Human Resource Management - Essay Example

? Human Resource Management Introduction Boddy (2008) defines Human Resource Management (HRM) as “the effective use of human resources in order to enhance organizational performance” (p.354). Human resource management is one of the core areas of organizational functions. Even though an organization has many resources such as manpower, materials, machines and money, manpower or human resource seems to the most important one. All the other organizational resources need the supervision of human resources to make them useful for the organization. For example, machines need human operators to deliver the desired output. In short, the success and failure of an organization depends on the functioning of its human resource management. This paper analyses the context, concepts and practices of HRM and the evidences linking HRM to improve organisational performance. Context for HRM & key concepts and practices associated with HRM According to Torrington et al. (2011), “Human resource management (HRM) is the basis of all management activity”( p.4). In fact all the management activities in an organization start from HR. If HR fails to identify and post suitable talents, the organization may not develop properly. The right person at the right place at the right time will always bring benefits to the organization. Since human resource managers are responsible for recruitment, placements, training, development and retention of the employees; the performances of human resource department is vital for the success of an organization. It should be noted that most of the current organizations are operating internationally and diversity in the workforce is not a myth but a fact. Diverse workforce often brings different types of conflicts in the workplace. HR department is responsible for settling such disputes. Strategic HRM is gaining popularity at present because of the globalized nature of organizations and the workforce. Paauwe & Boselie (2005) mentioned that “HRM practices should focus particularly on employee development, the encouragement of learning and knowledge management” (p.79). Knowledge management is vital for organizations to stay competitive in the heavily globalized and competitive market. It is necessary to update the knowledge of the employees periodically to make them capable of dealing with the new challenges. Training and development are necessary for the employees to update their skills and knowledge. HR department is responsible for organising training for the employees. As mentioned earlier, majority of the organizations have diverse workforce at present. Diverse workforce often brings a variety of challenges to HRM. Work philosophy, attitudes, skill sets, ethics, values, language, communication means, socioeconomic and cultural backgrounds of diverse workforces are extremely different. For example, many American companies are currently operating in China and these companies have many American employees along with Chinese employees. China and America are entirely different countries in terms of politics and culture. American employees may face lot of problems related to culture and politics while working in China. HR managers are responsible for providing necessary training to such employees before sending them to China. In short, HR management principles are changing as time goes on because of the huge changes happening in the global business world. The success of an organization depends on how well the HR department deals with such changes and makes corrections in its strategies. Along with employee recruitment, training and development, employee retention is another critical area handled by HR department. It should be noted that smart employees always get better opportunities. It is the duty of the HR managers to provide necessary motivation for work to the employees. Better remuneration and incentives alone may not motivate the employees to stick with an organization. Along with remuneration, current employees are particular about the work culture, organizational climate and work-life balancing. At the same time, along with rewards, some kind of punishments also become necessary to derive the maximum out of the employees. The XY theory of motivation says that some employees like their works whereas some others dislike their works (Furst, 2009). It is the duty of the HR managers to use rewards and punishments judiciously to motivate different types of employees. In short, the key to organizational success or the better performance of an organization rest in the hands of HR department. According to the two-factor theory of Herzberg, people are influenced by motivational factors and hygiene factors. Hygiene factors are working condition, quality of supervision, salary, status, security, company, job etc whereas the motivational factors are achievement, recognition or interest in the job etc (Two facto theory- Herzberg, Frederick, n. d). HR department is responsible for keeping a positive work culture and climate in an organization. Today’s employees are particular about the work climate along with remuneration and incentives. They do not like to work in organizations which rate employees based on skin colour or culture rather than abilities. Moreover, participatory management styles are preferred by the modern employees than totalitarian management styles. HR managers should make sure that the management styles of the organization always provide comfort and peace of mind to its employees. The evidences linking HRM to improve organisational performance According to Nankervis & Debra (1995), “Organizations need to utilize their human resources effectively to provide high quality service to their customers, to improve productivity and hence profitability”(p.507). Relationship building is accepted as the core of every organizational activity at present. All modern organizations are keen in keeping sound relationships with its stakeholders. An organization speaks to its customers through its employees. The capabilities of employees in attracting the customers are vital for an organization’s journey towards progress. Only the satisfied employees communicate positively with the customers. HRM is responsible for cultivating healthy and positive attitudes in the