Human Resources Management Challenge That Affects Organisations Effectiveness - Coursework Example

Organisation Effectiveness Name Institution Course Date Organisation Effectiveness Introduction Organisations are striving to enhance competitive advantage by development of leadership and employees, acquiring a larger market, more customers and more revenue among others (Ericksen and Dyer, 2005). As a result of globalization, technological advancement and other issues, competition has increased in the business environment which makes it hard for a business to acquire organisational effectiveness. The realization of organisational effectiveness is achieved through the implementation of effective human resource management in the workplace. Human resource management when used as the key success factor will bring about effective organisational performance. Human resources are among the most fundamental sources of organisation effectiveness. Organisation effectiveness is a concept that explains how effective a business is in attaining the predetermined goals and objectives (Ericksen and Dyer, 2005). Organisation effectiveness entails elements such as organisation structure, talent management as well as leadership development. For an organisation to be effective, it must ensure that these three elements are operational in the business. This assessment will identify a major HRM challenge that affects organisation’s effectiveness. It will also discuss how change, conflict as well as corporate culture impact the HRM challenge and how the issue is managed. Some recommendations will be made in order to solve the problem issue. Element 1 HRM problem Affecting Organisational Effectiveness The assumption underpinning human resource management practices is that the success of human resource management to bring about higher performance and productivity depends on organisations (Bolden-Barrett, 2015). When appropriate and effective human resource policies and practices are implemented properly, then human resource will have a positive impact on organisation’s effectiveness. Human resource management practices that can potentially influence behaviour and attitudes of employees can positively impact performance of an organisation. One of the major Human Resource Management challenge affecting organisation’s effectiveness is talent management (Bolden-Barrett, 2015). Talent management practices should be modified so as to suit specific conditions and circumstances. Talent management may be in form of retaining and motivating employees and winning the war for talent. Retaining and Engaging a Diverse Workforce As the demographic configuration of a given workforce changes, motivation as well as expectations also changes. Human Resource understands fully what is valued by employees. Human Resource also is required to acclimatize their incentives and benefits policies among others since not all workers are motivated by financial compensation. Hiring able employees is just not enough (Bolden-Barrett, 2015). Organizations are expected to ensure that their employees are well motivated and are productive which tend to incur additional costs especially in multinational corporations. This is not an easy undertaking. In a global setting, companies are faced with the challenge of retaining and motivating a diverse workforce found in different areas of the world (Bolden-Barrett, 2015). A wide range of the workforce especially in multinational organizations is not fully engaged in their tasks due to the size and complexity of these companies. Lack of motivation of employees may lead to poor performance and productivity (Bolden-Barrett, 2015)y. In order to retain employees, Human Resource in any company is expected to unify their functions which include recruitment, hiring, retrenchment and compensation policies. Research suggests that organizations with disconnected Human Resource functions can potentially fail as a result of lower retention rate and motivation of employees. Therefore, disconnection of Human Resource function in a multinational company can be the cause of retention challenge across an employee community (Bolden-Barrett, 2015). Motivating Employees Motivating employees has proven to be a HRM challenge in many organisations. Managers are faced with a problem of coming up with a way of ensuring their employees are committed to achieving organisational goals. According to Maslow theory, humans are motivated to gratify five elementary needs (Fredrick, Bernard and Barbara, 2011). These needs are organized in a systematic order. Maslow suggests that humans ought to seek the lowest level of needs first before satisfying the high level needs. The hierarchy of needs according to Maslow’s theory is as follows; Psychological needs, security needs, belongingness, esteem needs and self-actualization. In a work setting, employees begin emphasizing on lower needs such as psychological needs (Fredrick, Bernard and Barbara, 2011). These are needs which humans require in order to survive such as shelter and clothing. This comes in terms of adequate wages as well as a stable income. Managers can attend to the psychological needs of their employees by offering a comfortable working environment (Fredrick, Bernard and Barbara, 2011). Once the employee’s basic needs have been adequately met, they will want their “belongingness” needs met. They are also known as social needs. This level of social