Benchmarking Practices in Human Resource Management - Essay Example

TOTAL QUALITY MANAGEMENT (TQM) BENCHMARKING PRACTICES IN HUMAN RESOURCE MANAGEMENT Contents Introduction. .3 2. Levels of management..4 3. The management process. .6 4. Managing human resource in an organization...7 5. Benchmarking outstanding practice. 12 6. Conclusion21 References ......22 1. INTRODUCTION Human resource Management is, perhaps, the oldest and most widely researched subject in management. Yet, as technologies change, cultural diversities occur and people's expectations undergo fundamental shifts towards newer and newer dimensions. For instance, professionals are gaining more say in the running of organizations. Even where governance is by people who own the majority stakes, their own positions and the respect they command are contingent upon their competence rather than ownership. " Management is the art of getting things done through other people. Management is the dynamic, life-giving element in every business. Without it the resources of production remain resources and never become production." This definition emphasizes that the managers achieve organizational objectives getting things done through the employees. Human resource Management is very essential for successful running of an enterprise. It ensures proper use of physical and human resources by deriving the best results. It leads to efficient performance and higher productivity. Human Resource Management is very essential for every organization to make productive use of human physical and financial resources or the achievement of the organizational goals. It helps in determination of objectives. No organization can succeed in tits mission unless its objectives an identified and well denied. Management helps in achieving these objectives by the efficient use of resources. The entry of multinationals has also brought in fundamental changes in the work culture, work ethics and remunerating patterns in many countries, all of which have a clear bearing on the career growth path of individuals. Added to this are the rapid changes taking place on the technological front, flattening hierarchies and making people come together more than ever before. Amidst all this change, the high ethical standards of an individual, be it a workman on the shop floor or the Chief Executive Officer, matter more now than ever. The dual ethical standards often maintained by people front-often the exact opposite when it comes of the way they conduct business are counterproductive in the long run. The new authority is emerging and organizations are member led, officer driven, customer focused; a team environment where the whole is greater than the sum of its parts; a flat management structure where employees and managers are learning rather than blame; a clear since of direction and purpose. A firm commitment to delivering high quality public services through a combination of direct-provision and effective partnerships. 2. LEVELS OF MANAGEMENT People who carry out the activity of managing can have a variety of titles, usually incorporating such words as director, executive, manager or supervisor. A manager's job will differ according to the nature of the work function, and which level he or she occupies in the organization's hierarchy. All managers have a number of activities in common as they all get things done through others. However, the proportion of time spent on various activities differs between different levels of management. Top managers spend more time planning and setting objectives. Middle managers translate these objectives into specific projects for their subordinates, and monitor progress. Supervisors spend most of their time actually directing and controlling their subordinates who are working on specific projects. Normally there are three levels of management in a medium size organization. Top-level management, Middle-level management, and Lower-level management. Top-level management Top management consists of managers at the highest level in the management hierarchy. This level consists of the Chairman, Managing Director, Board of Directors, Chief Executive and General Managers. Functions of top-level management: (i) Establishing overall, long-term goals and ways of attaining these. (ii) Maintaining liaison with the outside world. (iii) Laying down overall policies. (iv) Providing direction and leadership to the organization as a whole. 2. Middle level management This level consists of departmental managers, deputy heads of departments, sectional officers such as plant managers, area sales managers, branch managers, chief accountant, purchase officer, etc. Functions of middle-level management: (i) Linking the top and supervisory level of management. (ii) Transmission of orders and decisions downwards and carry the problems and suggestions upwards. (iii) Explaining and interpreting the policy decisions to lower management. (iv) Issuing detailed instructions to lower levels of management. (v) Co-ordination of various units and divisions. 3. Supervisory/Operative Management The lowest level of management consists of first-line supervisors. They generally have such designations as superintendent, section officers, supervisor, foreman, etc. They are directly in touch with the workers, clerks, salesmen, etc. This level is entrusted with the task of getting work done by operatives or workers who actually do the work. The lowest level of management is directly concerned with the operative jobs and management of workers. There are no managers below this level. Following are the important functions of lower management: (i) Planning day-to-day activities. (ii) Arranging machinery and tools etc. (iii) Assigning jobs and tasks to subordinates. (iv) Supervision of the work of operatives. (v) Assisting and advising the workers by explaining work procedures. 