Human Resources Management: Challenges and Change - Case Study Example

Also, the paper also brings issues faced in healthcare organizations under perusal. Importance of Human Resource Management Good organizations consider its manpower as its best and most flexible asset according to Bratton, & Gold (2000). Human Resource Management can be defined as the art and science of keeping an organization filled with the right people for the right jobs. Human Resources Management is responsible for analyzing what kind of jobs need to be created in an organization and what kind of people are required who would be able to complete the job.

If Human Resources Management did not undertake a proper organization-wide comprehensive job analysis, a business would not be able to get the most out of what is considered to be the most important asset – Human Resources. An accurate job analysis help an organization decide on what Knowledge, Skills and Abilities are required for certain types of jobs, which makes it easier to recruit quality Human Resource (Bratton, & Gold, 2000). However, there are some issues which arise especially in an environment with high unemployment.

During this period, there is a high supply in the overall labor market. However, when in-demand skills are taken into consideration, it can be seen that the retention level in this specific labor market is high. As the demand of a specific job will be high, its compensation and incentives will also be high, leading organizations to give better incentives to the already employed. This in-turn creates a migration of the workforce towards that specific location where their skills are in demand (Bratton, & Gold, 2000).

Organizational Restructuring has become imperative in today’s ever changing business environment led by technological, political and other external forces. As put by ­­­­­­­­ Isaak and McCutcheon, it involves adapting to these changing needs in order for an organization to be able to face ever changing challenges put by these changes. Without organizational restructuring, an organization cannot grow. Be it modification of the vision, which drives other elements like mission and objectives to change, or be it complete revamping of organizational values, organizational restructuring assists in organizations to grow.

However, this often results in workforce turnover as explained by­­­­­­­­­­­­­ Isaak and McCutcheon. Old employees who are not compatible or who do not adapt to the changes will have to be laid off and new employees, who are more at par with organizational values and norms, will have to be hired. This may result in an increase in the industry employee turnover rate as explained by Isaak & McCutcheon and Phiphitaphanda. Human resource is considered to be the most flexible asset in an organization.

This also means that they are the easiest to get rid of in order to reduce operating costs in the short-run. Laying off workers may result in short-run cost cuts however, it effects the efficiency of the retained employees who will have to multi-task and cover for the work previously carried out by the laid-off employees. This eventually results into low productivity as the efficiency of the current employees will fall. Therefore, decreasing the number of employees may not be the best option as it is harmful for the organization in the