Human Resource Planning - Recruitment and Selection - Essay Example

Human Resource Planning - Recruitment and Selection Introduction Human resource management is one of the most in focus phenomenon in all organizations. An organization is like a system consisting on other subsystem having a set of responsibilities. These responsibilities are critical to handle by the organizations and are performed by employees working within an organization. The success of an organization depends on human resource and their quality of output. Companies find themselves against the wall if they do not manage human resources in a professional way; they are responsible for the quality of human resource. Hence we can say that human resource is the means of securing successful strategic performance and as a source of sustainable competitive advantages. It includes how to measure human resource and its contribution to firm strategy implementation. Therefore human resource management means creating and implementing human resource policies and practices that make the employee competencies and behaviors according to the requirement of a company. An organization’s strategic goals and its decisions are likely to have an important and unique influence on organizational performance. (Dessler & Varkkey, 2009) “HRM can be defined as the acquisition, development and maintenance of human resources in the organization to ensure the achievement of organizational objectives” (Tiwari, 2009) Managing human resource requires a set of rules and regulations; in other words HRM policies. These policies point at organizational activities intended for managing a pool of human resource to ensure that they fulfill all the requirements of meeting organizational goals. As these practices are based upon the organizational goals and objectives, they are different in service organizations e.g. hospitals, banks, hotels, NGOs as compared to other manufacturing organizations. HRM formulates HR practices to get desired workforce skills, attributes and behaviors. These practices are: 1. Human resource planning Human resource planning is the idea of processing and analyzing availability of human resource to make the firm meet its organizational goals and objectives. The main focus of this planning is to have the right number and well qualified human resource, with right capabilities and they should be positioned at right place (Robert, et al., 2007). 2. Recruitment and Selection An old saying is that you can’t make a silk bag form sow's ear. This is true in case of recruitment and selection strategy. Just like to make right product we need right material for that specific product. Same is the case with human resource recruitment and selection. Basically it is all about selecting a right person for right position (Roberts, 1997). 3. Performance Appraisal Performance appraisals is procedure to set work standard and objectives and assessing employees and their performance according to the task, and providing feedback to employee as for motivation and improvement (Dessler & Varkkey 2009). 4. Training and development Training is basically offered on the basis of need of task. Some time new technology new ways of organizational works are introduced and former employees with old education needs to get trained about specific technology or technique. Its basic purpose is to provide employees with job specific competencies. 5. Compensation management Compensations are the added pay or component added to employee’s basic pay or value. These plans are for specific group of employees such as senior manager. Compensation programs is divided in three parts; Financial (Salary, hourly pay, commissions, incentive pay, profit sharing, mandatory benefits, voluntarily benefits, paid leave, merit pay, bonuses etc,) . Second one is Non-Financial (impressive titles, preferred office place, secretary, business cards, preferred meals privileges, special dress codes ). Third one is intrinsic reward (Participation in job design, Empowerment, More job security, more interesting work). 6. Industrial Relations It basically involves trade unions and some of the work representatives. Usually the good production by the organization depends upon good Industrial relationships. There are many factors that affect HR policies and practices and can be divided into two types; external and internal factors. These factors also vary across the region. External factors These factors are those who are independent of organizational changing and organization is unable to control them or change them into its own favor. These factors includes mainly are: 1. International and national economic changes The center of HR practices dimension has shifted from internal selection towards concepts such as globalization and international competition due to the contemporary development of global economy. Also because every organization wants to grow nationally and internationally so the culture and approaches used to manage organization, customers and staff needs to adapt the changing world economy. 2. Technological changes Using new technologies, and understanding the state of the art for HR technology to increase efficiency and effectiveness, also to make HR department cost efficient. 3. National Culture Research has also shown that cultural factors affect a wide range of organizations across the world and are different significantly across every country. It is found to be the most important and crucial factor in developing organizational methods for their practices. As all the employees working in any organization are part of the same society and culture. 