Aspects of Effective Human Resource Management - Case Study Example

Major Focuses/ Aspects of Effective Human Resource Management Name: University: Course Title: Instructor: Date: Executive Summary The aim of this paper was to examine the major focuses or aspects of effective human resource management. The paper found out that there are numerous aspects of effective human resource management. These include diversity management, planning, recruiting, and performance management through approaches like motivation and reward management, managing change, training and skill development among other aspects. The single of all these is to ensure enhanced productivity of employees and conducive work environment. The paper focused on two major aspects of the same. The focus of the paper was on performance management. In this approach the paper found out that this is critical and can be achieved through reward management, management by objective and goal setting among others. In the same breadth, the paper found out that the challenging facing this process is how to match performance and reward. In relation to the later perspective, the paper recommends implementation of total reward management and capping of salaries based on firm’s performance. The next aspect of effective human resource management identified was the ability to offer employees an opportunity to develop their skills at their private capacity or by being sponsored by the organisation. Sponsoring employee to further skills through in house training or for further education allows the employees to be modelled according to the organisations needs. This helps in gaining employee commitment and psychological resistance to change. Contents Executive Summary 1 Contents 2 1.0 Introduction 1 2.0 Major Focuses or Aspects of Effective Human Resource Management and How Challenges facing the same can be countered 1 2.1 Performance Management 3 2.1.1 Overcoming Challenges Associated with Performance Management 5 2.2 Human Resource Development 6 3.0 Conclusion 7 References 8 1.0 Introduction Human resource management is a critical pillar in the success of any organisation. In reality despite of any advancement in any functional departments of a business organisation, it is the employees who implement the strategic decisions made by the corporate management. Moreover, employees are integral in conducting innovation and acting as customer contact point or the phase of an organisation. This implies that it is prudent to have various strategies of enhancing the performance of employees since the performance of the organisation is directly linked to it. Organisations have come to appreciate this holistic perspective of integrating company’s strategic plan with human resources. The nexus between human resource department, employees and business organisation is to match the needs of the two and build mutual relationship by creating that enabling environment for employees to offers their skills for prosperity of the organisation and for organisation to reward the employees according to their output. Owing to the above realisation and the normative goal of human resource management, the goal of this paper is to examine the major focuses or aspects of effective human resource management. Concurrently, the paper aims at exploring how human resource management can assist organisations counteract key challenges relating to the major focuses or aspects of human resource management. 2.0 Major Focuses or Aspects of Effective Human Resource Management and How Challenges facing the same can be countered The key ingredient to successful human resource management lies with the ability of human resource manager/ department in collaboration with corporate management to be able to align human resource with the strategic goals of an organisation. The ultimate outcome of this process should be marked with improved business performance, organisation culture that embraces innovation and dynamism. This is called strategic human resource management. Based on the organisations strategic plan as analysed based on core competencies/ strengths, opportunities weaknesses and threats, the following are core aspects that are undertaken by human resource department so as to ensure value creation and market leadership. Weightman (2004, p.3) notes that the role of human resource manager/ department is to recruit, select, train and reward in relation to company’s capacity and targets. In a nutshell, one can deduce that the overall focus or aspect of effective human resource is to enhance productivity of employees so that an organisation can gain market leadership. The basis of this postulation is based on the fact that the mutual relationship between employee and employer is for employees to offer their skills which are critical for value creation and the employer to reward commensurately according to individuals contribution as informed by best human resource practices (Joy-Matthews, Megginson and Surtees, 2004, p.58). Attaining improved productivity implies various measures and it is these measures that the paper conceptualises as the major focus of effective human resource management. In this paper the conceptualisation of aspects of effective human resource as means of enhancing performance/ productivity include, reward/ total reward management and performance management, human resource development, appropriate employment relations, planning, recruitment, selection, diversity management, inculcation of organisational culture & leadership that drives change (Denning, 2000, p. 2). In the later stages, the focus of the discourse would be on performance & reward management and human resource development. 