Strategic Human Resource Management (SHRM) of Vodafone


Strategic Human Source of information Management is today's day business concept that has been now been widely used the organization; the crux of the concept is that all the human reference activities of the companies should be aligned with the organizational commercial objectives. In this particular assignment we must select an organization of our choice and then assess their strategic individual resource practices, we are required to see that the way the practices and strategies of human resources section are aligned with the company's objective. What are the areas that are executing well and the actual areas that require the improvement are? For this I have preferred leading telecom company of UK. Vodafone has been the market leader using their continued expansion in UK and other areas of the world.

This paper will analyze two dimensions, an example may be their strategies for recruitment, selection, learning, development and training and I shall explain how these strategies are increasing staff performance and are associated with corporate strategies. The next part of this paper will present the performance management processes of the business we shall how this firm handles the performance of their workers and how real human resource section is controlling the employee relations.

Introduction to the Company

Vodafone is a leading telecom player in the united kingdom and other areas of the world including India. The products and services they provide are of high quality and high expectations and the marketplace they are functioning is highly competitive. The nature of competition requires the management of the business to have a strategic clarity and all the business businesses should be employed in same course. Their service stock portfolio includes mobile phone interconnection including 2G and 3G networks, broadband internet in homes and on mobiles (www. vodafone. com, 2011).

In order to understand the strategic real human reference activities of the organization is vital to understand that what company all about is. Their vision worth and business orientation will be the key drivers that are driving the human tool management division (www. vodafone. com, 2011).

Company Vision

They see their future in exceptional data services - backed up by the best customer experience available. Their journey has recently begun, with things such as Mobile Internet and Mobile Broadband. And their Vodafone at home set broadband service. And their goals are big, which means millions of customers utilizing their data services every day (www. vodafone. com, 2011).

Company Values


They are focused on speed to market, they relentlessly priorities and follow the final results that matter to our business.


They make things simple for their customers, partners and acquaintances.


They are reliable and translucent to deal with. They deliver for others, and trust others to do likewise

Literature Overview of Strategic HRM:

Strategic Human Source of information Management is today's day business strategy that is now being employed in many of the organizations, its acceptability and practice is increasing with the time as organization have realized that this management philosophy is really adding value to business success in many indirect ways.

As we know that recruiting are one of the most important resources of a company can have, their potential to participate in development of companies sustainable competitive gain is unquestionable, in past the human tool management has been a separate department with no influence and participation in strategic management of the company. Whatever have been the organization strategies companies weren't linking the recruiting management with it. The consequence of that was the disintegration of company's aim and human source management, this scenario made the human being resource contribution in lasting competitive edge limited. (Appleby & Mavin, 2000).

With the evolution of modern business age, that has started out from 1980s, the management professionals and commentators has been sensing the need of taking the companies to one direction, and they have also recognized that it very important that human resource office should be produced part of the strategy formulation process and their human being resource strategies should be made while keeping in mind the business enterprise strategy of the organization. Therefore the researchers developed the concept which is called the Strategic People Source of information Management, that allows the HR office to derive their practices from the organization strategy and they are also made part while making the business strategy (Armstrong, 2006).

Strategic Human Resource Management requires the dept being proactive alternatively than being reactive, they must adjust themselves in line with the human reference need of the company. Also, they are necessary to foresee the upcoming needs of the company and then plan beforehand consequently (McMahan et al. , 1998).

Strategies for Recruitment, Retention, Training & Learning

Vodafone is market leader in their category, they have a competitive benefit because of their diversification in products, services and marketing strategies, therefore their commercial objective is to preserve their marketing head position with the aid of their diversification. Below is the snapshot of HR strategies for various HR functions of the organization that tells us the business is linking their business strategy with the human resource strategy

Recruitment & Selection

Vodafone's recruitment and selection process is aligned with the business strategy, as they are in the business of providing services and their market position is a head with differentiations, therefore when they recruit individuals on different chairs, they have group of center competencies that will be required for each position plus they check these while hiring someone(Armstrong, 2006).