minds of the employees. It is an accepted fact that retention and productivity of workers are the function of their motivation level (Lord, 2002, p.3). According to Nohria et al, (2008) “the four drives that underline motivation are; the drive to acquire, the drive to bond, the drive to comprehend and the drive to defend”(p.3-4). Motivation of the employees plays a vital part in an organization’s success and failure. Employee motivation can be divided into two categories; intrinsic motivation and extrinsic motivation. Areepattamannil et al. (2011), pointed out that “Intrinsically motivated behaviours are those whose motivation is based in the inherent satisfactions of the behaviours per se, rather than in contingencies or reinforcements that are operationally separable from those activities”(p.428). On the other hand, Extrinsic motivation, “refers to a broad array of behaviours having in common the fact that activities are engaged in not for reasons inherent in them, but for instrumental reasons” (Vallerand and Ratelle 2002, p. 42). HRM is responsible for cultivating both intrinsic and extrinsic motivation in the minds of the employees. Work culture, climate, rewards, and punishments are some of the factors which motivate employees intrinsically and extrinsically. HRM is connected to these aspects in one way or another. “A number of studies have shown that results of training affect overall performance of an organization such as productivity, turnover rate, absence rate and organization commitment etc” (Lin et al. 2011, p.927). HRM is responsible for providing training to the employees and controlling the turnover rate. High turnover rate is not good for the reputation of any organization. It sends wrong signals about the reputation and reliability of an organization. Moreover, higher turnover rate causes loss of organizational resources and thereby reduce the profitability of an organization. It should be noted that an organization spends a substantial amount of money for the training, development and empowerment of the employees. When trained and experienced employees decide to leave the organization, the organization loses a lot. It is the duty of the HR managers to keep the turnover rate as much less as possible to improve organizational performances. “In situations where pressures to work longer hours are higher, employees feel overloaded and likely to experience greater dissatisfaction with their jobs which may result in higher stress and fatigue, and greater work—life imbalance” (Macky, 2008, p.38). Work life balancing is an important topic in the organizational world at present. Majority of the modern employees experience huge job stress when they forced to work in busy organizations. Organizations are currently trying to keep minimum workforce as a strategy to cut down overhead expenses and to improve profit. Thus, many employees forced to work overtime on a quite regular basis. Regular overtime works prevent employees from enjoying the company of family members and friends. Socialization with friends and relatives is necessary for the employees to shed the job stress as much as possible. Only the employees with peaceful mind deliver the good to an organization. Peace of mind is important for an employee to improve his productivity. HR managers are responsible for helping the employees to attain work-life balancing. Employees with peaceful minds are an asset to the organization whereas employees with agitated minds cause different problems to the organization. Conclusions HRM is vital for organizational success. All the organizational activities are starting from HR department and hence functioning of HR department is vital for the growth of an organization. HR managers can do many things in motivating employees both intrinsically and extrinsically. Along with recruitment and retention, HR is responsible for knowledge management, training and development of the employees. Employee turnover rate can be reduced considerably if HR department react proactively to employee needs and demands. Work-life balancing is another area in which HR can help employees immensely. In short, the success of an organization heavily depends on the ability of the HR managers in managing the workforce effectively. References Areepattamannil S, Freeman, J.G & KlingeIntrinsic D.A. 2011. Motivation, extrinsic motivation, and academic achievement among Indian adolescents in Canada and India. Soc Psychol Educ (2011) 14:427–439.DOI 10.1007/s11218-011-9155-1 Boddy, D. 2008. Management: An Introduction, 4th Edition, Harlow, FT Prentice Hall Furst P. G 2009. Supervisor’s role in employee performances [Online] Available at: http://www.irmi.com/expert/articles/2009/furst11-construction-risk-management.aspx [Accessed 24 February 2013] Lord R.L. 2002. Traditional motivational theories and older engineers. Engineering Management Journal Date: September 1, 2002 Lin Y., Chen S., & Chuang H. 2011. The Effect of Organizational Commitment on Employee Reactions to Educational Training: An Evaluation using the Kirkpatrick Four-level Model. International Journal of Management Vol. 28 No. 3 Part 2 Sept 2011 Macky K. 2008. High-involvement work processes, work intensification and employee well-being: A study of New Zealand worker experiences,. Asia Pacific Journal of Human Resources April 2008 vol. 46 no. 1 38-55. doi: 10.1177/1038411107086542 Nohria N, Groysberg B & Lee L.E. 2008. Employee motivation: A powerful new model. Harvard Business Review. July-August 2008. Nankervis A.R. & Debra Y. 1995. Human resource management in hotels. A comparative study. Tourism Management, Vol. 16, No. 7, pp. 507-513, 1995 Paauwe J & Boselie P. 2005. HRM and performance: what next? Human Resource Management Journal, Vol 15, no 4, pages 68-83 Two factor theory- Herzberg, Frederick, N. d. [Online] Available at: http://www.valuebasedmanagement.net/methods_herzberg_two_factor_theory.html [Accessed 24 February 2013] Torrington, D., Hall L., Taylor, S. & Dr. Atkinson C. 2011. Human Resource Management.Financial Times/ Prentice Hall; 8 edition (6 Jan 2011). Vallerand, R. J., & Ratelle, C. F. 2002. Intrinsic and extrinsic motivation: A hierarchical model. Handbook of self-determination research (pp. 37–63). Rochester, NY: University of Rochester Press. Read More