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Key Topics
- Report on Human Resource Management
- Introduction
- Analysis
- a. Explanation of Mind Map
- b. Importance of Human Resource Planning
- Issues faced by HR Managers & their causes
- c. Importance of HRP and legal considerations in recruitment & selections
- d. New Performance & Reward System and Impact on Motivation
- Conclusion
- Bibliography
Understand the nature and scope of HRM.
Understand the pivotal areas of HRM in a range oforganisational contexts.
Understand methods to address performance and reward issues.
Understand contemporary issues affecting human resource management.
Understand the pivotal areas of HRM in a range oforganisational contexts.
Understand methods to address performance and reward issues.
Understand contemporary issues affecting human resource management.
Report on Human Resource Management
Introduction
The human resource management is the process of managing the very development and performance of employees belonging to an organization. Today, HRM is the central aspect of every organization, as with time it has become clear that employees and human resources are the most valuable aspect of any company, and the former’s performance defines the success or failure of such company (Bratton & Gold, 2012). In such backdrop, the importance of HRM has magnified manifold. It is now the imperative of every organization to keep their human resources motivated and empowered, and having and retaining a talented workforce often becomes the deciding factor between success and failure (Chen & Huang, 2009).
For the purpose of this task, a case situation was presented where the human resource function was very traditional, narrow minded and not adequate enough. Evidence of such is present in the numerous issues plaguing the fictitious WeSellAnything Ltd. Problems were found in – high attrition rates, low employee morale and motivation, lack of career progression of employees, absence of learning and development, no adequate and accurate job descriptions done, lack of human resource planning, improper gender distribution and a large number of unresolved employee issues. As a response to a new HR Manager, a mind map was developed which highlighted all the aspects of HR functions to be incorporated and flowcharts were prepared on the human resource planning and the jobs and responsibilities of human resource managers.
In this report, firstly the mind map would be explained in detail; secondly an account would be presented on the importance of human resource planning (HRP) with its importance on grievance redressal and other aspects and thirdly a new performance management system would be suggested. Lastly, the key findings would be summarized in the Conclusion segment of this report.
For the purpose of this task, a case situation was presented where the human resource function was very traditional, narrow minded and not adequate enough. Evidence of such is present in the numerous issues plaguing the fictitious WeSellAnything Ltd. Problems were found in – high attrition rates, low employee morale and motivation, lack of career progression of employees, absence of learning and development, no adequate and accurate job descriptions done, lack of human resource planning, improper gender distribution and a large number of unresolved employee issues. As a response to a new HR Manager, a mind map was developed which highlighted all the aspects of HR functions to be incorporated and flowcharts were prepared on the human resource planning and the jobs and responsibilities of human resource managers.
In this report, firstly the mind map would be explained in detail; secondly an account would be presented on the importance of human resource planning (HRP) with its importance on grievance redressal and other aspects and thirdly a new performance management system would be suggested. Lastly, the key findings would be summarized in the Conclusion segment of this report.
Analysis
a. Explanation of Mind Map
Human Resource Management is an approach of people management and work culture management and enables an organization’s workforce to effective contribute towards the overall achievement of strategic organizational goals (Boxall & Purcell, 2011). The traditional method of HRM was only concerned with the planned use of employees. But with time, much has altered in the field of HRM and now HRM metrics and measurements use strategic direction in order to display the value. Talent management is a subsequently new term used in human resource management, which depicts all the functions and comprehensive management of talent in an organization setting, where this talent is considered to be the most valuable resource an organization can possess (Ulrich, 2013).
In the present day management, HRM is not only a mere organizational procedure and associated to only one aspect of organization functioning, but is an integrated method (Buller & McEvoy, 2012). The total functions of HRM can be hence divided into three domains – the operative functions, the managerial functions and lastly the advisory functions. In the mind map, red colour is used to designate the HRM function as whole, and the associated main domains of HRM are marked in “Purple”.
