Human Resource Management, Yesterday, Today, and Tomorrow - Assignment Example

Human Resources Management - Projects Table of contents Project One Paper for a national business conference on the topic of “Human Resource Management, yesterday, today and tomorrow” Task 1 Introduction 3 Task 2 2.1 Personnel management and human resource management - “old and new assumptions” 3 2.2 Functions of Human Resource Management 4 Task 3 Role of the HRM practitioner 6 Task 4 4.1 Link between motivational theory and reward 8 4.2 Importance of Investors in People (IIP) 9 4.3 Effectiveness of appraisals, feedback, SMART targets (Specific, measurable, achievable, realistic, time constrained) 9 4.4 Different reward methods and their effectiveness within an organisation 10 Project Two Task 5 5.1 Why there is a need for HR planning in Fizzical 11 5.2 Type of information required to support the HR planning process in Fizzical 13 5.3 Required stages in the HR planning process for Fizzical 14 Works cited 15 Project One Paper for a national business conference on the topic of “Human Resource Management, yesterday, today and tomorrow” Task 1 Introduction The history of the personnel management is related to the nineteenth century; it was then that the personnel management was introduced as a framework for securing the ‘welfare of employees’ (Leat 274). In each country, the initial modes of personnel management have been differentiated (Price 12). In Britain, personnel management was initially delegated to women who acted as ‘welfare officers’ (Leat 274). The role of these officers was specific: they had to act as representatives of the employers to employees but also to make sure that the needs and the views of employees are made known to managers at various levels of the organizational hierarchy (Leat 274). In other words, the welfare officers acted as mediators between the employer and the employees. It should be noted that in its initial form, the personnel management focused on ‘piece-work bargaining’ (Van den Eeckhout 147); in other words, the welfare officers tried to negotiate the terms of work of each worker separately. Because such task was difficult to be developed, unions appeared, in the early 20th century, for covering the relevant gap (Van den Eeckhout 147). Since the appearance of trade unions the role of personnel management has been expanded, incorporating the negotiations between the unions and the employer (Price 12). Task 2 2.1 Personnel management and human resource management - “old and new assumptions” Personnel management, as a framework, refers to specific needs of the organization in terms of its human resources: ‘planning, acquisition, development and sanction’ (Der Waldt et al. 56). Using the above description it could be assumed that personnel management is almost similar to HR management; however, the two frameworks are highly differentiated. More specifically, personnel management has been mostly based on a series of assumptions, such as: the belief of the employer that each employee has a key role in the successful completion of organizational tasks, the belief that motivation in the workplace is not independent from employees’ needs as humans and so on (Brunstein 268). The above assumptions are known as ‘old assumptions’ (Brunstein 268) and are differentiated from the new assumptions which focus on the following views: that, in each organization, ‘the interests of all stakeholders are common’ (Bach and Edwards 4), that the nature of work is not standardized and that the key aim of HR management should be the increase of employees’ performance at the highest possible level (Banfield and Kay 36). 2.2 Functions of Human Resource Management HRM has been traditionally related to certain functions, such as: the hiring of new employees and the evaluation of skills of existing employees (Aswathappa 9). However, through the years the role and the scope of HRM have been changed. Reference can be made, as an example, to the following phenomena: a) HRM has expanded, incorporating activities that have been independent from HRM; marketing is the most critical example of this case (Bach and Edwards 10); b) in its initial form, HRM focused on the increase of employee commitment to the organization; today, HRM aims primarily to enhance ‘employee engagement’ (Bach and Edwards 10). Engagement, as a term, covers a broader area than the term commitment; the former refers to the relationship between employee and employer as a relationship based on mutual trust and respect; the latter denotes only the feeling of the employee that he has to develop the tasks assigned to him as good as possible, perceiving such behaviour as obligatory due to his position (Bach and Edwards 10). Another important change related to the functions of HRM is the following: HRM has been initially related to a stable organizational environment, meaning an environment that is not changed as of its key characteristics, such as organizational structure and culture (Bach and Edwards 10). Today, such environment cannot be easily identified in the business sector where the strong market turbulences require high flexibility as of the rules, the culture and the structure of businesses (Banfield and Kay 36). Figure 1 – Functions of HRM (source: Mohanty 2010) According to Aswathappa (2013) modern HRM has been highly differentiated compared to its past forms. Today, HRM focuses not only on tasks such as ‘hiring, training, health and safety and performance review of employees’ (Aswathappa 9) but also the development of employees, as a key organizational asset. The development of employees is related to the increase of employees’ skills but also to the enhancement of their self-esteem, as a factor influencing their performance at work (Aswathappa 9). The functions of HR management can be identified, in all their aspects, through the graph in Figure 1. Through the above graph it is made clear that HRM functions can be categorized into two, broad, categories, such as ‘the managerial