Human Resource Management - Essay Example

Human Resource Management Introduction Armstrong (2008, p. 5) defines human resource management as “the strategic and coherent approach to the Management of an organization’s most valued assets-the people working there, who individually and collectively contribute to the achievement of its objectives.” The field of HRM thus deals with control and management of human capital which include; knowledge, skills, abilities, talents, attitudes and aptitudes possessed by individuals in an organization. The HRM discipline has evolved over time from personnel management which involved record keeping and operational matters to more strategic functions. Over time, there have been various misconceptions about the discipline making it less valuable than other disciplines such as finance. Some people believe the HR function can be performed by any person since traditionally; the role was performed by individuals who were the masters of the business. However, the business climate is dynamic and the role of HR has become more complex to be performed by any individual. Efforts such as certification are therefore being made to professionalize HRM and make HR professionals to be taken seriously by the senior management just like other fields and be considered as strategic partner (Price, 2007). The nature and scope of HRM is very wide hence HR professionals perform many functions in the organization. This may warrant them to be recognized as professionals since their role is essential to the business. However, HR professionals need to demonstrate their value to the organization by showing results for them to be taken seriously. They also need to demonstrate certain qualities such as business knowledge, ability to support policies with data, strategic thinking among others (Roehling et al. 2005). Most importantly, the managers must “continue to change and adapt to today’s complex, dynamic and fast paced organizations if they are to grow and add value to the organization” (Sims 2007, p. 28). Scope and Concept of HRM The concept of HRM has evolved over time from personnel management to the current strategic human resource management. Just like other disciplines such as finance or marketing which are considered professional, HRM continues to grow and becoming more valuable especially as a result of globalization and other changes in the environment which require organizations to adapt to the changes and remain competitive or be pushed out of the market. For example, the growth of multinational has made the role of HR practitioners more complex as they have to deal with diversity issues (Redman & Wilkinson, 2009). Sims (2007) traces the origin of human resource management to England whereby craftspeople organized into guilds to regulate employment conditions and also ensure quality. Later, the industrial revolution changed the nature of work to the factory system where employees were supervised by a person who was not the owner of the business. The workers undertook a trade test in order to join an organization and their jobs became more stable. Organizations in the 1920s began to have personnel departments to deal with employee payments, recruit workers and ensure compliance with government regulations. After World War II, there emerged new trends in personnel management with the formation of unions. The personnel managers had to deal with the unions to negotiate workers employment conditions hence the role of industrial relations emerged. According to Sims (2007), the personnel managers also undertook the role of recruiting and training women who were absorbed in the labour market. There was also the need to improve productivity hence the matching of people with jobs and concern for the workers needs. It was believed that a satisfied worker was more productive. The development of theories such as Maslow’s hierarchy of needs led to emergence of new ways of managing people. Personnel managers now performed the role of recruiting, hiring, compensation and benefits, training as well as motivating employees so as to make workers more productive (Bratton & Gold, 2001). Later, the personnel managers began equating work with performance and rewarding employees based on their performance rather than the length of time in service. The civil rights Act of 1964 led to development of the human resource management discipline. HRM managers were crucial in organizations to ensure compliance with laws and regulations especially eliminating discrimination at the workplace. The era of downsizing in 1980s saw the emergence of strategic human resource management. The HRM had to align their strategies with business strategies to ensure increased employee productivity as well as company success (Mathis & Jackson, 2006). Moreover, the involvement of employee in decision making ensured employee satisfaction and achievement of organization objectives. Workers have great ideas which incorporated helps in improving business success. They also feel a sense of belonging thus are committed and have high morale to achieve organization objectives. The concept of team work also emerged which enabled workers to exchange ideas and learn from one another hence skill development. Outsourcing of some activities was also prevalent in attempts to reduce costs. The emergence of new technologies has also impacted on HRM to a great extent; use of information and communication systems has enabled HR practitioners to focus on more important issues which make their presence to be felt in the organization (Sims, 2007). The role of HR practitioners has therefore become more important to the organizations over time as they grow in size and experience many changes. It involves ensuring a motivated