Why Impacts of HRM Are Important on Company Growth - Essay Example

Introduction It can be d that organisations operate in a dynamic environment during the current period and it is characterised by various factorssuch as competition, economic, social as well as political factors. These factors affect the operations of an organisation in many ways and it is widely believed that the concept of human resources management plays a pivotal role in the growth of a company. In order to get a clear understanding of this assertion, it is important to define what HRM is. “HRM is a system of philosophies, policies, and practices that affect the people who work in the organization. It includes activities related to staffing, training and development, performance review and evaluation as well as compensation,” (Jackson et al 2001:242). It can be noted that people are the most important resource in the production of goods and services and are capable of setting pace of company growth or otherwise. The human resource approach is more ideal as far as company growth is concerned. This is a twofold approach through which the organisation benefits in two ways where it seeks to increase its effectiveness as well as increasing the satisfaction of the workers. This approach posits that, rather than addressing organisational goals and employee needs as separate and exclusive, these are mutual and compatible: one set need not be gained at the expense of the other (Carell et al 1995). As noted already, the human resource is the major driver of the organisation and its development hence measures should be put in place that are meant to ensure that the need for the organisation to achieve its goals as well as satisfying the needs of the employees are balanced which can be a long term guarantee of organisational growth. Against this background, the study seeks to investigate why impacts of HRM are important on company growth. Objectives To a greater degree, the effectiveness of an organisation depends on the effectiveness of its employees. Thus, the main objective of this study is to investigate why the HRM function is pivotal in the effectiveness of the organisation. To establish the impacts of employee motivation on organisation’s effectiveness. To establish the effects of employee development on the growth of the company. To find out how employee effectiveness can be improved. Research question Why impacts of HRM are important on company Growth? Research hypothesis The hypothesis is meant to test the assertion that HRM is important on company growth. This will further investigate how company growth can be directly influenced by the performance of the human resource. Literature review Significance of recruitment Recruitment can be loosely defined as a process used by companies to select appropriate job candidates to fill vacant positions (Pfeffer 1989). Thus, recruitment efforts seek to fulfill the needs of both the applicant as well as those of the organisation. For this reason, the recruitment of the human resources is a very critical HR function which seeks to ensure that the long term plans and goals of the organisation are achieved which also promotes growth of the company. A company which is more concerned about its growth should treat the employee as a valuable asset rather than just a mere worker who works with instructions from the superiors all the time in an organisation. Workers should be able to meet certain standards of performance so as to ensure that they achieve the organisational goals set. Measures such as training the workers to meet the expectations of the organisation’s operations ought to be put in place so as to ensure that the organisation maintains its competitiveness through the use of effective employees. Human resources development Having recruited the rightful candidates, in order for the company to continue growing, there is need for constant human resources development (HRD) so as to ensure that the employees keep pace with the dictates of the new order obtaining on the ground. HRD refers to all the methods used by an organisation to help its employees to develop their skills at work (Kleynhans R. et al 2007). This is about choosing the skills that need to be developed in the employees so that they will develop their performance standards. Training and development are vital tools used in this process so as to ensure that the workers are able to face different challenges at work. As far as company growth is concerned, there is need to take a holistic approach so as to be able to keep pace with any changes that can be witnessed in the environment in which the organisation operates. HRD is very important since it improves the effectiveness of the employees who in turn improves its competitiveness against competitors in the market. Competition is another factor that affects the operations of an organisation hence the need to develop the employees who are the drivers of the company in its growth and development. To achieve this, the workers can be upgraded to meet the challenges of the tasks brought about by strategic changes in the operations of an organisation. The main purpose of training and development is to overcome the weaknesses that may cause the workers to perform below capacity or the desired level. As discussed below, this can be achieved through coaching and mentoring. In order to ensure organisational success, it is important to train the employees so that they gain the required knowledge that is useful in their day to day operations in the organisation. Training is mainly in the form of coaching and mentoring which are all very important in motivating the employees to have a positive liking towards their work in the organisation. Mentoring is process where an older, experienced worker helps the junior employees to gain experience and a better understanding of their job (Jackson & Schuler 2000). This experienced person is called a mentor. On the other hand, coaching is a process where there is one to one teaching between a senior worker and junior employee in order to impart relevant knowledge and sets a good example of what is to be done at work (Kleynhans 2006). Learning The growth of an organisation can also be achieved through learning. Jackson and Schuler (2000), described learning as the process where the employees gain knowledge from others through interaction and this helps the organisation to remain viable. Learning is mainly concerned with creativity and innovation, which is about creating positive change about the operations of the organisation. Creativity and innovation ought to occur in a free and open climate which encourages common understanding, sharing of information and promote freedom to express ideas. There is need to develop a free organisational climate that encourages creativity and innovation where the leaders will need to lead by example and be accommodative where failure would be tolerable and will not warranty punishment. This will greatly contribute positively towards the growth of the company. Knowledge management Virtually, organisations concerned about company growth should run on the basis of knowledge management than employees doing the work using their hands. There is need for the employees to gain knowledge or given the opportunity to acquire the necessary skills needed in the dispensation of their duties. Vygotsky (1962, 1968) suggests that social growth is caused mainly by social interaction and this in turn will also lead to easy management of that knowledge created. Psychologically, an individual can use his mind to learn something with the aim of gaining knowledge while external factors can as well play a vital role in influencing the creation of knowledge. The development of knowledge is meant to improve the operations of a target group which share common values and norms in an organisation. Knowledge