Each of these domain functions has a list of sub-functions which in total form the overall HRM. Namely, operative functions are that, which had been and still are the procedural aspects of HRM and consists of those responsibilities which are the sole responsibilities of HRM. Recruitment is the first operative function and is one of the key challenging tasks for every HR manager. Attention and resources are given to conduct this, and to attract, retain and sustain the prospective talent. Development of job descriptions, publication of job postings, sourcing the right talent, interviewing, negotiations of salary, making the final offer are all job responsibilities of the Recruitment Function. Next comes, the training and development function which also is a key operative aspect of HRM. Training & development (T&D) consist of orientation, smooth transitioning, skill measurements, and skill gap analysis, holding specialized training options and repeated monitoring to bring about new skill sets in the future. Compensation and benefits serve as the next operative function of HRM which considers taking care of smooth salary dispersal, providing work hour flexibilities, insurance and other benefits provided to the employees, tax calculations, reimbursements provided etc. Career progression and career planning of an employee in an organization is of fundamental value, and this is not only a mere operative function of HRM but a holistic comprehensive plan of every employee development. This function provides employees with growth options, management trainings, and education opportunities and also enables employees to attend seminars, corporate shows etc. This function helps an employee understand how valued she/he is in an organization and helps in enhancement of motivation and job satisfaction aspects. Other operative functions of HRM are performance appraisal and legal compliance aspects.
Apart from conducting the operative functions as mentioned, it is the role of today’s HR managers to provide input and valuable support in the overall management of the company and to ascertain that the human resources of the company are in alignment with that of the strategic objectives of the organization (Schuler & Jackson, 2008). This requires that HR function works in close tandem with the other managerial aspects of the organization. Hence, the second major role of the HRM is managerial functions. The primary function of this is conducting human resource planning. The importance of HRP will be explained in the following segments of this report, hence it is not elaborated here. The second aspect is employee organizing activities and undertaking means by which employee relations is maintained at the most beneficial state and care is taken to improve the employee motivation, job satisfaction, employee engagement and organizational commitment. Simple strategies like, holding informal gatherings, intra organizational meets etc can help subsequently boost the employee morale. Directing is another aspect of HR Managerial functions and helps in ascertaining that the employees operate in alignment with that of the overall organizational goals. This serves as a great challenge for every HR manager and this function requires him/her to identify the needs of the employees and explore means to satisfy them (Chen & Huang, 2009). Hence, this function requires the HR managers to carefully analyze the talent under them and devise strategies to keep them motivated. Lastly, controlling is another managerial function of HR which ends the cycle and restarts the HR planning stage.
The third aspect of HRM as per the Mind-Map is the advisory aspect and this is self explanatory – as it helps in providing support to the top management and is associated with seeing that their vision is being followed in every aspect of the HR function and lastly providing support to all the Departmental Heads and to ascertain smooth transition and operation of manpower in every department of the organization.
In the present day management, HRM is not only a mere organizational procedure and associated to only one aspect of organization functioning, but is an integrated method (Buller & McEvoy, 2012). The total functions of HRM can be hence divided into three domains – the operative functions, the managerial functions and lastly the advisory functions. In the mind map, red colour is used to designate the HRM function as whole, and the associated main domains of HRM are marked in “Purple”.
Each of these domain functions has a list of sub-functions which in total form the overall HRM. Namely, operative functions are that, which had been and still are the procedural aspects of HRM and consists of those responsibilities which are the sole responsibilities of HRM. Recruitment is the first operative function and is one of the key challenging tasks for every HR manager. Attention and resources are given to conduct this, and to attract, retain and sustain the prospective talent. Development of job descriptions, publication of job postings, sourcing the right talent, interviewing, negotiations of salary, making the final offer are all job responsibilities of the Recruitment Function. Next comes, the training and development function which also is a key operative aspect of HRM. Training & development (T&D) consist of orientation, smooth transitioning, skill measurements, and skill gap analysis, holding specialized training options and repeated monitoring to bring about new skill sets in the future. Compensation and benefits serve as the next operative function of HRM which considers taking care of smooth salary dispersal, providing work hour flexibilities, insurance and other benefits provided to the employees, tax calculations, reimbursements provided etc. Career progression and career planning of an employee in an organization is of fundamental value, and this is not only a mere operative function of HRM but a holistic comprehensive plan of every employee development. This function provides employees with growth options, management trainings, and education opportunities and also enables employees to attend seminars, corporate shows etc. This function helps an employee understand how valued she/he is in an organization and helps in enhancement of motivation and job satisfaction aspects. Other operative functions of HRM are performance appraisal and legal compliance aspects.
