Keys to Effective Human Resource Management - Essay Example

? Keys to Effective Human Resource Management The development of human resources is paramount to organizational success. Since it deals with a variety of issues that concern a multitude of human personality and interactional factors both in the individual and organizational level, it posts as a challenge to the Human Resource Management (HRM). This paper argues the point that “the way organizations manage their human resources is fundamental to the goal of achieving competitive advantage”. HRM has been ascribed an essential role in achieving the goals of organizations. Its rise had important implications on the recognition of workers. The competencies of employees have been given more notice in recruitment and selection as well as in training and development (Van Marrewijk & Timmers, 2003). Its strategic position as a sounding board for top management and facilitator and change agent in the restructuring and transformation processes of the company is equally balanced with its role as an important partner for employees. “Thus, the HRM function positions itself in two ways: as the architect of new organizational structures and work systems, and as coach in management development processes and companion of employees in turnaround processes” (Van Marrewijk & Timmers, 2003, p.174) Budhwar (2000) contends that the movement from traditional personnel management to current HRM practices was spurred by factors such as “increased level of competition, less availability of trained workforce, less committed workforce, rapidly changing technology, increased level of downsizing and restructuring of organizations” (p. 143). It is one strong arm that organizations rely on to maintain the success of the company, or, in terms of dwindling organizational efficiency, a stronghold that provides solutions to problems. A Good Beginning From the time of recruitment of employees to their employment and further down the line, their training and development, HRM plays a major role. Employers must prepare well for an employee orientation because it is one way to send a clear signal to the employee that the organization is committed to his success (Mossman, 2005). Klein (2000) defines orientation programs as “a form of employee training designed to introduce new employees to their job, the people they will be working with, and the larger organization” (p. 48). These may take the form of formal training programs, informal orienting activities by peers or supervisors or a combination of both. Organizational-level orientation intends for employees to feel welcomed and that they are now part of the organization; learn more about the organizational mission and vision, culture, language, history and structure. Employees come to better understand the basic workplace principles and policies (Klein, 2000). From the very beginning, HRM sees to it that the organization’s workers’ values are aligned to the company’s. Differing values create conflict and will impede goal achievement. According to Mishra and Morrissey (1990), the following factors propagate trust: open communication; giving workers a greater share in decision making; sharing of critical information and true sharing of perceptions and feelings. In every employment, employees consciously or unconsciously expect a kind of “psychological contract” apart from the expectations the job usually presents – benefits and compensation for a particular job description. This psychological contract usually includes open and honest communication, managerial support and challenging and interesting work. Employees are becoming increasingly aware of the non-monetary rewards that companies can provide them. It is generally important that the job not only fulfills their economical needs, but their socio-emotional needs as well. “This implies that the HRM needs to go beyond a discussion of compensation and benefits and highlight aspects of their organization that job candidates will find intrinsically satisfying.” (Lester, Clair & Kickul, 2001, n.p.) From the orientation period onwards, HRM must be cognizant of and responsive to their employees’ perception of their psychological contracts with the company. Non-material elements such as meaningful work, recognition, creative freedom and opportunities for personal growth, are desired by all employees. Management must maintain open and honest communication with employees, bearing in mind their socio-emotional needs and concerns, and being encouraging enough to boost their self-esteem. HRM’s Role in Employee Development The global financial crisis has turned some companies to scrimp on their budgets just keep them afloat in these difficult times. Many people have lost their jobs as a result of the budget cuts. For employees left to work to help their companies rise above the economic crunch, training and development are ensured in the expectation that it will contribute towards the betterment of not only the individual employee but of the whole organization as well. Employee development has been identified as key to improving overall organizational effectiveness. Jacobs and Washington (2003) have defined it as: “Employee development refers to an integrated set of planned programs, provided over a period of time, to help assure that all individuals have the competence necessary to perform to their fullest potential in support of the organization’s goals” ( 344). HRM should be able to assess the goals of employees before attempting employee development. Brown & Hunning (2010) have attempted to relate a worker’s goal orientation with job satisfaction. They claim that an individual’s job satisfaction depends on the kind of goal orientation they uphold. Goal orientation describes the individual’s disposition and current state, and this is influenced by outside factors. Three kinds of goal orientation include: a learning goal orientation wherein the individual focuses on improving his or her abilities; a performance prove orientation wherein he or she proves possessed skills and abilities in order to gain a reward; and lastly, a performance avoid orientation wherein the person seeks to avoid punishment by doing his tasks successfully. In relation to job satisfaction, when the individual has a learning goal orientation, he is likely to have job satisfaction even if he is not intrinsically motivated. This is because of his intrinsic desire for the job due to the learning it brings him. On the other hand, when the individual has a performance avoid goal orientation, he constantly worries about not making mistakes that it significantly reduces the job satisfaction he should feel even if he has a strong intrinsic motivation for the job. In this case, his goal orientation becomes a hindrance in achieving job satisfaction. Brown and Hunning (2010) recommend that organizations should encourage their employees to assume learning goal orientation strategies, however, they must do their part in creating the psychological climate necessary for learning balanced with the psychological climate for avoiding failure. The shared goals for learning and development must be communicated to the whole organisation and should be translated into action through its meticulous planning and implementation system. Each member of the staff must be aware of the employment development strategies and collaborate on achieving the success of the plans. In HRM’s understanding of employees’ needs and concerns, it should be ready to communicate to employers the need to invest in employees’ professional and personal development. Regular trainings and participation in seminars or enrollment in courses shouldered by the company (whether partial or full) may be perceived as part of the job, but it should be communicated to the employees that although application of their learning will highly profit the company, ultimately it will redound to their own benefit. This knowledge from trainings is bound to increase their as well as the company’s market value. Performance Assessment For management, the evaluation of organizational and employee performance allows them to check that strategic business objectives are valid, being successfully communicated throughout the organisation and being achieved. Appraising and managing performance are critical management responsibilities and vital part of the organisation strategic management process. Cheatle (2001) sees performance assessment (PA) as an essential tool in Human Resource Management. Traditionally, it has been associated with assessing the performance of individuals against the organization’s set objectives to ensure that they are making the contributions required of them. In recent years, this has evolved to include goals such as systematically developing individuals to make sure their contributions are maximized while being fulfilled in their jobs, that they have adequate skills required to develop in their roles in the organization, and to aid the retention of these individuals in the organization. Stone (2002) defines it as a vital tool for strategy execution by “providing a dynamic link to employee recruitment, selection, training and development, career planning, compensation and benefits, safety and health and industrial relations” (p.264). Further, Stone explains: “It signals to managers and employees what is really important; it provides ways to measure what is important; it fixes accountability for behaviour and results; and it helps in improving performance. Finally, performance appraisal is necessary to defend the organisation against individuals who legally challenge the validity of management decisions relating to promotions, transfers, salary changes ,and, termination” (p. 264) Another benefit of PA, according to Schraeder, Becton and Portis (2007) is goal setting/reinforcement of desired behavior or performance. Knowing what the organizational goals are creates certainty on an employee’s job-related expectations (Pettijohn et al, 2001). At the same time, PA helps set goals for the employee himself. Such collaborative effort in goal setting is desirable because it results in greater acceptance and satisfaction with appraisal results (Cawley, Keeping and Levy, 1998). Modern HRM Practices Towards Organizational Success The ever-increasing functions of HRM have given birth to two practices – integration and devolvement. Brewster and Larsen (1992) define integration as “the degree to which HRM issues are considered as part of the formulation of the business strategy” and devolvement as “the degree to which HRM practices involve and give responsibility to line managers rather than personnel specialists.” (411-412). Unloading some responsibilities to line managers is beneficial to HRM, especially in the face of never-ending tasks set in the achievement of company goals (Budhwar & Sparrow, 2002). There are certain issues which may be too complex for top management to understand alone and sharing the burden with those directly involved may ease it. It results in more motivated employees and more effective control of some issues and concerns. It helps improve organizational effectiveness. Organizational systems go through various changes over the years. Several factors trigger organizational leaders to come up with innovative strategies to keep their companies afloat especially in a sea of competition with others. Currently, the global financial crisis forces companies to re-think their operational systems as cost-cutting measures being implemented for businesses to go on. To maintain competitive advantage while tightening finances, companies have resorted to alternative employment strategies. In the current global shift towards E-commerce and internet, methods to work from thousands of miles away have been