Their selection process makes sure that the right person with right set of capacities and frame of mind is preferred, for example if they are hiring for the position of customer service they would make sure that person being hired has the tender skills, the empathic attitude and is also not extreme in nature. They may have devised a couple of such soft skills that are examined on each of the hiring and these skills vary from position to put. For managerial level position they make sure they hire someone with good analytical skill along with flare of leadership in them. So in Vodafone the entire selection process is associated with the corporate aims (Armstrong, 2006).

Compensation & Benefits

Vodafone's entire reimbursement and benefits are also linked with business strategy, their remuneration systems and total annual appraisal systems derive from corporate strategy. Since our case company is employed in highly competitive environment and they have to keep up their market leadership position therefore they have got designed their compensation system that encourages the quality individuation to work in this organization. They provide they employees with high tech facilities and salary deals so the best on the market are attracted to work in the business and they play their part in making the organization market innovator (Armstrong, 2006).

His gross annual appraisal system is also maintained strategically, in Vodafone, every division has their quarterly and annual objectives, and these aims are then used to make the specific and team's quarterly and gross annual aims. Now when performance appraisal is done, Vodafone's human source of information department makes the objective achievement the area of the appraisal system and everything the increments in salary and bonuses are linked with the objective achievement in teams and individuals. Because of their objective achievement calculation they make sure that performance purpose are time destined, quantifiable and measureable (Armstrong, 2006).

Training & Development

Training and Development is an important component of their human tool strategy. They continue adding value in their recruiting by training them on hard skill and gentle skill whatever is required by the type and role of the work. The processes begin from indentifying the training needs of each of the section. They after understanding the aim of the each of the section for the year ahead, asks the relevant managers to recognize and measure the individuals in their clubs that require working out and development in certain areas of their job. These training needs can be of very soft skill and can also be of hard skills that are straight related to the job (McMahan et al. , 1998).

Once working out needs are indentified then real human resource department manages the training calendar of the entire year, where all the mandatory training are pointed out and employees are directed for on job and off job training. Individual resource department likewise have the attention on the upcoming expansions and technical developments in the market therefore the relevant employees can learn prior to the time and they are prepared to work when there exists any technological progress and change in the organization.


Human resource section of the organization put special focus on developing the learning culture within the organization. Employees are encouraged to share their experience and learning with the other person so that associates can have a learning culture in the business. Since Vodafone is working in various geographical parts of the state, therefore they make sure that employees are encouraged the learning's regarding complex and marketing knowledge with one another, so that staff of 1 region can learn from the knowledge of the other region (Armstrong, 2006).

As reviewed above they also send worker on training, in addition they send different employees of different team to their different geographical markets in order to have working out of varied situations and also have the knowledge of various markets, that rotation also helps employees and increase the learning within the business.

Career Building

Since attracting and retaining the quality employee is concern for the organizations working in today's competitive market, therefore Vodafone hold the policy of having a and well defined career path for every single of their worker. This clearness of career journey makes it clear for employee that where they ought to see themselves after spending different number of years in the company. The team also makes sure that all the a better job of the employees derive from their performance and every top accomplishing employee should have the improvement in their career, this policy really helps to control the staff turnover and encourage employees to work hard and perform as they might have the opportunity to grow (Armstrong, 2006).


Vodafone is employed in competitive environment also to stay before competition it is very important for organizations to have the fast and right decision making. Therefore the human resource section place the special focus on empowering the employee for timely decision making.

For this purpose they been employed by in devolution of electricity, decentralization of decision making and flatter organizational culture. They have been working on the proportions on providing the employee the energy of earning the less critical decisions and top management should only be making decision that are or critical mother nature are of proper importance. This empowerment of employees offers them sense of responsibility, heightens their determination towards the business and save the treasured business time that is required to take the decision from top management (Armstrong, 2006).


