Human Resource Management Practices in the Aviator Aviation Corporation - Essay Example

INTRODUCTION: "It is important for the today's manager to learn in complex and highly dynamic environments. The ability of the organisation to survive in today's competitive environment has become a function of their ability to learn about the changes in the external environment and to adjust with them. The adjustment process requires a great deal of management skills. Managers must have the ability and skills to identify and influence consumer needs and preferences; establish good relations with suppliers in order to ensure an adequate and timely flow of materials at acceptable quality levels and prices; enter into agreements with unions in order to stabilize labour market conditions and be informed about the activities of competitors" (Putti, 1987). Aiming to enable the organization to achieve its strategic goals by attracting, retaining and developing employees, Human Resource Management functions as the link between the organization and the employees. A company should first become aware of the needs of its employees, and at a later stage, understand and evaluate these needs in order to make its employees perceive their job as a part of their personal life, and not as a routine obligation. The Human Resources (HR) function provides significant support and advice to line management. The attraction, preservation and development of high calibre people are a source of competitive advantage for our business, and are the responsibility of Human Resource Management Department. Human resource management is very crucial for the whole function of an organization because it assists the organization to create loyal employees, who are ready to offer their best. The concept of Human Resource Management developed with a more strategic level of thinking about the nature and role of people (as total 24hr per day human beings) working in organizations which are ‘cultures’ in their own right (Lundy O, 1994). Policy Area Control-Based HRM Job design principles sub-division of work; specific job responsibility - with accountability ; planning separate from implementation Management Organization top-down control and coordination; hierarchy; status symbols Compensation fair day’s pay for a fair day’s work; job evaluation and appraisal; individual incentives Employee Voice Unionized (damage control, bargaining); Non unionized (attitude surveys) Labour Management Relations Adversarial Management Philosophy the boss dictates; management obligated to stakeholders (Lundy O, 1994). While the recent thinking has moved from the control-based model to the compliance model, the soft edge of the latter involves eliciting employee commitment and expecting effectiveness and efficiency to follow. The hard edge of the latter involves ridding the organization of unnecessary layers of middle management which, when stripped of control functions, have very little by way of value added. Policy Area Commitment-based HRM Job design principles broader jobs; combined planning and implementation; teams Management Organization flat structure; shared goals for coordination and control; status minimized Compensation reinforcing group achievements; pay geared to skill and other contribution criteria; profit sharing Employee Voice mutual mechanisms for communications and participation; mechanisms for giving employee voice on issues Labour Management Relations mutuality; joint problem-solving and planning Management Philosophy fulfilment of employee’s needs is a goal rather than an end (Lundy O, 1994). "The HRM planning should be based on the organisation's strategic planning processes with relation to analysis of the labour market, forecasting of the external supply and internal demand for labour, job analysis and plan implementation" (BPP, 2008). The importance of HR functions alignment with the strategy can be recognised by looking at the result of research conducted on 3000 firms, the results showed that the “Firms with more effective HR management systems consistently outperform their peers.” The intellectual capital of the organization has more impact on the economy as compare to the physical capital hence the value creation is more dependant on the human resource of an organization. The formation/ architecture of the human resource also play an important part in the process of value creation. The broader HR system results in broad HR behaviours. An effective "bottom-up" perspective helps in the process of strategy implementation through ensuring the compliance and administrative support. An effective HR process helps in achieving competitive advantage by focusing on individual employees, jobs, and practices. The benefits of HR function can only be maximized by aligning it with the firm’s strategy implementation system. When the performance measurement is aligned with the strategy implementation process the market value of firm also increases through the communication of the intangible value of the firm to financial analysts. The alignment of HR to overall strategy and the HR contribution to profits is a key intangible asset. With acquiring proficiency in the technical function it is also important to develop HR as a strategic partner. In a research conducted on 2,800 corporations it was found that the High-Performance Work System (HPWS) is a model for an HR systems link with the firm’s strategic goals and helps in maximizing the effectiveness of human capital. The betterment model covers all the aspects related to HR such as improving the recruiting processes, energizing training, tie compensation to performance, use teams extensively, have larger HR staffs. Through the alignment of the HR function with the strategy of an organization the performance of employees are aligned with the financial goals of an organization hence gearing the behaviors of employees towards competence and high level of professionalism. In order to achieve the financial goals through HR functions it is important for the managers to get involved in the strategic implementation elements that create those results rather than merely measuring the financial outcomes (Becker et al., 2001). In order to undertake the HRM planning according to the strategic planning process it is important for the organisation to get the 'big picture' and understand business stratagem. The management of the organisation needs to highlight the key driving forces of your business and understand the implications of the driving forces for the people side of a business. The company cannot be able to sustain its human resource especially engineers engaged in Research and Development and other technical assignments if it fails to understand their contribution in bottom lining the business performance. In order to sustain its market share and to pursue its growth strategy a company is dependent on the recognition of participation of its staff in the operations of the company. Mission Statement or Statement of Intent: It is important for the company to study the mission statement of the