises to attain the strategic goals or objectives formulated by them which in turn enables them to attain long-term growth and competitive advantage within the business markets of their operation (Meyer & Xin, 2018). However, for the effective usage of this process, the HR professionals need to undertake effective planning, communicate or cascade the relevant information to the concerned individuals, implement different kinds of measures or strategies and others to ensure that the enterprises are being able to get the desired results from the usage of SHRM (Albrecht et al., 2015). This paper intends to undertake an in-depth solution analysis of the recruitment issue that the Australian enterprise Lion Nathan faced in the light of the construct of SHRM.
Lion Nathan, founded in 1923 and presently owned by the Mitsubishi keiretsu (through Kirin Holdings), is an Australian enterprise which specialises in the manufacture as well as the sale of different kinds of alcoholic beverages (Lionco.com, 2019). The enterprise although based in Sydney, Australia is presently operational in New Zealand and is the largest exporter of alcoholic beverages in the concerned nation (Lionco.com, 2019). The different alcoholic drinks offered by the enterprise under discussion here like James Boag's Premium, James Boag's Epicurean Red, James Boag's Epicurean White, Boag's Draught, XXXX Summer Bright Lager and others (Lionco.com, 2019). It is pertinent to note that these alcoholic drinks offered by the concerned enterprise have been much appreciated by the customers over the years however in the present times it is seen that the financial returns earned by the enterprise had declined in a steady manner. For example, in the 2015 the enterprise registered a loss of more than A$5.6 billion and even in the present year it had not been able to overcome the losses that it faced (Lionco.com, 2019). In this context, it needs to be said that one of the major factors which have directly contributed to the declining fortunes of the enterprise under discussion here can be attributed to the ineffective human resource management (HRM) practices or more precisely recruitment processes followed by the enterprise (Hrmonline.com.au, 2019).
As discussed by Brewster, Chung and Sparrow (2016), the HRM teams of the business enterprises rather than taking the help of the traditional recruitment and selection processes followed by them for the hiring of the new candidates needs to take the help of the modern technologies for the same. More importantly, Hollenbeck and Jamieson (2015) have noted that the modern recruitment strategies e-recruitment, social media recruitment and others, which are influenced by technological developments, are not only time-saving from the perspective of the enterprises and HR professionals but also cost-effective as well. Martin et al. (2016) are of the viewpoint that one of the major mistakes that the HR professionals during the process of recruitment is the fact that they fail to check the aptitude of the individuals for the job roles that they would be required to perform within the enterprise in a bid to meet the labour demands of the enterprise. However, recent researches have pointed out that if the individuals do not have the right kind of aptitude or for that matter skill sets then they would not be able to perform adequately or for that matter sustain themselves within the mould of the enterprise (Bailey et al., 2018). This is precisely the problem that the Australian enterprise Lion Nathan has been facing for quiet sometime now which in turn had adversely affected the business prospects of the concerned enterprise. For example, it had been noted that the HR professionals of the concerned enterprise in a bid to fulfil the labour demands of the enterprise a large number of candidates without checking their aptitude or analysing their skill sets to find out whether they would be capable of performing as per the expectations of the enterprise (Hrmonline.com.au, 2019). Moreover, no attempts were being made by the HR professionals to align the individuals goals of these workers with the overall strategic goals of the enterprise under discussion here and this also contributed significantly towards the issue faced by the enterprise since the employees rather than trying to achieve the overall goals of the enterprise were busy trying to attain their own individual goals (Garavaglia & Swinnen, 2017). Thus, it can be said that these two issues are the major ones which has contributed to the decline faced by the enterprise Lion Nathan.
The management team and the HRM team of the enterprise Lion Nathan realising the gravity of the issue that they faced and also the manner in which it was adversely affecting its business prospects took the help of the process of change management for the implementation of the kind of changes that will help them to address the issue (Hrmonline.com.au, 2019). In this regard, it needs to be said that two of the most important changes which were being introduced by the management team of the enterprise under discussion here in conjunction with its HRM team were the improvement of the recruitment process by way of making it more Lion Nathan centric and the usage of the process of SHRM. For example, it was seen that unlike the earlier times the HR professionals in conjunction with Jason Sharpe, Lion Nathan’s People and Culture Systems Leader formulated a checklist of ten core principles which were applicants are required to fill and these questions are completely based on the values and different aspects of the enterprise, the kind of job roles that they would perform, their own skill sets, qualifications and others (Lionco.com, 2019). The answers given by the applicants for the different questions in the checklist enables the HR professionals to understand whether the applicants have the right kind of skill sets, qualifications, attitude, aptitude or for that are capable of adding value to the enterprise or not (Lionco.com, 2019). More importantly, the answers given by the applicants in this selection form is important since it is on the basis of these answers the decision whether to hire them or not is being made and also the departments to which they been sent is also made. This change in the recruitment process of the enterprise under discussion here is important for it since it had not only helped the enterprise to overcome the labour crisis that it was facing but also enabled it to get the kind of employees who are ideal from the perspective of the concerned enterprise (Hrmonline.com.au, 2019). This in turn had helped the enterprise under discussion here to effectively check its decline and also to overcome the adverse effects of the same.
