Development in Human Resource Management - Essay Example

Human Resource Management Principles and Concepts Introduction For over 100 years now, there has been continuous evolution abd development in human resource management. The process has been that of trial and error as well as building of theories and testing different concepts by academics and managers (Tan & Nasurdin 2011). The forces behind the development of HRM are environmental in nature coupled by the desire for the knowledge of more effective ways of labour acquisition and utilisation. Changes in organizational environments compelled managers to develop efficiency in the processes of production and delivery of services by raising their ability to make use of best practices of the management of employees. These are techniques for management of employees that can increase production, lower the costs of delivering services and also guarantee continuous availability of competent employees within the organization (Cox 2014). Globalisation and liberalization and advancement in technology has brought to the fore the need for human resources. HRM enables appropriate deployment of employees so that through a quality culture, customers can be well maintained and satisfied both nationally and globally. In a competitive world the need for effective use of human resources is high and every organization strives towards the identification, recruitment and channelling of competent people in to their organizations for improved productivity and efficiency. Human resource management is practiced both at the local and international levels. The difference depends on the challenges at each level, hence the complexity of international HRM because international organizations have more and bigger issues to address (Tiwari 2013). This paper will summarise the concepts and theories related to organizational Human Resource Management (HRM). It will also critically evaluate the literature on these HRM concepts which comprise of diversity management, culture, international performance management and training and development. Organisational HRM In an organisation, Human Resource Management (HRM) refers to the formal systems used for managing people within the organization. It is defined as recruitment, selection, development, utilisation, motivation and compensation of human resources in an organization (Alagaraja 2012). Basically, it is the part of the organization that deals with the people (Ali 2013).The human resource manager’s office is responsible for staffing, dealing with employee benefits and compensation, and designing work. Basically, the HRM is responsible for maximizing the productivity of an organization through the optimization of employee effectiveness (Alagaraja 2012). Most of the authors of HRM studied emphasize on its importance in organizational operations. For example, Cox (2014) states that human resources are the most important of any organization’s resources or assets and, therefore, without proper management of this asset no business can be successful. This position is also held by Aslam, Aslam, Ali & Habib, (2013) who note that in the 21st century human resource management practices are even more relevant in organizations than before. They attribute this increasing importance to the complexity and uncertainty in the business environment of the 21st century. In his contribution to the argument, Ali (2013) states that systems, theories, organizational structures and procedures can become useless in the human element is not given due consideration. Other authors, Tan & Nasurdin (2011) explain that Human Resource Management practices can create increased knowledge, motivate employees, generate synergy and employee commitment and in the process bring about competitive advantage for an organization. However, another author Alagaraja (2012) argues that there is a missing link between Human Resource Management practices the outcomes of organizations. He claims that there is need for more research on this. Although change is happening at a fast rate in the business world, the mandate of the HRM is not about to change any time soon (Alagaraja 2012). HRM is important for the maintenance of sound human relations within the organization. Through it, individuals develop and achieve integration goals both at the individual and organization level. HRM is an extension of general organizational management and it involves the stimulation of employees to contribute to business purposes (Aslam, et al. 2013). Effective management of skills and talents within organization is required so that employees to do not get dissatisfied and move to other organizations (Tan & Nasurdin 2011). Dissatisfaction is already occurring among employees and this makes them irritated hence disrupting work processes and reducing productivity. Human Resource Management should focus on rewards and punishment as a way of motivating employees (Aslam et al. 2013). Diversity Management and Culture Cultural diversity is defined as “the representation in one social system of people with distinctly different group affiliations of cultural difference” (Mazur 2010, p. 8). Researchers categorize the characteristics of diversity into personality, internal, external and organizational categories. Diversity benefits both employees and employers at the place of work. By respective the differences between a person and another, employees can help to increase productivity levels. Human resource managers face many challenges in managing diverse workforces. Cox (2014, p. 163) argues that diversity management is so difficult that there is no particular HRM strategy for multinationals which are exposed to high levels of diversity. This observation is true because employees from different cultural backgrounds may require different approaches and treatment. Different cultures promote and deter different practices and people from one culture may want things done in a certain way which people from other cultures may find abhorrent. Diversity management involves the recognition of how valuable differences are, tackling discrimination, and enhancing inclusiveness. Managers may also find it challenging when an organization loses diversity because of discrimination and prejudice and other issues such as legal actions taken against the organization. Mazur (2010) supports the view that diversity is beneficial to an organization when he states that diversity promotes an organization by giving it a competitive advantage. However, he also