Human Resources Management is Fundamental to all Management Activity - Essay Example

Human Resources Management is Fundamental to all Management Activity" Introduction People constitute an organization’s most important and vital factor in its success or failure. In order to function efficiently and effectively, people must be managed well. Human resources management is the art and science of dealing with people at work for the optimum achievement of individual, organization and society’s goals. While general management is the orchestration of all the resources, human resource management is limited to people management – their motivation, acquisition, maintenance and development. It is in this regard that this essay is written to interpret and evaluate the statement: “HR management is fundamental to all management activity”. In response, a discussion of how HR managers can improve organizational performance through recruitment and selection, training and development, equality/diversity policies and employee involvement would be presented. Importance of HR Management All resources – man, money, methods, market, materials, minutes (representing time) and machines are the domain of general management. Human resources management solely involves man. Through and by men, the other m’s are acquired and utilized. The quality and utilization of the rest of the resources are almost always affected by decisions about and by human resources. Indeed, the accomplishment of the goals of an organization depends upon the availability and utilization of all these ingredients, the interaction of which, are people-caused. The acquisition, utilization and development of financial, material, technological and market resources which may be exhaustible are dependent on human resources. If the latter is available and capable, the other factors can be of great use to the organization. It is through people that they can be either harnessed and developed or dissipated and lost. Man does or undoes what exists; man creates or bypasses opportunities and scenarios. Hence, people power is the most significant and potent factor of all the resources available to an organization. An organization may start with zero funding, but with creative, resourceful, hardworking and honest people, it becomes financially viable. On the other hand, a plethora of financial and material resources in an organization may go down the drain if handled by an incompetent and dishonest staff. The significance of human resources in an organization has been emphasized by various scholars, to wit: Andres (2003: 48) averred that “the place of organizational objective is largely attributable to successful human resources management”. Clements (2002: 8) pointed out evidence that “… not only is sophisticated management recognizing that the people element is a significant resource, if not the single most important resource being employed, but also admitting it is the least understood and worst managed of the resources employed in our business…” As pointed out by Ross (2001: 781 – 783) in her article on human resources, “Peter Drucker, an eminent management writer and philosopher stipulated that ‘the only resources which can have an output greater than the sum of its parts is human resource’”. Unlike material and financial assets, human resources, by their nature, are highly dynamic and elusive, defying foolproof quantitative analysis and predictability. The challenge of management is not so much in its money, machines, methods, markets but in its people. (Guia, 2007) The main concept that underlies the practice of human resources management is that human beings are the most important and critical resource and asset in the growth and development of an organization. The personal, professional and career development of people is a prime concern of human resources managers if they are to become assets that will contribute to its growth and development. Acquisition of Human Resources An important function of human resources management is to ensure that the organization has an adequate supply of the right quantity and quality of human resources at all levels and in all positions at the right time and in the right place to man the jobs that have been properly identified and described. Recruitment is defined by Martires (2004: 143) as the “search for potential applicants for actual and anticipated vacant positions in the organization. It is a process of linking the sources of labor and the organization which is the specific labor market.” Human resources managers can improve organizational performance with appropriate knowledge of the concepts, theories and practical applications of recruitment and selection of applicants. Applicants can be sourced internally and externally. External sources include schools, employment agencies, walk-in applicants, leasing organizations, labor unions, employee’s families, management consulting firms, executive and technical recruiters, professional associations, other companies especially competitors, general public and office files of past applicants. The recruitment program of the organization can be simple or sophisticated depending on the size of the organization and its availability of funds. The bigger the organization, the more positions are available and so the Human Resources Manager must ensure that applicants are recruited not only for existing vacancies but also for future exigencies as well. The image of the organization speaks for itself. Organizations with very good image in terms of capitalization, equity, management-labor relations, plant, facilities, compensation program and benefits accorded attract more recruits than those who are wanting in these components. While screening sifts the good applicants from a number of recruits, selection gets the best among the screened applicants. The HR