Finding and Managing a Diverse Workforce Plays - Essay Example

STRATEGIC HUMAN RESOURCE MANAGEMENT goes here] [Your goes here] [Due the paper] Strategic Human Resource Management Introduction Before going to discuss the need of alignment between human resource practices and the firm’s strategic goals and objectives, let us get a better understanding of what strategic human resource management actually is. Strategic human resource management means to carry out HR functions and operations in such a way that they serve the strategic goals of the company. For example, recruitment and selection is one of the main functions of the human resource department of a company. Now in the context of strategic human resource management, the manager of the department needs to align the recruitment and selection with the corporate strategy of the company in order to improve organizational performance, as well as to bring HR practices closer to some particular strategic goals. In today’s world of competition, companies are trying to match their corporate strategies and HR practices through creating strategy-oriented human resource plans, focusing on the skills and knowledge of employees, and establishing employment policies for employees who can work beyond their area of expertise (Sparrow & Pettigrew 1988, p. 25). Strategic human resource management requires planning and carrying out about HR functions in such a way that they meet the needs of the employees, as well as serve the business targets and goals through improved employee performances. Some of the main advantages of strategic human resource management include selective and strategy-oriented recruitment of employees, improved organizational performance, improved efficiency, and formation of a dynamic work environment. With all these benefits, it seems that strategic human resource management is the key to a company’s success in a competitive market. In this paper, we will discuss the main functions of strategic human resource management to determine the benefits of aligning HR functions with the corporate strategies and objectives. 2. Main Functions of Strategic Human Resource Management Strategic human resource management serves many strategic goals of a company (Boxall & Purcell 2011). Some of the main functions of strategic human resource management include aligning recruitment process with corporate objectives, employee training and development in accordance with corporate goals, employee safety and health, increasing employee motivation, and meeting employee needs to make them serve company’s goals with full commitment and dedication. Let us discuss all of these functions in detail in order to know the significance of aligning these practices with strategic goals of a company. 2.1 Aligning Recruitment Process with Corporate Objectives HR professionals need to align employee selection process with the overall strategy of the company in order to build a competitive workforce. Employee selection is one of the main HR functions that are indispensable to keep a company moving ahead. It is the job of the HR department to recruit such people, who can prove themselves productive for the company. A skilled employee is a key to the success of a company. Therefore, HR department looks for such people who can ensure high levels of profits and productivity for the company through their performances. In today’s competitive world, finding and managing a diverse workforce plays a critical role in the success of a company (Rance 2004). Human resource department deals with selecting and training talented people for the company. Skilled employees are the most valuable assets of a company because they are capable of making their company able to perform in the world of competition. “Organisations need to ensure that they use all possible sources of competitive advantage, and one of the most important sources of competitive advantage is employees” (Fastenau 2008, p. 724). The functions of the human resource department include all those activities that are related to the management of people working for the organization. Employee management is a process that starts when an employee is selected and ends when the employee ends his/her contract with the company. Some of the main HR functions regarding employee management include employee recruitment, employee selection, employee training, resolving conflicts between employees, taking care of their concerns, development of performance appraisal systems, analysis of employees’ performance and productivity, and employee development. One point that needs to be emphasized here is that recruitment and selection processes are two different things. Recruitment is that HR function in which a company identifies vacant jobs and publishes their ads in the newspapers to appoint suitable employees on those positions. Now to align this process with the corporate strategy, the company also specifies the set of required skills and qualifications in the advertisements in order to select such people who can perform best at the vacant positions. In the employee selection process, a company conducts the interviews of some selected people and takes required tests to select the most suitable employees for the vacant positions. The key to successful employee selection process is the ability of HR managers to place the right person on the right job position. Proper employee selection acts as the foundation for the success of the company as all employees work hard to achieve the required set of goals and objectives. A little amount of negligence shown in this process puts an adverse impact on the performance of the company. Therefore, it is necessary to align this process with the corporate goals and business strategy. Hiring a low profile or an inexperienced employee for a key position is just like adding an expense to the company because such employees are not capable of showing required level of performance for the company. Hence, it is imperative for the HR professionals to consider corporate goals while hiring employees. 