Role of Human Resource Management - Essay Example

Running Head: HRM Role of HR Function in Contemporary Organization and Likely Effects of These Changes on Practice of HRM Name] [Institution's Name] Introduction Human Resource management plays a very important role in the success of an organization. Human resource has given birth to Strategic HRM. The research paper will evaluate the changing role of the HR function in the contemporary organization and the likely effects of these changes on the practice of HRM. Human Resource Management "The challenge facing Eric Perbos-Brinck of orienting his diverse employees to his company and to the French culture reflects only a small aspect of the human resource management (HRM) challenges facing today's managers. If an organization doesn't take its HRM responsibilities seriously, work performance and goal accomplishment may suffer. The quality of an organization is, to a large degree, merely the summation of the quality of the people it hires and keeps. Getting and keeping competent employees are critical to the success of every organization, whether the organization is just starting or has been in the business for years. Therefore part of every manager's job in the organization function is human resource management." (Robins and Coulter, 2001) Through out the world, every organization is practicing HRM to reduce the differences and status between the managers and employees. By giving the slight authorities and freedom to work, the employees can do better. The HR manager brings the workforce together and he knows how to properly maintain its workforce by various tools and methods. In recent years the operations of HRM have been changes from last 10 years. "The world of work in which Human Resource Management (HRM) operates has changed dramatically in the last half century. Not surprisingly, therefore, the HRM concepts and practices being created and carried out today are also increasingly different from those of the past." (Korman et al, 1999) Importance of Human Resource Management Most of the organizations refer their employees as their biggest asset. They think employees as the most important part of the organization. These organizations have a separate HRM department under which they keep track on their employees like hiring them, firing them. Evaluating them and awarding them. "Various studies have concluded that an organization's human resources can be a significant source of competitive advantage." (Robins and Coulter, 2001) For achieving success in the business environment against the competitors, the companies have to think that it employees are the part of the organization and they are the ones who make the organization successful. The managers should know how to make their employees more effective and efficient. So by viewing the relation between managers and employees as partners not as a servant has also put a positive impact on the success of the organization. "In addition to their potential importance as part of organization strategy and contribution to competitive advantage an organization's HRM practices have been found to have a significant impact on organization performance" (Robins and Coulter, 2001). HRM plays an important role in practicing the daily HRM responsibilities which help in improving and increasing the value of an organization in the market. "HRM practices could increase its market value by as much as 30 percent" (Robins et al, 2001). One of the most important parts of the HR manager is to provide knowledge, skills and use their abilities in most affective and efficient manner. Increasing the motivational factor and providing them with rewards and incentives is also the major role of HR manager. "There are certain HRM activities that must be completed in order to ensure that the organization has qualified people to perform the work that needs to be done." (Robins and Coulter, 2001) Developments in Strategic Human Resources Management: The role of HRM has been changed from last 10 years. So much development has taken place in the field of management with regards to HRM. The debates have been going on in order to properly understand the role of HR managers. "The main issue which occupied academics in the 1980s was the evolution of HRM. In this regard, the debate was mainly on the exploration of the salient aspects of the transformation of personnel management into HRM." (Budhwar et al, 2001). The debates started by mingling the industrial relation with HR then combine business strategies with the HR line managers "and finally seeing HRM as a source of competitive advantage for organizations" (Budhwar et al 2001). The success of an organization is also depended on the HRM. "With these developments the nature of Human Resource (HR) function has changed from being reactive, prescriptive, and administrative to being proactive, descriptive and executive (Boxall, 1994)." (Budhwar et al, 2001). "Strategic Human Resources Management (SHRM) is the purposeful resolution of Human Resource administration and policy issues so as to enhance a public agency's effectiveness" (Klingner 1993) Human resources Management give birth to strategic human resource management. The need of SHRM is required to fill the gap which HRM alone can't fill it. SHRM enhances the role of manager more clearly and precisely. The factors which give birth to SHRM are: 1. Recognition that Human resources are critical. There are companies strategic planning to accomplish its goals and mission. Those mission and goals are important for managers and employees to achieve them and HRM department plays a very important role in accomplishing the company's target. "The emergence of SHRM due to heightened concern for agency productivity and accountability means that better information systems are essential" (Klingner 1993). 