3. THE MANAGEMENT PROCESS "To manage is to forecast and plan, to organize, to command, to coordinate and to control" Planning--> Organizing --> Staffing -->Leading -->Controlling The process of management consists of a series of actions, which include setting objectives and taking necessary steps to ensure that the objectives are achieved. The steps required to be taken may be referred to as the functions of management. To put it differently, the functions of management refer to the activities that need to be undertaken for the creation of an environment conducive to the achievement of the set goals. These may be grouped under the following five categories: 1. Planning. Planning is looking ahead and determining in advance what is to be done, how it is to be done, where, when and by whom. It involves setting clear-cut goals and objectives before initiating action. It is the most basic or primary function of management. It is a mental exercise requiring the use of intelligence, foresight, imagination and sound judgment. (Chairnross 68) 2. Organizing. The organizing function refers to identification of activities to be carried out, grouping similar activities and assigning them to different departments. It also involves creating job positions at various levels and establishing mutual relationships between them in terms of authority and responsibility. 3. Staffing. The staffing function refers to steps necessary for the recruitment and selection of competent personnel to fill various jobs in the enterprise. This involves deciding what sort of people should be hired, recruiting and selecting prospective employees, setting performance standards, evaluating performance, 4. Leading - the behavior and style necessary to influence employees to cooperate in achieving the organization's objectives. This involves getting others to get the job done, maintaining morale, motivating employees, establishing and maintaining the right psychological climate. 5. Controlling - monitoring and evaluating the work of a department or section to ensure that objectives are being achieved. This involves setting standards, such as sales quotas or quality standards, regularly checking actual performance against standards; and taking corrective action as needed. 4. MANAGING HUMAN RESOURCE IN AN ORGANIZATION The term Human Resource Management, as opposed to 'personnel', signifies the broader role the management of people now plays in organization, and is closer links with strategic planning. An induction program, which takes place as soon as a person has been hired, can reduce staff turnover and enable the new employee to become effective and reach expected performance levels more quickly. Induction programs are important in that they help shape the new employee's views of the organization. The fact that an organization's turnover rates are nearly always highest amongst new employees underlines the need for effective induction programs. (Yvonne 108) Training and Development Training is a specific activity, which provides employees with knowledge, and activities, which provides employees with knowledge and skill to satisfy immediate job requirements. Development refers to more general activities, which prepare employees for longer-tem opportunities. Training plans are a useful tool for identifying and planning the training activities of a work area .On the job training is the most common approach, although off the job training is more appropriate in some circumstances. Training is usually taken to mean providing employees with knowledge or specific job skills to satisfy immediate job or organizational needs. This could range from assembly workers learning new techniques to enable them to increase output, to managers learning how to better manage their time. (Yvonne 110) Development usually refers to preparing employees for longer-term opportunities. It encompasses both personal and organizational needs and has a more general focus. Providing training and development usually follows four steps: (a) Identifying employees training and development needs; (b) Developing a training plan for each individual; (c) Selecting or designing or conducting training activities; (d) Evaluating the results. There are three main methods of identifying training needs in an organization: i. New employees - training is required immediately in order for the employees to perform the work satisfactorily. ii. Performance appraisals - an employee's output may indicate that further training is required, or he or she may request training in a specific area. iii. Future needs - employees are trained in anticipation of future needs (often involving the use of technology). Care must be taken to ensure that training will solve a specific problem. Sometimes other options may be more effective, such as: changing the job, or some aspect of it; changing the supervisory s le; changing the salary or wage structure; or introducing flexible working hours Sometimes various types of training activity are used simply to motivate employees. Some organizations develop formal training plans for their employees. Such training plans tend to be more specific for people in the lower levels of the organization, and more general for people at higher levels. Sometimes such training is part of the career development for certain individuals. Improving The Work Environment People whose work is highly specialized, repetitive and routine may become dissatisfied with their