Noe et al. (2017) are of the viewpoint that rather than just performing the job role of recruitment the HR professionals needs to take the help of different kinds of measures to ensure that the newly hired candidates are being inducted or integrated within the enterprise. For example, presently it is being seen that the HR professionals within Lion Nathan are taking the help of different kinds of briefing sessions, induction programs and others to ensure that the newly hired candidates have adequate information regarding the enterprise and are also being able to understand its strategies values, goals, mission, objectives and others (Stewart & Brown, 2019). In addition to this, it is seen that different kinds of measures are being used by the management team and the HRM team of the enterprise for the improvement of the job satisfaction level of the employees and also to ensure that their goals are in alignment with the ones of the enterprise. The important measures taken by the enterprise for the attainment of this end are reward and recognition system, performance management, 360-degree feedback, enhancement of the level of employee engagement, effective job design, HR planning, usage of effective talent and career management practices and others (Lionco.com, 2019). Furthermore, it is seen that the effective usage of these measures has not only led to a transformation of the workplace of the enterprise but at the same time helped the HR professionals of the concerned enterprise to align the employees to the overall cultural values, business goals, mission and the vision of the enterprise. More importantly, these practices followed by the enterprise by way of enhancing the job satisfaction level of the enterprise had directly contributed towards the enhancement of the employee retention rate of the concerned enterprise as well (Hrmonline.com.au, 2019).
The above-mentioned measures intended for the resolution of the HRM issues faced by Lion Nathan have already been implemented within the concerned enterprise. An important aspect of these measures is the fact that rather than focusing on short-term growth they are intended to help the enterprise under discussion here to attain long-term growth and thereby sustainability or competitive advantage. This finds evidence from the fact that in the year 2015 Lion Nathan incurred an annual loss of more than A$5.6 billion whereas after the implementation of these changes the annual revenue earned by the enterprise showed positive signs of growth and for the year 2018 it was $11.5 billion (Lionco.com, 2019). More importantly, the enterprise under discussion here presently has more than 5800 employees in the nation of Australia and New Zealand whereas before the implementation of these changes in the year 2015, the enterprise had 1800 employee in Australia and 1200 in New Zealand (Lionco.com, 2019). In addition to these, it is seen that the market share held by the concerned enterprise in the alcoholic beverage industry had also increased in an exponential manner and this finds evidence from the fact that the concerned enterprise in the year 2018 was the largest alcoholic beverage exporter in the nation of Australia (Lionco.com, 2019).
The development shown by the enterprise in these aspects from the year 2015 can be explained on the basis of the fact that the above-mentioned measures not only helped in the improvement of the recruitment process which had been followed by the enterprise over the years but at the same time contributed in a substantial manner towards the improvement of the organisational or the workplace culture of the concerned enterprise. This in turn helped in the alignment of the employees to the overall culture, vision, goals and other aspects of the enterprise which in turn helped in the improvement of the performance of the enterprise and this becomes apparent from the increase in the profit gained by the enterprise (Garavaglia & Swinnen, 2017). More importantly, the different HRM policies followed by the HRM team of the concerned enterprise also contributed in an effective manner towards the enhancement of the level of job satisfaction of the employees which in turn reduced its attrition rate and this becomes apparent from the increase in the number of the employees of the enterprise (Hrmonline.com.au, 2019). In the light of these aspects, it can be said that the above-mentioned measures undertaken by the HRM department of Lion Nathan in conjunction with the management team of the same have greatly contributed towards the success attained by the enterprise in the recent times.
To conclude, the effective usage of the construct of SHRM offers different kinds of benefits to the business enterprises and also helps in the diverse issues or problems that they are facing. For example, the usage of this tool helps the HR professionals to align the employees with the overall cultural values, mission, business goals and others of the enterprise which in turn helps in the effective attainment of the same. More importantly, the HR professionals also have the opportunity to improve the recruitment process used by them to meet the labour demands of the enterprise in a substantial manner. For example, in the particular case of the enterprise Lion Nathan the usage of this tool helped it to overcome the issues faced by it. These aspects of the process of SHRM become apparent from the above analysis of the HRM issues faced by the enterprise Lion Nathan and the manner in which the HR professionals used the tool of SHRM for the resolution of the same.
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