The Role of Human Resource Management in Implementation of Corporate Policies - Term Paper Example

The effectiveness of Human Resource Management (HRM) is the key to success of any organization. HRM function includes a variety of functions like recruitment and selection, training and development, employee benefits and compensation, performance appraisal and motivation techniques. Policies could also relate to whistle blowing, bullying, smoking, harassment, reward, equal opportunities, employee relations, health, and safety. Most organizations today have a specialist division in charge of formulating and implementing these policies and procedures. Today human resource is considered not merely as another resource but human capital which has to be valued and nurtured. This essay will discuss the difference between HR policies and procedures and evaluate how the structure and culture of an organization affects the HR function within an organization through a comparative study of two different organizations. HR policies and procedures are the strategic link between the companys vision and its day-to-day operations (AME, 2005). Well defined policies and procedures allow employees to understand and fulfill their responsibilities within the predefined limitations. Constant intervention by management is not necessary if the policies are thoughtfully framed and adhered to by the employees. A policy is a course of action, which guides the management and the people towards attainment of corporate goals and objectives. Procedure is the plan of action to implement the policy. Job responsibilities are clearly laid which reduce if not totally eliminate chances of misunderstandings. By following these procedures, managers are in a position to control events in advance and even help avoid costly mistakes. Policies and procedures bring about consistency in daily operational activities. High failure rates, costly overruns, high attrition rates, or increase in the number of accidents are warning signals that policies and procedures need to be reviewed. Policies and procedure enable the management and staff alike to understand the individual and team responsibilities in addition to the limitations. Thus, an organization is a social group where division of function exists with an aim to attain the common goals, and such people also have their own private goals. An organization structure hence depends upon the goals and functions and also on the co-ordination mechanisms that are used to integrate the work of the members (Cordeiro & Filipe, n.d.). According to Mintzberg (1979), every organized human activity gives rise to these two fundamental and opposing requirements: the division of labour into the various tasks to be performed and the co-ordination of these tasks to accomplish the activity (cited by Cordeiro & Filipe). Work can thus be coordinated through mutual adjustment, standardization or direct supervision. Max Weber disagreed with this and described bureaucracy as an ideal organizational structure where the roles are clearly defined and regular activities are set. There is a hierarchical authority structure where policies and procedures are laid down. Its characteristics are impersonal decision-making and formal controls, and have many levels of management. In such organizations, managers provide the direction and have the control. Then there are the flat organizations, which have a decentralized approach and encourage employees’ participation. They can rapidly respond to customers’ needs and changing business environment. Allen (1998) also discusses matrix structures like aerospace firms in which the organization can take advantage of new oppurtunities. There is a dual chain of command usually the Project Manager and the functional manager. This reduces decision-making procedure and time but chances of conflict between production and functional interests become high. Bryan et al., (2006) contend that traditional hierarchical models, which "push" resources to where companies deem them to be needed most, are less efficient in deploying and developing talent. IBM had a bureaucratic structure and was slow to recognize the challenge that smaller companies like Apple posed and who enjoyed a team approach to creative thinking and product development (Fortune, 2000, cited by HRM). IBM’s profitability was adversely affected. IBM reacted by restructuring its organization and decentralized activities. They had to cut labor costs which went against their own policy of lifetime employment. At the same time, they wanted to retain key staff so it produced manpower planning models to isolate the staff it wished to retain and encouraged them to stay. The redundancy program they were forced to adopt was alien to their culture and HR policies. Being a multinational, their strategy had to be revised. Every organization has its own unique culture which is not consciously made but happens unconsciously based on the values of the top management or the founders of an organization (Auxilium, n.d.). Culture portrays the image of the unit and is the sum total of the values, attitude, behavior, and beliefs of the people, which holds the organization together. Charles Handy (1985) has linked the organizational structure to organizational culture (cited by Wikipedia). In Power culture, power radiates from the centre like a web whereas in Role culture, people have clearly delegated authorities within a highly defined