workforce which can deliver results, creating jobs aligned with organization mission, providing feedback to employees on their performance so as to ensure motivation and commitment, helping the staff and organization to manage change effectively among other tasks. The development of HRM profession has enabled the organization to consider HR practitioners as essential to business growth and success. Organizations have well developed HR departments that ensure good relations between the management and the employees, and between employees and not just dealing with operational matters. The scope of HRM is very wide and includes three aspects; personnel aspect, welfare aspect and industrial relations aspect. The personnel aspect involves manpower planning, recruitment, selection, placement, promotion, training and development, incentives, remuneration as well as workers productivity. These functions are very essential to the organization as they ensure it remains competitive in a global, dynamic environment. As Goltz (2011) puts it, bad hiring decisions result in hidden costs to the business. It results in time wastage, customer dissatisfaction by getting low quality products and services. For example, in the service or hotel industry, if an unqualified worker is hired, he/she will offer poor quality service to customers who will be dissatisfied hence loss of customers as well as loss of returns for the organization. A HR professional is thus needed to ensure right people are hired for the right jobs by carrying out job analysis, attracting a qualified pool of applicants and use of right selection procedures. Armstrong (2008) argues that selecting applicants who do not possess the right knowledge, skills, abilities, talents, attitude and aptitude could result into dire consequences. It will result in poor performance for the individual and the organization as a whole. If right procedures are not used, it can also result in lawsuits especially with the emergence of equal employment opportunities act which prohibits employment discrimination. Most organizations base their pay on performance. It is therefore the role of HR practitioner to ensure proper performance evaluations which are satisfactory to all those concerned and give feedback to employees so as to motivate them and allow them to discover their strengths and weaknesses and modify behaviour hence achievement of organization success (Ivancerich, 2001). The performance measures also guide the training and development needs, act as base for promotion. HR practitioners can therefore show their worth to the senior management by ensuring proper recruitment and selection procedures, efficient performance appraisals and offering training and development to ensure worker productivity and development as well as achievement of organization objectives (Bowen & Ostroff, 2004). The welfare aspect of HRM is concerned with; working conditions and amenities. The HR practitioners ensure employees welfare is taken care of so that they can serve the organization better and achieve results. The health and safety of employees is very important and should comply with occupational health and safety regulations enacted by the government. If workers work under poor conditions, their health is put at risk leading to decline in productivity, increased sick offs and medical expenses, increased labour turnover and these are additional costs to the organization. A satisfied workforce is motivated and committed hence increased retention of talented employees and productivity for the business (Bratton & Gold, 2001). HRM are involved in industrial relations to ensure good working relationships in the organization. They act as a link between management and the employees and the union. They design and implement grievance and disciplinary procedures and are also involved in settling disputes. Good relations between stakeholders lead to more trust, loyalty and commitment hence success. Bratton and Gold (2001) argue that the role of HR function in a contemporary organization is to make employment relations fulfilling for the management and employees. HR Professional Qualities Price (2007) argues that to be a professional, one not only needs to have mastery of the subject matter but also be able to demonstrate professionalism by possessing certain qualities. To be a HR professional, one must be conversant with the business they are working for. This enables them to formulate HR strategies that are aligned to business strategy and effectively manage the challenges of a global legal environment thus become a strategic partner in the organization (Roehling, 2005). The HR practitioners should be able to evaluate the strengths and weaknesses of the organization therefore know the areas that need change and how to plan manpower in order to deal with the changes and achieve effectiveness. For example, if HR practitioner knew the suppliers and customers the business is dealing with, he/she will be able to know their requirements and recruit manpower able to fulfil their needs especially in service industry where employees interact directly with customers. The society for human resource management (2011) emphasizes the need for HR professionals to think strategically and analytically. Price (2007) agrees that HR professionals can only be taken seriously at a senior level if they have the knowledge of how all activities need to align. To eliminate the notion that HR function can be performed by anybody, the HR professional should be able to have a vision for the organization and drive all HR activities towards that vision which is aligned with business objectives. Without clear expectations, the employees would not know where the company is heading. It also hinders