Development in the Management of Human Resources - Assignment Example

Development in the Management of Human Resources Human resources management is one of the most challenging areas for managers to deal with. Business climate has turned recently due to increased price competitiveness, changes in employment methods, technology as well as changes in workforce. These changes tend to challenge managers thus making them utilize staff members more effectively so as to gain competitive advantage (Arthur 1994, p. 670). There has been significant practical growth with both private and public sector organizations in implementing HRM initiatives besides downsizing and reengineering. According to Barney (1991, p. 99) HRM is termed as a logical and strategic approach used in managing organizational resources. These include employees who collectively contribute to achieving business objectives. It deals with employing people, utilizing, developing capabilities as well as compensating their services in relation to the organizational requirements. The need to produce work based on knowledge and acknowledging that workers are key to a maintaining competitive advantage has improved new HRM initiatives. This study tries to analyse the major problems facing the Play Smart Toy Company and there after examines HRM policies and practices to be employed by the company to increase its productivity and growth. In reference to the above case study there are various human resources problems identified. Ken Williams with the help of a small management team decided to develop a line of specialty toys that made a big impact in the market. The company grew in production and gained a big market share in Melbourne, Sydney, and Canberra and later into the Chinese market. As demand increased the company employed more staff and the business went from a small operation to a much larger concern by employing a lasting production staff. Despite healthy sales figures profits in 2007 and first part of 2008 dropped significantly. The then accountant explained to Williams that this fall had been brought about by the increase in costs, for example the rising labor costs. Apart from increase in costs, there were other issues of concern. First was the efficiency problem with the production staff. It had been discovered that the staff were just moving about and not doing their duties as per the rules and when the demand was high most of them were stressed and this led to a decrease in production. Second, the company was having problems with staff retention. Key product design personnel had left together with IT specialists who had been there for 6 months. These changes affected the company since skilled manpower had left as they were the ones to change design and influence a larger output. The company could have concentrated in retaining work force for they already had enough experience (Geringer and Louis 1991, p. 249). Third was the increase in workplace accidents. This was mainly caused by workers failing to take maximum care around the machinery. The increasing cohort of workers from ethnic backgrounds felt uncomfortable with the way the existing workers related with them. This shows a poor relationship among the staff members. According to John the consultant, the major problem facing the company was the quick growth of the company. It is clear that the company’s growth accelerated every 6 months and thus the HRM approach could not cope with the pace. In reference to work force planning, the company had not anticipated peak demand periods. The other problem was changing the workforce for a short period like five years. The employees were also from diverse ethnic backgrounds which hinders good relationships with one another. It would have been advisable to recruit employees by not concentrating much on their backgrounds as this hinders development. There was discontent within the skilled workforce whereby they felt as if they did not receive enough professional development. This involves good rewards for their good performance. They would have wanted to be promoted but instead all the senior positions were taken up by the existing management group. This skilled workers lacked motivation as they could not see a career path for themselves in that organization (Guest 1990). There was a problem of employing married couple in the same who worked in the same level of production. Jill being the manager’s wife was not managing the personnel issues but Ken had denied that fact even after being consulted by John the consultant. To avoid low productivities it would have been advisable for the founder to correct his wife against her management and not support her. This should be through training the manager about the necessary skills needed to manage her position. To ensure strategic competitive advantage various models have to be employed. The first one is the Fombrun, Tichy and Devanna model. This model emphasizes on the consistency of HRM activities and their interrelationships. Legge (1995) describes that this cycle has four components which include; assessment, selection, growth and rewards. These four steps aim at increasing performance. However, the model has a weakness in that it tends to ignore stakeholder’s welfare, situational factors as well as the concept of management’s strategic choice. The other model use in analyzing HRM activities is the Harvard model. This consists of six main rudiments which include; stakeholders’ interests, HRM policy choices, HR outcomes, long term consequences, situational factors and finally a feedback sphere that shows how output flow in the organization. John and Jeffrey (1999) describe that to achieve employee commitment, quality and flexibility, HRM activities have to be critically planned. HRM policies main concern is to have a good selection and training. The issue here is the approach used to conduct the selection process. There have been contradictions about the difference between the cultural practices used in an organization and the formation of trade unions. It is argued however that the Marxist culture brings about issues to managers though it helps much in strategic development. Guest theory however plans out HRM field by classifying inputs and outputs. Schuler and MacMillan (1983, p. 45) describes that theory concentrates on strategic integration, flexibility, commitment and quality. However, this model defines HRM as a managerial style and therefore unrealistic. The Warwick model of HRM originates from the heart of business strategy. It analyses HRM using five elements such as outer context, inner context, HRM context and content and finally business strategy content. Important environmental influences are recognized and categorized. The model also shows how these contents are modified in terms of HRM (Nohria 1994). It however implies that configuring the external and