2.2 Employee Training and Development Employee training is another HR function which can be aligned with the corporate goals of the company. Employee training is very critical for the growth and development of a company. Training helps employees become accustomed to the nature of their jobs. It also helps them grows in the competitive environment where companies like to hire such employees who can drive the companies to the heights of success through their skills and knowledge. The better the training of the employees better will be the performance of employees, as well as of the organization. Procknow (2010, p. 1) states, “Employee training is the attempt at improving the employees performance, to result in overall increased organizational performance”. Goals oriented training makes employees able to handle all types of challenges effectively using their skills and experience. In many organizations, the HR department considers training as the most effective solution to the issue of below average job performance. Employee training has a number of benefits. In the customer services department, one of the main benefits of employee training is that it makes employees able to retain customers through providing them with high quality services. Moreover, it also helps in the formation of a competent, passionate and motivated team of professionals which can improve the competitive position of the company. Employee training plays a major role in ensuring long-term profitability of a company. Therefore, HR professionals put their efforts in investing in employee training and development programs not only to improve their individual performances but also to increase organizational productivity. However, a point of fact is that training sessions should not be only for new employees. They should also be arranged for current employees of the company in order to adjust successfully to the rapidly changing business environment. Here, we should also say that employee training and development is also essential in order to create a pool of proper replacements for the employees who either leave the company or move up to some higher rank within the company, hence leaving their positions available for others. Benefits of Human Resource Development Developing people plays a valuable role in improving employee performance which consequently results in improving the overall performance of the organization (Honey 1995). Some of the significant benefits of human resource development include increased employees’ efficiency, increased organizational productivity, eradication of backwardness, boosted economic development of the country, improved level of entrepreneurship, and success in the achievement of corporate goals and objectives. 2.2.1 Increased Productivity If we talk about the benefits of employee training and development, we can say that increased productivity is one of the main benefits. Better training, job related education, and increased motivation of employees are such factors that helps employees in making an efficient use of the available resources and increases their level of productivity as well. The companies, which consider human resource development to be one of the main success factors, are able to manage competition effectively. It is a fact that when employees are trained and skilled, their level of productivity increases as they make use of their skills and abilities to achieve targeted goals and objectives. 2.2.2 Increased Employees’ Efficiency Another benefit of employee training and development is improved employee efficiency. The performance of employees increases when their company identifies their weaknesses at the earliest phases of their jobs and provides required training and education to them to make them able to serve the company. One of the main activities that HR professionals perform to improve employees’ efficiency is the provision of a safe and healthy work atmosphere to employees. Moreover, HR professionals should also supervise and observe the performances of employees during the initial period of their jobs to decrease the period of job adjustment for employees. The reason is that when employees are provided with training at the earliest phase of their job life, they become productive for the company, as well as reduce the need and cost of post job training. 2.3 Employee Motivation HR professionals also need to increase employee motivation in order to make them achieve corporate goals and objectives. The reason is that motivation is the key to improved employee performance. A highly motivated employee usually shows better job performance as compared to other employees. Therefore, it is very important for HR professionals to increase employee motivation. Motivation injects passion in employees which drives them to show improved job performances. To align employees’ performances with corporate objectives and strategies, it is imperative to develop such a workforce which should be able to use relevant skills and knowledge in carrying out the job activities. When employees are motivated, they show more commitment and dedication to their tasks and responsibilities, which also results in increasing their overall organizational performance (Cruz, Pérez & Cantero 2009). Some of the main benefits that a company can get when managers align their job functions with corporate goals and objectives include improved employee commitment, resource integration, proper organizational development, and improvement in business processes. All of these benefits associated directly with the level of motivation that employees of a company have. Employee motivation is the combination of level of efforts they exert, direction of employees’ job related behaviors, and employees’ level of determination. Companies are at risk of facing many setbacks with a lower level of employee motivation. Some of those risks include poor employee performance, decreased company’s profits and income, lack of employee commitment, decrease in employee