Human Resource Management - Assignment Example

?Human Resource Management Introduction Managing people in an organization is the art to be mastered by the Human Resource Manager. It is science as well in the sense that it calls for the use of established theories and principles in this process of management. Glucck and Ivancevich defined human resource management(HRM) as the function performed in the organizations that facilitates the most effective use of people to achieve organizational and individual goals (Ashwathappa, 2007). It is a function that pervades all the steps in the organizational ladder, forms a vital part of every other management functions and covers all the employees. The individual, team, psychological, emotional and social perspectives of human behavior are taken into account under HRM. This functional area tries to achieve a fit between the organizations and their employees. It has to balance of the goals of individual employees, teams, organization and its obligations to the society at large. Building up the employees into competent resources by improving their capabilities, upgrading their skills and enhancing their efficiency; while providing them with proper training and development opportunities is also the aim of HRM. It is an ongoing operation of understanding human relations and behavior, and applying them to the daily functioning of the organization. The fact that people are to be managed makes HRM more challenging and dynamic, as human behavior is unique and unpredictable at times. The purposes served by HRM can be stated under two heads – the managerial functions and operational functions. Planning, Organising, Staffing, Directing and Controlling are the managerial functions, while procurement, development, compensation, integration and maintenance are the operational functions. Though the roles played by HRM in different organizations vary, the main actions performed under the function are: Human resource planning Job analysis and design Recruitment and selection Training and career development Compensation and benefits Motivation Maintenance Occupational health and safety 2. Strategic Human Resource Planning Human resource planning(HRP) is also known as manpower planning or employment planning. It is the primary task of HRM, as it involves assessments regarding the number and nature of employees that would be required to deal with the future level of operations of the organization. It involves forecasting the future human needs of the organization, in line with its future goals and projections. Decenzo and Robbins define human resource planning as the process by which an organization ensures that it has right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives (Ashwathappa, 2007). Such a preparation enables the organization to change and adjust to the demands of the market. Thus, it is a mode of change management. It also helps in meeting the legal regulations set by the Government. 2.1. HRP & Organisational Strategy Organisational strategy gives a picture of what the organization aims to portray itself along the timeline. HRP is directly linked to the type of organization and its strategic choices. This is so because HRP has to essentially follow the overall organizational plan and direction. The personnel requirements for product-based organizations are different from those involved in service. The planning for HR depends on whether the firm strategizes to acquire new organizations or simply add to its internal capacity. New personnel are to be recruited if additional capacity is planned. In case of acquisition, capacity addition comes along with personnel. So, the planning is different. Alternatively, if the organization intends to cut or decrease production, HRP has to include redundancy and redeployment plans. At the same time, if the market poses limitations or shortage of manpower, the organization has to withhold its expansion plans. The status accorded to HR in the organization also has a bearing on HRP. When the HR perspective of the policy makers is just confined to brief functions such as recruitment and compensation, HRP has to follow that. Broader outlook of HR by strategists leaves broader goals and scope for HRP. If the business plan is to understand market sensitivity and act before hand, HRP is done well ahead. However, if the organization plans otherwise, i.e., react to the changes that take place in its environment, the human resource plan for the span of the status quo can only be drawn. The flexibility or rigidity that the firm practices in its strategic planning effects the HRP. In former case, the manpower plan can be changed as per the industry demands. But, it remains unperturbed under any circumstances in latter case. The culture and value system that the strategy envisages to achieve is a point of consideration for HRP, as the latter has to go by the former. If the present status quo on these terms seems inappropriate, HRP has to plan for the appropriate measures to change or correct these deviations in the coming future. Unless there is a clear-cut idea among the HR in this regard, proper HR strategy cannot be drawn. The employees are critical success factors that enable the organizational strategies that are etched out. They form the action part of the strategy. The broad strategy has to be broken down into HR strategy and then plan how to realize it. Unless the HRP addresses all the points completely, the strategies remain unaccomplished. Thus, human resource planning and organizational strategy are two equally important and also mutually dependent endeavors. 