Managing Human Resources - Essay Example

Managing Human Resources Introduction The success of organisations today is influenced by their abilities to manage their human resource effectively and maximize the work output of each and every employee. This can only be achieved through the development of better human resource management principles that aim at attracting, motivating, remunerating and training the best workforce available in the market. The processes of selecting, recruiting, training, motivating, appraising and promoting employees with the aim of improving their work output and overall profitability of an organization is called human resource management. This area has grown to become a major department in every organization whose effectiveness influences the ability of other organization to achieve their objectives and deliver on the goals. This highlights the benefits of proper human resource practices within organization irrespective of the sector of the economy where the organization falls. One of the current trends in human resource management is the determination to attract and retain a pool of diverse employees who work towards the uniform goal and objective of the organization (Ramona and Şerban 1671). Diversity is thus an essential element of every organization that increases market control, work output and profitability especially for organisations with global operation scales. In this paper, the concept of human resource management will be discussed in relation to the processes of selection, training, promotion and motivation of employees. The paper will also seek to highlight some of the benefits of adopting diversity in the selection and recruitment process and how it adds value to the operations of the organization. Gaining competitive advantage and control of the market is the aim of every organization that seeks to grow beyond the current position. Diversity in the employees significantly affects the ability of an organization to gain competitive advantage and increase its overall market performance as shall be evaluated by this paper. Importance of human resource management to organisations An organization cannot in any way build a strong working team, guided by common values, beliefs and goals without the adoption of proper human resource management principles. This statement highlights the benefits that human resource management confers to an organization at any level of operation, whether regional, global or multinational. Human resource management thus has a number of benefits to organisations and this makes it essential for managers and organizational leaders to work towards achieving this goal. Through proper human resource approaches, an organization increases its chances of achieving the strategic objectives and goals set and this increases its chances of growth. The achievement of the strategic goals can occur through the process of attracting motivated and experienced workforce which the organization can achieve through the development of a stronger human resource division (Chamorro-Premuzic 40). The development of a functional HR department is essential to an organisation’s success due to the role that it plays in monitoring and evaluating employee performance. One of the main benefits of having a human resource management department in an organization is the development of an ability to cultivate, nurture and monitor organizational culture. Organizational culture is the set values, codes and behaviours that every employee in the organization is expected to subscribe to all times. This helps in guiding the organization during all moments as it is considered as the bench mark of the organizational operation and relation between employees and the management (Lieberman 19). Employees in an organization have different talents and abilities and this demonstrates the diversity that enriches the organization and gives it the abilities to gain the competitive advantage. However, the pool of talent within the organization cannot be of any benefit if it is not recognized and approaches adopted to ensure that the organization taps it to grow. The human resource management has the ability to manage and develop this talent in conjunction with departmental manager. This falls under the performance management, career development and planning role of human resource that aims at developing talented and experienced pool of employees to take over the retired employees and ensure continuity (Harazin and Katalin 42). Human resource department assist an organization to achieve its strategic goals by attracting, training, motivating and retaining the best employees for the jobs. The process of achieving strategic objectives and goals begins with maintaining a highly motivated and capable workforce. This can only be achieved if the organization maintains a highly motivated and willing workforce that understand and recognizes the need to work towards the success of the strategic goals. Human resource therefore acts as a link between the organisation’s management and employees and this is essential in making employees understand the strategic plans of the organization (Chamorro-Premuzic 40). The recruitment of employees increases the number of talented, motivated and experienced employees in the organization and this is essential in enabling the organization achieve its objectives. It is the role of human resource management department to hire senior managers who will be tasked with the overall goal of overseeing the implementation process of the company’s goals. Recruitment does not necessarily end with job placement but indicates the beginning of a process that requires strong leadership, training, monitoring and selection of the most talented for specific roles (Lieberman 19). The appraisal of employee