Various Tasks Related to HRM

Requirement

Need to answer taske related to HRM.

Solution

Introduction

I am a Human Resource Management Consultant, and I have been invited by the Board of Directors of an American multinational corporation ‘General Motors’ to advise them on the possibility of restructuring their HR practices so that they can compete more effectively in the automobile market all over the world. General Motors is a global automotive company with the aim “To earn customers for life”. With almost 2,15,000 employees on the globe, the company serves in 6 continents and across 23 time zones with its headquarters in Detroit, Michigan, USA. The company manufactures, designs, markets and distributes vehicle and automobile parts apart from selling financial services at the pan level. Vehicles of General Motors are manufactured in 37 countries under thirteen brands name, namely Cadillac, Opel, Chevrolet, Alpheon, Buick, GMC, Holden, Wuling, Vauxhall, Baojun, Jie Fang, HSV, and UzDaewoo. However, according to the statistics of the world's leading car manufacturers as of August, 2014 regarding revenue, General Motors stands third while Toyota Motor Company and Volkswagen stand at first and second position respectively. General Motor is facing a very tough competition not only with Toyota Motor Company and Volkswagen but also with Ford Motor Company, Honda Motor Company, and Fiat Company.
I have been invited to give suggestions on various issues and topics about Human Resource Management so that the company may grow and prosper in the desired way and give tough competition to other leading car manufacturer companies of the world. Various tasks have been given on which I will be suggesting the company on the topics which the Board of Directors wants me to address to. In this discussion, we will discuss HR models, the relevance of HRM in this changing environment, the importance of HRM, the recruitment and selection process of the employees, various training methods & strategies, several motivation methods, performance management, effect of changing environment on the company and the critical analysis of the ways in which the company could improve its level of employee engagement including the critical examination how training and development can be helpful for the firm in increasing its employee’s performances . All these will be dealt in a chronological order under the subheadings Task 1, Task 2, Task 3, Task 4 and Task 5. 

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Task 1

Human Resource Management (HRM) is a process which includes the recruitment and selection of employees and developing them in a manner they may become valuable assets of the organization (Ivancevich, 1992). HRM comprises of a variety of functions like conducting job analyses, management of wages and salaries, performance evaluation & appraisal of the employees, planning personnel needs, disputes settlements, recruitment of right person for the right job, providing adequate training and orientation to develop skills, providing incentives & benefits to the employees, maintaining the safety of the employees and communicating with the employees at all levels (Legge, 1995). HRM has become a very common term which can often be heard among professionals. HRM in an organization helps in maximizing company’s staffs performances. Human Resource of the organization is vested with setting up strategies, making policies, systems along with standards and procedures.
General Motors has played a key role in the global auto industry for more than ten decades. Right from the beginning i.e. form the first Buick horseless carriage to present day highly advanced cars, the company has excelled in applying innovative ideas and designs to put the world on wheels (Klein, 1988). The Human Resource Model (HR Model) is the complicated description of the important human resource objectives, human resource processes, human resource standards and the human resource capabilities. The HR Model acts a link between the HR Strategies and other significant areas of Human Resource Management. 
The importance and relevance of HRM to the organization are as follows:

  • Design recruitment and training
    HRM is vital for recruiting right people in right place. They design criteria that are best suited for a particular task. Every Organization needs ready to learn and skilled employees so that they can contribute to organizational success and growth. HRM designs and makes required training program for the employees to train them with various technologies that are used in the organization, specific job description and make them understand the working culture and environment (Greenberg & Frieldlander, 1971). The training and recruitment prove to be significant in finding the best, skilled and hard-working individuals.

  • Professional Development
    Proper training enables the employees to learn professionalism. Training are designed in such a way that the employees are developed professionally. Employees with correct professional attitude are very important assets of an organization. Therefore, every organization works on developing its employees professionally with the help of training, workshops and meetings, etc. (Garet et al., 2001).