structure. These are the companies which have hierarchical bureaucracies. Task culture is something like the matrix structure in an organization while in Person culture survival for the organization becomes difficult. According to Edgar Schein, culture is the most difficult to change in an organization and there are three cognitive levels of organizational culture. An organization may profess certain moral standards but display opposing behavior at the third and deepest level. At the surface, the rewards may imply different from what it is in reality. Newcomers thus have a difficulty in understanding and adapting to the culture. Enron is an example that painted a very different picture of its values in its annual report in 2000 until the truth of its culture of greed was revealed (Expatica, 2005). The HR department plays a major role in implementation of the corporate policies. Recruitment Singapore Airlines (SIA) experienced rapid growth along with challenges in the aviation industry. Increased competition forced them to lower their costs too like IBM but they were determined not to compromise on quality through linked human resource strategies of recruitment and selection. Their selection process is rigorous. Apart from interview, they rely on psychometric tests. They lay emphasis in selecting staff that are likely to fit into the corporate culture (cited by HRM). South West Airlines on the other hand are zealous about their recruitment process. They look for a particular type of person, regardless of which job category it is. They look for people with positive attitudes and for people who can lend themselves to causes. They look for qualities like sense of humor and who cherish team spirit. According to them, this helps them to mould the people in the culture that organization wants (Auxillium). Motivation and communication Southwest airlines believe in motivation and communication in a variety of ways. They believe that the way you appear and the way you behave is a form of communication. They believe that every employee should be made to feel wanted and that the company is interested in each one of them. Communication is a stronghold of the Singapore Airlines as well. The staff record is meticulously maintained. They are aware of the strengths and the weaknesses of the staff. They believe in good communication. The staff is regularly informed of the latest developments. Regular staff meetings are held. Any new service that is added is informed to all the people and they are made aware of its importance and value. Non-financial rewards are given to encourage good service. Newsletters are the medium to share and recognize good service. Recognition serves as a great motivation and they even give a special badge to those staff who has received maximum compliments from the passengers (Wirtz & Johnston, 2003). Training and Development Training is central to SIA’s goal of continuous improvement, believes SIA (Wirtz & Johnston). Singapore Airlines believes that training is essential and it is for everybody. They use the best software and hardware that money can buy. They take a long-term view of the training of people and their investment in staff development is not affected by the vagaries of the economy. Nobody is too young or too old to be trained. SIA believes that people make a difference so they have a very comprehensive and holistic approach to human resources. IBM, being a multinational recruits locally and spends a lot on training and development. It deploys the best talent and the most suitable resources. IBM feels that a work/life balance is vital to attract and retain the right talent. Culture of the financially successful organizations value and reward risk-taking. Employees are encouraged to experiment and try out new approaches. Management listens to new ideas. Innovation and creativity are valued, rewarded and recognized. They have established a cultural norm that supports employees for continually challenging outmoded or inefficient systems, procedures and assumptions. Established ways of doing things are constantly reassessed. Inefficient processes are re-engineered. Communication and recognition of accomplishments are central to success. Dismissals, grievances, ethnic minority employment, sexual harassment, ACAS Arbitration scheme, equal pay and compensation are all under the Statutory instruments. The Employment Legislation is the fastest changing area of the HR today. The role of the HRD in any organization is of utmost importance and the role varies between companies. Ultimately, the organization structure and the culture shape the function of the human resources department even though they have to abide by the codes of practice. References: Allen G (1998), Organizing Process, 29 May 2006 AME Info (2005), Why are policies & procedures so important?, 29 May 2006 Auxillium West, Corporate Culture, 30 May 2006 Bryan et al., (2006), Making a market in talent, The McKinsey Quarterly, 30 May 2006 Cordeiro J AM & Filipe J (n.d.), Application of the Theory of Organized Activity to the Coordination of Social Information Systems, 29 May 2006 Expatica (2005), Accept the truth about company culture, 30 May 2006 HRM, What is HRM?, 29 May 2006 Wikipedia, Organizational Culture, 30 May 2006 Wirtz J & Johnston R (2003), Singapore Airlines: what it takes to sustain service excellence – a senior management perspective, Managing Service Quality, Volume 13 Number 1 2003 pp. 10-19 Read More