Functions of Human Resource Process - Coursework Example

International human resource management Contents Contents 2 Introduction 3 Concept of HRM 4 Contributes to organizational performance 4 Best practice, best fit, vertical integration models 5 Best Practice verses best fit 6 Vertical integration 7 Functions of HRM 7 HRM Integration into a strategic whole 9 Training and development 9 Performance management 11 IBM case study 11 Training and development at GRH 12 Conclusion 13 References 15 Introduction Human resources management is an approach of managing people within an organization. Organizational people or the employees are the vital resource of a company. They play a vital role in the growth and development of the organizational. Since people are associated with the organization so managing them effectively is an important function for company. A company for achieving its goals and objectives recruit’s people and provide training for their development. It helps them to enhance their skills and potentialities. Employees level of commitment increase by effective human resource policies. The important process involved in HRM is acquisition, motivation, development, etc. HRM process improves the relationship of employees with management of the organization. Individual and group developments are the main objectives of HRM. Effective HRM policies help the company to achieve its goals objectives successfully. In a broader aspect HRM process utilize the resources of a company effectively and contributes a lot in its growth. In this case study various concepts of HRM are discussed in details which play a vital role in training and development of the organizations. Managing human resources help to evaluate performance of employees in a detailed way. As a result performance appraisal system is formed by HRM this process. Human resource policies which are designed to motivate organizational employees facilitate them to improve their performance. They feel more interested to achieve organizational goals. Individual and organizational goals are combined in a very efficient way by HRM policies. In the modern world HRM has become a very important function for the companies to manage its staffs and business process. Proper planning, controlling and organizing of various business activities are performed under the guidance of HRM policies and structures. This case study also highlights various functions of human resource process which becomes strategies for organization. Concept of HRM The concept of HRM involves different process by which employees are managed within the organization. By managing human resource both employees and companies get various benefits. Different policies, practices and process are designed and implemented for achieving organizational goals and objectives. Companies are focusing on its HR department for managing its human resources properly. Management of human resource helps the company to improve employees’ performance, results, integrity, loyalty etc. Another important concept of HRM is involved with career growth of organizational members, their job satisfaction and appraisals. All of these things help to increase employees’ motivation towards their work. IT helps them to become dedicated and committed towards company. Contributes to organizational performance HRM has a huge contribution in organizational success and failure. Organizational performance is highly impacted by HR policies and rules. Good recruitment process helps to select talented candidates for company. They make a huge contribution to different functions of the company. Personal developments of organizational members are enhanced by HRM practices. Strong relationship between organizational members and management helps the employees to express their views and opinions for performing various works (Hughes, 2010). This process helps the companies to increase their work quality by utilizing its resources efficiently. HRM helps to use right people in right organizational position according to their skills and capacities. Various training and development program of HRM contributes a lot in delivering quality works. It facilitates the firm to increase motivation of its employees. This results in increasing the performance of company. The main purpose of HRM is to combine individual goals with company goals and objectives. HRM process deals with salary, wages, increments etc of organizational members. All of these things contribute a lot in improving business performances. A satisfied employee works more dedicatedly in a company than other employees. Workers dedication towards their work helps to improve company’s performances. This becomes an important factor for the success of an organization. HRM process helps to save money in the company. Cutting down unwanted expenses and saving money from that help in the development of company. It contributes to the long term success of an organization. Organizational structure plays a vital role in organizational success. HRM helps the company to develop organizational structure (Bamberger and Meshoulam, 2000). Best practice, best fit, vertical integration models Best practice It is also known as high performance practice model. This HR method has various positive effects on performance of the company. This model describes that by implementing various practices organizational members will improve their performances which will help the company to gain more success. This model assumes that some high quality of practices will deliver many benefits to the company. The elements of best practice model are as follows: Job security Selective recruitments Effective and extensive training Wages and salary Employee communication and involvement Increase of employees abilities and skills Team work Performance appraisal Compensation strategies Employee empowerment Rotation of job Best fit This model is known as contingency model. According to this model strategy of HRM becomes more useful when they are tailored according to the environment and surrounding of the business. Two elements of this model are as follows: External fit: This fit is related with marketing and operational strategies of the company. It is the competitive strategy of the business. HR practices of the company have a strong relation with its competitive advantage (Leopold, Harris and Watson, 2005). Internal fit: Hr practices and policies are related to each other. Organizations should not implement such strategies which are opposite to organizational goals and objectives. Best Practice verses best fit In HRM best practices are performed for overall benefits of the company. These strategies are not aimed for any particular situation or environment. Whereas best fit strategies of HRM are designed for overcoming particular situation or problem. Cost leadership strategy in HRM process of an organization is best fit strategy. Best fit strategies vary according to different situations. But best practice strategies generally do not vary as per situations. Now a day many organizations perform best fit strategies more than best