4. Industry/sector characteristics Different production processes involves different HR policies that is the reason organizations are divided as manufacturing and services organizations. 5. Legislations /Regulations Every organization has its work in accordance with the rules and regulations of the country and these rules and regulation have a direct impact on HR policies. No organization can make any policy which violates country law and order. 6. Actions of Competitors Good HR policies can give companies a competitive edge over their competitors. In case of best practices company can have sustained and long lasting advantages over competitors, but if organization lack in making good policies the situation can become negative. 7. Actions of Unions There is another silent variable which affects the HR policies that is absence or presence of union in an organization. It depends on union either it works in favor of organization or against it. The external control of firms emphasizes that there is a connection between external inert dependence and internal organization processes. (Pfeffer, Salancik, 2003) Internal Factors Internal factors strongly affect HR policy and practices; they are directly generated inside the organization. Researches have explained many factors that influence HR policies, some important factors are as follows: 1. Organizations Size Organization size plays a significant role in HR policies for intensity and what types of practices are applicable in the organization. 2. Organizational Structure Hr practices are design and implemented in a different structural way for this reason an organizations strategy and structure are significant for determining HR practices flexibility and integration. 3. Business Strategy Company’s strategies used to get a competitive edge in market place when systematically integrated with HR practices becomes more effective and give efficient outcomes. These outcomes can improve organizations environment by making efficient choices about HR practices in support if their strategy. 4. Human Resource Strategy It is important factor to determine intensity and diversity of HR policies. 5. History, tradition and past practices Past practices and history or tradition affects the HR practices in organization. 6. Top Management Studies have proved that top management approach, style and priorities have a direct influence on HR practices. 7. Academic/professional influence on HR practices Employees knowledge about HR practices makes them participate in creation of HR policies positively, because they are involved in decision making process of HR practices (Recruitment-Naukrihub, n.d). Both internal and external factors affects the organization strategies and that is the reason they are considered while making of organization’s mission and purpose. Factors affecting practices differs from region to region. In fact both international and national context there is a widespread diversity in HR practices. After doing study on external and internal impacts on HR policies researchers have concluded that effects of these factors are not similar in terms of its extension and channels trough which these factors affect. If we take example of economic factor affecting HR policies it will only affect few policies and practices such as wages of employees, increments in wages and hiring of new employees. The organization and other human resources policies also affect internal pay structure; it lessens the career progress, less promotions and smaller pay differences (Milkovich, n.d.). Turkish economy can be grouped in many industries, but for diversity in organization size, and wide range of diverse production this study is based on manufacturing industry. An empirical work done on Turkish manufacturing and services organization has determined both (external & internal) factors in general HR practices. In the study external, Internal and controlled variables were taken form manufacturing industries of turkey. Market orientation was taken as controlled variable as it affects characteristics of employment and HR practices. Size of the firm was also considered an important factor as it is correlated with some HR policies. Other controlled variables were TQM and HR strategy on the whole. Survey has shown that firms are divided into international market, national market and both national and international oriented firms. Taking into consideration the correlation among responses of variable influences, we can say that HR theories and education of employees about HR influences over all HR practices and strategies. It has also shown that managers of manufacturing firms follow HR theories and put those theories into practice in formulating HR policies and to achieve organizational goals. Study reveals that factors such as industry and sector characteristics , history, tradition, past practices , size of firm and its structure all have over all impact on HR practices impact of theory, impact of education & training, impact of experience and HR staff. Next factor is economy and technology as has impacts of curve in national and international economy changes. Other factor such as power and politics influences top management or authorities and rules and regulations is influenced by government laws and legislations. Basically top level management priorities has been seen the most influential factor in Turkish manufacturing company as the most industries are owned by top level management themselves. Secondly action of union and experience of staff about HR policies are also impacting but after military coup, action of union has declined