performance is essential in the process of determining whether the organisation has higher changes of fulfilling its objectives. Though HRM, performance appraisal is conducted which assists employees to understand the need for working for the organization and giving their best performance to enable it achieve its goals. The goals of the organization are essential in the success of the organization; however, each and every employee must develop individual goals to guide their performance. Performance appraisal also acts as a tool for employee motivation which is essential in maintaining a willing and capable team of workers (Ramona and Şerban 1671). Diversity and competitive advantage The emerging trends in globalization and growth in businesses has made it essential for the human resource department to ensure that the employees are from diverse groups. This creates room for hiring individuals with different cultural beliefs, practices and languages and building an organization in which they work together for a common goal. Diversity therefore seeks to build a homogenous community within an organization from heterogeneous individuals with very little in common. Proper management of diversity has been proved to provide great growth opportunities to organisations and this is essential in the development of competitive advantage over other organisations. Managing diversity is considered as a choice and commitment an organization makes in pursuit of ensuring that the differences of the employees act for the good of the organization through strengthening of its goals and objectives (Lieberman 19). Diversity enhances the attainment of competitive advantage in organisations in a number of ways and this explains the current rise in a multicultural workforce in domestic and multinational organisations. An organization that understands the benefits of having a diverse workforce ensures that every employee is treated equally and given equal chances to advance personal and professional goals. Adversity management as a tool of human resource management increases competitive advantage by enhancing the productivity of the organization, diverse employees offer varied solutions to problems due to the presence of multi-skills and knowledge among them. Employees feel equal and appreciated if the organization adopts workplace diversity and this increases the overall morale of the employees and the productivity is as a result enhanced. Diversity can however only create an increase in productivity if it exists within all levels of management. An organization should therefore desist from maintaining diversity at the lower level while retaining the status quo at the top most management. A diverse leadership creates room for the development of more ideas which are influenced by experience, personal culture and abilities which increases productivity and competitive advantage (Chamorro-Premuzic 40). Our societies have differing social hierarchy and status, which has significant impacts on the human resource practices adopted. A multinational organization must thus seek to understand the power distance and social hierarchies within the new international markets before developing an approach that can suit the region. The terms developed by Hofstede and his research team members have been extensively used within the global management context to highlight the need for understanding the cultural value dimensions that exist (Tipper 159). Organizational culture influences the behaviour of employees towards each other within the organization and the way they represent the organization in market. Organizational culture is defined as a set of behaviour that is nurtured and encouraged within an organization as identical set of behaviours and codes. Within the multinational setting, organizational culture is influenced by the company headquarter and this depends on the cultural setting and behaviour within the country. Different organizations and multinationals define employee relationship and behaviour towards each other and towards the top management in different ways. The hierarchal system of management and authority in an organization is also determined by the organizational culture and behaviour and this depends on the societal culture and power distance (Ramona and Şerban 1671). Corporate cultures within organization differs and this is significantly influenced by the cultural setting within the domestic headquarter of the multinationals. Organisational and corporate culture scholars have identified four different corporate classes that affect the human resource management approach adopted by such a multinational in global markets. Organisations thus have either the family, Eiffel tower, guided missile or the incubator cultures and these depends on the home culture as illustrated in the differences found in South Korea and the United States. Multinationals with the family model of corporate culture believes in the adoption of frameworks that encourages doing the right thing at the right time as opposed to doing this right. The expansion of such an organization into the global setting will affect its behaviour especially if the foreign culture adopts new corporate culture (Ramona and Şerban 1671). Creativity in the 21st century organisations is essential for cutting a major niche in the market and establishing long term relationship with the market. This can only be achieved in an organization if it maintains a diverse employee population that is allowed to think and develop independent solutions to the organizational problems. Ethno connect, a human resource consultant firm that specializes on diversity confirms that employees with different ethnic and cultural backgrounds bring into the organization a variety of solutions to the problems. This increases