2.2. Developing a Human Resource Strategic Plan Strategic human resource plan takes off from the organizational mission statement. The process is depicted in figure 1. Once the mission, philosophy and vision of the organization are finalized by the top management, it becomes imperative to conduct a thorough scan of the environment in which the organization seeks to exist and survive. Economic, technological, demographic, political, legislative and social factors that affect the organization are studied in detail. The learnings from this scanning process provide valuable inputs to the HR department. They understand the competitors, their HR strategies, the number, skill set and type of personnel used by the competitors to achieve their goals etc. This is all the more important when the environment is dynamic and change becomes the order of the day in the markets. Based on the scanning, the HR can also deduce the workforce supply and demand conditions, their values, the technological advancements etc. Having considered the external factors, it becomes imperative to conduct an internal analysis too, in order to assess the strengths, weaknesses and capabilities of the organization. This has to be done bearing the organizational philosophy and culture in mind. The findings from this investigation include the present HR potential, their skill set, the retirement and redundancy patterns, etc. The HR competencies of the organization at present are finalized. Forecasts are drawn on the expected organizational capabilities in future in order to match with the organizational objectives and strategies. Assessments are made regarding the opportunities that the environment might present and those that the organization may tap in to. Then, the overall corporate strategies and objectives are further revise. These are then translated into objectives for each department, including HR. Then, the HR department undertakes human resource planning and finalises on the annual HR plan. This plan addresses the workforce requirements in terms of number and type, recruitment and selection process etc. Employee demand forecasting is the next step in this process. This is again based on the HR plans. Annual budget and the corporate strategy form the backdrop for these forecasts. Other considerations for forecasting are the production levels or the targets set by the broad strategy and their implications on the workforce. Further, the HR practices of competitors, technological changes also act as inputs to the estimates. Employee supply forecasting follows the demand forecasting. It answers the questions of whether the recruitment and selection process would be able to stand by the demand projections, how far they can be catered to and what would be the shortfall. The number of employees that would be available at the disposal of the organization, from internal and external sources is the outcome of supply forecasts. As the demand and supply numbers are finalized, achieving the job and employee fit is the next process. This is termed as HR programming. It involves matching the right person with the right job. Fig. 1: Steps In Developing Strategic HRP Finally, all these HR plans are to be broken down into time-bound tactical plans, such as when would the recruitment process take place and what would be the sources of recruitment etc.,. This step ensures proper implementation of the various plans that are drawn. Control and evaluation is an inevitable part of HRP, as the HR department needs to cut short the recruitment process if employee surplus occurs or it can be the other way, the department has to undertake active scouting for the prospective employees when there is shortfall. All these HR plans need to be updated, revised, re-analysed and corrected in order to keep the organization current, dynamic and responsive to the changing demands of the environment as well as the employees. Such reconsideration kindles the enthusiasm of the employees, motivates them and contributes to retention. 2.3. Importance of Identifying the HR Needs Assessing the current, future and expected HR needs is important for an organization because of the following reasons: a. It helps in arriving at the future HR projections, as loss of personnel by retirement, voluntary retirement, attrition etc.,. is inevitable and the organization needs to make a provision for such losses too. b. The HR needs also give an idea on the skill levels of the people required to fill a job. When the HR is clear about the job and candidate profile, it becomes easy for them to catch hold of the right personnel. c. When the organization plans to expand outside internationally, HR planning gathers importance because it clarifies on whether the parent country nationals or the host country nationals are to be employed, what would be the job requirements etc. When a company enters a new country, HR is a vital success factor. So, the recruitment and selection of such personnel needs to be carefully planned. d. Having an outline of the expected HR needs helps the managers to plan the change process too. Otherwise, the organization may face strong resistance or the change may come as a shock to the employees. HRP smoothens and eases the organizational change. e. Identifying the needs of HR also throws light on the investments necessary to meet these demands. Further, the organization may plan to increase the HR budgets accordingly. 3. Organisational and Legal Framework That Effect Recruitment And Selection The general rules and framework of not only the organization, but also external environmental factors such as legal requirements affect the recruitment and selection process. Organisational culture, working conditions, the HR and other policies including recruitment policy, the compensation package, quality of worklife, role of employee unions, etc.,. play an important role in attracting the right candidate for a position. The seasonality of the products of an organization, its growth and expansion prospects and its technological outlook also have considerable influence on catching the attention of prospective employees (Rey & Mignin, 2008). Recruitment and selection process is also impacted by the levels in organization structure or its hierarchy, job security it offers, organizational culture, gender equality practices, working hours etc that are practiced by the organization. Further, the These are essential part of the organizational rules and framework. When the organization aspires to develop its human resources and facilitate their growth, such a philosophy guides it in favor of internal recruitment, i.e., deputations, transfers and promotions etc. Such an endeavor must be backed by proper investments in training and development. The budget available with the organization also has a bearing on recruitment and