warns that when diversity is not well managed, it can hinder the achievement of organizational goals. Another author that shares the same view is Pathak (2011) who states that in liberalized economic environments, the management of mixed cultures plays a very important role in business development. He also points at the value of cultural diversity as a competitive tool. In order to create and maintain diversity within the workforce, managers must have certain skills. First they need to have an understanding of discrimination and its effects. Managers also need to recognize their personal prejudices and cultural biases. Diversity does not exist between groups, but among individuals. Managers should also have a willingness to change the organization. Management of diversity is a process through which the manager creates an environment that is all inclusive (Mazur 2010). The manager ought to consider personal awareness. It is necessary for organizations to do the development, implementation and maintenance of continuous training so that peoples’ behaviours can be fully changed. Diversity management is more than the provision of equal opportunities for employment and affirmative action. Managers should encourage change, but understand that change will be slow. Managers also need to consider the creation of safe places for employee communication (Pathak 2011). Dialogues may be promoted by creating social and business gatherings where everyone listens and is given the chance to speak. Managers need to do policy implementation such as mentorship programs to all employees to get opportunities and information. Employees should not be denied the required, constructive and important feedback about their successes and failures. Culture is critical in the shaping of organizational performance and practice and therefore, managers should seek to positively influence organizational culture. Several authors (Adewale & Anthonia 2013, Pathak 2011 and Mazur 2010) underscore the value of a robust effective culture for organizational success. In order to have a culture that promotes effectiveness and productivity, managers should create a climate for change (Pathak 2011). Many organizations use either internal or external drivers to effect a change in organizational culture. For example, an organization may use the organization development policy to drive its culture in a particular direction (Shena, Chandaa, D’Nettob & Monga, 2009). Leadership is also an important requirement in the determination of how effective a culture change will be. Leaders in the organization should understand and manage culture within an organization and reward or punish subcultures depending on their alignment with the desired culture. To have any meaningful change and management of culture, employees must also be engaged and empowered (Adewale & Anthonia, 2013). Some organizations also use team orientation as a way of promoting and spreading new cultures (Mazur 2010). When it comes to organizational and team development, teams are an important means of investing in the development of talent. There is also the need to train employees in terms of awareness to culture. In some organizations, culture is an element of management training. In other companies the norm is to learn from managers about the required cultural practices (Adewale & Anthonia, 2013). International Performance Management When organizations enter the international business environment, they meet several challenges such as coming across new national cultures, uncertainty resulting from entering into new markets, new legal regulations and new knowledge (Slavic, Berber & Lekovic, 2014). Therefore, the need for human resources management for performance is becoming increasingly important for international organizations. Generally, performance management is a very crucial aspect of HRM. It denotes the assessment of employee performance, at the individual, team or organizational level. Performance is the achievement of the organization when related with the goals of that organization. International performance management covers the concept of performance management at the international level of multinational enterprises and their essential decisions of standardizing and adapting the practice (Slavic, Berber & Lekovic 2014). In today’s world, organizations do not succeed by introducing new products continually or using technology alone. Companies have come to the realization that they also need competitive advantage from the proper management of human resources. By setting goals, performing performance appraisal and feedback, giving pay related to performance and constant training and development, companies can use performance management to integrate strategy with the efforts of the employee and achieve the desired outcome from the potential of employees. It comprises of the results obtained out of the efforts of employees towards the strategic objectives of the organization. Performance includes both behavioural and economic results. Performance management is a very significant HRM process because it is the foundation of many business undertakings related to human resource management such as recruitment, training of staff, rewarding and development of careers (Tiwari 2013). Most authors underscore the fact that performance management is full of complexity especially when the international market in brought on the scene (Slavic, Berber & Lekovic 2014). There is scarcity of reliable literature on international performance management. However, recently, many scholars have been looking at this subject, but there are few empirical investigations done on the basis of systematic conceptualization. Literature about International Performance Management is not uniform because they refer to various concepts and deliver varied country specific data about single performance management elements. Businesses in the world today place allot of emphasis on performance management. Although all HR functions make their contribution to performance management appraisal of training and performance have a bigger role (Ali 2013). Performance management is dynamic and continuous in nature. All people within an organization are part of the performance management system. Training and Development When used by Human Resource Managers, employee training and development impacts positively on the performance and success of an organization. Training and development is described as the process of obtaining or transferring abilities, skills