the professionals from taking decisions leading to failure of the organization. For example, in the hotel industry, the HR may have the vision of making the hotel among the best 100 hotels hence recruit talented workforce and improve on its services hence add value to the organization. A HR professional just like other professionals such as accountants should be able to defend their policies with reliable data hence should be good in calculations, analysis and projections. A study carried out by society for human resource management showed that most HR practitioners did not view knowledge in data analysis as essential in their work (SHRM, 2011). Without support of strategies and policies with data, the management may not take their work seriously hence not value them. For example, the professional should be able to show the cost of various functions such as recruitment and the returns expected on the investments. HR professionals should demonstrate ethical behaviour for them to be regarded as professionals. Most professions have a code of ethics which dictates behaviour but HR practitioners are guided by employment laws. The professional ethics would be measured by how well the HR practitioner is able to demonstrate fairness; by encouraging diversity and avoiding any kind of discrimination hence the composition of workforce and elimination of lawsuits is a good measure. The professional should act as a role model hence self discipline is essential. Honesty and integrity are crucial if a professional is to be taken seriously (Price, 2007).The professional should also be able to set aside personal interests in making judgements and not compare individuals rather, analyze the behaviour of the person. This is essential especially when carrying out performance appraisals. Ethics is demonstrated through their actions, decisions and leadership. Certification is important for HR professionals to be valued. The society for HRM offers certification to HR professionals which are essential in career development. The HRM certification institute created by SHRM aspires to be accreditation symbol to designate individuals who have achieved basic minimum competencies just like accounts profession uses CPA exams (Sims, 2007). However, other certificates such as masters degree are essential to prove the professional has the required skills and competencies to perform the job. Without any qualifications, a practitioner can’t be valued by senior management. As for Price (2007, p. 44), certification shows the “understanding of HR practice and link to wider business issues”. HRM involves ensuring smooth relations in the workplace and act as link between management and employees and other stakeholders. A HR professional thus needs to demonstrate good communication skills to ensure information is disseminated in a proper manner. They are involved in negotiations especially with the union and therefore should be able to argue their points in a convincing and understandable manner. They should be able to communicate management decisions effectively to employees to avoid misunderstandings and resistance by workers (Armstrong, 2008). By communicating effectively they will foster good relationships and gain influence of employees hence motivation and commitment. Furthermore, their work involves formulation of policies and strategies which they should be able to sell to the management for them to be acceptable and for them to be taken seriously. According to SHRM (2011), a HR professional is result oriented. Ulrich and Brockbank (2005) agree that the outcomes of HR activities which they state as development of organization capabilities and individual abilities determine the value of HR professional. This can be measured by the competitiveness of employees in the market; they should possess the required knowledge, skills and abilities to perform a job. The firm should also be able to perform well financially and be competitive in the global environment. By achieving success, the management can consider the practitioner as a true strategic partner hence regards him/her as a professional. How HR Professionals Demonstrate Their Value There are many ways in which HR professional can demonstrate his/her worth to the organization as a whole in relation to achievement of business success. This can be achieved by integrating HR policies and practices with bus strategy and integration of workers into the business so as to achieve commitment and success (Bratton & Gold, 2001). Ulrich & Brockbank (2005) on the other hand, argue that HR professionals demonstrate their value by the way they engage and handle stakeholders such as investors, customers and employees in the organization. Suppose the HR practitioner performs his/her duties without the stakeholders in mind, then the results achieved would not be in line with the organizational goals and thus the practitioner would not be valued at the senior level. This is because he/she would have added no value to the organization; the stakeholders would be dissatisfied. According to Ulrich & Brockbank (2005, p. 59), if a HR professionals takes investors needs into account, then their practices develop more value-focused meaning. The investors should thus be involved in HR practices so as to add more value to the profession. For example, a HR practitioner can involve investors in performance management or in hiring the right people since they expect returns on their investments. By involving them in such activities, they are satisfied as they are sure their investments are on good hands. The customers are essential in ensuring business success and survival in a competitive environment hence should be engaged in decision making. The HRM should thus align HR