Contributions of Successful Human Resources Management to Organizational Performance - Coursework Example

Contributions of successful human resources management to organizational performance University Student Id Course Introduction Human resources management has major contributions to the performance of organizations. It entails improving the performance of employees through influencing their behavior. Therefore, human resource management can be taken to represent the organizational function which is responsible for ensuring improvement in the organizational performance (Sun, Aryee, and Law, 2007). Considering the complex business environments, human resources management has become the main contributor to the success of an organization. The changes in the environment of business have forced a significant number of the business entities have various HR departments within their organization structure. Business entities utilize HRM functions from either experts or specialists in a certain field to make sure that their organizations are competitive. The functions of the human resources management can include planning human performance management, reward management, resourcing, employee relations, training, and development. Performance management function involves the management of the capabilities of the employees to improve their productivity. Reward management includes making use of rewards in a way that can motivate the employees to be committed to improving organizational performance (Güngör, 2011). Employee relations function involves the provision of the necessary environment that can improve the way employees relate to each other. Training and development are the processes of ensuring that the employees have the necessary skills that can make them productive in the organization. Resourcing is the process ensuring the right type and some employees are selected to guarantee improvement in the organizational performance (Becker and Huselid, 2006). This essay is mainly focusing on two HRM functions that are performance management and reward management. The various ways that rewards management and performance management affect organizational performance are analyzed and different cases used for in-depth analysis. Organizational performance The performance of any organization is entirely determined by the employees’ related aspects. For instance, the way the employees are treated in an organization determines their productivity which affects the performance of an organization. Organizations have realized the importance of ensuring that employees are treated well to ensure improvement in the organizational performance (Luthans and Luthans, 2004). For example, Toyota Company has invested in employee development where it employs motivational programs that can ensure motivation of the employees. The competitiveness of the Toyota Company can be related to the way it treats its employee making them committed to achieving the company goals. The management of Toyota Company has developed rewarding packages that have made the employees committed to improving the productivity of the enterprise. The performance of businesses can be assessed by considering various factors taking place. Some of the factors that can be utilized can include a change in financial performance, brand value, and sales volume among other factors. Financial factors that can be employed in assessing the performance of an organization can include dividends per share, profits, and earnings per share. The human management practices are said to have great impacts on the performance (Need, 2006). Therefore, it is important for the human resources manager to ensure the human resources management practices are in a position to guarantee performance improvement. The human resources manager has the responsibility of ensuring that the employees are motivated to improve the organizational performance. It has to make sure that the employees are engaged in the process of determining the best strategy of making them improve their productivity. Successful management of human resources in an organization affect performance in various ways (Sayım, 2010). For instance, human resources managing determines employee turnover where poor human resources management practices can make employees leave the organization. Besides, human resources management determines the profitability of an organization as the behavior of the employees in managing costs is determined by the way they are treated. For instance, the employees who are not rewarded are likely to be motivated hence do not realize the benefits of working toward managing costs to improve profits (Shields, et al. 2015). As a result, there can be an increase in the wastage due to lack of commitment of the employees to ensure costs controls in the production process. HRM has proved to be crucial in the process of achieving competitive advantages in organizations. The management of employees determines the willingness of the employees to assist in implementing the various strategies of an organization (Singh, 2007). For instance, MacDonald’s has been ensuring that the employees are motivated to achieve competitive advantages in the industry through eliminating the possibilities of resistance to change. Therefore, the organizations looking for ways of becoming competitive in the market need to ensure the human resources management practices are motivating to the employees. The HRM Concept The majority of the companies make use of the HRM practices that are formulated and implemented to improve their performance. Also, various policies that the HR department is requested to follow in agreement with the law adhere to for the benefit of the organizations. The policies and the practices