the possibility of developing solutions to the organisation’s problems as answers to the persistent problems are provided from different backgrounds. Innovativeness and creativity also increases the possibility of producing products that meet the expectation of the market and this increases competitive advantage in the long run (Bouslah, Lawrence, and Bouchra 1260). With competition in organisations going beyond the domestic markets, the need to develop the ability to survive in the global market has increased the need for adopting a diverse workforce. Multinationals that operate in different parts of the world are forced to learn new cultures and behaviours in order to improve their competitive advantage. However, if the company has a tradition of diversity, the process of adapting to the multicultural environment in the global market will be much easier and faster (Omes 2877). This increases the possibility of an organization adopting to the international environment and developing products that meet the expectation of the international market. In global business, understanding the cultural needs and differences is essential for success especially the language and behaviours that may affect their demand for the products (Harazin and Katalin 42). Organisations that maintain a diverse workforce that work together towards the achievement of the organisation’s goals and objectives are considered with high esteem in the market. This is because the workforce acts as the face of the organization and diversity demonstrates tolerance and togetherness in the organization, traits that are essential in the development of positive reputation. This reputation is essential in developing a better relationship with the market aimed at increasing the competitive advantage of the organization. For example, the United States has different races which make the major part of the population and this influences the human resource policies adopted in the country. Within the black community, organisations that have accepted their skills and abilities and adopted policies that ensure that all citizens have equal employment opportunities have a greater rating before them. This increases the possibility that they will buy the products or services from these organizations as they can easily recognize with them (McCann and Suhanya 229). Benefits of selection and recruitment processes to competitive advantage Recruitment of new employees and the selection process forms one of the most significant roles of any human resource management department of an organization. The success of an organization does not just begin from engaging the employees but involve processes that seek to recruit the best workforce into the company. Recruiting and selecting the best employees has a number of benefits to an organization especially if it seeks to entrench a stronger competitive advantage and gain prominence over other employees. Though the process of recruiting and selecting employees is a costly affair for an organization, it has the ability to turn around the fortunes of the business and improve its competitive advantage. However, increasing organizational competitive advantage does not just come automatically once the recruitment is done but is developed through selecting the right people; giving them the best training and making them part of the organization (Mondy, Robert and Mary 215). With the current technological advances, the adoption of better production methods result into the production of high quality goods that increases customer satisfaction. However, an organization can only make use of these technological advances if it has well equipped and trained employees to handle the rigors of the job (Bouslah, Lawrence, and Bouchra 1260). Maintaining this kind of workforce is not an instant achievement but a process that begins from recruitment and selection, training of the employees and development of motivational packages to improve the employee’s morale. As a result, the recruitment stage is an essential part for every human resource department as any poor choices made affects the ability of the organization to achieve its objectives and develop a competitive edge over others. During the process, the technical capabilities of a candidate must be evaluated to enable the organization identify their special abilities and skills that may be of help to the growth of the organization. Picking employees randomly without screening their special abilities will create resource and time waste for the organization as they will lack the ability to work in line with the organisation’s goals and objectives. Therefore, the selection process is essential in the attraction of employees with the right qualities, motivation and enthusiasm to achieve for the benefit of the organization (Macaulay 7). The process of recruitment and selection can also be used as a tool to increase the reputation of the organization and attract more admirers who doubles as customers. Transparency in the selection process is essential in creating a positive rapport with the workforce and the market as a whole. As a result, the human resource management can also improve competitive advantage using the processes of selection and recruitment by using public job advertisement forum. Not only does this increase the reputation of the organization but it also increases the number of applicants and thus the expertise pool into the organization. The website and other traditional advertising platform can still be used to increase the number of applicants and the probability of attracting the best applicants for the job (McCann and Suhanya 229). The functions of recruitment and selection in developing competitive advantage can be achieved through the use of different selection and recruitment approaches