connections is fundamental in humans because they show a certain level of acceptance into their social environment. Therefore, employees are not only motivated by financial incentives but there is need for other needs to be satisfied in order to solve the retention problem (Fredrick, Bernard and Barbara, 2011). Therefore, finding ways to engage and motivate workforce is a challenge to Human Resource Managers. Winning the War for Talent The huge number of companies and skills and expertise shortage may increase the complexity of a given labor market and may make it very hard for companies to attract and win potential employees (Bolden-Barrett, 2015). Governments are in a dilemma of the importing the required skills for the betterment of the economy and in curbing labour shortage. In the regions where strict immigrant laws are in existence, Human Resources tend to have limited amount of the talent pool in which they can employee. This can make it hard to hire the right people with right skills and expertise (Bolden-Barrett, 2015). On the other hand in regions with freer immigration laws and regulations, Human Resources is required to define their hiring techniques and strategies in order to tap the right workforce in a larger workforce pool available. Causes of the problem The challenge of talent management is caused by a number of reasons. One cause of talent management challenge is communication problems. There may be poor communication between the managers and employees which may result to motivation and retention problems (Bolden-Barrett, 2015). Open communication is the key to ensuring that there is effective management of employees in the organisation. Another cause of this problem is poor talent management practices involving recruiting and selection processes. The use of poor selection and recruitment processes may deter companies from employing skilled employees who fit well in the vacant hiring position. Diversity of the workforce makes it difficult to effectively manage the employees (Bolden-Barrett, 2015). Different people have different expectations and are motivated differently. Finding a unified way of motivating employees, attracting skilled employees and retaining them is very difficult. This result to talent management challenges. Another cause of talent management challenge is lack of financial resources. In order to be able to effectively manage workforce, there is need for financial resources (Bolden-Barrett, 2015). For instance, motivation of employees does not come easy. Training and development of employees, offering incentives and generally satisfying the needs of the employees requires a large amount of resources. This is probably the root cause of talent management challenge in many organisations (Bolden-Barrett, 2015). Poor leadership also contribute to talent management failure. Effective leaders are very essential to the success of any business organisation. A leader aspires for productivity and change in employees towards a desired objectives and goals. Poor leadership in the part of human resource managers may lead to poor talent management which may affect organisation’s effectiveness. Element 2 How Corporate Culture Affects HRM Problem Culture within an organization is considered similar to personality and it comprises of values, beliefs, interests, upbringing, habits as well as experiences and underlying assumptions (Bezrukova et al., 2012). Corporate culture is the conduct that leads from a group working together under a certain set of rules. Corporate culture assist employees get familiar with the operations and practices of the organisation. Effective understanding of corporate culture can contribute towards improvement of employees’ performance. It is very essential for organisations to identify the value, objectives and norms of the organisation in order to boost their competitive advantage. The fundamental challenge facing organisations today is the nurturing of organisational cultures that encourage organisation’s effectiveness (Bezrukova et al., 2012). Corporate culture can be defined as the arrangement of several qualities that represents an organisation and differentiate it from other organisations (Bezrukova et al., 2012). Corporate culture helps to explain how the management and the entire employees behave and make decisions. It is founded upon multifaceted set of norms, values and beliefs that regulate the way organisations conduct its operations. Corporate culture has an impact on Talent management. It influences productivity and performance. According to Bezrukova et al. (2012), performance represents the ability to accomplish mission effectively and efficiently by use of the available resources. It is reported that there is a relationship between organisational performance and organisational culture (Bezrukova et al., 2012). It is reported that organisational culture brings about enhanced performance which is depended on the fact that culture plays an important role in boosting talent management. Strong organisational culture has the ability to ensure talent is managed effectively and this enhances the productivity and performance of the employees (Bezrukova et al., 2012). It has the capabilities of enhancing self-confidence and commitment, improves employee ethical behaviour and reduces stress. Generally, strong and weak organisational culture affects talent management. Strong organisational culture has the ability