function and the operating function’ (Mohanty, 2010), as these functions are further divided into sub-functions so that the control of the relevant tasks to be easier (Figure 1). Task 3 Role of the HRM practitioner Different approaches have been used in the literature for explaining the role of the HRM practitioner. Teo (1998) has developed a diagram/ graph for showing the various elements of the role of HRM, as developed in modern market (Figure 2). Figure 2 – HRM practitioner, role and skills (source: Teo 1998) According to the above graph, a HRM practitioner needs to be able to respond to the demands and the challenges of both the internal and the external organizational environments. At the same time, the HRM practitioner has to provide adequate support to employees and to control the level at which HR respond to the needs of the organization. In any case, the HRM has to check whether the practices of employees are aligned with the organizational culture and objectives (Teo 1998). Armstrong (2006) supported that the role of HRM practitioners cannot be standardized mostly because of the following fact: in each organization HRM practitioners are likely to have different responsibilities, either monitoring all activities related to the HR of the business or focusing on specific aspects of the organization’s HRM, such as the training of employees or the provision of rewards to employees based on their performance (Armstrong 71). In addition, HR practitioners can have either ‘a proactive or a reactive role’ (Armstrong 71). The first term denotes the potential of HRM practitioner to take initiatives, i.e. to make his suggestions in regard to the management of HR; the second term implies that the HR practitioner has to follow strictly the orders given to him in regard to the management of HR, at the level that all aspects of a firm’s HRM are clearly set in the strategic plan of the firm (Armstrong 71-72). In any case, HR practitioners have to support the staff at all organizational levels; this support can be developed either as a provision service or as provision of guidelines (Armstrong 72). When referring to service, emphasis is given to common HRM activities, such as ‘hiring, training, reward and health and safety’ (Armstrong 72). Guidance is also a key element of HRM; reference is made specifically to the consultation given to employees and to managers in regard to the development of daily tasks but also in regard to the management of critical or emergent problems in the workplace. Task 4 4.1 Link between motivational theory and reward Various theories have been developed for explaining the terms under which employee motivation can be increased. According to a highly popular theory, the expectancy theory of Vroom, employee motivation is depended on three criteria: a) the belief of the employee that the task assigned to him will be achieved if increased effort is made, b) the belief of the employee that the completion of this task will be followed by a reward by the organization’s side and c) the reward given will fully cover a critical need of the employee (Dinitzen 83). In the context of the above theory, the reward can lead to the increase of employee motivation but only if the particular reward is appropriate in terms of the needs of the employee involved. Figure 3 – Herzberg - Two-factor’s theory on motivation (source: http://mathehu.wordpress.com/2010/04/15/a-selection-of-psychological-theories-on-motivation-and-behaviour-change/) Another theory related to this field is the Two-Factor/ Hygiene theory of Herzberg. The particular theory is based on the following view: the factors influencing the performance of employees can be divided into two categories: motivators and hygiene factors (Wright 21). Motivators are those factors that can actually lead to the increase of employee motivation, and thus of employee performance (Wright 21, Figure 3). On the other hand, monetary rewards and conditions in the workplace are not considered as of primary importance for the enhancement of employee motivation and they are classified as hygiene factors (Wright 21). The theory of Herzberg implies that reward can lead to the increase of employee motivation only if it is non-monetary. 4.2 Importance of Investors in People (IIP) The Investors in People (IIP) is a standard denoting the performance of organizations in regard to the development of their HR (Fellows et al. 137). The particular standard motivates organizations to emphasize on the improvement of the training and development schemes available to their employees (Fellows et al. 137). If an organization manages to fully meet the terms included in the above standard, then it is given the chance to use the ‘logo IIP’ (Fellows et al. 137), as part of its profile. The IIP standard has a dual importance: it sets a motive for organizations to invest on the development of their staff, knowing that they will be awarded with a highly popular logo and it informs individuals on the performance of firms in regard to HRM; in this way, candidates in the job market are able to choose a business through with their professional development will be secured (Cook et al. 21). 