Human Resource Management Strategies and Planning - Essay Example

HRM and Organizational Success 1 Human Resource Management Strategies and Planning Critical To an Organizations Success HRM and Organizational Success 2 Human Resource Management has become the prime notion for people in management. It covers the wide area of management, including employees and their behavior, organizational aims and objectives etc. A recent development that could be identified in the management practices is called strategic management. A strategic or a planned management helps the organization in reviewing the employee behavior and problems related with employees and analyzing and setting the market conditions. “HRM is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach” defines Wikiepedia [2006] In the words of Derely and Doty [1996 pp-802] “The strategic perspective of HR, which has been labeled strategic human resource management [SHRM],has grown out of researcher’s desire to demonstrate the importance of human resource practices for organizational performance”. Many researchers talk in terms of organizational success in terms of application of strategic management. As a result the evidences shown by them and literatures support the fact that strategic human resource management has a critical role to lay in determining the success of an organization. In simple terms, it has to be understood that an organization is a combination of human forces working under varying levels. While the pressure of competitiveness that exists among the organizations create the need for much innovative development in the working atmosphere. As a result the term strategy was found and it has been applied in various sections of the management and found to have a triumphant result in success of an organization. A smooth and accomplished relationship between the management and the employees could be established with the help of strategic management. Schuler[1989 p-157-184] has to say that “The integrated competitive strategy-human resource management model is extended by inclusion of strategic targets and industry chain”. HRM and Organizational Success 3 To organize the chains all organizations have certain some proposed dynamics, the most important is the human dimension, which is constant and ever prevalent in any type of organization. This “human dimension” induces the individual and group dynamics to the entire spectrum of organizational behavior. The complexity of organization is quite evident from the fact that the interaction that takes place does not happen at one level. The interaction takes place in such a way affecting the organizational behavior. The individual interaction plays, as the main dynamics, which in turn is focused towards group and other organizational attitudes. These attitudes and interactions are interconnected. It has to be understood that the organization runs with the help of multidimensional aspects under the strings of leaderships called management.. The impact of globalization, ever increasing competitive environment and technological advances had complicated the already complex organizational challenges. Human resource management came to prominence in order to address this complexity. Before the term “human resource management” the field was generally known as “personnel administration.”Lawre [1999]. A personnel administration was “largely concerned the technical aspects of hiring, evaluating, training, and compensating employees and was very much of "staff"function in most organizations” argues Lawler [1999]. However, it could not address the interconnected complexity of the organization. That is, personal administration was a short-term action with limited scope. Its execution was not spread over the entire continuum of organizational structure. Efforts to address the narrowness of public administration lead us to “human resource management (HRM)”. Beaumont [1993]“Human Resource Management – Key Concepts and Skills” mentions five major differences in public administration and human resource management. HRM and Organizational Success 4 They are [1]. A new two way link that exist between human resource planning and business planning.,[2]. The aspect of personnel concern has been expanded into a work force governance in which the employees participation and work related decision making are allowed are considered important then the earlier practice of unions [3]. The concern of the individual employees regarding job satisfaction was looked upon as organizational climate and this has been replaced by the new concept of organizational culture .[4] The earlier ideas of selection and training of individual employees has given scope for a strong belief that group working could bring effective performance. [5] and finally he argues that the general training resources has been improved to a broadened concept of developing the full capacity of the individual employees. When talking of the culture many management professionals and researchers have pointed out the importance of culture in a nation as well as in a n organization. Triandis supports the argument that culture has a big role to play in determining the characteristics of the entire nation and the organizations well. Triandis1994] argues that “the human made part of the environment. It has both objective elements ---tools, rules, and applications, and subjective elements , categories, associations, beliefs, attributes, norms, rules, and values”[p-111]. As is evident from above the major difference in HRM and personnel administration is of scope. HRM has a far wider scope than that of personnel administration. Due to the reason that HRM is associated closely with ‘strategic planning’ considerations of an organization. The basic ingredients of “personnel administration” including staffing, training and compensation were expanded to fit the thinking module of HRM. Due to HRM’s relation with strategic thinking it was desired that the entire organizational planning for HRM should be continuous and have an ability to manage the changing environments. Those practices, which were thought to be important were thus modified. The aim of the HRM is not only to build human HRM and Organizational Success 5 resource