a little. To consider market orientation impact it was divided into national and international firms. Results have shown that it mostly impacts on changes in international economy; secondly it impacts on history/traditions and past practices, and on third grade top level management and also depends upon size of organization. According to TQM division of firms TQM strategy changes in organization and staff experience is affected (Ozutku, H. & ozutkuler, H., 2009). From all above mentioned survey we can conclude that all the HR practices from recruitment and selection of employees to career development and industrial relations, all are related to internal and external factors. And most important internal factor affecting HR policies are priorities of top level management and authorities, organizational strategies and number of employees and action decision of high authorities. Other external factors found most influential are law and legislation and how the firm is characterized in sectors. Generally if we look at impact of all policies, HR staff experience differs according to market orientation of organization. Also there is a much influence if changes in economy, tradition and practices, top level management, and size of firm. Combining all the empirical work done on Turkish manufacturing industries, there has been see a clear impact and influence of both internal and external factors on HR policies, but different HR policy approaches not mutually exclusive. HRM strategy is determined by organizational strategy. Sometimes organizational strategy is influenced by the kinds of competencies of its employees. If employees are motivated, committed and flexible, the organization might be more willing to grow rapidly to become the market leader easily. Also much of the HR planning recognizes the powerful decisions of CEO leads to the attainment of its goals. So for influencing the HR policies effectively, top management must concern about overall strategies avoid favoritism and other unethical activities to keep the climate more motivating for the employees. On the other hand the environmental factors that shape HR policies and practices must be considered by managers and planner responsible for creating the policies. They must continue to monitor the environment to get the out most benefits form its operations. All the factors that are influencing externally and internally on an organization it must be considered by the managers seriously. There should be some back up plans for impact of independent factors. It is because the management is the system that can influence, motivate and get to work the whole work force of organization to achieve all its goals. Thus, it can be said that human resource management practices should always be concerned about the environmental factors that influence the HRM and be ready to keep pace with it for the long term growth of an organization. Some points should be considered by HR policy makers while developing HR policy and practices for an organisation.HRM policy should be considered a s integral and significant part of overall organizational plan. Human resource planners should have all support of top-level managers. The human resource policy planners should be well educated and should have all understanding of Human resource policy process. They should communicate and coordinate with all functional managers of the firm, interaction with other functional managers can help them in understanding the problems and different scenarios of work and it will help them in developing successful HR policy making. Also to make HR policies more successful personal records of organizations must be complete and computerized stored, and always and easily variable to HR specialists whenever required. HR policies should be made according to the department specialty, skills and aggregate for overall firm. While making human resource policy for organization, strategy makers should consider all the current changing and organizational requirement (Khurana,A, Khurana,P. & Sharma, H, 2009). References BizCovering, 2008. Key Elements Affecting Human Resource Practice: External Factors [Online] Available at: < http://bizcovering.com/business/key-elements-affecting-human-resource-practice-external-factors/ > [Accessed 17 November 2010] Dessler,G & Varkkey,B. 2009.Human Resource Management, [e-book] Available at: http://books.google.com.pk/books?id=9eVGN-lCtPcC&printsec=frontcover#v=onepage&q&f=false [Accessed 17 November 2010]. Khurana,A, Khurana,P. & Sharma, H, 2009. Human Resource Management Mathis,R. & Jackson, J. , 2007. Human resource management .pp 45 Milkovich, n.d.. Compensation, 9E (Sie). [e-book] Tata McGraw-Hill. Available at: http://books.google.com.pk/books?id=pqyfP8tm5voC&dq=internal+and+external+factor+affecting+hr+policies&source=gbs_navlinks_s [Accessed 17 November 2010]. Ozutku, H. & ozutkuler, H., 2009. The determinants of human resource practices:an empirical investigation in the turkish manufacturing industry. Ege academic review, 9(1) , pp. 73-93. Pfeffer,J. &  Salancik,G. , 2003. The External Control of organizations: A resource dependence perspective, Stanford University Press. Recruitment-Naukrihub, n.d. Internal factors affecting recrutment [Online] Available at: < http://recruitment.naukrihub.com/internal-factors.html > [Accessed 17 November 2010]. Roberts, G.,1997. Recruitment and selection: a competency approach. CIPD Publishing,pp254. Tiwari, P., 2009. Impact of Nature of Ownership of Banks & Demographic Variables on HRM Practices: An Empirical Study. Global Conference on Business & Economics, pp.3-4. Read More