company that relates to the people side of the business and the future Human Resource strategy should be inline with the mission statement of the company, if it is not so, then it is important fro the company to re-draft the mission statement in accordance with the human resource strategy. “The management task is to cause the people to be as creative and productive as possible.” Conduct a SWOT analysis of the organization: In order to understand the issues of immediate concern it is important for an organisation to focus on the internal strengths and weaknesses of the people side of the business. STRENGTHS: Consider the current skill and capability issues. The internal strengths of the people side of the company. WEAKNESSES: Vigorously research the external business and market environment. High light the opportunities and threats relating to the people side of the business. OPPORTUNITIES: Try to look for the new ideas or potential areas of improvement for the hr function of the company. THREATS What are the possible threats posed to the human resources of the company? From this analysis we need to review the capability of the company’s personnel department. A SWOT analysis of the department describing in detail the department's current areas of operation, the service levels and competences of the company’s personnel staff. THE IMPORTANCE OF HUMAN RESOURCE MANAGEMENT: Following are some of the important of points regarding the importance of proper human resource management policies. - Human Resource Management is as important as the other functions like marketing/finance to business. - Human Resource Management can make significant contributions to the business strategic management. - Human Resource Management helps improved delivery as it ultimately depends on enabled, engaged and capable people. - Human Resource Management is important we make the most of that investment, particularly given the evidence of a direct link between the success of an organization and the quality of its people management. The most successful organizations manage their people well and reap the rewards. - Human Resource Management   professionals must help to achieve better delivery, using their expertise to build capability and support change in their organizations whilst providing value for money services. - Human Resource Management   Transformation is about changing the way HR professionals deliver services to the people in their organizations and improving the partnership between managers and HR professionals to get the best out of people. THE PROGRAM FOR MANAGING HUMAN RESOURCES: The suggested human resource program constitutes the overall plan for managing human resource for guiding managers and supervisors in decisions relating to their subordinates. It establishes the objectives, policies, procedures, and budget pertaining to the human resource functions that are to be performed. Although the human resource managers have the responsibility for coordinating and enforcing policies related to human resource functions, all managers and supervisors within an organization would be responsible for performing these functions (Jr, S., & Chruden, 1988). Human resource objectives are determined by the organization’s objectives as a whole. The human resource policies of the company should serve to guide the actions that are required to achieve these objectives. Policies should provide the means for carrying out the management processes and as such are an aid to decision making. While objective of the firm would determine what is to be done, policies would explain how it is to be done, they would be effective when formulated and exist until they are revised or terminated. The HR manager of the company when making decisions related to promotions, vacations, work schedules, wage increases, assignment of overtime, or infractions of rules, would be able to make them more rapidly and more consistently if policies related to these and other subjects have been formulated and communicated throughout the organization. The formulation of human resource policies should be a cooperative endeavour among managers, supervisors, and members of the human resource staff. Participation in policy formation by operation managers is particularly essential because they are often more familiar with specific areas in which problem arise. Further more; their cooperation would be required for policy enforcement. While the human resource manager and staff of human resource department would be responsible for exercising leadership in formulating policies consistent with firm’s objectives. The firm’s human resource policies should be compiled into a policy manual, having the reasons for their existence in order to strengthen their effectiveness. When the company will have a written policy it would serve as invaluable aids in training and staffing new personnel, administering disciplinary action and resolving grievance issues with individuals and their unions. Human resource procedures would implement policies by prescribing the chronological sequence of steps to be followed in carrying out the policies formulated. Policies related to employee selection for example, might provide that interested individuals first submit a complete application form followed by an interview with a human resource office representative. It would be easier for the company to promote, transfer, or to make wage adjustments according to the established procedure in order to prevent oversights from occurring. In order to avoid such problems which company is currently facing due to lack of policies and procedures, the firm should establish procedures and policies also review them periodically and modify to meet changes in conditions that may affect them. If the firm wants to effectively manage itself then it requires a management information system (MIS) to provide current accurate data for purposes of control decision making, such kind of system is not available in the company. In order to develop a system for managing information special attention should be given to security provisions that permit users with a level of access to the system. Management information system as defined by (Ross, 1999), “A network of component parts developed to provide a flow of information to decision makers. It is composed of procedures, equipment, information, methods to compile and evaluate information, the people who use the information and information management.” Company should allocate a human resource budget which is both a financial plan and a control for the expenditure of funds and capital necessary to support the human resource program. The company’s human resource department would have the primary responsibility for a developing a program that will contribute to the organization’s objectives. And as the head of the human resource department the manager would be responsible for: Policy initiation and formulation. Advice Service Control Generally the human resource manager would generally have the right and would be expected to issue policies and procedures for