which will enable organization gain competitive advantage. Internal sourcing is one of the most used recruitment and selection approach due to the benefits it provides to the organization and the individuals. Through internal sourcing, an organization picks their employees for new positions within the organization which can either be a promotion or working within the same level. Internal sourcing results into the selection of employees with greater knowledge of the organisation’s operational structure, goals and objectives due to the fact that he has been part of the team. It thus eliminate the need for organizing orientation training for the employees, a process that is costly, time consuming and engaging (Bouslah, Lawrence, and Bouchra 1260). An internal employee understands the needs of the market, the organization’s position in the market and the abilities of the same organization to overcome competition. Internal sourcing also acts as a tool for motivating the employees by offering them more challenging and rewarding jobs as compared to their current positions. As a result, employees work towards strengthening their positions and achieving their responsibilities, a process that increases the overall competitive advantage of the organization. Selection and recruitment also requires resources for advertising and creation of awareness, a process that is not necessary in the case of internal sourcing. It thus saves significant amount that the company can focus on other areas like marketing and publicity to increase its competitive advantage over other companies (Macaulay 7). External sourcing occurs when an organization recruits new members from other organisations, job market or directly from academic institutions which requires the use of job advertisement and publication. As a result, new employees with new capabilities and talents are added to the current pool of employees and this increase the overall strength of the human resource in the organization. External sourcing provides an opportunity to the organization to evaluate its weaknesses and source for employees that can be able to fill the expertise gap that is available within. It also provides a chance for organization to attract fresh graduates who are skilled and with the knowledge to add fresh impetus to its pursuit for better performance and productivity. Innovation and creativity is increased in the events that the new pool of employees attracted have the ability to deliver, develop new market oriented products and meet the demands of the employees. This increases the overall rating of the organization before the customers and creates room for attracting new customers and gaining significant competitive advantage (McCann and Suhanya 229). The use of third party sourcing is an alternative approach to selecting and recruiting new members of staff into the organization. In this case, a number of placement agencies develop a rich pool of professionals from all walks of life with different abilities for organisations to choose from. As a result, the cost of advertising and conducting interview to select the employee is eliminated and the organization picks their favourite candidate from the list presented with the agency. The agencies are managed by human resource professionals who have the knowledge in employee recruitment and selection and this result into the employment of a capable and talented employee. Some agencies such as Dolomite have the reputation for proper selection processes those results into the attraction of the bet employees (Macaulay 7). Conclusion Human resource management is an essential department within any organization due to the role that it plays in the management of employee affairs. The development of a stringer and focused human resource department is essential important for the success of any organization and in the development of competitive advantage. With the competition increasing, organisations are facing the need to improve their competitive advantage and attract more customers while retaining the available ones. This can only be achieved through the adoption of proper human resource practices like maintaining a diverse workforce, adopting proper and fair and recruitment process and the motivation of employees. Works Cited Tipper, Jeremy. "How to increase diversity through your recruitment practices." Industrial & Commercial Training 36.4 (2004): 158-161 Harazin, Piroska, and Katalin Pádár. "Measuring and evaluating the added value of human resources management, knowledge management, and organisational learning." International Journal of Management Cases 15.4 (2013): 37-47 Ramona, Todericiu, and Şerban Anca. "Human resource management - from function to strategic partner." Annals of the University Of Oradea, Economic Science Series 22.1 (2013): 1682-1689 Mondy, Wayne, Robert Noe, and Mary Gowan. Human Resource Management. Upper Saddle River, NJ: Pearson Prentice Hall, 2005. Print. Omes, Emanuel. "HRM issues and outcomes in African mergers and acquisitions: a study of the Nigerian banking sector. “International Journal of Human Resource Management 23.14 (2012): 2874-2900. Chamorro-Premuzic, Tomas. "7 rules for managing creative people." Finweek (2013): 40-41 Lieberman, Simma. "Nine strategies to hire diversity of thought." INSIGHT into Diversity 81.1/2 (2013): 19. Bouslah, Kais, Lawrence Kryzanowski, and Bouchra M’Zali. "The impact of the dimensions of social performance on firm risk. “Journal of Banking & Finance 37.4 (2013): 1258-1273. McCann, Jack, and Suhanya Aravamudhan. "Employee perceptions of workplace diversity in the manufacturing industry. “International Journal of Human Resources Development & Management 13.2 (2013): 224-239. Macaulay, John C. "The value of diversity." Strategic Finance 95.2 (2013): 6-15. Read More