  • Performance Appraisal 
    Performance appraisal of the employees is very important to develop a sense of honesty towards their works in them. Appraisals lead to best results like achieving organizational goals and executing the plan in the correct way. An individual feels good when his work is praised; he feels motivated towards his work (Mayer & Davis, 1999). Performance appraisal acts as a motivational therapy and helps the staffs to act according to their efficacy. The HRM monitors the works of the employees which further boosts them to perform well. 

  • Enhances team work
    HRM is very useful in training the employees to work in a team. Team work is very important for any organization in achieving its goal. HRM enhances the employees to learn to adjust to the working environment and work with proper coordination with other fellow staffs.

  • Maintaining work atmosphere
    The working environment and work culture are significant aspects that play a central role in the organizational operations. The HRM team prepares a good working environment and a friendly atmosphere in the organization for the employees so that they can work with efficiency and with full concentration. A tidy, clean and dependable employee can take out the best performance from an employee as the surrounding majorly affects an individual. 

  • Handling Disputes
    Numerous issues and disputes arise in an organization both with the employees as well as with the employer. Major disputes may hinder organizational operations and workings; it may also negatively affect the reputation of the organization in the market. The HRM resolves such issues by listening to the grievances of the employees and providing them the correct solution. In some cases, the HRM also acts as a consultant. 

  • Developing public relations
    The HRM is responsible for organizing seminars and meetings to develop a healthy relationship with other business sectors or other systems. Various marketing plans are executed through these meetings and seminars thus; the HRM helps in preparing and maintaining public relationships (Johansson, 2007).

Thus, we can understand how significant and critical HRM is for an organization. Taking into consideration the General Motors, we see that the company lacks a bit when compared to other top automobile companies, unlike the past in which the company was top rated car Manufacturer Company in the world. The Human Resource Management of this company should adopt and apply the new methodology to train its employees which other top companies follow. When all the functions of HRM are dealt and rendered in the required way, then the company will compete more effectively in the market.  The company must change its ideas and policies with the changing scenario.

Task 2

Human Resource Planning is the backbone of an organization. It is the most important managerial function. It makes sure that a right number of people are placed at right positions at the right time and at the right place so that the organizational operations and plans are executed in the desired way. HRP is significant in finding and placing skilled and motivated employees at the right place. There is a shortage of talented and skilled employees so; the human resource planning aims at fulfilling the objectives of manpower requirement. It mobilizes the manpower for the productive activities. Human resource planning makes the maximum use of available human resources. It maintains a balance between demand and supply of human resources, it helps the organization in selecting right type of people in right number at right time, it helps the organization in creating necessary meetings and training programs for the managers and the employees, it is very helpful to the staffs of the organization as it provides multiple gains to them in the form of promotions, appraisals, increase in emolument, etc. HRP helps in avoiding future pitfalls as it carefully analyzes the future upcoming events. It helps the organization in avoiding the shortfalls and surpluses of manpower to a large extent, also, it enables the management to assess the strengths and weaknesses of its employees
The Importance of Human Resource Planning are discussed below:

  1. Future manpower needs
    Human resource planning ensures the availability of skilled people for the smooth operation of an organization. It is regarded as the forum responsible to assure that manpower is available whenever needed and in whatever number.

  2. Recruitment of skilled personnel
    Human resource planning recruits and selects the most talented, knowledgeable and skilled personnel to fill the job vacancies. It assesses the need for the organization and then on that basis recruits individuals needed to perform the job.

  3. Coping with change
    In today’s fast growing world, everything is changing be it technology, social culture, economic forces and political culture, etc. Human resource planning is vital to meet the changes that are associated with the organization either externally or internally. It helps in assessing the present manpower with the help of HR inventory.

  4. Development of human resources
    The identification of required skills for a specific task is done by the human resource planning. Further, it organizes development campaigns and training programs to impart the necessary skills and ability to the employees so that they can perform the task with the required efficiency in an effective manner.