Apart from conducting the operative functions as mentioned, it is the role of today’s HR managers to provide input and valuable support in the overall management of the company and to ascertain that the human resources of the company are in alignment with that of the strategic objectives of the organization (Schuler & Jackson, 2008). This requires that HR function works in close tandem with the other managerial aspects of the organization. Hence, the second major role of the HRM is managerial functions. The primary function of this is conducting human resource planning. The importance of HRP will be explained in the following segments of this report, hence it is not elaborated here. The second aspect is employee organizing activities and undertaking means by which employee relations is maintained at the most beneficial state and care is taken to improve the employee motivation, job satisfaction, employee engagement and organizational commitment. Simple strategies like, holding informal gatherings, intra organizational meets etc can help subsequently boost the employee morale. Directing is another aspect of HR Managerial functions and helps in ascertaining that the employees operate in alignment with that of the overall organizational goals. This serves as a great challenge for every HR manager and this function requires him/her to identify the needs of the employees and explore means to satisfy them (Chen & Huang, 2009). Hence, this function requires the HR managers to carefully analyze the talent under them and devise strategies to keep them motivated. Lastly, controlling is another managerial function of HR which ends the cycle and restarts the HR planning stage.
The third aspect of HRM as per the Mind-Map is the advisory aspect and this is self explanatory – as it helps in providing support to the top management and is associated with seeing that their vision is being followed in every aspect of the HR function and lastly providing support to all the Departmental Heads and to ascertain smooth transition and operation of manpower in every department of the organization.
b. Importance of Human Resource Planning
Human resource planning (HRP) is the very first stage of the employment cycle and is associated with development of strategies to meet with the organization’s future needs of manpower. HR planning is associated with business strategy and it is in this stage, that actual forecasting of demand / supply of manpower in the future is determined (Guest, 2011). Today’s pace of technology and global economy has resulted in organizations becoming more flexible and adaptable to the sudden changes in the external business environment. For an organization that does not plan its future HR needs in tandem with the business strategy, it’s highly unlikely that such will succeed. The significance of HRP lies in the fact that apart from helping it determining organization’s future manpower needs, it also helps a company in coping up with sudden changes, assists such in the recruitment and retention of the right talent, development of the talented human resources and proper utilization of such and overall reduces the uncertainty which an organization goes through in terms of manpower (Lengnick-Hall, Lengnick-Hall, Andrade, & Drake, 2009). Human resource planning also subsequently plans for the future management needs of the organization and thereby design strategies by which the right personnel or employees be identified and trained prior to the need arise. It also helps organizations in conducting effective succession planning and also ascertains that a right diversity be maintained in an organization setting to promote a global workforce. Promoting a diverse workforce helps in bringing about more elements of creativity, innovation and knowledge and HRP ascertains that it creates a talent pool in the organization who are precisely such (Delahaye, 2011).
Issues faced by HR Managers & their causes
The issues faced by HR Managers as a result of inadequate and poor human resource planning are varied. From the situation given for this report, the primary issue is high attrition rate. This is such because, employees are not satisfied with the remuneration and they don’t feel valued or feel as if they are learning in the organization. Thereby, developing employee development plans or career progression charts for each and every employee of the organization is crucial and forms a part of effective HRP (Daley, 2012). Secondly, devising an adequate and competitive remuneration system in the industry is critical, as such ensures that the right and premium talent is attracted to your organization and is retained by your organization. Attracting, sustaining and developing the right talent is also a subsequent aspect of HRP. Another key reason which plagues HR managers is dissatisfied employees and the reasons for such dissatisfactions can be varied – not feeling valuable, not meeting with the job responsibilities, not feeling appreciated, not challenged enough in the job that is, under utilization of their talent etc. These issues arise when there is no clear and transparent job descriptions and role division done, when attention is not given to whether to the right individual is selected for the right role, when proper employee development policies do not exist. All these issues point to an inadequate HRM and need for urgent HRP (Harzing & Pinnington, 2010). Another problem which was faced by the company was that, gender distribution in the management lacked majorly, and workforce was not diverse enough. Having no representation of all the genders in the management makes the management one sided and not pro-employee (Afzal, Mahmood, Samreen, Asim, & Sajid, 2013). Also it gives a wrong image that organization does not value women employees to be on their management panel. Grossly wrong HR policies and lack of specific policies like maternity policies, grievance redressal ones make the work environment colluded.