As it is vital for organizations working in competitive business environment, Vodafone's human resource procedures also work just as, they try to hold on to their quality employees to visit your competition. Their retention strategies revolve around the nice reimbursement and benefits, pay per performance, rewards and increments on good performance and then getting the well identified promotional system that provides the chance to every employee to execute and build their occupations and then expand. Their retention plan comes from the strategic aim of the organization to be diversified in their business, and same is the truth in their individual source management (Armstrong, 2006).

Performance Management & Staff Relations

Below we shall see that performance management is done in Vodafone, these lines will presented the several methodologies and practices that are being designed in the performance management section of tactical HRM of company.

Determination of Performance Targets

The first rung on the ladder in proper performance management of the business is to look for the required performance focuses on of the business for the year. These targets are derived by combining amount of activities, first of all market analysis is done; the management evaluate the exterior environment so that market growth trends and rivals market talk about can be understand.

Once this step is done management have the backdrop information for dominating the organizational performance for next 12 months, then the next thing is to choose and agree upon the performance targets, once the corporate and business level targets are chose then these goals are divided into department level focuses on. These department level goals are then reflected in specific level targets and aims. (Wall, 2007).

Encouraged Individual Commitment

Vodafone has noticed the value of encouraging the employee dedication towards organizational purpose, as without this commitment employees will never be in a position to achieve the performance that group is expecting them to attain.

Once organization can make the organizational targets the mark of the individual then we can see the success rate of achieving this aim is high. Therefore Vodafone escalates the employee determination to the organizational objectives by including them in the target making process (Rheem, 1996). It has been the practice in the Vodafone that managers and teams determine their performance focuses on themselves and once these are approved by the management their personal commitment to these goals is high. They strive and have difficulties more to attain the targets that has been made in consultation with them (Wall, 2007).

Delegation, Mentoring and Coaching

There are various other activities that play their role in tactical management of the performance of the organization, Vodafone on the also using the three of the actions that are delegation of vitality with responsibility, proper mentoring and reviews system, and training (Wall structure, 2007).

Vodafone is convinced in delegation of capacity to the employees that are in charge of achieving certain focuses on, as responsibility comes with authority, same is the viewpoint that is applied throughout the Vodafone. Their culture is devolution of electric power so de-centralization, they make an effort to give maximum capacity to their employees in order to achieve their obligations with given expert.

Vodafone also feels in mentoring and coaching of employees, managers should act as mentor for their team members, this also involves on job training for the clubs, this systems promotes learning environment in the organization(Armstrong, 2006).

Monitoring and Feedback

Monitoring and feedback system can be an important part of the organizational performance management; same is the situation with Vodafone. They may have proper monitoring and responses system that helps us monitoring the performance and people and clubs. They have a quarterly performance management system that relates the performance of the employees with the objectives of that quarter. Following the analysis and monitoring of the performance of clubs then feedback is provided to them. That system helps the organizational performance on the keep track of and helps the business to stay on their performance objectives throughout the year (Wall, 2007).

Handling Under-Performance

Vodafone grips the underperformance of their employees by having an effective monitoring system, they first evaluates the performance of the employees, then if associates are located to be underperforming they see that when there is any training needs. If there are training needs then employees are sent on training, after the trainings their performance is again monitored. If performance is found acceptable then it is okay, if again performance is not found reasonable then employees are changed to other careers.

Employee Relations

Vodafone puts special emphasis on managing good relationships with their workers; they believe that their workers are their more important resources, their human reference policies are usually more focused towards managing their employee's relationships with the organization. Their performance evaluation, benefits and reimbursement system is targeted towards retaining their workers and keeping their inspiration with the organization.


Strategic human tool management is the present day notion that is used by different by different organizations, in this newspaper we have noticed the strategic people resource management routines by one of the leading company in UK. We've seen their organizational targets with relation to their human resource management activities. The focus of the paper has been on the recruitment & selection, training and development and learning functions and their marriage with organizational strategy. It has also been discovered that how performance management system is working on strategic guidelines provided by the business and how it is playing role in competitive advantage.

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