4.3 Effectiveness of appraisals, feedback, SMART targets (Specific, measurable, achievable, realistic, time constrained) In the context of the workplace, the key role of appraisals is to help managers to check the level of performance of employees (Read 266). Most commonly, appraisals have the form of a report, prepared by the manager and describing the performance of employees; these are the formal appraisals (Read 266). However, informal appraisals, i.e. ‘brief notes of managers referring to the performance of employees’ (Read 266) can be also used in modern organizations. In order to be effective, appraisals should be both formal and informal, at the level that informal appraisals can contain information retrieved through ‘the direct discussion between employees and managers’ (Read 265). As for feedback, this could highly help employees to improve themselves and managers to understand the actual potentials and needs of employees; however, feedback could have such value only if it would be honest (Banfield and Kay 301). Important problems can appear when the information gathered through appraisal and feedback is not appropriately evaluated. For limiting this risk theorists have introduced the ‘SMART objectives framework’ (Collins and Wood 200). SMART, as an acronym, is used for showing goals/ objectives that are ‘Specific, measurable, appropriate, relevant and timed’ (Collins and Wood 200). The above objectives can be particularly helpful in evaluating the findings of appraisal and feedback but only under the following term: that the SMART objectives ‘are periodically reviewed and updated’ (Collins and Wood 200). An important characteristic of these objectives is the following: SMART objectives can cover different periods, meaning that the targets set can be achieved either in the short term or in the long term (Inman et al. 241). 4.4 Different reward methods and their effectiveness within an organisation Modern organizations are likely to use a high range of methods for rewarding their employees. Organizing ‘conferences or company dinners’ (Peratec Ltd 126) for showing to employees that their efforts have been recognized are examples of reward approaches used by firms globally. In any case, rewards can be either monetary, or non-monetary. The second category can include reward methods, such as the assignment of exceptional tasks to employees, the offering to employees of the potential to make their schedule as more convenient for them and the offer to employees of the opportunity to participate in company initiatives that will highly help to the increase of their value as organizational members (Lauby 13). In practice, the non-monetary rewards have been proved more effective for enhancing employee motivation than the monetary rewards. In addition, when having to choose the reward that should be given to an employee, HR practitioners are expected to use two methods: ‘a) the market value method and b) the systematic method’ (Dam and Marcus 337). The former is based on the value of the employee’s work, as measured with comparison to the similar work of other employees in the same market; the latter is based on the company’s specific rate of payment; the payment-for-performance scheme established in an organization is an example of this approach (Dam and Marcus 337). Among the two approaches, the second is considered as more effective, being based on the organization’s actual resources, funds, for covering the cost, direct or indirect, of the relevant rewards. Project Two Task 5 5.1 Why there is a need for HR planning in Fizzical HR planning is a critical business process. In general, HR planning can be described as a process through which ‘the HR needs of an organization are identified while the potential of the organization’s existing HR resources to respond to these needs are checked’ (Caruth et al. 117). Through a similar approach Payos and Zorilla noted that the main role of HR planning is to ensure that within each organization job positions are covered by individuals who have the appropriate skills (Payos and Zorilla 40). In other words, HR planning is vital for the achievement of organizational goals; without having appropriately skilled staff an organization is not able to achieve its objectives, a fact that threatens the survival of the organization in the market. Moreover, through an effective HR plan an organization is able to develop a competitive advantage towards its rivals (Jackson et al. 115). This is achieved in the following way: by employing in each of its positions appropriately qualified and experienced staff an organization can secure the successful completion of all organizational tasks; in this way, failures and delays in regard to daily operations can be almost eliminated, a fact that secures the continuous organizational growth (Jackson et al. 115). In addition, Snell and Bohlander (2012) explain that HR planning has a critical role in the development of an effective organizational strategy. More specifically, in the phase of strategy formulation a firm’s strategic planners can use HR planning for checking whether the firm’s existing resources are adequate and appropriate ‘for pursuing a specific strategic goal’ (Snell and Bohlander 47). The information retrieved can be then used in the next phase, of strategic planning, i.e. the strategy implementation, meaning that a strategy is included in an organization’s strategic plan only if it is feasible, according to the information retrieved in the strategy formulation process (Snell and Bohlander 47). According to the issues discussed above, the HR planning process is quite important for Fizzical because of the following reasons: a) through the HR planning the HR managers of the organization could identify the exact HR needs of the organization, both at department level and at individual level, meaning the exact positions that should be covered within each business department and the skills that the individuals hired in these positions should have. In this way, no phenomena of shortage or surplus of workforce would appear; b) through the HR planning the organization’s hiring process and appraisal process would be improved; specific standards should be set for being hired in a specific position, so that chances were given to younger employees to enter the organization. Also, through HR planning the firm’s existing appraisal system would be updated; employees who keep on under-performing should be replaced with new employees who have the willingness to contribute in organizational growth. In this way, the average age of the workforce should be reduced, a fact that could help the promotion of innovation and creativity across the organization. As noted in the case study, creativity and innovation are issues that need to be carefully addressed so that the organization is able to secure its competitiveness; keeping employee motivation high, as combined with the hiring of younger workers, would be a critical term for the organization to achieve the above target; c) HR planning could also result to the improvement of the firm’s training system. Indeed, through HR planning the HR practitioners of the firm could identify the skills required for the firm’s various positions. In this way appropriate training schemes could be developed, so that the relevant skills of trainees are developed as possible. 