c. Importance of HRP and legal considerations in recruitment & selections
As per the flowchart, the stages of HRP are given as – analyzing the organizational strategies and vision; understanding the present status of HR, demand supply forecasting to anticipate the future needs; quantifying the potential gap and formulating and action plan based on that and finally control, evaluation and feedback. Hence, effective manpower planning based on present and future needs is a core function of human resource planning. When starting with the recruitment process, however, HR managers need to take care of certain legal compliances in order to minimize risks. Posting of jobs, interview questions, the reference and background checks, and final job offers need to be done in a manner it fits all legal requirements. The Human Rights code of one’s nation has to be followed when such recruitment process is on. Generally, job posts or recruitments should not give importance or any specific preference to – race, gender, colour, sexual orientation, religion, status of family or marriage, political beliefs etc (Pollitt, 2005). Discriminations and injustice should not be encouraged when making final job offers; eg, salary discrepancies based on gender, or shortened career progression based on any other aspect (Alcazar, Fernandez, & Gardey, 2013). Care must be taken in developing employee contracts, for contractual jobs, and initiatives should be from the HR Department’s end to understand that the employee in question has understood the terms of such contract, clauses of conditions which might negate such.
d. New Performance & Reward System and Impact on Motivation
The second flowchart highlights the different job roles and responsibilities of a HR manager. It broadly divides all the roles and responsibilities into three groups – primarily, establishment of employees followed by maintenance of employees and lastly, the termination of employees. Establishment phase consists of all the activities which ensure a smooth on-boarding and transition of an employee in the organizational setting. Maintenance phase consists of the employees stay with the organization and consists of all strategies and initiatives taken by the HR team to make such association motivated, empowering and value adding for both the sides. This is followed by the termination stage, where the employee leaves the organization – as a result of natural resignation on reaching the age of super annuation or otherwise. Care must be taken so that the last stage also is conducted smoothly and should not create any harassment for the employee in question.
In the situation given it was found that the company in question did not have a competent performance and remuneration system as a result of which the attrition rate was high. Seeing all the problems it is a natural conclusion that a new performance management and reward system be placed. It is the job role of the HR manager to incorporate an adequate and effective performance and reward system. The following are the factors which need to be incorporated in such a P&RS
In the situation given it was found that the company in question did not have a competent performance and remuneration system as a result of which the attrition rate was high. Seeing all the problems it is a natural conclusion that a new performance management and reward system be placed. It is the job role of the HR manager to incorporate an adequate and effective performance and reward system. The following are the factors which need to be incorporated in such a P&RS
-Job descriptions and job roles are clearly defined based on which performance metrics can be determined
-Employees post joining need to be made clear about the job roles and basis on which their performance will be measured
-Bonus / reward based on performance if introduced, needs to be clearly quantified in the Employee Guidebook as well as the HR System and clearly translated to the employee
-Apart from extrinsic awards and rewards, intrinsic ones which calls for weekly goal celebration, monthly employee achievement should be introduced to motivate the employees (Cadwallader, Jarvis, Bitner, & Ostrom, 2010)
-360 degree performance appraisal system should be followed which will help the HR as well as the line managers to understand the employees’ perspective of work, aspirations (Reeve, 2008)
-Ideally a buddy system can be placed which will let an experienced employee to help a new joinee on-board to the system, which will encourage the culture of camaraderie and friendship
-Both intrinsic and extrinsic aspects must be incorporated in the Reward Management system of the company (Madan, 2012)
-Several out of office, outings can be arranged during holidays which will help the employees to bond and feel committed to the organization
Conclusion
HRM is placed immense importance in today’s business world as it is one function which nurtures and develops the most valuable resource of a company – the human resource. It is the HRM’s role to keep its manpower updated, flexible and committed to the organizational setting and this determines the success or the failure of any company, irrespective of its size, nature or operations. The limitation of this report lies in the word count and time; as such a dynamic subject cannot be clearly elaborated in a restricted setting. The scope of this report lies in the fact that it presents the readers with a brief but comprehensive understanding and importance of HRM in today’s organizational functioning.
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Afzal, F., Mahmood, K., Samreen, F., Asim, M., & Sajid, M. (2013). Comparison of Workforce Diversity in Public and Private Business Organizations. International Institute of Science, Technology and Education , 291-303.
Alcazar, M., Fernandez, R., & Gardey, S. (2013). Workforce Diversity in Strategic Human Resource Management Models: A Critical Review of the Literature and Implications of Future Research. Cross Cultural Management - An International Journal , 39-49.
Bach, S. (2009). Managing Human Resources: Personnel Management in Transition. US: John Wiley & Sons.
Boxall, P., & Purcell, J. (2011). Strategy and Human Resource Management. US: Palgrave Macmillan.