manager should be able to discern the most qualified and competent applicant from among the group through appropriate utilization of common tools and techniques. The applicants’ information sheet, interview results, school records, employment and psychological tests, references, clearances, background checking and physical examination all assist the HR manager is making the right choice. Training and Development In the economics of work, the forward-looking HR manager, is one which provides opportunities for development of human capital. Employees may best be partners in any enterprise if they are maximally developed and when they reach their optimum potential. Human resources development is a function of management that registers, traces, and insures individual progress through continued job proficiency, career growth and individual guidance. (Baron 2006: 235 – 240) In this phase, competencies are upgraded and expertise is developed in this broadening stage of people management. Human resources development actually covers three programs which the HR managers should undertake to improve organizational performance: training, career planning and counseling. According to Naukrihub.com (2007: par. 1) training is “a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviors to enhance the performance of employees”. It is an activity that leads to a skilled behavior. Flippo (1987: 272-274) aptly said that “no firm has a choice of whether to train or not; the only choice is that of method”. For consistency and smooth functioning of the training program, certain policies should be formulated by HR managers to guide, not only those in charge of training, but also the entire work force, who are potential recipients of training. There is no one best method of training. The choice of instruction method is a function of teaching objectives, subject matter, level and abilities of trainees, size of group, availability of method and teaching aids, and teacher competence. (Shea 2001: 272) The effective HR manager should be aware that training runs its full cycle when its results or effects are evaluated. The program consumes a sizeable portion of human resources budget and it is part of good management to determine if it has been worth the cost. The value received from the increase in productivity, better performance, more wholesome attitudes that can be attributable to training should be compared to the costs incurred in training. The question that should be appropriately addressed by HR managers in this regard is: was the training efficient and effective? Criteria for the evaluation of training programs should be set up before trainees are sent to attend it. These criteria vary depending on the objectives of the participants and those of the organization that send them, on the areas that are to be improved, and the manner by which these training methodologies and instructional materials were effective in achieving the identified goals. As appropriately emphasized by Naukrihub.com (2007: par. 15), “training and development helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display”. Equality and Diversity Policies An organization which incorporates policies on equality and diversity aims to adopt legal, ethical, national and local guidelines that seek to ensure equality of opportunity, eradicate discrimination and promote good relations among all personnel. The vision of HR managers in this regard is to create a culture in which diversity and equality of opportunity are promoted actively and in which unlawful discrimination is not tolerated. It is actually the responsibility of the Human Resources Department to ensure the strategic development, implementation and review of the Equality and Diversity Policy and progress on the implementation of corporate and area action plans. In this regard, HR managers are responsible for (1) fostering a culture in which compliance with this policy is regarded as integral to the work of the area and in which equality and diversity issues are actively promoted; (2) producing and implementing area action plans; (3) ensuring all personnel are encouraged, supported and enabled to reach their full potential; and (4) identifying appropriate human resources development for themselves and their staff to meet the needs of their respective areas. (City University London 2003: par. 13). This particular policy is to be created by HR managers in conjunction with pertinent current legislation and codes of practice including: (1) EU Anti-Discrimination Directives (which currently include the Race Relations Act 1976 (Amendment) Regulations 2003,  Religion and Belief Regulation 2003 and Sexual Orientation Regulation 2003; (2) Special Educational Needs and Disability Rights in Education Act 2001; (3) Race Relations Amendment Act 2000; (4) Human Rights Act 1998; (4) Disability Discrimination Act 1995; (5) Race Relations Act 1976; (6) Sex Discrimination Act 1975; and (7) Equal Pay Act 1970 and Amendment 1983. (City University London 2003: par. 21). Employee Involvement Grazier (2009) in his article, “Employee Involvement... What I Wish I Knew 20 Years Ago” discovered the importance of employee involvement in organizational performance. His key learning points are hereby summarized: (1) everyone has something to contribute…and will if the environment is right; (2) the human element of performance is more important than the technical element; and (3) most decisions can be significantly improved through collaboration. In a research conducted by Brown, Reich and Stern (1992: 14), they averred that “under this team system, both team leaders and group leaders report spending less time with grievances and more time in training. The focus on training and problem solving seems to be a key element in improving both productivity and working conditions”. The findings support the