selection process. When it poses a limitation, public employment agencies or employee referrals may be resorted to, rather than advertising in prime media for the prospective candidates. Legal regulations related to recruitment and selection consist of offering equal opportunities to all races and sexes, immigration, reservations for certain weaker sections, equal pay, confidentiality of internal data, disability discrimination etc.,. These laws aim to protect the interests of both the employees and the employers. United Arab Emirates has certain legislations drawn out when it comes to recruitment and selection process. These legislations have an impact on the process too. Every employer is free to recruit an employee, be it local or expatriate. The ministry of labour and social affairs must permit the recruitment of foreign employees. However, as per the ‘Emiratisation’ policy, certain percentage of the employees needs to be the citizens of UAE, under the specified sectors and jobs. Even recruitment of unemployed UAE nationals need to be registered with the labour department. The law does not put any restrictions on the nature of questions or probing that might be posed during the employment interview. It does not specify minimum wage, but has a ban on employing children. Every organization has to pay certain amount to the government, for every foreign employee that it recruits and forbids the organization from charging any fee for such recruitment from the worker. The organization has to pay for the visa and travel charges of the migrant employees too. The private employment agencies need to registered with the government, pay certain guarantees and commitments to the government before indulging in recruitment. Such agencies must be operated by UAE nationals only. They may be held partly responsible for the unpaid wages (Zaman, 2011). 3.1. Effect of Recruitment Legislation on HRP While preparing the annual human resource plans, the recruitment legislation needs to be considered too. Latest addition to the law that have a bearing on the recruitment process need to be accommodated and assimilated into the process. The legal requirements may direct the organization in terms of representation of various sections of the workforce, guiding its constitution. This has to be considered by HRP (Geet & Deshpande, 2009). When the company is into international operations, the legislations of all the countries in which it operates have to be taken into account. The recruitment, immigration and compensation laws of the host countries influence the HRP process. The commitment of the organization towards equal opportunities, gender equality, reservations etc need to be considered and highlighted by the HRP. The essential inclusions of employment contract and its terms may be specified under law. This has to be abided by while preparing the employment contracts, while devising HRP. The financial obligations posed by legislations such as registration of employees with government, visa fees, travel charges, home travel options etc.,. that may be offered to expatriates need to be matched with the available budgets with the HR department, before drawing out HRPs. 4. Grievance, Discipline And Termination Grievances are the issues or complaints brought forth by the employees to their employers. It may be considered as the expression of dissatisfaction that arises from the gap between employee expectations and management practices. The procedures set for the grievance and its redressal assure fairness and equality at workplace. Disciplinary rules and procedures help in maintaining good employee relations. Some of the procedures are legally emphasized. Termination is the process of ending the employment of an employee by the employer. All these three processes are key to employee relations in an organization. 4.1. Grievance Procedure Grievance procedure aims to handle the discontent of the employee before it affects his morale and efficiency. All the issues that may arise under a grievance may not be addressed or resolved by the immediate supervisor. They may try to suppress the concerns before reaching higher levels. Thus, a standard procedure makes sure that the issues are brought to light and are resolved, with due knowledge and appreciation of both the management and employee. This procedure must provide for fairness, accord all necessary facilities to employees to explain their case clearly and enable prompt redressal. Under open door policy, the dissatisfied employee is free to report the grievance to the top managers and discuss the problem to resolve it directly. Under the step ladder process, the grievance procedure has six steps. It is described as the Model Grievance Procedure (shown in Fig.2). The aggrieved employee verbally expresses his discontent to foreman. If it is not resolved, he may approach the supervisor to lodge a written complaint, which has to be answered within 48 hours. If not redressed or satisfied with solution, the worker along with a representative may go ahead to the head of department. If not answered within 3 days or dissatisfied, the worker may further approach Joint Grievance Committee, which has to take the necessary steps for resolution within 7 days. This committee has representatives from both management and employees. If the decision of the committee stands unanimous, it is communicated to the manager. Otherwise, the suggestions or probable courses of action are put before the manager for decision, which has to be done within 3 days and corresponded to the worker. If dissatisfied, this decision might be challenged within a week. He may approach the manager, along with a Union member to discuss with the manager. If this fails, the management and union might attempt for voluntary arbitration within a week’s time (Sims, 2002). Fig.2: The Grievance Procedure Identification of the existence of grievance is the primary step in this process. If the employee reports a grievance, it has to be acknowledged. Unexpressed grievances also need to be spotted from observations. Then, the problem should be clearly stated and the grievance must be registered. The facts, data and opinions from the various parties involved in the grievance procedure should be gathered. The redressal procedure must be promptly initiated. Based on all this information, a solution has to be derived and it has to be mutually agreeable and satisfy the aggrieved. Such a solution also needs to be implemented. A review of the effect of the solution on the employee’s morale and productivity is necessary to make certain that the grievance redressal has been successful. 