to attract high level of talent and ensure that employees are motivated (Bezrukova et al., 2012). People with high level of skills and expertise often want to go to organisations that give a number of opportunities to advance and exploit their talent. Strong organisational culture creates a positive working environment that supports enhancement of career and exploit talent (Bezrukova et al., 2012). This tends to attract and retain the best talent available. Organisational culture also creates energy and momentum for work. When an effective organisational culture is developed, it gains momentum and assist people to feel values and important. A solid stated organisational culture enables employees to love their jobs and put efforts in accomplishing goals and objectives. This raises employee morale and commitment (Bezrukova et al., 2012). Nevertheless, weak organisational culture negatively affects talent management. With poor organisational culture, employees are unmotivated, there is challenge of retaining employees and there is poor hiring and selection practices. How Organisational Change Affects HRM Problem Organisational change entails change of strategies, operations and structures for the purpose of boosting organisational effectiveness. Change is considered the most intimidating but necessary process that every organisation should undergo (Sirkin, Perry and Allan, 2005). Change often leads to uncertainty of the unknown that creates fear of failure. In general, change, either incremental or quantum, may lead to significant challenges in organisations brought about by difficulty of a number of groups or individuals to adapt to change. It is the nature of all human beings and firms to resist change. Therefore, planning and implementing change is a very difficult task. Managing change may seem a simple task. There are a number of images of managing change in an organisation (Sirkin, Perry and Allan, 2005). They include directing, nurturing, caretaking, interpreting, interpreting as well as navigating. Change process is faced with many problems and is very difficult for it to be successful. Resistance is considered the most articulated barrier to the change process and all change agents should address it. Resistance can be due to perceived threat to status quo within the organisation (Kickert, 2010). Other sources of resistance are unconsciously recognised and develop when an employee convinces himself that he is not part of a particular change. Resistance to change in organisations is seen to occur as a result of personal experiences and evaluation with regard to the reliability of others. Normally, efforts are put to alter these factors for the purpose of wining support and overcoming resistance (Sirkin, Perry and Allan, 2005). Resistance due to organisational change affects Human Resource Management. For instance, when employees resist change, they tend to be afraid and they feel unwanted and uninvolved especially when the change process brings about structural and operation alterations (Kickert, 2010). This may lead to employees feeling unmotivated and sometimes it may lead to employees opting to resign. Human resource managers thus face talent management challenge that may affect organisation effectiveness. Therefore, there is need for them to take steps to alleviate these fears. For instance, human resource managers can look for new ways to enhance retention and at the same time motivate employees even in times of change (Kickert, 2010). How Conflict Affects HRM Problem Conflict within the workplace occurs due to misinterpretation, competition as well as different values and expectations (Johansen, 2012). Misinterpretation occurs within a workplace if an individual is misunderstood or rather their message is misinterpreted. This comes about especially when individuals receive information and interpret it in their own way. In addition, competition within employees especially for position advancement as well as recognition is another cause of conflict within a workplace (Johansen, 2012). Competition for a promotion often occur among employees leading to individuals feeling hurt particularly whenever they are passed up for the position. Having different values and expectation also is a cause of conflict within the workplace. Some organizations lack clear goals which often confuse the employees making them unaware of which objectives to meet which often results to conflicts. Common types of conflict include interpersonal, intergroup and organisation conflict. Interpersonal conflict involves two or more people and is one of the most common conflicts in the workplace (Johansen, 2012). Interpersonal conflict may be in connection with the disagreement over the objectives and goals of a business. There are barriers that prevent effective resolution of conflicts in the workplace. Poor communication, poor listening and attack of conflict without thinking are barriers to conflict resolution. In addition, poor planning is another barrier that managers are faced with when resolving conflict. Another barrier to conflict management is unwillingness to compromise. When one party does not compromise in any way, it is difficult to find a standing ground (Johansen, 2012). This can disrupt the mediation process and a solution cannot be established. Conflict has adverse effects on the organisation. It may lead to decrease in productivity (Johansen, 2012). Conflict makes