concept that employee involvement contribute to higher organizational performance. “Cooperation allows employees to work smarter while others argue that they are only working harder. In a cooperative system, however, working harder and working smarter may be complements rather than alternatives. Workers may prefer to work harder in order to have better working conditions and higher compensation. Working harder may take the form of less down-time and more thinking along with less unpaid absenteeism and fewer paid layoffs.” (Brown, Reich and Stern 1992: 23) The element of employee involvement works in conjunction with training and security. The three elements reinforce each other. Absence of even one element significantly weakens the others. The HR manager, in this regard, should recognize that employee involvement works in an environment where security and training are also implemented and encouraged. As appropriately concluded by Brown, et.al. (1992: 24), “for security, employee involvement and training (SET) to succeed, management must be willing to give up its belief that management always knows more and works harder than workers, who must be prevented from shirking or misbehaving. Workers must be willing to give up their belief that management cannot be trusted to take into account the well-being of workers, who are expendable whenever this increases profits. The success of SET in individual firms depends upon an external political-economic structure that penalizes layoffs, supports training and employee involvement, teaches a cooperative work ethic, and generates full employment.” Conclusion “HR management is fundamental to all management activity”. The Human Resources Department is tasked with multifarious services. In some organizations, anything outside the technical, financial, and administrative phases is the domain of human resources management resulting in very complex and complicated web of functions and services. Those functions which were traditionally associated with general administration like job organization and information, acquisition of human resources and some maintenance and development functions are now under the jurisdiction of human resources management. The complexity of human resources management services calls for more professional qualifications backed up by sound knowledge of and apt skills in human behavior. Human resource managers are therefore tasked with responsibilities of recognizing that strategies in functions such as acquisition, training and development, employee involvement, as well as policies in equity and diversity, help or break the improvement in organizational performance. Human resources management purports to accomplish not only organizational goals but also individual goals. It posits that an individual worker whose personal goals are realized is willing to cooperate in the accomplishment of organizational goals. The congruence of both goals is directly proportional to the harmony between management and labor. This approach subscribes to the idea stipulated by Carell & Kuzmitz (1986: 5), to wit: “organizational goals and employee needs are mutual and compatible. One set need not be gained at the expense of the other”. In human resources management, people are considered investment, assets and a real resource. Following this philosophy, relatively more funds are earmarked for their proper screening and evaluation, for their growth, training and development, which in turn, increases the rate of retention and organizational productivity. Trends in human resources management indicate the possible direction that his particular phenomenon takes with the past as its backdrop and the present as its center stage. The main area of concern will be the shift in the environment from a monolithic view to the many-sided interests, particularly quality of working life and the impact of technological development. Integrating human and organizational values will be a principal objective. This will be achieved by developing basic methods of reconciling clashes of values through viable primary work groups that will reduce feelings of normlessness. The role of human resource managers will be expanded in helping the organization meet its ever increasing needs. References Andres, T. D. 2003, “Behavior Causes of Failures of Companies”, Business Ventures, Vol.2, No. 9, Manila, Philippines. Baron, R.A. 2006, Behavior in Organizations, Newton, Massachusetts. Brown, C., Reich, M. & Stern, D. 1992, Becoming a High-Performance Work Organization: The Role of Security, Employee Involvement, and Training, Institute for Research on Labor and Employment, Working Paper Series, University of California, Berkeley. Carell, M.R. & Kuzmits, F. 1986, Personnel: Human Resource Management, 2nd edition, Columbus: Merill Publishing Company. City University London 2003, Equality and Diversity Policy, Retrieved August 10, 2009 from Clements, J. 2002, “Why ‘Human Resources’ and Not ‘Personnel’?”, Business Day, Quezon City. Flippo, E.B. 1987, Principles of Personnel Management, McGraw Hill Book Company. Grazier, P. 2009, “Employee Involvement... What I Wish I Knew 20 Years Ago”, Teambuildinginc.com. Retrieved on August 10, 2009 from Guia, F. 2007, “The Role of Human Resources in an Organization”, Lecture, MBA Class on Seminar in Personnel Management and Industrial Relations, College of Business Administration, University of the Philippines, Diliman, Quezon City. Martires, C.R. 2004, Human Resources Management: Principles and Practices, National Bookstore, Philippines. Naukrihub.com 2007, Introduction of Training, Retrieved August 10, 2009 from Ross, J.D. 2001, “A Definition of Human Resources Management”, Personnel Journal, Vol. 60, No. 10. Shea, G.F. 2002, The New Employee: Developing a Productive Human Resource, Massachusetts: Addison Weeley Publishing Co., Inc. Read More