productivity, poor customer service, and increased employee absenteeism. HR professionals can use a number of ways to increase employee motivation. Appreciating employees on showing good performances is one of those ways. Employees’ level of motivation usually increases when their managers appreciate their efforts. Recognizing employees’ efforts injects value and admiration in the minds of the employees because when a manager praises the efforts of an employee, he/she feels valued and their level of motivation increases (Rantz, Scott, Porter 1996). Listening to employees is another method that managers can use to increase employee motivation. To align employees’ efforts with corporate goals and objectives, managers should listen to the concerns of employees, such as, workplace safety and employee benefits concerns. Using this way, managers can make employees feel valued and respected which consequently results in improved job performances. Employees need a supportive and safe work environment to use their skills in an appropriate manner. Therefore, it is the job of the managers to create such workplace environment for employees which should promote creativity and a supportive work relationship between managers and employees (Cunningham & Eberle 1990). Moreover, there should be no bullying or any sort of threat to employee at the workplace because it affects employee productivity (Fisher 2010). The level of employee motivation is related directly with the level of satisfaction employees feel in doing their jobs. Therefore, increasing employee satisfaction results in increasing employee motivation. Another useful way to increase employee motivation is to provide employees with job related benefits and benefits. Some of the facilities and benefits that can prove useful for the cause of increasing employee motivation include free health insurance, house rent, conveyance facility, paid leaves, car allowance, and gym facility. Although all of these benefits are useful for increasing employee motivation, but their provision must be associated with some particular standard of performance. 2.4 Employee Compensation Organizational strategy is mainly concerned with the future aspects of the business, increasing the customer satisfaction, increasing the productivity through a well trained and efficient workforce, and achieving market domination in a competitive market. All of these strategic goals are associated directly with the efforts of employees which can be improved through incorporating their needs in the overall strategic planning. HR professionals can meet the needs of employees through developing a compensation plan in which there should be different rewards for different achievements. A compensation plan is a set of those rewards and bonuses that a company provides to its employees on the achievement of some particular targets (George, Brief & Webster 1991). A well-structured compensation plan is one of the main factors that increase employee productivity. The success of any company depends on the formulation of well-structured plans, as well as on continuous evaluation of plans in accordance with the corporate goals (Caruth & Handlogten 1997, p. 298). Employees like to work for a company which recognizes their efforts by providing them with cash and non-cash rewards. Compensation plans also help in recruiting and retaining skilled employees. According to Keimig (2008, p. 1) asserts, “Generous benefit packages (especially those with an emphasis on health insurance and retirement savings) tend to attract employees who are looking for long-term, stable positions”. Another ground for implementing a compensation plan is to thrive in today’s competitive environment. In the world of competition, only those companies succeed which maintain a workforce of skilled and experienced individuals and that is only possible when employee are provided with a safe and rewarding work environment. However, managers need to align the development of the compensation plan with corporate goals and objectives in order to minimize costs and increase employee productivity. Moreover, some other factors that managers should consider include the type of the compensation plan, conditions for the implementation of the plan, performance evaluation method, and practicalities of the plan. Along with increasing employee productivity, compensation plans also bring a number of other benefits for companies. Some of those benefits include increased employee moral, internal and external equity, reduced employee turnover, increased employee loyalty, improved hiring processes, and improved employee satisfaction level. 3. Conclusion Strategic human resource management means to perform HR practices in such a way that they serve the strategic goals of the company. Some of the main benefits of strategic human resource management include improved organizational performance, selective and strategy-oriented recruitment of employees, improved efficiency, and formation of a dynamic work environment. All of these benefits are imperative for the success of a company. Some of the main functions of strategic human resource management that HR professionals align with their companies’ corporate strategies include employee selection and recruitment process, employee training and development in accordance with corporate goals, employee safety and health, increasing employee motivation, and formation of employee benefit plan. Strategic human resource management is considered to be one of the main elements of a company’s success in a competitive market because it aligns all human resources practices with the corporate strategy of the company. The focus of strategic human resource management is to do proactive management of people, which results in improved employee-managers relationships, improved productivity, and improved business efficiency. Bibliography Boxall, P & Purcell, J 2011, Strategy and Human Resource Management, 3rd edn, Palgrave Macmillan, UK. 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