Bratton, J., & Gold, J. (2012). Human Resource Management Theory and Practice. US: Palgrave Macmillan.
Buller, F., & McEvoy, M. (2012). Strategy, human Resource Management and Performance: Sharpening line of sight. Human Resource Management Review , 43-56.
Cadwallader, S., Jarvis, B., Bitner, J., & Ostrom, L. (2010). Frontline employee motivation to participate in service innovation implementation. Journal of the Academy of marketing Science , 38 (2), 219-239.
Chen, C., & Huang, J. (2009). Strategic human resource practices and innovation performance - The mediating role of knowledge management capacity. Journal of business research , 62 (1), 104-114.
Daley, D. (2012). Strategic Human Resource Management. US: Public Personnel Management.
Delahaye, B. (2011). Human Resource Development - Managing Learning and Knowledge Capital. US: Tilde Publishing and Distribution.
Guest, D. (2011). Human resource management and performance: still searching for some answers. Human Resource Management Journal , 21 (1), 3-13.
Harzing, A., & Pinnington, A. (2010). International human resource management. US: SAGE.
Jackson, E., Schuler, S., & Werner, S. (2011). Managing Human Resources. US: Cengage Learning.
Lengnick-Hall, M., Lengnick-Hall, C., Andrade, L., & Drake, B. (2009). Strategic human resource management: the evolution of the field. Human Resource Management Review , 19 (2), 64 - 85.
Madan, S. (2012). How to Motivate Employees During a Recession. US: Seo Design.
Pollitt, D. (2005). Diversity in the Workforce. US: Emerald Group Publishing.
Reeve, J. (2008). Understanding Motivation and Emotion. US: John Wiley & Sons.
Schuler, R., & Jackson, S. (2008). Strategic human resource management. US: John Wiley & Sons.
Ulrich, D. (2013). Human Resource Champions. US: Harvard Business Press.
Varma, A., & Budhwar, P. (2012). International Human Resource Management in the Indian Context. US: Taylor & Francis.
Alcazar, M., Fernandez, R., & Gardey, S. (2013). Workforce Diversity in Strategic Human Resource Management Models: A Critical Review of the Literature and Implications of Future Research. Cross Cultural Management - An International Journal , 39-49.
Bach, S. (2009). Managing Human Resources: Personnel Management in Transition. US: John Wiley & Sons.
Boxall, P., & Purcell, J. (2011). Strategy and Human Resource Management. US: Palgrave Macmillan.
Bratton, J., & Gold, J. (2012). Human Resource Management Theory and Practice. US: Palgrave Macmillan.
Buller, F., & McEvoy, M. (2012). Strategy, human Resource Management and Performance: Sharpening line of sight. Human Resource Management Review , 43-56.
Cadwallader, S., Jarvis, B., Bitner, J., & Ostrom, L. (2010). Frontline employee motivation to participate in service innovation implementation. Journal of the Academy of marketing Science , 38 (2), 219-239.
Chen, C., & Huang, J. (2009). Strategic human resource practices and innovation performance - The mediating role of knowledge management capacity. Journal of business research , 62 (1), 104-114.
Daley, D. (2012). Strategic Human Resource Management. US: Public Personnel Management.
Delahaye, B. (2011). Human Resource Development - Managing Learning and Knowledge Capital. US: Tilde Publishing and Distribution.
Guest, D. (2011). Human resource management and performance: still searching for some answers. Human Resource Management Journal , 21 (1), 3-13.
Harzing, A., & Pinnington, A. (2010). International human resource management. US: SAGE.
Jackson, E., Schuler, S., & Werner, S. (2011). Managing Human Resources. US: Cengage Learning.
Lengnick-Hall, M., Lengnick-Hall, C., Andrade, L., & Drake, B. (2009). Strategic human resource management: the evolution of the field. Human Resource Management Review , 19 (2), 64 - 85.
Madan, S. (2012). How to Motivate Employees During a Recession. US: Seo Design.
Pollitt, D. (2005). Diversity in the Workforce. US: Emerald Group Publishing.
Reeve, J. (2008). Understanding Motivation and Emotion. US: John Wiley & Sons.
Schuler, R., & Jackson, S. (2008). Strategic human resource management. US: John Wiley & Sons.
Ulrich, D. (2013). Human Resource Champions. US: Harvard Business Press.
Varma, A., & Budhwar, P. (2012). International Human Resource Management in the Indian Context. US: Taylor & Francis.
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