and knowledge required to perform a specific task (Jehanzeb & Bashir, 2013, p. 244). In all sectors, the success of any organization relies on employees. To sustain human resources in an organization, the management should ensure that employees are satisfied and retained at work. All organizations need to have employees that are capable of swiftly adjusting in a business environment that is continuously fluctuating. Today, many organizations are investing in the training and development of their employees so that they can become competitive and effective. Niazi (2011, p. 43) concurs with the idea that when there is a comprehensive development and training programme in place, it helps to deliberate on the skills, knowledge and attitudes needed for achieving the goals of the organization and for creating competitive advantage. In their study about the impact of training on organizational performance, Khan, Khan & Khan (2011) conclude that training and development positively impact on the performance of organizations. These findings are true for other studies as well such as Obi-Anike & Ekwe (2014) and Niazi (2011). There is a rapid growth in the importance of employee training and companies are using it as a tool of competition in the market. There are meaningful discussions among professionals and scholars concerning the effectiveness of the impact of training and development on employee objectives in orgraniations. Some scholars believe that training helps in the retention of employees while others argue that it increases employee turnover. For example, Niazi (2011) argues that a proper employee development strategy can reduce turnover and absenteeism and improve employee motivation. A review of various studies by Jehanzeb & Bashir, (2013) shows that training and development results in employee retention in several organizations. However, most of the authors studied agree that the training of employees is complicated and it can impact heavily on what the organization is able to accomplish. Training is a method of learning and development that results in the expansion of the efficiency of individuals, groups and organizations (Jehanzeb & Bashir 2013). Authors agree that the benefits of training and development in an organization are broad and strategic. To meet the challenges facing businesses, several learning activities should be undertaken through training and development. They may include employee training for present tasks, and the sharing of knowledge to better the horizon of business and service to customers (Niazi 2011). In order to develop and nurture learning organizations there is need for strategic focus on learning needs for employees and employers. The employer ought to regard the learner as an important element for the success of the organization. In such an organization, an express link between the mission of the organization and its learning culture are of benefit to employees and employer, indicating the positive relationship between organizational performance, motivation and learning (Khan, Khan & Khan, 2011). Learning should therefore have an environment that promotes growth of the experience and capability of individuals and also enhances the performance of the business. Conclusion and Recommendations Human Resources are the most important assets to the success of any organization and their management must therefore be given appropriate attention. There is rapid change taking place in the business world, but the purpose of Human Resource Management may not change. HRM is necessary because it helps in the maximization of productivity of organizations by maximizing the effectiveness of employees. Through the management of human resources, employees can maintain meaningful relations with one another. Successful organizations ensure that their human resource managers manage diversity appropriately. The proper management of diversity and culture has positive outcomes for organizations. Diversity management benefits employees and their employers. It affords the organization competitive advantage and also enhances business development. Culture helps to shape business performance and practice. Most organizations employ external and external drivers to cause change in culture. Proper change in culture demands that employees be empowered and engaged. Team orientation is also used to promote new cultures. Due to the challenges experienced at the international level, there is a pressing need to manage international performance. Appropriate management can give an organization competitive advantage. Employee training and development has been found to have positive influence on the success and effectiveness of organizations. Organizations rely heavily on employees, and, therefore, satisfaction and retention of employees is necessary to make any organisation effective. Training and development helps to reduce employee turnover. Training and development helps employees to become efficient and more productive, and organisations use it as a tool for competitive advantage. In this paper, it is recommended that organizations should have robust Human Resource Management departments that are effective in performing their functions. These departments should prioritise the concepts and principles of HRM discussed in this paper. Through the Human Resource Managers, organizations should ensure that the diversity amongst their employees is well managed so that there is no evidence of prejudice and discrimination. Managers should learn about various cultures represented in their organizations so that their approach towards foreign cultures can be acceptable (Mazur 2010). They should also ensure that in the case of an undesired culture in their organization they institute measures to end it. Human Resource Managers should emphasize on training and development as a way of adding value to employees so that they can make the organization effective in the achievement of its objectives. Bibliography Adewale, O.O., Anthonia, A.A. 2013. Impact of Organizational Culture on Human Resource Practices: A Study of Selected Nigerian Private Universities. Journal of Competitiveness, vol. 5, Issue 4, pp. 115-133. Alagaraja, M. 2012. HRD and HRM Perspectives on Organizational Performance: A Review of Literature. Human Resource Development Review, volume 12, issue 2, 117–143. Ali, A. 2013. Significance of Human Resource Management in Organizations: Linking Global Practices with Local Perspective. 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