invented. Hotdesking, Telecommuting, e-commuting or Working from Home (WFH) is a new concept in the marketplace. “Telecommuting is the act of working at a remote location, usually at home, rather than traveling to and from an office. Telecommuters typically telecommute one to three days a week and commute to the office for the balance of the time” (Boyd, 1996, para.1). In this new work arrangement, the employees use telecommunication technology to commute with their work place Many companies sees it as a fitting solution to cost cutting. Organizations have reported up to 30% reduction in overhead expenses when they schedule their employees telecommuting days appropriately. They have consequently reduced their office space requirements and rents by requiring the telecommuting employees to share desks and other resources and facilities in the company offices (Boyd,1996). Telecommuting is more economical for employees who save a lot of money on transportation allowances, clothing and food spent on lunch or snacks outside the home. Companies not only save on rent, by getting smaller offices, but also on electric and water utilities, having less people reporting for work. Successful organizations know how to manage their human resources to achieve competitive advantage. In the case of alternative employment strategies, several companies are adopting it not only to save on finances but moreso to provide better working conditions for their employees. At Renault, workers are offered to choose these alternatives with the condition of working from home two to four times a week and reporting to the office one day a week. Teleworkers and hotdeskers are entitled to the same company benefits as other employees such as training and career development and access to workplace representatives and elections. The company also covers for the cost of necessary equipment and its installation such as a laptop computer a high speed internet connection and an ergonomically designed chair which should only be used for work purposes (European Employment Review, 2007). Such conditions may be too attractive to turn down for most people, having control of their time and work environment and the opportunity to stay home while earning. It also saves them a lot of time and money on the daily commute to and from the office. At ABN Amro, mobile workers “dock’ their laptops in designated locations at the office and route their phone calls to any desk within an allocated zone for their team. Such areas are recognized by full time workers who have their own desks on a more permanent basis. This arrangement retains the teams’ social structure and lets each one know their place in the company. For this company, hotdesking works well. Jeremy Myerson, co-author of Space to Work, reasons that it has failed in other companies because space has been taken away from staff without replacing it with any other form of security or status. He claims that several companies deal with the problem by offering staff longer contracts, longer notice periods and more generous holidays (Tyrrell, 2006). Managing Diversity The concept of diversity has been broadened to include all “individuals who bring unique perspectives or outlooks to the organization” (Schakelford, 2004, p.53). That means, it not only includes the traditional categories of race and gender, but also people with disabilities, gays and lesbians, and other non-traditional categories considered having “diversity of thought” or those from different disciplines, college degrees, socio-economic backgrounds, etc. The current trend of the embracing of diversity has given birth to the concept of “the inclusive workplace”. Mor Barak (2000) defines it as one that: “values and uses individual and intergroup differences within its work force; cooperates with and contributes to its surrounding community; alleviates the needs of disadvantaged groups in its wider environment; and collaborates with individuals, groups, and organizations across national and cultural boundaries” (pp. 339-340). Simply put, diversity management entails treating others the way they wish to be treated – with dignity and respect. Inclusive environments allow people to have the freedom to keep their uniqueness to bring in different ideas to either enrich what is existing or challenge what is entrenched. When they become too assimilated in a homogeneous culture, they lose their uniqueness and true value to themselves and the organisation which made them attractive candidates to the organization in the first place (Young, 2007). Mead (1994) summarizes some guidelines in managing diversity in the workplace and motivating these diverse workers in the performance of their tasks in the organization. First is to value the exchange of alternative points of view. This fosters thinking “out of the box” and brings fresh perspectives into the organizational thinking. Another guideline is to tolerate uncertainty in group processes. This may even strengthen the bond of the members as they strive to pursue best options together and cooperating to come up with a group decision is key. Still another one is to respect each other’s experiences and share one’s own, as this enriches each other’s knowledge and possibly increase understanding and tolerance of differences. Finally, use the exposure to other cultural values as opportunity for learning. Everyone stands to gain from learning about others. Conclusion HR managers should keep in mind that careful and efficient management of their organisations and people is central in the well-being of their employees as well as their contribution to the company and the maintenance of harmony among all members of the organisation. They should know how to uplift the morale of their people, thereby making them perform better in their jobs and instill loyalty to the organization. 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