practices to customer value proposition and as Ulrich & Brockbank (2005, p. 59) puts it, “HR professional should see the firm through the eyes of customers”. This they say can be done by thinking and acting like customers hence have customer experience. For example, in a service industry like banking, the HR professional can ask customers questions on their experience and they give feedback. With this information, the professional is able to assess the strengths and weaknesses and make changes where possible and this involves changing employee behaviours. The customers will thus get satisfied and spread a word of mouth to others or perform repeat purchases hence organizational success. Involve customers in HR activities such as training so they can feel as part of the organization thus remains loyal hence the professional would have added value to the organization. Modern organizations tend to be customer oriented hence all activities are geared towards ensuring customer satisfaction. Employees are useful assets of the organization hence proper management is required. The HR’s role is to ensure that the employees produce the required results. The HR does this in collaboration with line managers who are at the operational level and more in contact with employees. Line managers have taken over most of the HR activities leaving the HR professional with the role of advising , mentoring and coaching as well as ensuring line managers conform to the laid down rules and procedures or implementation of HR policies and strategies. The professionals thus engage the line managers in aligning HR practices with business strategies to achieve business success hence demonstrating their value (Lawler & Mohrmans, 2003). HR professionals demonstrate their value by ensuring continuous staff development. They monitor and evaluate performance of employees and detect areas of weaknesses hence offer training and development. The employees are therefore able to progress and acquire new skills useful to achievement of business success. The business climate is dynamic and HR professionals need to update themselves with current trends hence acquire new skills which they pass on to employees thus the organization has a pool of skilled workers (Mathis & Jackson, 2006). They also ensure the organization has the required skills and abilities to cope with changes and remain competitive hence act as change agents. Human capital management is therefore one of the key areas where HR professionals demonstrate their value by maintaining the right mix of people with knowledge, skills and abilities. Globalization has led to the complexity of HRM. International organizations and multinational corporations are based in various countries hence more employees work abroad. There is also a lot of pressure to rightsize, downsize and outsource and the HR professional can demonstrate his/her value by being able to help the organization cope with the global challenges by formulating effective policies and strategies (Sims, 2007). Managing diversity and formulating cultural sensitive policies to ensure the business runs smoothly and achieves its goals is also a valuable attribute for the professional. Dealing with the aging workforce which is less adaptable to change is a challenge for HR professionals. By 2012, the percentage of labour force over 40years of age will be 60% compared to that 2002 which was 56.3% (Sims 2007, p. 23). By developing HR programs to address the learning needs of the old and the young while minimising costs at the same time is an achievement. Outsourcing To minimise costs, organizations tend to outsource some of its activities. Some HR activities such as recruitment are also outsourced to employment agencies to minimise number of HR staff and reduce workload for HRM. Outsourcing aids the professionalization debate in a number of ways; it enables the organization to contract out seasonal jobs such as sales thus giving HR time to concentrate on other important areas such as consultancy and offering advise to management and line managers and avoid uncertainty situations which can impact the business negatively (Sims, 2007). Outsourcing is also done if a large project needs to be executed and the organization does not have the required skills. Having outside staff work on the site alongside organization employees enables them to develop their capabilities by acquiring new skills which are essential for business performance (Armstrong, 2008).Outsourcing is also done for departments which are performing poorly. The HR professional thus has a role to identify the areas that need outsourcing and assess their cost effectiveness hence they become valuable to the organization. Conclusion HRM involves managing the organizations human capital and has evolved over time from simple book-keeping to complex functions associated with international HRM and has also become strategic in nature. Despite this, HR practitioners have not been able to be considered as strategic partners in the organization therefore not considered as professionals. However, various measures such as certification are being taken to ensure the field of HRM is valued and the practitioners attain a professional status. There are also various attributes and factors that would enable HR practitioners to be taken seriously at a senior level such as; having business knowledge, strategic thinking, analytical skills, and professional ethics among others. HR professionals can also demonstrate value to the organization by involving all stakeholders in HR activities to ensure business success and aligning HR strategies and policies with business objectives. 3510 Words References ARMSTRONG, M. 2008. 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