job. This dissatisfaction often shows itself by reduced output, increased absenteeism and high staff turnover. This very quickly reduces effectiveness of a work area, and influences the effectiveness of the whole organization. A number of approaches have been developed to try to overcome this problem. (Yvonne 115) i. Job Enlargement Job enlargement increases the scope of the job. Employees are given more variety in order to increase job satisfaction. Usually various work functions from a horizontal slice of a work area are combined, giving employees more tasks to perform. Sometimes tasks are rearranged between several employees so that each employee gets a sense of the wholeness of a job. ii. Job Enrichment With this approach individual employees may be given responsibility for deciding the best way to perform a particular task, and for correcting their own errors. They may also be involved in making decisions, which affect their own work areas. iii. Job Rotation Job rotation is a system whereby employees move from one job to another. This rotation may occur over various time spans, from, say, every two hours, to every week or month. It gives employees increased variety, and helps to relieve the monotony of routine, repetitive work. It also gives employees the opportunity to develop different skills, and mix with different people iv. Semi-autonomous Work Groups Semi-autonomous work groups are groups of employees working together, who se largely self-sufficient in terms of managing the tasks and functions for which they are responsible. This approach gives employees a sense of identity with, and responsibility to, the group. Job enlargement, enrichment, rotation and the use of semi - autonomous work groups are all approaches which can be used to reduce employee dissatisfaction with routine, repetitive jobs. Other approaches include flexible working hours and compressed working weeks (Yvonne 116). Manpower planning may be regarded, as a process of determining quantitative and qualitative needs in relation to manpower in an organization. It may be expressed as a process by which the management ensures the right number of people and right kind of people, at the right place, at the right time and doing the right things for which they are suited for the achievement of the organizational goals. The process of manpower planning can be divided into two parts. One is an analysis for determining the quantitative needs of the organization. The other part is the qualitative analysis to determine what qualities and characteristics are required for performing a job. The selected candidate he is placed on his new job has accepted once the job offer. Placement refers to placing the right person on the right job. MANPOWER PLANNING Fig. 1 5. BENCHMARKING OUTSTANDING PRACTICE Innovative ways the successful companies have managed their human resources to remain competitive in today's global market. There is a need for benchmarking and adopting outstanding practices and processes from organizations any where in the world in order to help the organization to improve its performance. Benchmarking is an on going task at all levels of business in finding and implementing the world's best practices. It is classical Total Quality Management. The approach has proved to be effective not only in providing new ideas for change but also in building a commitment to change. The changing business environment, requiring companies to constantly innovate. Better awareness on the part of the consumers and other stakeholders in the company makes the task of organization managers more difficult. The Human Resource manager has to continuously ask the following questions. (a) How are our HRD policies different from other leader organizations (b) In what unique ways we can add value to our employees, provide motivation and develop internal customers to give their best. (c) What are we doing today to ensure that our personal policies are unique and best for the future Human Resource Management as process, involving the activities of managers directed towards meeting the following general objectives: i. Optimum utilization of resources. The main objective Human Resource management is to secure maximum output with minimum efforts and resources. Human Resource management is basically concerned with utilizing the human and material resources available to enterprise for deriving the best results. This leads to reduction in the cost of production. ii. Increasing efficiency of factors of production. Through proper utilization of various factors of production like capital and labour, management leads to avoidance of wastage of time money and efforts, This leads to increase in the productivity of all factors of production and thus encourages the growth of an enterprise. iii. Securing maximum prosperity for employers and employees. This is one of the main objectives of Human Resource Managements. Human Resource Management aims at securing maximum prosperity for the employers by generating high profits at minimum cost. It also aims at prosperity for the employees by providing reasonable remuneration and other benefits for their services to the organization. iv. Ensuring human betterment and social justice. Human Resource Management also aims to raise the standard of living and quality of life of people. It provides more leisure and amenities to people. Management provides social justice through its uniform policies. Purpose of Human Resource Department One of the important objective/purpose of Human Resource Department is to build the organization culture, viz., Vision Values Processes and People. Human Resource Department goals are