  5. Proper utilization of human resources
    As the human resource planning recruits skilled employees, it focuses on maximum utilization of the employees to achieve the organizational goals and in minimizing the overall cost of production. It ensures that the employee’s skills and knowledge are used to the optimum level.

  6. Reduction in uncertainties
    Human resource planning reduces the impact of various uncertainties that are brought by the human resource management of the organization in its processes and procedures. 

Process of recruitment and selection

Selection is the process of selecting individuals who possess the required eligibility and qualifications for the job. Selecting and hiring is the most critical task performed in an organization. Various methods are used to select employees like interviewing them, testing them, screening them, presentations and application forms, etc. Different organization use different ways of selecting employees as per their requirement (Munstermann et al., 2010). Below mentioned are the common selection process that is undertaken by the organizations in general:

  • Preliminary Interview
    This is done basically to eliminate the unqualified applicants based on the information provided by them in the application form. Its main objective is to reject the people who are not for the job. It is also known as ‘courtesy interview.'

  • Selection Tests
    People who pass the preliminary interview are called for tests. These tests vary according to the requirement of the organization; these could be personality tests, aptitude tests, ability tests, etc. These are conducted to judge them whether they are fit for the job or not and to determine how well they can perform tasks related to the job.

  • Employment Interview
    This is very next step in the selection process. The formal and in-depth conversation takes place between the interviewer and the applicant. The interviewer asks varieties of questions to the applicant to assess his capabilities, strengths, weaknesses and knowledge. This interview could be of any type as it may be a one-to-one interview, sequential interview or panel interview. Apart from these, it could also be stress interview, behavioral interview, structured and unstructured interview. Employment interview in considered to is one of the best selection devices  

  • Reference and Background Checks
    These are conducted to check the authenticity of the information provided by the applicant. Reference and background checks are done through telephone conversations and by through formal letters. Nowadays, organizations send specialized staffs to the address provided by the candidate to check the correctness of all the information provided in the application form. However, these are done for formality.

  • Selection Decision
    When candidates pass all the phases of selection, the views of the interviewers and the line managers are considered to select an individual as these are the people who would be responsible for the performance of the new employees. 

  • Final Selection
    Finally, the perfect candidates are selected based on their performances in the interview. 

Task 3

Training and development are one of the main function of Human Resource Management. It is crucial for organizational success, growth, and development. Training helps an employee in becoming more productive and efficient. It enhances the knowledge, skills, capabilities and the understandings required for doing a particular job. Training is fruitful for both employees and the employer. These days, most organizations treat training and development as an integral part of HRD activity. In some of the organization, it is mandatory for the employees to go for training once in a year to learn and understand the new technologies that have been introduced and are important for the organizational operations. Career development, on the other hand, emphasizes on broader skills that are useful and applicable in a wide range of situations and circumstances, it comprises of decision making, creative thinking and managing people (Noe, 2010). 

Importance of Training and Development in increasing employee performance

  • Helpful in addressing employee weaknesses
    Most employees in the organization have certain weaknesses at their place of work which creates a problem for them in rendering their services. Training helps them in eliminating such hindrances. A properly organized development program helps the employees in gaining skills and knowledge required to bring them to a higher uniform level.

  • Consistency in performance
    Training and development play a pivotal role in maintaining consistency in the work. Workers get knowledge and experience through a well-organized and task-oriented training and development program. Consistency is the work is very important for as far as organization’s policies and procedures are concerned. Administrative procedures and ethics are the main content while executing the duty.

  • Improvement in the performance of employees
    A well-trained employee has all the information and knowledge required for various tasks. Training and development programs help in boosting up employee's confidence, and this confidence comes from the fact that the workers are well aware of their task, roles, and responsibilities. It also helps the workers in applying new and innovative ideas in incorporating their day-to-day duties.