internal contexts will brings about greater performance. The limitation of this model is that internal HRM activities are concurrent to business output and so therefore don’t attain their goals on performance. The Storey model of HRM assumes a unitary frame of reference. According to Schuler (1984) HRM is termed as an approach that helps to manage the relationship within employees. It contains policies and practices intended to make workers to commit themselves in order to improve the accepted performance in their organization. HRM contains paradoxes and ambiguity in several levels. One is that ambiguity exists over the authority of HR practitioner’s. The other area is related to the HR responsibility according to its nature and focus. Practitioners are considered staffs and not line employees (Peters and Waterman 1982). However, organizations faced with economic uncertainty, competing priorities, risky strategies as well as managerial complexities, managers are often hopeful skeptics in matters regarding embracement of a strategic HRM. There are several cultural biases that confound the view of HRM. To begin with is the traditional theory that views productivity as a method that brings about inconsistency in the social world. Managers should therefore balance results against human needs. HRM is just seen as an overvalued account of traditional management of workers. This means that our culture pays much attention its staff members and this inspires HRM position (Dyer and Todd 1995). It is therefore difficult to explain the wider and deeper social-economic, demographic and worldwide changes in today’s society which is a major challenge to the organization. HRM assumes a strategic role by strengthening its activities to sustain the business values and missions of a particular business. Basing on the above theories, some strategic HRM practices have been identified that will improve the organization in this case Play Smart Toys Company. First is to engage in selective hiring. Most managers contend that they have engaged selective hiring for example by hiring a person perceived to be the best. Human resources represent a group of competent workers who contribute driving a firm above its competitors. In order to attain this stage, an organization ought to employ strategic HRM planning for it to achieve its future targets and competencies. They should also extend inventive tactics when it comes to recruiting staff members. This will enable them to get the best talent needed for that particular role for example in the above case study; the manager’s wife did not have the best qualities for that job. HRM should also ensure that they perform a complete selection process such as use of assessment tests, and analyzing the background of the job seeker. They should use a cultural captivation process meant to incorporate a new staff into the business. Second, to achieve competitive strategy managers should foster employment security. Lack of this depreciates performance and promotes turnover in the business. This should be committed mostly to the core employees and install systems that cover regular feedback on the performance of the staff members for example letting the staff know their stability makes them employ safety. It also requires a social contract within business limit. In this case the above company should have carried out a performance appraisal analysis so that they may determine who the best is and who is lagging the company behind this could have avoided the efficiency problems with the staff. Third is to build and empower teams. The consistent efforts to create and empower teams help the staff to make innovative decisions and drives strong results. This is example by forming trade unions and encouraging staff members to join these unions for them to be socially fit. This enhances comfort as workers from ethnic backgrounds will interfere with the existing staff members. This will also solve harassment cases since workers have freedom of discussing issues that they face in their working environments (Youndt et al. 1996, p. 838). Forth is to provide extensive development and training to the staff. Managers seem to be skeptical about the need for training. Organizations must expand employee training meant to develop their skills and also manage programs to reinforce the competencies of its human resources. Furthermore, managers gauge results and come up with necessary amendments to ensure better output. Training is necessary to all staff members to as it enhances performance at greatest capacity and in an extremely satisfying mode. Managers must make sure they disclose relevant information to the staff members. These include information about the key strategic and financial issues for them to be clearly addressed. This is where employees always expect feedback about their performance more often rather than once a year. Supportive cultures should also be created as a strategy in improving competition. This means being sensitive in matters pertaining culture in reference to the social standard and practices which ease good outcome. They should scrutinize work cultures and intervene to changes factors thus strengthening facilitators of good performance. Managers should try to reduce differences in status in the business environment. Striving to reduce the social and political differences improves performance as they hinder individual presentation and teamwork. Compensation systems should be designed to reward desired performances thus allowing a significant part of compensation and competition among employees. This design is prejudiced by a variety of thoughts thus addressing inequality issues. In the above case for example we find that there were no these systems and this uninspired skilled workforce as their acts were not recognized. It is therefore necessary to set plans to help workers develop after the appraisal. Managers should be trained on how to conduct a performance appraisal process. They should set ways of addressing poor performances as well as resolving problems that result to this performance (John and Jeffrey 1999). It is necessary to promote health and safety for all the staff members. This should be a priority especially organizations that mostly deal with machinery. According to Storey (1992) the climate in which staff members are encouraged to maintain their individual health is paramount. They should also be encouraged to supervise their work-related safety at risky work environments. Managers should therefore set up promotion programs relating to health for it to support this culture. In Play smart toys company, we find that the employees failed to observe safety and this resulted to most injuries happening. Management should make rules against those employees who fail to observe them. HRM strategy should be integrated because it is viewed as a strategic