based on the super ordinate goals of the organization. For culture building the specific values of the organization are identified that need to be inculcated in the employees. Some of the values are openness, empowerment and delegation, ownership, commitment and accepting mistakes. HRD can build a system of empowerment and ownership among the employees to develop a sense of commitment. Employees are constantly motivated to involve themselves to produce best developmental activities and the organization is sensitive to the employees feedback and shares with employees regularly the organizations future plans and programmes and other issues related to the management. Integrated Human Resource Modules Most of the organizations are undertaking HR Studies In-house or with the help of Consultants. The objective of the study is to undertake the following: Position Analysis Position Evaluation Objective Study Performance Contract Human Resource Deployment and Compensation Study. Because of the fast changing technological, cultural, diversities, there is a need to achieve optimum utilization of resources. HRD is undergoing conceptual change and HRD can no longer remain silent spectators as regards to organization policies, achievement of organization mission, objectives and goals at all levels/function of the organization. HRD is playing a leading role of change agent by way of introducing Quality Management. Some of the concepts which were originated from Japan have become quite popular in India are now introduced through HRD namely: Total Quality Management (TQM) Total Productive Maintenance (TPM) Just in Time (JIT) Quality Circles (QCs) etc. Total Quality Management refers to an integrated organization approach in satisfying customers (both external and internal) by meeting their expectations on a continuous basis; by involving all the employees or organization, working on continuous improvement in all products/processes, and adopting structured problem-solving methods. The main elements of TQM are: A quality policy and commitment to it. Teamwork and positive culture. Total employee involvement (TEI); Appropriate methods/process/technology which prevent the problems Problem solving tools/procedures (quality system approach). Education and Training Quality audits and reviews. Continuous improvement. Total Employee Involvement (TEI), can be attained by company wide training and education in quality systems and practices. The introduction of small group activities, called quality circles, in Indian industries has also made employees participate in the quality improvement programme, resulting in an enhancement in quality. The implementation of TQM is an integrated approach, and for an organization in pursuit of excellence with a long-term perspective, its implementation as an integrated approach along with JIT, TPM and TEI can be more rewarding. Of course, this involves certain changes in the employees at all levels. Total Productive Maintenance (TPM) ,is directed at improving equipment. TPM aims at maximizing equipment effectiveness with a total system of preventive maintenance covering at entire life of the equipment. Total Productive Maintenance involves everyone in all departments and at all levels. Just in Time (JIT) is the approach to material management and control. Just in Time is more than a new way of handling material management. Just in Time is a structural approach in a manufacturing organization focused on improving timeliness; quality, productivity and flexibility initializing various resources, as well as work simplification and waste reduction. Quality Circles (QC) is a small group activity to solve work-related problems, involving members performing the same task. The management should facilitate this small group activity to function more effectively. Elements of Human Resource Organization The long-lived organizations have a complex, formal and relatively stable structure. The objectives of long life organization are dynamic and changes in environment will bring a change in its objectives. The environment determines the range of organization's activities. The environment evaluates and determines the future resources and the constraint that will be placed on the organization. Following are the various fundamental elements of an organization. 1. People 2. Physical resources 3. Market condition 4. Economic and market conditions 5. Attitude 6. Legal constraints People. The very first element of an organization is its people. Unless people of the organization interact and do the assigned job, there would be no organization. Physical resources. The manufacturing organization must have the raw materials to make their products. Climate. The climate affects the location and operations of an organization. PHYSICAL RESOURCES MARKET CONDITIONS ATTITUDES ECONOMIC CLIMATE OF PEOPLE (ORGANISATION) PEOPLE OF THE ORGANISATION OPPORTUNITIES ORGANISATION DETERMINES KEEP EXISTINGING/ THE SUCCESS GROWING OF AN ORGANISATION FEEDBACK THE ENVIRONMENT REACTS TO THE OUTPUT AND DETERMINE THE FUTURE INPUTS OF THE ORGANISATION SOCIAL LEGAL FACTORS FACTORS Fig 2 Economic and market conditions. The governmental monetary and fiscal policies are of profound effects. Some environments emphasize individual capitalism or socialism or communism. During the depression periods the business may be hard pressed just to survive. Similarly change in the tastes of consumer affects the supply and services of the goods. Attitude. At times its importance is not realized because of its intangible nature. The social, religious, political and cultural attitudes are of significant importance in an organizational environment. Legal