employees focus less on their work and more on their frustrations. Coordination of employees is difficult when there is interpersonal conflict. In addition, employee who is very frustrated with the conflict taking place in the organisation may decide to leave. When a member leaves, the organisation is faced with the challenge of looking for a skilled employee to replace the member and this may be very difficult (Johansen, 2012). Generally, conflict intensifies the challenge of talent management in the organisation. Human resource managers are expected to come up with ways to resolve conflict in order to ensure that employees committed to achieving the goals and objectives of the organisation. Management of Corporate Culture When there is constructive organisational culture in the organisations, there will be effective team communication and employees will be encouraged to accomplish the mission and visions of the organisation (Bezrukova et al., 2012). In any organisation, the competencies and skills of the HR managers should align with organisation culture and lead to its success. HR practitioners are expected to establish themselves as part of senior management and possess the abilities that can enable an organisation achieve its goals. Communicating organisational culture enhances organisational effectiveness. According to a research conducted in Veterans Health Administration hospitals in the United States, higher levels of patient safety and nurse’s satisfaction were associated with higher levels of organisational culture (Bezrukova et al., 2012). However, many companies are faced with the challenge of employee management due to poor organisation culture. This means that they do not communicate clearly the goals and vision of the organisations to the employees. Therefore, organisations can enhance their effectiveness by communicating constructive organisational culture (Bezrukova et al., 2012). For instance, in the nursing practice, a culture that promotes learning and fairness, patient safety, patient-centred care and team work promotes good nursing practices. Organisations are made up of hierarchical structure that is made up of several lines of command from top to bottom level (Bezrukova et al., 2012). They are moulded by the values, beliefs and norms of those in authority and those who establish rule, design the structure and guide the system. Many organisations have poor hierarchical structures that affect the communication of organisational culture. In order to enhance strong organisational culture, organisations can create a strong hierarchical structure made up of leaders who can effectively communicate clearly the goals, mission and visions of the organisation (Bezrukova et al., 2012). The structure of authority determines how human resources are managed and how customers are served. Constructive structure of authority may bring about constructive organisational structure that improves employee satisfaction. Although decisions are made by the management, employees may be involved in decision making (Bezrukova et al., 2012). This results to positive employee interaction and commitment and therefore they have a higher order satisfaction which enable them achieve organisational goals. Management of Organisational Change Every organisation undergoes a change process (Kickert, 2010). Many organisations have come up with ways to manage organisation change in order to enhance performance. One challenge that faces successful implementation of change process is lack of communication. Some companies have reinstated strong communication methods that assist in avoiding the misunderstanding that result to thwarting of best-laid change plans. Good communication starts with defining clearly the goals and vision (Kickert, 2010). If clear articulation of the plan of change is not possible within a speculated time, then misunderstanding may occur. Many organisations do not clearly define the goals and objectives of the change process and this often leads to resistance to change. One way of overcoming miscommunications is by creating a stakeholder analysis in order to involve every group and individual in execution of a plan (Kickert, 2010). During the change process, many organisations tend to progress ahead without considering if there is clear accountability and alignment between objectives and goals and performance and that individuals are considered accountable for the results (Sirkin, Perry and Allan, 2005). To improve alignment and accountability, organisations should establish right management structure in order to manage change resistance. Also, inadequate system and structure leads to failure of a change process (Sirkin, Perry and Allan, 2005). Some organisations have increased chances of successful change process by ensuring appropriate system and structures that assist the change initiative. For instance, establishment of appropriate systems and structures may involve providing the correct computer systems and software, establishing correct performance management structure and developing the best strategy leading to change (Sirkin, Perry and Allan, 2005). Management of Conflict There are many ways that have been developed to manage conflict within a workplace. In order to manage conflict, human resource managers have ensured effective communication (Johansson, 2012). For instance, managers have assessed the different types of words they choose when