practice strategies. Vertical integration Vertical integration means the connection of HR policies with different business strategies of the company. External matters of an organization are directly or indirectly related with various HR practices and policies. Vertical integration helps the organization to establish its mission and objectives. The greater degree of vertical integration the more effective HR strategies of the organization will be (Peng, 2013). Functions of HRM HRM plays an important role in development of an organization. Some major functions of HRM are as follows: Employment opportunities: HRM provides various employment opportunities to all employees of the company. Effective HRM rules and regulations enhances this opportunities. HR Management strategies: For establishing organizational competitiveness HR policies plays a vital role. Various management strategies are formed in the company for providing benefit to the employees. Human resource planning determines the type of strategies a company should implement to improve its management operations. Staffing: Human resource policies and strategies play a vital role in staffing process. These policies act as a guideline to the company for recruiting its employees. According to HR policies organizations undertake its recruitment process (Boxall, and Purcell, 2003). Job analysis and job description includes organizational requirements and expectations according to knowledge, skills and expectations of its employees. HRM helps to analyze all of these things very effectively. Talent development and management: This function of HRM includes various types of training and development programs. By this function the companies helps its employees to adjust with organizational environment. Employees get accustomed with their job and responsibilities. Training and development helps the employees to improve their skills and potentialities. Training and development programs have a huge contribution in implementing organizational changes. Effective HR policies manage future challenges of the company (Aguinis and Kraiger, 2009). Risk management: Various risks of the organization and workplace are addressed and protected by HRM. It helps to implement different legal rulers for ensuring health and safety of its employees. HRM policies implement plans and for recovering any disaster situations. Rewards: Incentives, benefits, rewards etc are given to employees for performing their duties and responsibilities effectively. With the help of different policies and practices of HRM the company is able to deliver these rewards to its staffs. Salary is an important part of HRM. It helps to attract many talented individual in the organization. Employee and employer relations: Good HRM practices play a vital role in building up strong relationship of employers and employees. Effective communication process is established by HRM. It designs such an organizational structure where organizational members freely communicate with their seniors and management people (Bartlett, 2001). HRM Integration into a strategic whole Integration of HRM and business strategies shows the relationship between various factors of business and its actions. HRM has a huge contribution in the growth and success of a company. Different functions of HRM play a significant role in strategic development of the company. Effective HR policies provide employment opportunities to the company. Therefore the company is able to develop strategy which will help to attract talented individual in the company. According to human resource strength, the organization implements different plans and programs for its development. Management strategies of the company are developed and implemented by skills and potentialities of organizational members. Skills and potentialities of organizational members are improved by training and development programs. As per the training the organization develops strategies for improving employees’ performance and achieving organizational goals. Every company has some criteria for selecting its staffs. This strategy helps the company to recruit suitable person and retain them for increasing its productivity. It contributes in long term success of the company (Dressler, 2004). HRM functions of risk management facilitate the company by protecting it from various risks. The company manages disaster situations by effective strategies with the help of HRM policies. Rewards and incentive programs acts as strategies for motivating employees for their good performances. Training and development Training and development programs are conducted by organizations for increasing and improving skills, knowledge and abilities of its employees. Company faces different kinds of challenges for performing its business. According to the changing business environment an organization needs to change itself to hold its position in competitive market. For changing or improving the business and its operational activities trainings are provided to its employees for developing them to accept those changes. Development and training program involves a vast range of learning programs. By the process of knowledge sharing in these programs the organizational members becomes aware of various new technologies sand processes which contribute a lot in enhancing organizational performances. Comprehensive training programs help an organization to achieve its goals and objectives in an efficient way. Companies undertake different approaches to perform training and development programs. These approaches are as follows: Reactive approach: It is a traditional training method which is implemented for delivering different knowledge and skills enhancing process to improve employee performances. It is a type of class room training where training is given for particular events. Proactive Approach: This approach of training and development program helps the employees to learn many things from the organization. It focuses on establishing competencies among organizational members. Approach towards active learning: Various situational problems are analyzed and solved in this approach. Here trainees play an important role. They explore different situational problems and issues by learning various things from training and development programs. This active learning approach has a long lasting impact on trainees. It helps them to find better solutions for handling different problematic situations. This process helps to improve organizational performance by delivering high quality of services. Effective learning process in training helps the employees to learn various organization processes which influence them to establish different strategies according to organizational requirements. Performance management Performance management is an important aspect which is closely knitted with organizational performance. It can be stated as the basis of employee motivation and is incorporated within all firms. Employee motivation serves as the central component for organizational productivity. Team performance is enhanced only through