  • Ensuring Work Satisfaction
    Training and development produce a sense of satisfaction in the employees. They feel satisfied with their contribution or role in the company. The employees feel that the organization belongs to them, and they belong to the organization, they feel driven, and this results in feeling that the only way to reward the organization is by giving the best services they can.

  • Increased productivity
    Training and programs enable the employees to learn the required skills and knowledge thereby helping them to perform at a faster rate and with full efficiency thus, increasing the productivity of the organization. It also helps them in finding new ideas and tactics of overcoming challenges that they face while working. 

  • Reduced Cost
    With adequate training and development of the employees, wastage of resources are minimized that cause extra expenses. All the machinery and resources are used economically thus reducing the expenditure.

  • Improved Quality of Goods and Services
    Employees learn new techniques and method in training and development programs that they can use while rendering their services. They use these in improving the quality of the goods and services produced in the organization. This also maintains uniformity in the output which the employees give. 

Training is usually given in two ways, they are:

  • 1.    On the job training: This method follows the motto "learning by doing." On the job training methods are such methods through which training is given to the employees with their daily workings of the organization. It is a cost effective training method. Workers are given training in actual working scenarios. The unskilled, as well as the semi-skilled workers, can be well trained by this method using job-rotation, temporary promotions, and coaching, etc. (Mincer, 1962).  

  • 2.    Off the job training: This method of training is also called vestibule training. Off the job training are those methods in which training to the employees is given away from their real working place. Some of the methods used in this are seminars, conference, and workshops, etc. It is usually used in case of new employees or when a large number of employees have to be trained in a short period (Rice, 1989). It is a costly method in which the employees are trained in separate areas like hall, entrance, reception, etc. where the real working conditions are emulated.

Task 4

Motivation is a planned managerial process that motivates employees to work to the best of their capabilities. Various theories have been given by scholars regarding motivation of employees; here we will discuss about some of them: 

Maslow’s Need Hierarchy Theory

This theory by Maslow is based on human need. He has described human needs in a hierarchical manner from lower to higher order (Wahba & Bridwell, 1976). Five levels have been identified by him that are:

  • 1.    Physiological Needs: These are the basic human needs like food, shelter, clothing, air water, etc.; these are the necessities of life that are required for survival in life. These needs must be net first because they exert tremendous influence on human behavior (Maslow, 1943). 

  • 2.    Safety Needs: These needs come when an individual is satisfied with the physiological needs. This is the need for safety and security of life. To meet these needs, lot of money is required which motivates an individual to work more.

  • 3.    Social Needs: The man loves to be in a society as he is a social being. He loves social interaction, feelings of belongingness and companionships, etc. All these needs drive an individual to work in a group (Doyal & Gough, 1991).

  • 4.    Esteem Needs: These needs constitute self-esteem and self-respect. Esteem needs include needs that indicate independence, achievement, competence, self-confidence and knowledge. When these needs are fulfilled, employees get motivated, and these leads to capability and strength that are useful to the organization. (Greenberg et al., 1986)

  • 5.    Self-Actualization NeedsL These needs are the final step in the need hierarchy model of Maslow. These needs are the culmination of higher, lower and intermediate needs of humans. Self-actualization needs are the needs for personal growth and development.  

Herzberg's Motivation-Hygiene Theory

This is the extension of Maslow's theory. This theory is also known as Two-Factor theory (Balmer & Baum, 1993). A study of 200 accountants and engineers were conducted before deducing this theory. According to him, motivation is affected by two factors:

  • 1.    Hygiene Factors: These factors are the essential part of the motivation in the workplace. The absence of these factors leads to dissatisfaction, fulfillment of these factors are necessary for the positive level of satisfaction in both short-term and long-term circumstances. Herzberg called these factors as the Dissatisfiers. The Hygiene factors include pay, company policies, status, fringe benefits, working environment, job security, and interpersonal relations, etc. (Maidani, 1991). 