are mostly comprised of the HR planning, recruitment and also the training of the employees (Sayım, 2010). Moreover, all these practices for the HR always offer support to the final objective of the HR management which is actually to reinforce the relationship between the workers and the employers. The human resource should be included in all the various levels of the management so that an organization can function more effective. This shows that the HR should determine the degree of the performance of each worker as well as their impact on the organization. On the other hand, employees who are low performers the HR department should advise them appropriately to assist in improving their performance (Jiang, et al. 2009). Also, the personnel for the human resource should concentrate fully and put more efforts in supporting the planning process of an organization and also in the implementation of policies in an organization. The performance appraisals, as well as the assessments, are usually parts of the talent in the puzzle for the management. Therefore, so that the HR management can construct a skilled workforce, the organizations require doing more work not only auditing the achievements of the workers (Kusic, et al. 2009). A certain firm actually should work with the aim of managing a cycle whereby the aspect of the judgment is not only the thing to focus on but also the issue of supporting improvements should also be considered significance. There are HRM practices that have been considered crucial in ensuring that the performance of an organization is improved. For instance, consistent coaching of the workers leads to improvement on the general performance of the employees. Besides, both the development programs, as well as the proper training, are also significant in an organization. Development planning is another ongoing performance whereby workers require both regular and the quality feedback concerning their performance and possible ways of improving their performance (Yew, 2005). When the skill gaps are noticed, the workers have a clear understanding concerning their both weaknesses and also their strengths. Performance management Performance management in any organization entails effective ways of managing employees to improve their contribution to organizational success. It involves setting goals that need to be achieved and aligning the capabilities of the human resources with to the set objectives. The alignment of the human resources with the organization's aims is crucial in ensuring that the employees can ensure the improvement of organizational performance (Sayım, 2010). For instance, Coca-Cola Company has been working toward ensuring that the performance of the employees is managed through continued training. The company has ensured that the necessary policies are in place that can make sure that the performance of the employees is properly monitored and performance appraisals conducted. Figure 1; showing Coca-Cola performance improvement process Source: http://www.slideshare.net/likhon143/performance-management-and-appraisal-of-cocacola Performance management has been considered necessary in the process of ensuring that the talents of the employees are managed. It is through the talent management of the employees that the productivity of the employees can be improved hence improving the organizational performance. The human resources management is responsible for ensuring that the talents of the employee are natured to improve their capabilities in their workplaces. The major goal of performance management is to make sure that the level of employee performance is enhanced focusing on improving the performance of an organization. The major processes involved in performance management include planning, managing and reviewing. The planning process of performance management entails setting the objectives and expectations that need to be achieved. It is the role of the human resources manager to make sure that the competencies and the behavior of the employees can guarantee improvement in performance. The behavior and competencies are responsible for achieving improvement in the quality of the products hence increasing the chances of making the company competitive in the industry. The managing process of performance management entails continuous performance improvement through tracking the performance changes. The human resources manager has to make sure that ongoing performance feedback is provided to assess the whether the employees are improving their productivity (Collins and Smith, 2006). For instance, Toyota Company has been working towards ensuring that the employees’ productivity is improved through constant monitoring of the changes in their productivity. The human resources manager of Toyota Company has been holding interviews to obtain the performance feedback concerning the performance of the employees. Figure 2: showing Toyota performance improvement process Source: http://gembapantarei.com/2012/11/challenging_challenge_in_the_toyota_way.html Reviewing in performance management entails periodical appraisals aimed at assessing the progress of the workers' productivity. It is crucial in ensuring that the necessary controls can be put in place to monitor the performance changes (Folan and Browne, 2005). The appropriate actions can be taken in advance in case of deviations from the set objectives that need to be achieved. The feedback at a different time can be possible through regular reviews of the performance progress where rating can be done using percentages of the targeted objective. Ongoing achievement in the performance management has been considered crucial in ensuring that the set objectives are attained. It is taken to represent the