2. A shift from position management to work and employees. Due to political and economic factors the mind of the manager has sifted towards work management. It also because the employee wants flexibility in their workplace and should awarded and need appraisals from his managers. "Personnel specialists have continued to demand flexibility and equitable reward allocation through such alterations to classification and pay systems as rank-in-person personnel systems, broad pay banding, and group performance evaluation and reward systems (Shoop, 1991). This trend coincides with employee needs for utilization, development, and recognition." (Klingner 1993) 3. More innovation: In the emerging business world, there is an intense competition between every organization. Without innovation no company can survive longer. To bring more innovation the manager should manage it workforce in a manner that it should provide new information and try to implement new things. "But long range effectiveness in cultivating innovation requires a reward system that reinforces risk-taking, and does not penalize failure -- two characteristics that are often in short supply within the culture of most public agencies." (Klingner, 1993). 4. Asset development and cost control. The main purpose of the company is to reduce the cost of the labor and develop or hire such employees which can benefit the company in the long run. "One reason for this increased professionalism and innovation among public personnel managers has been the need to develop and apply two apparently contradictory human resourse strategies: policies for "kleenex employees" designed to control costs, and policies for "asset employees" designed to ensure loyalty, participation and development." (Klingner 1993). Relation between Employer and Employee In the growing world of business, the companies mostly make strategies to recruit, hire and reward their employees. This issue has become more important now days. Because of intense competition companies are trying to hire educated, skilled and experienced workers which can benefit the company. "As organizations employing as many as hundreds of thousands became dominant influences in the world of work and as questions about selection, training, work motivation, and compensation practices became more challenging in a growing, dynamic society, the need for professionally trained, skilled personnel became great" (Korman et al, 1999) The motivational factor and a strong bonding between the managers and employee give a positive outcome for the success of the organization. This concept has emerged with the changing role of HRM. But apart from this, the main motive of any employee is to gain personal growth through which it can fulfill it personal need. "Important too as HRM developed during this era was that the policies and practices developed and implemented were based in large part on the assumption that a desire for personal growth was the most important motivational characteristic of the workforce." (Korman et al, 1999) It is the role of HR Manager to provide the intrinsic as well as extrinsic factors of an employee. There are different motivational theories are provided in the literature of management. Manager should be well aware of them in order to maintain a healthy environment in the workplace. "HRM could help employees meet their most important needs because the employees' desire to attain positive outcomes (both intrinsic and extrinsic), that is, self-enhancement, and their willingness to work for them were congruent with organizational needs for effective performance." (Korman et al, 1999) Conclusion Strategic Human resource has emerged as an enhancing factor for the better development of the organization. It successfully resolves the human resource administrative problems and issues related to it. "It requires understanding how personnel functions interrelate in context, recognition of their importance, and commitment by personnel managers, employees, supervisors and political leaders to work together for change." (Klingner, 1993) There are few factors involve in the emergence of SHRM like Recognition that Human resources are critical, A shift from position management to work and employees, More innovation, Asset development and cost control. These factors play a vital role in clearly describing the role of SHRM. References Donald Klingner; Reinventing Public Personnel Administration as Strategic Human Resource Management. Journal of Public Personnel Management, 1993. Volume: 22. Issue: 4 Page Number: 565+ Stephen P. Robbins and Mary Coulter. Management. Seventh edition, Prentice Hall 2001. Pawan S. Budhwar, Yaw A. Debrah; Routledge, 2001, Human Resource Management in Developing Countries. Routledge, London. Publication Year: 2001. Page Number: 9. Lynda Gratton, Veronica Hope Hailey, Philip Stiles, Catherine Truss; Strategic Human Resource Management, Corporate Rhetoric and Human Reality. Oxford University Press. Place of Publication: Oxford. Publication Year: 1999 Abraham K. Korman, Allen I. Kraut, Manuel London; Jossey-Bass, Evolving Practices in Human Resource Management: Responses to a Changing World of Work. Jossey-Bass. San Francisco 1999. Read More