  • 2.    Motivational Factors: These factors are the inbuilt factors of an individual. These factors are necessary to provide the level of satisfaction to an individual. These factors are also known as Satisfiers. It includes recognition, responsibility, achievement, growth & promotional opportunities and the meaningfulness of the work (Herzberg, 2005). 

McGregor’s Participation Theory

Two different views of human beings based on participation of workers was formulated by Douglas McGregor. The first was negative in nature and was named Theory X, on the other hand, Theory Y was the name given to the positive theory. These theories are based on assumptions. He says that every individual in an organization belongs to both the traits i.e. good and bad. People switch from one to another according to their mood and motive in the changing environment. 
1.    Theory X assumes

  • a)    People prefer to work as little as possible i.e. they are indolent naturally.

  • b)    People never want to be responsible for anything i.e. they lack ambition and prefer to be directed by others.

  • c)    People are selfish and self-centered in nature. Therefore, they forget organizational goals.

  • d)    People are usually gullible in nature and not very sharp & bright (McGregor, 1960).

2.    Theory Y assumes

  • a)    People are always willing to take responsibilities.

  • b)    They want to see their company/organization succeed.

  • c)    People tend to work hard to achieve organizational goal.

  • d)    People never want to be directed rather they like doing work their way.

  • e)    People wish to achieve things in their life (McGregor, 1960).

Motivation is a key and integral part of managerial functions. He who fails to motivate his staffs and employees in an organization is an unsuccessful manager. Motivated employees give their best while they render their services. It leads to profitable operation, high level of productivity, effective use of human resources, satisfaction to employees, minimizes disputes, the stability of workforce, achievement of the organizational goal and best remedy for resistance to change. Motivation energizes, controls and maintains the behaviors of the employees (Ridgeway, 1982).

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Task 5

Change management is the introduction of new ideas, new processes, new buildings, new workspaces or anything new that changes the working culture of the organization (Kramer, 1990). An effective change management affects every industry and every organizational function. Below are the change management issues that might arise from my proposed recommendations:

  • Communication
    When a change occurs, it leads to failure in communication within the organization. If new procedures, processes, technologies, etc. are well known to the employees, then there is a chance that they might show anger and resistance.

  • Change of Helm
    When a new leader is chosen in an organization pertaining to change management, then the employees might resist to such change and especially when some staffs feel that they should have been chosen for the job.

  • Switch Change
    When some new ideas and methods are implemented in an organization and if the staffs are not well aware of its workings and understandings, then they may face problem in working. Therefore, such changes must be made at a stage when employees could embrace the changes brought in the organization.

  • How do we do it
    All the new methodologies must be communicated to the employees else they will be confused about what to do, how to do, where to do and who is to do it. Such issues are very common in change management.

  • No training
    When new things are implemented in an organization then, the required training must be given to the employees. Otherwise, they will not be able to work according to the changes and required new plan. Staffs may resist to these changes when they are asked to work without getting proper training.

  • Total Unaccepted changes
    Some changes are brought in the organization that is not necessary for the organization. This leads to a sense of dissatisfaction in the employees.

  • Failing to build a substantial coalition
    The management sometimes fails to create a momentum that is brought into via the changes with effective teams.

  • Not understanding the vision
    Sometimes, the employees fail to understand the need for the clear vision. If each and every minute detail of the change is not communicated and understood, then it leads to form a vague idea of the change despite it being a good and successful idea.

  • Declaring the success earlier
    Changes are done to bring new ideas and methods that can prove to be helpful in the organizational operations. The management declares early success in a very short span of time, but such changes might not work according to the plan and prove to be a failure.

  • The change doesn’t work
    At times, it is seen that the changes in the management do not work if the employees respond negatively to the changes. It is mandatory for the management to elaborate every ‘if and but' of the change to the workers so that they can act accordingly.

  • Wishy-washy change
    Some organizations bring change in the company but fail to follow it. The idea of the change may have been thought out, but the implementation process might be vague and unclear. This results to employees going to the old means of working when the managers and supervisors fail to reinforce the changes.

References

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