to meet the strategic requirement of an organization but it is also to monitor and bring mandatory changes during the stages of requirements. Thus HRM has been looked upon as required in the fields of employee selection, job planning and the development or improvement of the employee through strategic management of any organization. Employment Pattern: The selection of employee and job planning play a major role in determining the growth and success of an organization. These two process are part of the strategi planning and goal of an organization. The achievement in these goals will not only help in moving towards the strategic goals they will also act as a measuring unit of success towards it. The strategic linkage with HRM has its first impact in the employment pattern of an organization. Therefore, the employment methodology should consider employees for three strands:- 1. The employment should be given focused on achieving the desired strategic goal of an organization. 2. The employment arranged only with the intension to achieve the goal and [3] and the employment given to achieve the goals with the help of strategic planning.. The first strand is more of the domain of what earlier was called “personnel administration” where as the second and third strands are where HRM steps in. Therefore, the human resource made available will have different “quality” to meet the above mentioned three strands of employees. That is, right people at the right time and at the right place. This is easier said than done as it adds complexity in the second element of an organization, which is the designation of jobs and resultant involvement of the employee. Where as employment desires should be focused upon every individual. Triandis [1995] argues that with orientations of individualism and collectivism, the higher the expectation becomes the greater remains the negative aspects of the elderly, where as higher the collectivism greater the chances of positive aspects for the elderly. HRM and Organizational Success 6 Jackson et al [1995] observes that “We use HRM as an umbrella term that encompasses (a) specific human resource practices such as recruitment, selection, and appraisal; (b) formal human resource policies, which direct and partially constrain the development of specific practices; and (c) overarching human resource philosophies, which specify the values that inform an organizations policies and practices. Ideally, these comprise a system that attracts, develops, motivates, and retains employees who ensure the effective functioning and survival of the organization and its members”. So is becomes quiet clear that the strategic planning of an organization depends on the internal as well as external factors. Job Plan and Employee Involvement: It should be understood that “strategic goals” are achieved with the help of “main job(s)” done by performing successfully “part jobs”. These part jobs can be independent or interlinked which eventually lead to the accomplishment of the “main job(s)”. This implies that the first strand of employee has to be employed in “part jobs” where as the second and third strands are more suitably utilized in “main jobs” either directly (as in case of second strand) or progressively (as in case of third strand). To fulfill this requirement jobs are to be planned in a manner that the selected employees not only be utilized in best manner but also are involved in their jobs. Meeting this requirement is quite difficult keeping in view the strands of employee involved. The first strand of employee working in “part jobs” has too narrow and monotonous a scope to apply with same zeal and enthusiasm throughout. The second strand working in “main jobs only” may get engrossed in main job to an extent that they forget the importance and linkage of part jobs. The third strand of employees engaged in “main jobs passing through part jobs” are supposed to be the most involved ones as they rise through the “ladder” of strategic direction. To best utilize these diverse strands of employees the organization has to make a job plan which not HRM and Organizational Success 7 only progressively moves the organization to its strategic goals but also keep the manpower involved in the work, in what ever capacity they work and irrespective of the strand to which they belong. The selection of right people for the right time on right places is where HRM contributes to the benefit of organization. HRM will also monitor the environment and suggest the necessary shifting/ changing of human resource to the benefit of the organization. Longitudinal and Cross Sectional Organization Dimension. All organization has vertical and horizontal interactive elements. That is the vertical relation from top - down, down - top and lateral relation as down - down and top- top . This relation ship does not end here it has a cross sectional dimension (including oblique cross sectional dimension) also. This makes a complex arrangement. We take a simple example to understand this complexity. Let us suppose that to achieve a strategic objective the organization has to do two “main jobs” A and B. These two main jobs can be performed by doing three “part jobs” each i.e. 1,2 and 3 for A and 4,5 and 6 for B. Now the relation ship between A and B with 1,2 , 3 and 4,5 and 6 respectively is termed as longitudinal behavior. The relationship between A and B and 1 with 4, 2 with 5 and 3 with 6 is what we call cross sectional organization behavior. Whereas the relationship between A and any or all of 4,5 and 6 and B with any or all of 1,2 and 3 is what we call as oblique cross sectional dimension. The point is shown schematically in Figure 1(Attached at the end of document). Price [2004] argues that modern organizations allocate different jobs to different people abased on their ability and there depends their strategy. Added to these elements of organization are two additional factors in modern world namely culture and change management. The globalization on one hand opened new vistas for exploration for organizations and on the other hand has brought complex challenges to be addressed in already complex human dimensions of organization. The increase in the reach of organizations world