communicating with the employees. Furthermore, they have established clear expectations which effectively reduce conflict within the workplace since with well-established goals and objectives; individuals can be able to excel within acceptable limits (Johansson, 2012). Many organisations have developed negotiating tactics that are used in resolving conflicts. Negotiation can be termed as the method of solving differences and conflicts whereby compromise and agreement is reached. In an event of a conflict, individuals often want to attain the best outcomes for their position. In solving any organisational conflict, effective strategy is used (Johansson, 2012). Good negotiators are individuals who have respect for one self and also for others and include other people needs and concern in decision-making. Managers have undergone training in order to ensure they become good negotiators and problem solvers in an event of conflict in the workplace (Johansson, 2012). One strategy for negotiation is problem solving. Parties involved in a conflict commit to discuss the issue closely where they enter into a long term agreements. This strategy is important since it brings about positive experience for both parties and deals offered are balanced. Many companies have implemented problem solving strategy in their business for the purpose of managing conflict. Element 3 Recommendation for Resolution of Problem Issue In order to be able to prepare and motivate employees in the work place, Human Resource of any company should redefine mobility strategies and programs and should also make sure it meets deployment demands such as access to medical care and substantial living standard etc. (Kickert, 2010). Research suggests that the inability of an employee to get accustomed to work due to organisational change may be the cause of poor performance in the organisation as it complicates talent management (Kickert, 2010). Consequently, organizations should come up with ways in which they are able to attract larger skilled workforce pool in the market in order to stay on top of their competitors. In order to overcome talent management in relation to retention and motivation challenge, organisations should utilize motivational strategies among the employees. According to Maslow hierarchy of needs, employees cannot be motivated only by attractive compensations and salaries alone (Fredrick, Bernard and Barbara, 2011). There are a number of elements that can motivate employees such as engaging employees in decision making process, appreciations of employees frothier work and encouraging work-life balance to name a few. In addition, another way of motivating and retaining diverse workforce is to use the size of the company as a motivational tool (Fredrick, Bernard and Barbara, 2011). This can be done through offering different assignments in different regions to employees performing well. This allows the organization uncover skill gaps and offering opportunities to employees with high potential. To overcome talent management challenges, companies should focus on redesigning their recruitment policies (Ericksen and Dyer, 2005). For instance, organisations should expand on its job posting to media such as personal letters, bulletin boards, newsletters etc. to prevent miscommunication and ensure that the companies clearly identify and define the best candidate for the position. In addition, organisations should offer remuneration based on working conditions, performance and working period. To motivate employees and increase their commitment, companies should also establish merit pay founded on individual performance (Ericksen and Dyer, 2005). They should also offer bonuses and shares options as incentive remuneration. One way organisations can increase employee retention rate is to match the employee’s experience, work period, and position with the remuneration received. They should ensure that jobs of differing sizes attract appropriate salary differentials. Action Plan In designing the action plan for solving the HRM issue, an organisation should identify the roles of the stakeholders, any barriers that may result, and the roles of the teams. An organisation should implement an action plan that will ensure there is collaboration between team, managers and leaders (Ericksen and Dyer, 2005). The implementation strategy or the action plan for solving talent management challenge will involve communication plan, training plan, leadership plan, performance management plan, culture maintenance plan etc. Talent management challenge may result due to lack of necessary skills in the part of the managers in a company. Therefore, they need to be trained in order to ensure that they have the knowledge to retain employees, motivate workforce and attract skilled personnel to the organisation. Specifically, in an event of organisational change, the employees of a company need to undergo training before the change is implemented which should be funded by the company (Kickert, 2010). Training and development of employees and managers have been proven to improve Human Resource Management performance. What training and development do is improve and change the attitudes of people in order to match with those of the employees. Positive employee’s attitude is one of the reasons for enhanced organisational effectiveness. There are various ways in which an organisation can train its employees (Ericksen and Dyer, 