Workforce Management Issues - Essay Example

?Human Resource Management Introduction The workforce of an organization can be termed as its lifeblood as they are the most important assets and resources of the business. Consequently, workforce management is a critical element and is important factor in enhancing the overall internal effectiveness and organization’s competitiveness. HR practitioners play a vital role in increasing the efficiency of the firm’s human resource as they are involved in essential employee behaviour activities (Wakely and Point, 2003). The major functions of human resource management can be described as follows: 1. Recruitment and selection Hiring and firing forms one of the basic and core functions of HR practitioners. It mainly deals with identifying potential applicants for present as well as future openings. They are also involved in assessment and evaluation so that efficient placement and selection decisions are made. Establishing procedures and policies for recruitment and hiring in another area dealt with the HR managers in an organization (Tyson, 1995). 2. Benefits and compensation The second core function handled by HR department is compensation and benefits management. Their job is providing a rational method for determination of right payment for right jobs. Since it is a critical component of the business, the function is entirely managed by HR managers. It is also related to employee development and incentive program. 3. Training and development Training and development is another vital function in an organization. The HR practitioners are involved in creating training and development programs which are aimed at solving issues such as employee performance, skills enhancement, increasing expertise and overall personality etc (Chan and Scott-Ladd, 2004). HR managers have special expertise in program evaluation and unlike other managers; they are able to utilize employee feedback in a better manner. Training and development is an important function which assures that employees are capable of job performance at acceptable levels (Nasiripour and Kazemi, 2012). 4. Performance management Performance management is the ability to effectively manage the overall performance of employees in an organization. Implementation and establishment of a complete performance management program is an essential function. Designing the process, reviewing, maintaining and effective monitoring is a challenging task and requires expertise. Coaching managers about the use and implementation of performance management programs is also an essential function of the HR team (Hughes and Rog, 2008). Literature The current business environment is dominated by globalization and internationalization. Organizations have become multinational and cross-cultural teams are common in firms. The current challenge of HR practitioners is to create new strategies and meet the ever increasing expectations and challenges as a result of the continuous evolution. They are also expected to create and add value to the organization. In the following sections external and internal factors and their effect on the overall HR functions will be discussed. Influence of external factors on HR functions Political In political terms, the external factors which can influence the work of HR practitioners as well as HRM functions are trade unions. Trade unions are officially recognized employee associations, joined together as a collective and united front voice in order to deal with management issues. The objective behind these trade unions is to secure the economic and social interest and well-being of the members of the organizations. Since trade unions become an additional party in relationship between employees and the company, they are considered as external influencing factors (Jackson and Schuler, 1995).Various laws are associated with union laws. Trade unions affect the HR laws and functions in various ways. Management has less flexibility and discretion while administering and implementing HR procedures, policies and practices while communicating with unionized employees. Economic In general, the economic environment has major impact on the management and in particular, the human resource. Economic conditions are affected by demand and supply of services and products. This in turn will dramatically influence the HR practitioners by affecting the types and number of employees required. This also influences the ability of the employer to provide benefits and pay wages. In a healthy economy, hiring and recruitment will be more as demand for services and products will increase. As a result unemployment rates will fall and competition for qualified professionals will increase. The importance of retention and training strategies will also see an overall increase (Buller, 1998). Social Increasing work force diversity and demographic trends are the social factors influencing the overall HR functions. Changes in demographic are important as different strategies have to be made for older candidates and female employees. Similarly, lack of skilled and educated employees also affects the HR role in a firm. Workforce diversity is also an important external factor. Practices and policies must be adapted in order to embrace commitment in diversity (Shakeela, 2004). Labour market can be described as the geographical area for recruitment of company employees and from where candidates seek employment. While for clerks and technical employee recruitment is carried out locally, the labour market for senior and executive level managers can be both national and international. The factors which motivate candidates can be type of industry or business, reputation, opportunities for future growth and career development etc. It should be noted that these changes are highly influenced by the job roles and position offered (Bolman and Deal, 1991). Thus, the HR practitioners will have to keep themselves updated about the current and latest market trends as well as opportunities and offers provided by the competition. Technological The impact of technology on HR functions cannot be ignored either. As a result of the changes in technology, clerical, blue collar and labour intensive jobs are decreasing. The demand for professional and managerial jobs is increasing. There is a shift in employment opportunities impacting the overall