constraints. Laws are the rules under which an organization must operate. Laws are more in the background but they do influence directly the organizational activities. Environment analysis. It is a process by which the corporate management assisted by specialists tries to identify the opportunities and risk in the environment in which an organization operates. The identification always helps the management in planning alternatives for corporate planning. The environment is the pattern of all internal and external conditions that affect the survival and development of an organization. Because of the growth of science, technology, research and development activities, the organizational environments of the firm are rapidly changing. Management & Organization Life Cycle Like other living things, organizations have life cycle, depicting change and these are conditioned by adequate and appropriate contact with the environment. The organizational life cycles have got five stages from formation to maturity as shown in figure. The stages of flexibility, rigidity or deterioration have a long-term effect and tend to become established. Formation Setback Growth Achievement Success Re- Organization Flexibility Rigidity Failure Deterioration Time Fig. 3 A change seeking management has to overcome the stresses to which the system and the people have to undergo. Leadership is, therefore, required to create necessary confidence to overcome the stresses and challenges in the change process. A successful leadership has to keep open the channels of communications within the organization and with the outside world. Leader must recognize authority and power system changes in the attitudes, behaviors, and interpersonal relationship of people. As such organization problems can be overcome by four factors, namely, structural, technical, task and people. Management and Organization Culture The view of management consultants programmes for changing organizational cultures is the greatest thing since Management by Objectives. It is worth taking the culture dimension seriously. It highlights problems of communication; motivation and an organization can result in considerable wasted effort and energy if cultural dimensions are disregarded. Organizational culture is influenced by its national behavior and values system. Variables of Organization Culture in Management Management of prevailing Organizational culture consists of five variables: 1. Communication. How receptive are those about you to your ideas and suggestions 2. Motivation. How much do you look forward to coming to work each day 3. Decision-making. To what extent are the persons who make decisions aware of problems at lower levels in the company 4. Control. How much say or influence do the various levels of the hierarchy have on what goes on in your department 5. Co-ordination. To what extent do persons in different departments plan together and co-ordinate their efforts These five climate variables can then be correlated with four leadership variables, as follows: 1. Managerial support. The degree to which the manager "increased his subordinates' feeling of being worthwhile and important people". 2. Goal emphasis. The degree to which the manager "stimulates enthusiasm for getting the work done". 3. Work facilitation. The degree to which the manager "helps his subordinates to get the work done by removing obstacles and road blocks". 4. Interaction facilitation. The degree to which the manager "builds the subordinate group into a work team". It will be seen that (1) and (4) deal with the employee as an organizational participant, whilst (2) and (3) deal with employee as a member of a production team. A model for understanding organizational culture is: Which effect Determine Modifies Fig 4 The culture appears as a constraining variables job performance. 6. CONCLUSION Human Resource management plays an important role in the success, efficiency and soundness of an organization. Success of any organization is determined by the 'Team', its people, their caliber and their attitude to succeed and out perform. Employees are the only resource, which is capable of self-propulsion and value addition. Unlike any machinery that gets devalued or depreciated with time and age, the human resource i.e. people appreciates with age and experience. So they are very special but this fruitful only if people are developed and kept satisfied. It is unlikely that any improvement can be made in terms of production, productivity, quality or customer service until people are developed. References Chairnross H. Management Fundamentals, 4th edn, p 68. David Buchanan & Andrzej Huczynski, Organizational Behaviour - An Introductory Text, Prentice Hall, 2004. David J. Hickson & Derek S. Pugh, Management Worldwide Distinctive Style Amid Globalization, Dessler G. (1995) Management Fundamentals, Reston Publishing Company, Reston, Virginia, 4th edn Meggison LE, (1977) Personnel and Human Resource Administration, R.D Irwin, Illinois, P148 P.Hersey & K Blanchard, Management of Organizational Behavior, Prentice Hall, Englewood Cliffs, NewJersey, 2002. R.Likert, New Patterns of Management, McGraw Hill, New York, 1967 Robbert Tennenbam & Schmidt. (1993). How To Choose A Leadership Pattern. Harvard Business Review: May-June, 1993, p 175-180 Lewin K. Resolving Social Conflict, New York Harper & Row.Pp 548 Steven Silbiger. A Ste By Step Guide to Mastering The Skills Taught in Top Business Schools. Piatkus Books. London. Pp 103-141 Yvonne Mc Laughhlin. Business Management: A Practical guide for Managers, Supervisors and Administrators. Business Information Books. Pp 107-120 Read More