Human Resources Functions - Essay Example

Critically discuss two key environmental forces that have an impact on Human Resources functions and suggest how Human Resources managers can respond in an effective manner Human Resource Planning is the key link between a firm's strategic plan and its overall human resource management function. It is the sum total οf the plan formulated for the recruiting, screening, compensation, training, job structure, promotion, and work rules οf an organization's human resources. It is a process designed to translate the corporate plan and objectives into future quantitative and qualitative employment requirements, together with plans to fulfil those requirements over both the shorter and longer terms, through human resource utilization, human resource development, employment and recruiting and the use οf information systems. To perform its add value function, the human resource planning should be fully integrated with overall organization strategic plan, especially the firm's growth objectives. Outside influences οf economic conditions, technology, the labour market, and so on should be given adequate consideration when developing the human resource plan. Changes in job design should be explicitly recognized in the plan. It should be kept flexible and adaptable so it can change as conditions change. With HR planning, the firm can ensure that sufficient numbers οf properly trained staff are available at all times to carry out the firm's operations efficiently and effectively. Staffing Staffing is the process οf hiring people to perform work for the organization. It comprises two major activities: recruitment and selection. Recruitment is the set οf activities an organization uses to attract job candidates who have the abilities and attitudes needed to help the organization achieves its objectives. Selection is the process οf choosing individuals who have the necessary qualifications to perform a particular job well. These two activities are key human resource activities in every organization. And these are continuous processes in organizational life. (Diallo 2003) Staffing is a mutual matching process: organizations seek individuals who will help them achieve goals such as profitability, growth, and in some cases survival; individuals seek organizational that will help them achieve goals such as fulfilling needs and obtaining rewards. HR must achieve both types οf fit in order to be maximally effective. A better job οf recruiting and matching employees to jobs will mean lower employee turnover and greater employee satisfaction and organizational effectiveness. Moreover, HR should pay attention to align their recruitment and selection practices with their business strategy(ies) and organizations must have the human capabilities that enable them to effectively implement their chosen strategy(ies). Some organizations even consider their human resource talents as a source for competitive advantage and adapt business strategies to fit those organizational capabilities. With the anticipated shortage in new entrants to the labour force in the next decade, staffing will be a key issue for HR for some time to come. This is especially true during these hard financial times, when the compensation and benefits you can provide to attract and retain staff are limited. HR professionals must work to develop training, leadership, diversity, and work/life programs to turn their organizations into places where employees want to stay. New studies and research back up what HR has been saying for years: The organizations that treat their employees well, give them opportunities, and are flexible are the ones that will keep their key talent. (Martinez 1999) Training and Development Training refers to providing instruction to develop skills that can be used immediately on the job. Development involves developing knowledge that may be used today or sometime in the future. The terms training and development refer to the total structure οf on-the-job training and off-the-job programs utilized by organizations in developing employee skills and knowledge necessary for proficient job performance and career advancement. HR leaders need to understand the role οf learning in the contemporary work context and to ensure that training is explicitly linked to organizational strategy. Paul Navaratnam in New Straits Times mentioned that during recessionary times, most employers take immediate steps to reduce employee training on the misguided assumption that there are no immediate tangible returns (on the cost οf training). It is permissible to say that employee training and development is an ongoing function οf human resource management, particularly with globalization and accelerated advances in technology and science. Employers are surely aware that businesses are not conducted in isolation neither is it insular; if any company is geared towards growth and profitability, the need to remain competitive involves training and development οf its human resources. (Adams 1994) However, training and development οf employees is an integral part οf management responsibility whether in recessionary times or not. In view οf the cyclic economic downturns, the training objectives οf an organization need to be reviewed. Traditionally, training objectives are to enhance skills, educate and develop individuals for future growth within the organization, as part οf the succession planning process. When companies face impending or anticipated recession, now or in the future, perhaps there is a need to rethink and redesign training programs which would: "h emphasise on quality measures οf products and services (total quality management) through continuous improvement programs; "h prepare employees for outsourcing their services; "h train employees to think in terms οf total quality management such as: "« Functional teams: to choose their own problems and work out the solutions to improve the quality οf work. "« Cross-functional teams: ongoing teams that identify problems across the organization and resolve work-related issues as priority. "« Lead teams: a committee οf senior management staff to decide which employee serves on which committee. "h Make total quality management a way οf life; "h provide new values to both work and quality οf life; and "h emphasizes the need for employees to analyze their problems and find answers. Training should take on the role οf assisting employees for continuous improvement οf themselves not only for their benefit, but to face the challenges οf our times. Training οf an employee should not be confined solely for the career development οf the person within the organization, but elsewhere too and for a variety οf purposes (for instance, to be an entrepreneur, profit-oriented, etc) in order to add value to the organization. Compensation The objective οf the compensation function is to create a system οf rewards that is equitable to the employer and employee alike. For the compensation to be effective and add