Although Royal Mail is a private company but it enjoys certain special benefits provided by the government to shield it from growing competition. Such protection played an important role in downfall of the company. The decision taken by the company regarding modernisation and automation can result to job cut of more than 60, 000 employees. In respond to this, Communication Workers Union (CWU) asked the workers to go for a strike till the matter is sought out. Such strikes are not in the UK postal industry, many strikes has taken place in past which are equally responsible for the poor condition of UK postal industry. If the management of Royal Mail want to settle the prevailing unrest, they have to understand implement Strategic Human Resource Management (SHRM).
Strategic Human Resource Management brings integration between corporate strategy and HR practices of the company. Such linkage assists the company to achieve its organisational goals in the best possible way (Devine, S. K. 1992). For any organisation its human resource is the biggest asset and it needs proper management so that it can act as strategic partner and the company can gets benefited in the long term (Lawler, et. al., 2006, p. 1-2). For application of SHRM, a proper hierarchy has to followed, like it must start with a basic legal compliance, then it should be followed by efficient HR processes, then setting of effective HRM Programs and alignment of these with the strategic goals of the organization. All these should follow a pyramidal structure (Office of Merit Systems Oversight and Effectiveness, n.d., p. 1).
PEST analysis helps the management to understand the prevailing market condition and to set the appropriate strategies. The four elements to PEST analysis are Political scenario, Economical state, Social condition and Technological sectors.