management is very essential in ensuring the viability of an organisation. Performance appraisal Also of notable concern to the growth of the company through the use of the human resources is performance appraisal. This is the process of systematically evaluating each employees job related strengths, developmental needs and progress towards achieving the goals as well as determining ways to improve the employee’s job performance (Jackson et al 2000). In most cases, regular assessment of progress towards attaining goals helps employees remain motivated and solve problems as they may arise which in turn leads to company growth. Employee motivation Another important aspect about HRM which is concerned with the growth of the company is the need to motivate the employees to put more effort in their performance. Basically, motivation is loosely defined as the incentive or motivator given to employees to improve their performance as a way of encouraging productivity and ultimately growth of the company (Jackson et al 2000). Some motivators often reflect the content of the job where no superior person in the management can dispense them upon individuals. Motivation is influenced by needs, goals and expectations and these play different roles in motivation as going to be explained briefly below. There is need to persuade and inspire the employee to do the job since he would know that he would get some form of reward for the effort put. A demoralized person is unhappy and less productive since there are no rewards gained for the effort put. Motivation in an organisation is mainly influenced by various factors which include rewards in terms of financial gains as well as recognition for excellent performance such as being given the autonomy to make decisions in the organisation as a way of creating a sense of belonging which is one great motivator which can ensure the growth of the organisation. This can be enhanced on the nature of the organisational structure which defines how the employees can be involved in the decision making process of the organisation. Leadership styles The managers of an organisation should lead by example every time. The leaders are responsible for designing the way an organisation operates and failure to put proper operational plans in place would be very costly to them. Therefore, it is very important for the leaders to create an environment that is characterised by mutual understanding where the lines of authority are clearly spelled in an organisation. Democratic, participatory leadership style can enhance positive performance of the employees since they would also be part of the decision making process in the organisation and this would help to create a sense of belonging among them. The leaders ought to be effective communicators where they encourage their subordinates to find solutions to problems they may encounter during their operations. The leaders must also give their juniors the much needed support in their duties. This in turn would increase productivity of the organisation which leads to growth of the organisation in the long run. A motivated person is productive in the organisation since he would be able to fulfill his own as well as the organisational goals. An individual who is recognized in the organisation is highly motivated since he is regarded as useful to the organisation hence very productive unlike somebody who is disgruntled. This also entails job enrichment which is another strategy that can be employed by an organisation concerned with growth as a way of motivating the employees. According to Carrell (1995), the worker should decide how the job is done, planned, controlled and even make decisions concerning the whole process. Skilled workers are normally motivated by being given responsibilities in an organisation. In this regard, it can be noted that organisations should thrive on giving the skilled workers the ability to make decisions as well as influencing the decision making process as a way of creating a sense of belonging to the company which in turn leads to company growth. Employee retention Having created a fine balance between the needs of the employees and the needs for the organisation to achieve its goals, it becomes the duty of the organisation to ensure that the valuable employees who determine its success are retained for long term benefits. In most cases, valuable assets to the organisation often lead to continual growth and sustenance of the company. Each employee would fully know what is expected of him and would put maximum performance since there would be a guarantee of benefitting from the hard work. The workers who are given the privilege to be part of the decision making process or to make decisions are likely to be motivated as they would have a sense of belonging to the company which is very important for its long term growth. These would be loyal to the organisation and would continue serving it for a long period which would contribute to its effectiveness. Methodology Methodology refers to the methods of data collection employed in the study. This data would be used to discuss the results which would attempt to answer the research questions highlighted in the study. This study will employ qualitative research methodology. This mainly includes published literature which has relevance to the study and the advantage of this type of data normally referred to as secondary data is that it saves time and it is essentially used in order to give a clear understanding about the importance of HRM on company growth. Secondary research is less costly and is often reliable since it is based on previously done researches. Interviews and focus groups will also be used. Literature selection The researcher will use academic books, journals, newspapers as well as the internet and any relevant published literature. Validity and reliability Validity and reliability are concerned with checking the status of the data collected if it is valid and reliable (Struwig and Stead 2004). The research methodology to be employed will be checked for validity and appropriateness by taking feedback from the instructors and the research supervisors. The sources for the historical qualitative research will be taken from secondary sources including websites, academic books and peer reviewed journals to ensure that the information used in the literature review is accurate and valid. Data processing, analysis and presentation The analysis of the qualitative research conducted for the paper would be done through a subjective analysis of the qualitative information gathered for the study. References Armstrong M.(1999), Human Resources Management Practice, 7th Edition, Kogan Page Limited, USA. BusinessWeek (November 28 2005). “The man who invented management: Why Peter Drucker’s ideas still matter. Available at: http://www.businessweek.com/magazine/content/05_48/b3961001.htm Accessed 29 April 18, 2010. Buhler P. (2001). Teach yourself management skills in 24 hours. USA. ALPHA Carrell, R. et al (1995), Human Resources Management: Global Strategies for managing a diverse workforce, 5th Edition, Prentice Hall, USA. Hackett P. (1996). Success in Managing people. London. John Murray. Jackson et al (2001), Management, Oxford University Press Jeffery Pfeffer (1998), The Human equation: Building profits by putting people first, Boston MA: Harvard Business School Press Kleynhans R. et al (2007), Management: fresh perspectives, Pearson Education, SA Jackson S.E. & Schuler R. (2000), Managing Human Resources: A Partnership Perspective, South Western College Publishing. Struwig F. W. and Stead G.B. (2004), Planning, Designing and Reporting Research, Pearson Education, SA Vygotsky, LS (1978). Mind in Society: The development of higher Psychological processes. Boston. University Press. 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