greater satisfaction level of individual team members (Rao, 2004). Performance management is a consistent approach implemented within organizational system. It has several dimensions and is applied as per organizational culture. The concept is centred towards analyzing employee performance in context of accomplishing short term or long term business objectives (Richard and Johnson, 2004). At times performance appraisal is conducted annually by an organization and in certain scenario it is exhibited on quarterly basis. This performance evaluation is conducted through various techniques such as statistically analyzing individual performance, 360 degree evaluation, etc (Harrison, 2005). Appraisals are totally based on level of employee performance. There are companies which focus on monetary incentives for its employee base whereas other firms outline their non-monetary reward scheme. This practice enhances organizational performance through retaining a pool of talent in the system (Tyson and York, 2002). Performance management scheme helps to determine productive employees in a department along with those members who needs to be provided with training and development session. IBM case study IBM follows various HR policies for improving its performance. Effective performance management system of the company helped to manage its diversity within the workforce. Diversified taskforce initiative launched by IBM helped the company is several ways to improve its business performances. This strategy became one of the important strategies for the company. IBM created eight taskforce which were focused on different groups of the organization. The goals of these groups were to understand and know differences among groups. It benefited the company in broader aspect by developing a good relationship between employees and customers. Taskforce group evaluated the performances of different teams and group which were associated with business process. By this process the organization came to know about different loop holes within the company. Training and development programs is developed to overcome those problems and to solve them effectively. IBM’s managing diversity program inferred that the organization needs to change its strategies for coming close to its customers. The company had to focus more on its external functions by improving its internal resources. Employees’ performance played a vital role in this case. Organizational member had to improve its performance in such a way that they could be able to attract more customers in the business. For this reason the organization developed itself by promoting, developing and retaining more talented staffs. By managing their performance in an efficient way IBM was able to implement this change for improving organizational performance. At that time it was the best fit model for IBM. Employee engagement of IBM contributed a lot in managing its diversified workforce. The company organized its management process in such a way that the performance of its employees was improved a lot and helped the organization to become more successful. Training and development at GRH Training and development is a common phenomenon in context of talent management. There are different requirements for training and development program organized by any company. It has observed that this kind of program is usually provided to new comers but at times even extended for permanent employee base. Case study of GRH highlights talent management program implemented in this organization. The total staff base in GRH is about 900 and it has its restaurants located across Europe, London and United States. GRH also encompasses consultancies, located in Tokyo and Dubai. The CEO of the company works in collaboration with restaurant personnel in order to frame appropriate training sessions for employee base. Creative talent within the workforce can be identified through this approach. Training and development is regarded as an essential component within GRH’s system. An employee base of 900 is well managed through continuous on-the-job and off-the-job training sessions. These sessions comprise of experienced individuals along with some talented individuals from the industry. The main focus of this organization is to develop or build talent in the system rather than recruiting from any external source. GRH incorporates training and development session so strongly that there are internal members who are given charge of any new restaurant. A senior chef of the organization is always appointed as head-in-charge of a new restaurant outlet. These leaders in turn provide on-the-job training to all team members. It is beneficial for staff since they can learn about different aspects and directly associate them with real time experiences. A critical part of training session includes sending chef on sabbatical. It basically lasts for a time span of maximum twelve months where chefs can acquire required skills and knowledge by working in restaurants located beyond UK. Most of the chefs after this training session return back to the organization in order to develop skill set of staff. Conclusion An organization effectively manages its employees by implementing various HRM policies and practices. The main aim and objectives of HRM is to manage organizational people by providing them various benefits and facilities. HRM plays a significant role in organizational development and success. Performance management and training are important things of HRM. Performance of the company is enhanced by managing these factors of HRM. Performance management in HRM helps to evaluate the performance of organizational members. By this process the company is able to understand the growth and development of the individual in his work and according to that training is provided to him to improve his performance if required. Performance management has a huge contributing in fixing up salary and appraisal of employees. Training and development program of HRM helps employees to groom themselves with the change and requirement of company. Effective training program facilitates them to enhance their abilities and skills. It helps them to make effective communication with the management. Therefore HRM system builds good relationship of employees with the employers. Individual developments of staff are enhanced by this process. By effective utilization of human resources, a company achieve its success. Various functions of HRM play a vital role in enhancing organizational performance. Companies apply different models of HRM to handle critical situations. A firm implements its HRM functions by following three important steps such as organizing, planning and controlling. These steps help to increase effectiveness of HR policies. According to different concepts of HRM, various HR practices have a huge contribution in increasing motivation, loyalty and dedication of employees towards their work and organization. Therefore organizational performance and its success are highly dependent on HRM. 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