series of prose events such as the setting of goals and also revising them. Each work in the working place usually requires a clear understanding concerning the expectations of their work (Cardon and Stevens, 2004). In addition, the employees also require a context which comprises of understanding of where they fit in an organization and in which way they contribute towards the successfulness. Another ongoing performance is the aspect of the management and coaching whereby some of the goals which are set may require some adjustments. In Sometimes, workers may not possess some necessary skills for effective working; therefore they are couched to impart them with the necessary skills (Ferreira and Otley, 2009). Besides, the performance appraisals are always used to select the gaps which require workers skills. In the case when an organization is unable to identify the gaps, the overall management provides the possible solutions. Reward management Reward management in organizations entails the processes, strategies, and policies that are necessary to motivate the employees. It is primarily geared towards making sure that the employees have the necessary motivations to work towards improving the organizational performance. The human resources management has the responsibility of ensuring that the rewards package used can be in a position to improve the performance of the employees (Armstrong and Murlis, 2007). Therefore, it is necessary to make sure that the rewards used in organizations are in a position to motivate the employees. However, in the process of managing rewards, it is crucial to ensure that the employees are engaged in the course of designing the rewards be provided. Involving the employees in the process of designing the rewarding stem can be crucial in making sure that the rewards provided can motivate. Employees are said to have differing motivators hence the engagement can ensure that the right rewards are provided (Bustamam, Teng, and Abdullah, 2014). For instance, Coca-Cola Company has been engaging the employees in the process of determining the best rewards that can motivate them. The rewards in organizations can be categorized into extrinsic and intrinsic rewards. The intrinsic reward originates from the organizations that can include increased salaries, improved welfare of the employees and good working conditions. The extrinsic rewards arise outside the organizations that can include the health of the employees. The human resources management need to ensure that the reward can motivate the employees. Also, the human resources manager need to be interested in knowing the possible problems that an individual employee can be facing that can affect his or her productivity. Rewarding is the human resources management practices is considered critical in improving the employee's motivation. The reward management policies are enforced to ensure that there is guaranteed the improvement of the performance of organizations. Therefore, it is important to handle rewarding in organizations carefully and also consider rewarding practices as necessary strategies for achieving competitive advantages (Armstrong, 2010). In general, Human Resource manager has to make sure that the rewards provided to the employees are in a position to improve their performance. The reward management needs to be controlled and the necessary policies to control the rewarding process established. In addition, the human resources manager of any organization should understand the various needs of the workers to align the rewards with their needs. The aspect of rewarding workers on their good performance in an organization in many cases results in high productivity in a business and which is the primary goal of any organization. However, giving rewards to the employees is an activity which is not fully accepted by the HR professionals (Armstrong and Stephens, 2005). Most of the HR professionals realize that their jobs consist of various policies as well as procedures that have an impact on the performance of their organizations. The procedures are necessary for governing the management of the people, but few human resources managers acknowledge some of the elements which improve the performance of workers in an organization. For instance, the bonus programs are usually implemented to be compensating some of the employees. Conclusion The functions of the HRM are crucial in determining the performance of an organization. The functions involve a significant number of activities such as training the workers, recruiting workers and also making the decision concerning the staffing needs. Moreover, the primary function of the Human Resource Management ensures that there are high performing employees as well as dealing with various issues related to the performance. The human resources management always relies on well-organized workers as well as full utilization of the employees to realize the two main goals of an individual organization. The principal aim of the functions of human resources management is the effective use of the both talents and also the abilities of the workers. The human resources manager aligns the employee management practice with the operational objectives of the organization. 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Critical success factors for implementing knowledge management in small and medium enterprises. Industrial Management & Data Systems, 105(3), pp.261-279. http://gembapantarei.com/2012/11/challenging_challenge_in_the_toyota_way.html http://www.slideshare.net/likhon143/performance-management-and-appraisal-of-cocacola Appendix Figure 1; showing Coca-Cola performance improvement process Figure 2: showing Toyota performance improvement process Read More