wide has made employees of HRM and Organizational Success 8 different cultures interact which have different priorities of life, work ethics and resultantly proficiency. Therefore, when in a multi national organizations individuals from different cultures interact there are equal chances that either they reinforce their strengths to increase their out put or reduce their efficiency by canceling each other’s positive attributes with the negative ones. The advantage which can be extracted out of this situation is dependent on the handling of diversity in the organization’s human resource and the level at which it is present. There had always been problems when the executive level and the executioner are of different cultural background (or vice versa) and either tries to apply their knowledge across the board. Recently this draw back had been felt and multi national organizations are trying to address the issue. Japanese firms’ experience of working in China is a case in point (Taura, 2005) The Japanese have a society, which is composed of families, or villages therefore individuals belong to their society as per their status in it. They accept their stature in the society as a given fact and try to mend their needs as per society norms. Therefore, when they join a working group or company they tend to take it as a society and work for the overall good of the company. In short there is less focus on individual achievement and too much strain of individual competition has a negative impact on work potential. Chinese have a society in which individual’s relationship form the basis of society. Therefore the self-actualization is stronger a driving force in making decisions as compared to the societal good. This implies that such individuals require more opportunities and personal recognition observes Taura ,[2005] It is evident that the different mental make of the individuals from these societies will lead to different attitude towards work. Chinese workers might prefer to be judged individually and rewarded / recognized in the same manner. Japanese may be averse to such a proposition. In order HRM and Organizational Success 9 to run Japanese organization effectively in Chinese environment there has to be a paradigm shift in HRM. The entire philosophy of basic elements mentioned above has to be tailored according to the human resource available. In order to maximize the use of human resource of Chinese employee Japanese firm should have more individualistic success approach rather than group success approach. For this, wage system favoring achievement – making employees, career development promotion system and recognition system that praises employees are few of the modification in Japanese approach, which has to be made to cater for Chinese environment. Keeping all the diversity of present day organizational structure in view, it is evident that the human resource directed towards achievement of the strategic goals has to be expertly handled to get full dividends. With the present fluid market and competitive environment, it is evident that should not arise a situation in which the organization achieves its strategic objective without incorporating the changes to improve or simply bringing in line with the fluctuating environment. This fact in itself amplifies the HRM concept’s importance. HRM in such case will not only be restricted to selection and realigning of the human resource available. It should have to be closely monitored and implemented with the required changes. If there is any change required in the organization there are some fundamentals which are to be followed. Among them the most essential are accessibility to knowledge about change by all the effected, knowledge of the need for the change, acceptability for the change, resources made available to implement it and discipline in the human resource to implement it. With such a challenging requirement, it is essential that HRM be made effective and prudent enough to address it. With “change management” in mind the HRM has to make an effort for managing human resource in a manner that not only it is competent and fit enough to achieve the objectives but also should be flexible enough to incorporate the changes required. HRM and Organizational Success 10 The human resource manager is therefore required to understand the strategic direction of the organization. He has to make others understand about it so that it can be implemented in true letter in spirit. He has to think through all the stages towards achievement of objectives and likely problems to be faced. Not only this, he has to be continuously monitoring the progress to manage the change at the appropriate time. In short, constantly ensure right people, at right time on the right place. HRM has to be understood with its complete diversity. People might be skeptic about HRM use and its being dealt differently as personnel administration. The above discourse indicates that the world of organizational management has become too complex to be dealt as cursorily as it used to be. The HRM has to become a specialized field. However, the scope of HRM in any company although might be for a long period but may not be required continuously. In the initial stages human resources mangers may be required to select and employ manpower as per the strategic requirement. Later on it is not likely that they will be continuously required till the time there is some change in orientation in the achievement of the objectives. This is the reason that most of the organizations are hiring the human resource managers on required basis. However, the dynamics and fluidity that has been added to the organizational objectives and structure due to the technological developments may compel the organization to make human resource managers as a permanent member of their team. Figure 1: Complexity – Longitudinal and Cross Sectional Organization Dimension References Beaumont.P.B. “Human Resource Management: Key Concepts and Skills” 1993. Sage Publications Thousand Oaks. Begin, James.P. 1997. Dynamic human resource systems: Cross-national comparisons. Berlin: Walter de Gruyter788 Delery, John.E and D.Harold Doty. 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