value to the organization, it should be adequate, equitable, cost-effective, secure, incentive-providing, and acceptable to the employee. The desired outcome is an employee who is attracted to the work, motivated to do a good job for the employer and happy to stay in the organization. Thus, designing a reward system that reinforces the organization's business strategy can make the organization more competitive, increase its effectiveness, and help management focus on both short-term and long-term goals. An effective reward system may be comprised οf a variety οf compensation options. (Atkinson 2001) For example, General Motors set up a new compensation system designed to push its salaried employees to work harder - and to help push those who don't out the door. The move, affecting 112,000 low-level managers, clerical workers, and other white-collar staffers, is part οf a trend to tie compensation more closely to performance to make pay more variable from year to year. GM's new strategy involves base-pay merit raises, lump-sum payments, and profit sharing. The top 5,000 managers have also seen changes. Their 70-year old bonus plan was scrapped, decreasing annual pay for many executives by 50 percent. Instead οf cash and stock right away, these managers receive restricted stock grains that will take years to mature. All οf this is to get people to work harder and encourage better cooperation. Performance Management Performance management is the process οf ensuring that employees understand what is expected οf them in their jobs, and that managers provide the appropriate support and feedback to help them meet expectations. It is also a process by which executives, managers, and supervisors work to align employee performance with the firm's goals. A successful performance appraisal system should be built around clear objectives, have the support οf both management and employees, be flexible enough to adapt to organizational changes, and foster open discussions between supervisors and employees. When done well, performance management serves to align the efforts οf employees with employer goals and values, helps ensure that employees have a clear understanding οf what is expected οf them, and makes certain that employees receive continuous feedback about their performance. The results οf such a program can serve to develop not only individuals, but also organizational systems and processes. Paul Navaratnam in New Straits Times stated that the majority οf line managers are oblivious to monitoring their subordinates' performance on a regular basis. The annual performance appraisal which all line managers are familiar with, is insufficient to determine quality performance οf any subordinate. Moreover, most line managers are unaware that performance appraisal is a tool that is used in manpower planning, that assists in job analysis, compensation management, writing οf job descriptions, etc. Most line managers are mistaken that an annual performance appraisal is merely a measuring tool for the awarding οf increment and bonus. It is timely therefore to debunk current thinking that performance appraisal is only for awarding increment and bonus, and consider the uses οf performance appraisal in recessionary times. In managing human resources in recessionary times, it is suggested that performance appraisal be undertaken quarterly and used for the following purposes: "h To identify the latent potential οf each employee for multi- skills training; "h Determining continued employment in the immediate future, and for the future in other related businesses; "h Using only job performance-related assessment to determine monetary/promotional rewards; "h Current assessment οf employees to benchmark required minimum performance standards for future recruitment; and "h Where necessary and possible to redesign job processes for greater efficiency and productivity. The performance οf an employee is the end result οf the recruitment and selection process. It is therefore imperative for every line manager to consider required minimum performance levels when selecting a potential candidate for a particular job. Intensive testing οf performance levels would be a priority, rather than based on mere work experience, to determine the suitability οf the person for the job. Employee Relations Employee relations encompass all aspects οf the relationship between the employer and the employee within the work environment. The focus οf employee relations is to develop effective relationships between one employee and another, and between groups οf employees and levels οf employees. Employee relations more broadly encompass cooperation and teamwork among the employees that is necessary for an organization to function effectively. A cooperative employee relations climate is οf crucial importance to productivity and the survival οf an organization. Workers are more likely to stay with the company when they are satisfied with their jobs and the way they are treated in the organization by their colleagues and bosses, and when there is enough challenge in the job. To conclude, HR comprises οf a variety οf tasks mentioned above which help the company to deal effectively with any environmental forces and competitors and ensures the company's long-term achievement οf its goals and objectives. It is the vital part οf an organization that contributes to its successful and succession. However, with tasks such as selection and interviewing were transferred to line management and other HR tasks such as pension and benefit administration was outsourcing to external suppliers, management started to place increased pressures on HR to visibly contribute more value to business performance and demonstrate its functional efficiency. In light οf increasing competitive pressures, major transformation οf the HR mission and roles will be needed. References Adams, John. 1998. Medical resources and manpower. Canadian Journal οf Rural Medicine, 3(2): 101-107 Adams, O. (1994). Reprofiling human resources: transferring care from hospital to community. Leadership in Health Services, 3: 13-17. Atkinson, A., and Hull, S. 2001. Health Human Resources Supply and Demand Analysis. Prince Edward Island Advisory Committee on Health Human Resources Buchan, J. 2000. Health Sector reform and Human Resources: Lessons from the United Kingdom. Health Policy and Planning; 15(3): 319-325 Diallo, K., Zurn, P., Gupta, N., Dal Poz, M. 2003. Monitoring and Evaluation οf Human Resources for Health: An International Perspective. Human Resources for Health. Dussault, G. and Dubois, C.A. 2003. Human Resources for Health Policies: A Critical Component in Health Policies. Human Resources for Health Health Canada. 2001. An Environmental Scan οf the Human Resources Issues Affecting Medical Laboratory Technologists and Medical Radiation Technologists 2001. Martinez, J., Collini, L. and Martineau, T. 1999. A Review οf Human Resources: Issues in the Health Sector-Briefing Paper. DFID-Health Systems Resource Centre Read More