implications for companies. Redesigning of organizational structure and jobs are happening. These include new compensation and incentive plan, revised job descriptions, institution of new programs (Ulrich, 1995). All these are taking place in the HR department and with the help of HR practitioners. Environmental Environmental factors are essentially those external business factors which influence the overall working of an organization. Consequent changes in employee demand as a result of the changing business environment forces the HR managers to upgrade their strategies and policies. Stiff competition in business and technological revolution forces people working in an organization to adapt to the changing conditions (Mandip, 2012). Here, the HR facilitators play an important role in facilitating and motivating employees so that the transition goes on smoothly. During this stage of transformation, the HR practitioners are also involved in training and development so that employees are able to learn new skills and develop expertise required for the change. Legal Laws enacted by government as well as bodies which monitor the business environment of the industry have both direct and indirect impact on the employee-employer relation. Prohibiting discrimination in various stages and aspects and employment conditions such as pay equity, employment equity and human rights, are few of the important situations where the HR functions as well as HR practitioners come in action (Ulrich, 1998). Since these factors need expertise and experience, and it is handled mostly by the HR practitioners of the organisation. Internal factors influencing HR functions There are many internal factors which influences the HR functions and their ways of managing the organization. Few of the important internal factors are organizational culture, organizational structure, leadership style followed by the organization, mission and vision followed by the organization etc. Organizational culture Culture of an organization consists of beliefs, core values and assumptions which are widely shared by an organization’s members. The various purposes served by an organizational culture include communication and establishment of a mutual belief and sense of direction (Denison, 1996). The HR department functions as an important facilitator as it is responsible for providing employees with various attributes such as sense of direction, employee attitudes, behaviours and their role in the organization. The mission statement is often the most critical source of communication for the organizational culture. Other communication sources may include symbols, ceremonies, stories, myths etc. Being aware of the organization’s culture is all the more important for the HR managers as they are the one inculcating these values to the rest of the organization. For example, creativity is stressed in some cultures. While in others, value is given to status quo. Management’s accessibility and the way decisions are taken make important reflections of the organizational culture (Bahuguna, Kumari and Srivastava, 2009). Establishing effective organizational culture in an organization not only has a positive impact on the mindset of employees but also increases the effectiveness of recruitment and retention strategies. Organizational climate The way members of an organization characterize and perceive their environment in a value based and attitudinal manner is known as organizational climate. Organizational climate can be friendly and unfriendly, secretive or open, flexible or rigid, stagnant or innovative. HR practices and policies as well as communication style are the major factors that influences climate of an organization and vice verse. Job satisfaction, productivity and performance, employee motivation etc are examples of how the HR functions can directly impact the climate of an organization (Bennis, Parikh and Lessem, 1994). Leadership Style Leadership style followed by the organization is another internal factor affecting the overall functions of HRM. Various leadership styles are followed by organizations such as autocratic, transformational, bureaucratic etc, depending on the core objective of the organization (Akerson, 2003). Multinational organizations majorly follow transformational leadership styles. Since these organizations are multi-cultured, mixed leadership strategies are followed in various situations. Mission statement The mission statement of a company is the summary of its values, purpose and vision. Through the establishment of objectives and clear goals, the business is able to set a definite direction (Antila and Kakkonen, 2008). After that, when the HR department is involved with hiring, recruitment and selection it recruits considering their values and goals. The objective is to hire candidates showcasing similar values and objectives. For example- if an organization wants to apply business practices that are sustainable, it should seek candidates with similar values and interests. Conclusion The main objective of this research was to analyse the influence of external and internal factors on the role of HRM practitioners as well as core HR functions in an organization. The core HR functions were found to be recruitment and selection, training and development, compensation and benefits and performance management. Literature review was done in order to evaluate the various external and internal factors. It was found out that the factors, such as labour laws, trade unions, organisational climate and culture and leadership styles were the major factors which influenced the strategies of HR practitioners. Reference List Akerson, A. M. R., 2003. The leader as Communicator. Amazon: American Management Association. Antila, E.M. and Kakkonen, A., 2008. Factors affecting the role of HR managers in international mergers and acquisitions: A multiple case study. Personnel Review, 37(3), pp. 280 - 299. Bahuguna, P.C., Kumari, P. and Srivastava, S.K., 2009. Changing face of human resource management: A strategic partner in business, Management and Labor Studies, 39(4), pp. 563- 581. Bennis, W., Parikh, J. and Lessem, R., 1994. Beyond leadership: Balancing economics, ethics and ecology. New Jersey: Blackwell Publishers. Bolman, L. and Deal, T., 1991. Reframing organizations. 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