5.2 Type of information required to support the HR planning process in Fizzical In order to develop HR plans the HR practitioners need to have access to particular type of information; without such information it is impossible for HR practitioners to develop feasible plans (Aquinas 43). The type of information required for such plans could be described as follows (Aquinas 43, Snell and Bohlander 146): a) the volume of workforce, i.e. the exact number of employees in each organizational department, b) the tasks delegated to each employee, meaning the duties related to each position across the organization, c) the demographic characteristics and personal data of the workforce, such as the age, education, work experience and family status of employees, d) the performance of employees, at least at an average level; reference is made to the performance in daily organizational tasks but also to the performance in tests developed as part of the organization’s appraisal system; e) statistical information in regard to the HR needs and failures of organizations operating in the same industry, especially of the industry’s leading firms, f) information related to the training schemes and appraisal systems used by competitors; in this way an organization can evaluate its own training and appraisal systems and make appropriate updates, as necessary. In Fizzical also the development of the firm’s HR planning process would be depended on the availability of such information, meaning the type of information described above. In addition, the organization’s HR practitioners should be aware of the exact level of staff required for covering emergent organizational needs. In this way, HR practitioners of Fizzical could decide on the balance between permanent staff and temporary staff, so that excessive employment costs and shortages in staff are avoided. 5.3 Required stages in the HR planning process for Fizzical The HR planning process for Fizzical could incorporate the following stages, beginning from top to bottom of the relevant graph: Evaluation of existing Human Resources [The organization’s internal and external environment will be reviewed using appropriate models, such as PESTEL analysis or SWOT, and will be analyzed in comparison with the performance of the organization’s performance. In other words, the existing skills/ performance of the firm’s employees will be checked in order to make sure whether these skills are appropriate for facing the challenges related to the organization’s environment] Evaluation of HR needs [Estimation of the firm’s current needs for permanent and temporary staff; the exact skills of employees, as required for covering existing organizational gaps, are identified at this stage] Evaluation of available HR [Evaluation of the current skills and of the availability of the firm’s employees] Alignment of HR needs with HR available resources [Required HR needs are compared to existing HR resources, so that to see the level at which the firm’s existing workforce should be increased or replaced] HR activities/ elements [at this stage the hiring and the selection process that the organization will use are defined; also, all other processes of HRM, as related to the specific organization are formulated; reference is made in particular to the appraisal process and the training process of the organization as the current failures of Fizzical in regard to the appraisal of employee performance and the training of employees are extensive] Works Cited Aquinas, P. 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Cook, Janice, Staniforth, Derek and Jack Stewart. The Learning Organization in the Public Services. London: Gower Publishing, Ltd. Dam, Nick and Jos Marcus. Organization and Management: An International Approach. London: Routledge, 2012. Der Waldt, Van, Bayat, M. and Fox, W. The Fundamentals of Public Personnel Management. Cape Town: Juta and Company Ltd, 1998. Dinitzen, Henriette. Organisational theory. Copenhagen: Hans Reitzels Forlag, 2010. Fellows, Richard, Langford, David, Newcombe, Robert and Sydney, Urry. Construction Management in Practice. 2nd ed. Hoboken: John Wiley & Sons, 2009 Inman, Margaret, O’Sullivan, Nuala and Adrian Murton. Unlocking Human Resource Management. London: Routledge, 2014. Jackson, Susan, Schuler, Randall and Steve Werner. Managing Human Resources. 11th ed. Belmont: Cengage Learning, 2011. Lauby, Sharlyn. Motivating Employees. Alexandria: American Society for Training and Development, 2005. Leat, Mike. Exploring Employee Relations. London: Routledge, 2012. Mohanty, Itishree. “Human Resource Management seeks to achieve - Individual, Organizational and Social Goals.” Kanak Manjari Institute of Pharmaceutical Sciences, Orissa, September 11, 2010. http://www.managementcanvas.iimindore.in/icanvas/index.php?option=com_content&view=article&id=119:achieving-individual-organizational-and-social-goals&catid=40:human-resources-management&Itemid=55 Payos, Ranulfo and Orlando Zorilla. PERSONNEL MANAGEMENT IN THE 21st CENTURY. Quezon City: Rex Bookstore, Inc. Peratec Ltd. Total Quality Management: The Key to Business Improvement. London: Chapman & Hall. Price, Alan. Human Resource Management. Belmont: Cengage Learning, 2011. Read, Jane. Human Resource Management - Advanced Level. Welwyn Garden City: Select Knowledge Limited, 2008. Snell, Scott and George Bohlander. Managing Human Resources. 16th ed. Belmont: Cengage Learning, 2012. Teo, Stephen. 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