4.2. Termination –A Disciplinary Procedure A disciplinary procedure is an expression of the dissatisfaction or intended improvement expected from a employee, by the employer. It is a method of pointing out the employee’s wrong doing by the employer. Formal disciplinary procedure broadly takes the following course. First, an initial notification is sent to the employee regarding the inappropriate behavior or deviation from the standards or the areas under which his job performance needs to be improved. His manager communicates the issue casually to the employee in a one-to-one meeting. The proceedings, employee responses and other important observations from this meeting and further procedures need to be briefly documented. If no improvement is seen in the performance or the employee still fails to abide by the expected conduct, a second warning is issued. Another one-to-one meeting is conducted by the manager to verbally explain him how his inappropriate conduct is effecting the organization and the possible courses of action available with the management if the performance does not improve. A memo to this affect is handed over to the employee. The manager may further explain the scope for improvement and help the employee sketch out goals and a time-bound action plan towards this direction. A last-chance warning is accorded to the employee by the senior manager if the concern persists. It is a written notice explaining the possible consequences of continuing with the same performance and chance for termination. This is a means of pressurizing the employee to correct his problem. Even if the last-chance warning stands ineffective, corrective action is taken by the management. This may include mandatory leave, suspension, demotion etc.,. When all these steps fail, termination is the last resort to resolve the problem. Termination is an expensive proposition for the company because it has to hunt again for a replacement and start the recruitment process again. The investments made by the company on the terminated employee also go waste. The organization further has to pursue termination according to the legal procedure and the terms of employment agreement (Caisley, 2008). 4.3. Role of Administrative Courts An employee may be terminated for misconduct, poor performance over time and redundancy. When the employment termination is felt unjust by the terminated employee, he approaches the court for justice. The employee must hold a written termination or dismissal order to that affect. Such an order can be challenged only until the specified period after the termination. The courts first observe the legality of the employment contract agreement, which must be for more than six months for regular employees. Law for temporary and probationary employees is different. The causes for non-renewal of contract or termination are studied in detail. The reason must be valid. In case of dismissal with notice, the courts assess whether the notice period complies with the contract standards and the payments for the period are properly made. The termination must be justified the stern action. Summary dismissal occurs when the employee is dismissed without notice. When the employee misconduct is serious, the notice period may not be given. Payments until the date of dismissal are only made (Caisley, 2008). Court verifies whether all these formalities are conformed to. When the employee is terminated for disciplinary reasons, the Court sees whether proper enquiry for the case is undertaken. It ensures that there were no defects in the procedure. The termination process must also follow the legal procedures and the additional legal provisions must also be abided by. For the employees with experience more than the specified years, severance pay per every extra year of service are to be paid. Court checks for deviations. Breach of contract or wrongful dismissal is the main reason for which assistance from Court are sought. When an employee files a case that the reason for termination is discrimination, he/she must be able to establish that and has suffered the consequences of such discrimination. If any variations from the set procedures or legal practices are detected by the Court, legal action against the employer may be taken. It may order for payment of penalties or reinstatement of the employee. 5. Conclusions Strategic human resource plan must be a tool for predicting the future personnel requirements of the organization in terms of number and nature of employees, along the organizational strategy and objectives. The organizations need to abide by the legal provisions in case of recruitment and selection process. The employee grievances should be properly handled and addressed as per the procedure. Initial notification, followed by necessary warnings must precede termination of employees. If the employee feels unjustified by termination, he may approach the administrative court for justice. They closely analyse the termination procedure, check for deviations and take legal action against employers if necessary. References Ashwathappa, K. 2007. Human Resource And Personnel Management. 4th ed. New Delhi: Tata McGrawHill Publications. p4-80. Caisley K., 2008. Termination of Employment: A Best Practice Guide. New Zealand: CCH New Zealand Limited. p17-50. Geet, S.; Deshpande, A.D. and Deshpande, A.A., 2009. Humam Resource Management. Pune: Nirali Prakashan. p3-12. Zaman, N. 2011. Social Security in UAE: The Labor Law. Abu Dhabi: Grin Publications. Rey, S. and Mignin, J. 2008. Hiring The Best Qualified And Most Talented Employees: Handbook on Global . The Netherlands: International Bar Council. p1440-1457. Sims, R. 2002. Organizational Success Through Effective Human Resources Management. Westport: Greenwood Publications Group. p350-379.  Read More