2005). On-the-job-training, programmed self-instruction, web-based learning and systemic job rotations are some of the methods that organisations can use to train and develop human resource. In addition, communication is important in the in the change process. Another important training method to be used is Communication skills Training. Being an effective and efficient communicator takes time (Ericksen and Dyer, 2005). Good communication need to be developed through an on-going training of employees and managers. In order for talent management to be effective, managers and employees should communicate well. The reporting protocol for talent management will involve managers who will be responsible of rolling out of communication to the employees. Communication should include all the stakeholders including sponsors, employees and partners. Implementation of performance management system should be added in the plan. It has some key components such as goal-setting, feedback, performance evaluation and guidelines. In the goal-setting component, the supervisor is the one who is expected to set goals (Ericksen and Dyer, 2005). These goals are very important since they assist the employees understand the parameters of their responsibilities. Goal-setting also makes planning, prioritizing and organisation easier. However, goals that are set should be SMART (specific, measurable, attainable, relevant and timely). Performance Management Programs should offer feedback. Regular feedback is very important (Ericksen and Dyer, 2005). In addition, another key component of performance measurement system is performance evaluation. A specific method should be chosen in order to evaluate performance. Performance evaluation should be carried out constantly in order for factors such as employee’s inputs, results and outcomes of a project and organisational behaviour to be identified. Challenge management may be influenced by diverse workforce. According to Hofstede culture affects employee performance (Hofstede, 2001). He researched how diverse people interact with regard to six different groups of cultural dimensions. The first dimension is power distance which highlights the extent to which cultures and societies accept that power is unevenly distributed in the community. The second category is individualism versus collectivism. Individualist cultures portray a preference for an individual rather than a group (Hofstede, 2001). On the other hand, collectivist cultures value the loyalty to a group rather an individual. Uncertainty avoidance category is based on the extent to which individuals are willing and ready to accept ambiguous and risky circumstances. For instance, cultures with a high degree of uncertainty avoidance prefer predictability and established structure which brings about strict rules and behaviours. On the other hand, cultures with low uncertainty avoidance prefer unstructured circumstances and ambiguity bringing about innovation and favours risk-taking. Managers especially those working a multinational corporation are faced with cultural issues demonstrated by Hofstede (Hofstede, 2001). Operating in a manner that tends to go hand-in-hand with cultural contexts of everyone improves business performance. It is wrong to ignore the cultural differences that beset organisations. Managing adaption to cultural differences should involve ways that limit the need for variation. One way of reducing poor performance brought about by cultural variations is to focus on similarities of cultures (Hofstede, 2001). Another method of reducing cultural differences is enhancing strong organisational culture by cultivating a group of employees that are drawn to the same organisational culture. In addition, investing in cross-cultural training allows different people from different cultures to be flexible and understands and respects each other. This enhances organisation effectiveness. Conclusion Organisation effectiveness is a concept that explains how effective a business is in attaining the predetermined goals and objectives. For an organisation to be effective there is need for effective talent management. One human resource challenge that affects organisation effectiveness is talent management. Talent management may be in form of motivation of employees, retention of employees and war for talent. Talent management is influenced by organisational change, corporate culture and conflict. Organisational change may result to resistance from the employees which may affect how employees are managed. Strong corporate culture leads to employee engagement and commitment while conflict influences the relationship between employees. In order to solve talent management challenge, organisation can carry out training and development of employees, implement performance management system, enhance communication and find ways to motivate all employees. References Bezrukova, K., Thatcher, S. M. B., Jehn, K. A., Spell, C. S 2012, The effects of alignments: Examining group faultlines, organizational cultures, and performance, Journal of Applied Psychology, 97(1), pp. 77-92. 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Kickert, W.J.M 2010, ‘Managing Emergent and Complex Change: the Case of Dutch Agencification’, International Review of Administrative Sciences, 76(3), p. 489-515. Sirkin, L., Perry K. and Alan, J 2005, “The Hard Side of Change Management.” Harvard Business Review. Read More