collaborator that contributes to desired results. To insure overall success, each of the above part has to be properly planned and implemented in relation to each other. This will entail the use of various effective methods and strategies that are modified to fit the strategic objectives of the organization. One is by use of innovative human dynamics. Theoretically, management of human resources does not differ much from the management of other resources within the organization. The nature of resources brings about the difference in this case, people. Human behaviour is influences by many factors either from another individual or the work environment. According to a behaviour theorists, the behaviour and the performance of employees functions using various variables; motivation, ability, role sensitivity and situational possibilities. The rest highlight the nature of employment relations and its underlying problems. Human resource is different from other resources simply because every person has a varying level of ability such as attitudes, knowledge and skills (Guest 1990, 319). They are capable of evaluating and questioning management conduct and their commitment if cooperation is to be achieved. To defend their economic interests, employees are encouraged to form trade unions and groups. Activities that HRM managers engage in vary from one work environment and are influenced by factors such as the size and structure of the organization. It is advisable for larger organizations to employ one HRM or personnel specialist and HRM activities are divided among some managers example one manager performs selection and recruitment process, the other one is put in training and development department and finally the administration of a collective agreement is performed by one particular manager. A company that tries to change its manufacturing strategies for example by introducing self managed teams always has different recruitment and selection priorities to companies that use traditional assembly line production by employing unskilled operators. To Change the job design, formal training and learning is required (Porter 1980). If a company decides to combine tasks and install employee autonomy, then a reward system will have to be considered for it to hearten cooperation and devotion among employees (Steven 2008). Human resource policies are generally designed to match individuals to responsibilities within the organization, it also motivate workers and deals with conflicts and pressure at work. HRM practices aim at achieving two objectives one to perk up the performance of employees and the second one enhances effectiveness in the organization. To welcome the total implication of HRM practices, it is necessary to distinguish that HRM functions is in two levels one is the recruiting of employees, motivating them and developing them to become competent (Ferner 1997, p. 19). This selection stage aims at supplying workers with the right knowledge, skills and abilities. They motivate workforce by offering them with a satisfactory disburse, remuneration and good working environment. To develop better individuals, HRM professionals make sure that they posses the knowledge and skills needed to make their work successful. Within the organization, conflict between workers is inevitable and can enhance performance. Conflicts are in two types; functional and dysfunctional. The first one supports goals of the work group thus improving its performance. The other grouping is of organized conflict and unorganized (Armstrong 2006). When employees engage in a planned action for example a strike meant to change the source of discontent, it is termed as organized conflict. However, where employees tend to respond to discontent by absenteeism or individual acts of sabotage then this is referred to as unorganized conflict. Studies show that managers spend 20 percent of every working day solving conflicts among employees. According to Andre (2006, p. 97) HRM specialists have involved themselves in intervention activities meant to alter the level and forms of conflicts that inevitably arise in work s. It is therefore HRM role to ensure that conflict does not hinder work performance. Strategic human management model begins with senior manager. This is where they evaluate their position in relation to organizations mission and goals (Beer and Lawrence 1984). The mission describes values and aspirations and indicates the direction in which the business is following. A state that is looked-for and one that an organization tries to realize is known as a goal. Skinner (1981) shows that when analyzing the environment, we look at the internal and external influences affecting g the business. These include the strength, weaknesses, threats and opportunities. Other strategies are devised at the business and specific practical level especially HRM and marketing. At this practical stage, HRM strategy is executed to aid the business in attaining strategic goals. In conclusion, HR strategy is a pattern that materializes from a stream of significant decisions regarding the management of human resources these include those decisions that show major goals and the methods used to pursue them. HRM strategy is correlated to business strategy in terms of proactive- reactive continuum. The proactive model shows a decreasing and increasing pressure on the strategy while the reactive one sees HRM function as fully submissive to the business-level strategy. This is one that determines policies and practices of human resources. These policies are designed to sustain the competitive strategy chosen for that particular business. The use of strategic HRM is troubled by the challenge of harmonizing philosophy, programs, policies, practices and process. These five P’s motivate and reinforce different employee behaviors for an appropriate competitive strategy. For example in the case above about Play Smart Toys, competitive strategy can be achieved if the managers practices strategic HRM. This will be by setting objectives to be achieved such as reducing labor costs, increase in productivity as well as providing good working conditions for their employees. HRM managers should also be trained for them to conduct performance appraisal and be capable of solving organizational conflicts. To deal with the external influences like the 2009 international economic situation, the company ought to downsize its redundant workers until the economic conditions improved. References Andre, L 2006, Human resource management, vol. 25, issue, 1, Wiley periodicals, pp. 91-102. Armstrong, M 2006, A handbook of human resource management practice, 10th ed. London: Kogan Page. Arthur, J 1994, Effects of human resource systems on manufacturing performance and turnover, Academic Journal, vol. 37, pp. 670-687. 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