human resource functions i.e. selections, training, performance evaluation, etc., thought the organization. Human Resource Management  covers  functions  LIKE -human resource  auditing -human resource strategic planning -human resource planning -manpower  panning -recruitment / selection -induction -orientation -training -management development -compensation development -performance appraisals -performance management -career planning / development -coaching -counselling -staff amenities planning -event management -succession planning -talent  management -safety management -staff communication etc. (Jr, S., & Chruden, H., 1988) In order to align the strategy of the company with the HRM functions it is important for the organisation to undertake following functions properly: Planning and Recruitment Job specifications should contain occupational qualifications. Job descriptions should be accurate, periodically reviewed and updated. Human resources in the company must be full utilized Affirmative-action program must achieve its goals. Recruiting program must be effective Selection Selection techniques should be valid and effective. There should be no discrimination in hiring. Interviewers should be familiar with the job requirement. Comparison of hiring costs with other organization. Training and Development Training programs would increase the productivity and improve the quality of employee performance. There should be sufficient opportunities for women and minorities to advance into management positions. Performance Appraisal Performance appraisal methods should emphasize on performance rather than traits. The appraisers should be adequately trained and thoroughly familiar with the employees’ work. Appraisals should be documented and reviewed with employees. The performance appraisal data should be assembled in such form that they can be used to validate tests and other selection procedures. Compensation The pay system including incentive plan should attract employees and motivate them to achieve organization goals. The choice of weights and factors in job evaluation are sound and properly documented. The benefit costs should be favourable than of similar organizations. Labour relations Supervisors should be trained to handle grievances effectively and efficiently. There should be continual preparations for collective bargaining. There should be record of the number and types of grievances. After establishing and implementing of human resource policies and procedures. The firm must perform following tasks: Human resource auditing: On an annual basis audit the organization to determine the organization gaps and the needs. Human resource strategic planning On an  annual basis , develops  a  hr strategic  plan  to align  itself  with  the  corporate  strategic  plan. Human resource planning On an  annual  basis,  develops  a  HR plan  to identify the  various  departments HR requirements/ action  plan to  implement  them. Manpower  planning On  a  regular  basis/  or  as  required , the hr develops  the manpower  requirements  within  specific  areas. Recruitment / selection On a regular  basis  develops  a  program  of  recruitment and  selection of  staff  for  various  departments Induction Orientation Coordinates /  conducts  the  organization's  induction /orientation programs  regularly] Training on a  regular basis,  conducts  training  needs  for the  organization and  based  on the  needs, coordinates/ conducts  the  required  training programs. Management development on a  regular basis,  conducts  training  needs/ assessments   for the  organization's management   requirements and  based  on the  needs, coordinates/ conducts  the  required  development  programs. The firm’s resources and capabilities in which it is competent should be shaped according to the strategies developed to sustain competitive advantage in the industry. CONCLUSION The Human Resource Management activities in organizations are typically performed in communication with the general management in an effort to provide a variety of views when a decision must be taken. In that way, decision making is not subject to the individual perceptions of the Human Resource or the General Manager, but it becomes the outcome of strategic consensus. The main goals / responsibilities of Human Resource Management as discussed earlier are: • To retain low employee turnover rate by inspiring people to work for the company • to attract new employees • to contribute to employee development To achieve these goals and to align the human resource practices with the company strategy. The Human Resources Management should train and motivate the employees by communicating ethical policies and socially responsible behaviour to them. By doing so, it would play a significant role in clarifying the organization's problems and providing solutions, while making employees working more efficiently. On the other hand, challenges do not cease for the Human Resource Management. Organizations can survive in the dynamic, competitive environment of today only if they capitalize on the full potential of each employee. Unfortunately, many organisations fail to understand the importance of the human capital in successful operations. The recruitment and selection of the best employees is a very difficult obligation. New challenges arise every now and then for the organizations, and it is certain that new challenges will never cease to emerge. Therefore, the use of proper Human Resources techniques is a really powerful way for organizations to overcome these challenges, and to improve not only their quantitative goals but also their organizational culture, and their qualitative, cognitive aspects. References: Becker, B., E., Huselid, M., A., and Ulrich, D., (2001). The HR Scorecard: Linking people, Strategy and Performance, Harvard Business School Press. Baehr, A. (n.d.). Human Resources Department: Role of HR & HR Management. Retrieved April 29, 2009, from http://www.streetdirectory.com/travel_guide/12514/careers_and_job_hunting/ho _hr_works_to_get_the_job_done.html BPP, (2008). F1: Accountant in Business, BPP Learning Media. Gerhart, B., Hollenbeck, J. R., Noe, R. A., & Wright, P. M. (2008). Fundamentals of Human Resource Management. New York: McGraw-Hill. Harrison, J., & John, C. S., (2008). Foundations in Strategic Management. Central Florida: South Western. HRM Strategy Approach. (n.d.). Retrieved April 29, 2009, from http://www.strategic human-resource.com/hrm-strategy-approach.html Jackson, J. H., & Mathis, R. L. (2007). Human Resource Management. Mason, OH: South-Western College Pub. Jr, S., & Chruden, H., (1988). Managing Human resources. West Chicago: South Western. Lundy O (1994) From Personnel Management to Strategic Human Resource Development, International Journal of Human Resource Management Vol. 5 pp 687-720 McNamara, C., & LLC, (n.d.). Human Resources Management. Retrieved April 29, 2009, from http://managementhelp.org/hr_mgmnt/hr_mgmnt.htm Putti, J., M., (1987). Management: A Functional Approach, Mc-Graw Hill. Read More