2.1 Performance Management The main role of HR is to ensure improved performance of employees by applying various approaches that enhance production like motivation through total reward. Performance management is the creation of collaborative effort between the supervisors and employees by aligning them with the firm’s strategic management plan. This is done by explaining shared expectations and reducing barriers to poor performance (Bacal, 2012, p.3, 4 & 5). This approach in a participatory manner sets out what is to be achieved by employees or departments over time (Koontz and Weihrich, 2008, p. 92). Improved performance can be attained by HR through motivation of employees. Workers can be motivated through their involvement in planning of business work programs, adequate supervision & creation of flexible work schedules and assurance of their security on the job. Another motivational approach would involve paying attention to employee’s social, physiological, esteem, psychological and self –actualization needs (Kakabadse et al., 2004, p.72). Motivation enhances and encourages job satisfaction; this improves employee productivity, which enhances business performance. To increase productivity, the point of entry to solving this problem is for human resource manager to adopt people management strategies (Weightman, 2004, p.3). For instance, they must employ performance management practices like goal setting and employee appraisal. One way of achieving performance management is through reward management. Reward should be based on performance appraisal where employee’s contribution to the firm is graded. Performance appraisal forms one of the subcomponent of performance management (Armstrong and Murlis, 2007, p. 99). This approach enables management to attract and retain employees so that they can contribute towards achievement of organisational goals (Armstrong and Murlis, 2007, p. 111). Reward management is based on motivation theory whereby one feel encouraged when they are rewarded for their achievements. Secondly, effective HRM address performance through management by objective and goal setting approach. According to Edwin Locke (1968), one of the earlier proponents of goal-setting, posits that goals formulated by individuals themselves contributes a huge portion towards motivating that person for unrivalled performance. The basis for this argument is that the employee will try to attain goals set out and even if they are not met, the employee shall have made a tremendous effort in achieving them and thus, contributing to improved performance. Precisely, this is what performance management aims at. Moreover, Brim (2012, p.3) notes that human beings performs well when they have goals and objectives set out for them. On the other hand, expectation theory looks at performance in relation to anticipated satisfaction of valued goals set by them. According to Victor Vroom (1964), people adapt their behaviour in certain way so as to attain desired goals. The essence of these theories is based on participatory approach to formulation of the desired objectives by having attainable, specific and measurable objectives. This would make the employees part and parcel of the procedure. This collaborative approach can only be realized with a properly formulated organisation structure that has leadership which motivates, sets out vision and creates the need for its people. Goal-setting theory success in the organisation is reliant on how HR treats objective setting process in the organisation (Bacal, 2012, p.8). Setting objectives is a sub step in planning (Koontz and Weihrich, 2008, p.82). This should be done with short and long term focus in mind. Moreover, in this kind of approach, vertical and horizontal information flow with guaranteed feedback is critical. 2.1.1 Overcoming Challenges Associated with Performance Management One of the challenges that face HR in implementing is how match the payment given and skills offered by the employees. One solution to this challenge would be to implement total reward management. According to Armstrong and Murlis (2007, p. 99) employees ought to be paid according to their skills and contribution to the organization. Various business organizations have realized the importance of having “integrated and enriched value exchange between an employer and its employees” (Alliance for work-life progress, 2006). Presently, owing to concerted efforts, scholars have developed models indicating various elements of the concept as an integrated business strategy so that an organization can attract, retain and motivate employees. These elements include compensation, benefits, work-life, performance & recognition and development and career opportunities (Alliance for work-life progress, 2006). Application of these elements is shaped by regulatory frameworks, cultural environment and competition. The benefit and compensation elements are best exemplified through exchange relationship where employer rewards valued employees and on the other hand employees provide time talent, effort and results. Compensation includes fixed pay, variable pay, long and short term incentive pay. These are meant to pay for time talent, effort and results. Benefits as the second element group & social insurance and pay for time not worked. They are meant to address financial risks and supplement cash compensation. The third aspect is work-life which helps employees achieve success. This group includes work flexibility, financial support, culture change interventions and paid and unpaid time off among others. The fourth is performance management where individuals are aligned to the organizational goals and those who succeed in this are recognized. The last is development and career opportunities so that employees can further their skills and also for organization to attract new talents (Alliance for work-life progress, 2006). In addition, in implementing reward management strategy, salaries should be capped according to companies overall revenue otherwise the firm might find itself directing most of the income towards recurrent expenditure rather than capital investment. 2.2 Human Resource Development An effective human resource management should embrace human resource development as means of expanding capacity of their employees. The importance of human resource cannot be over-emphasised. Apart from the training that one received while pursuing academic qualification, it is important for organisation to train its employee and expand their human capital on the job and through refresher courses. This allows them to grasp new concepts in their field of profession and be engaged in domestication of these new ideas for the organisation. In a nutshell, this allows employees to improve their performance and enhance their personal development (Joy-Matthews, Megginson and Surtees, 2004, p.58). The greatest underpinning for involvement in this kind of management is to ensure that human resources are aligned to the organisational requirements by having planned learning activity. Moreover, human resource development can be used to initiate change within the organisation. Apart from the above, human resource development can be used as an avenue of modelling organisation’s capital requirement into their own liking. The essence of this is to make vision and human capital to be in sync (Joy-Matthews, Megginson and Surtees, 2004, p.58). 3.0 Conclusion The aim of this paper was to examine the major focuses or aspects of effective human resource management. The emerging finding is that there is numerous major focus of effective HRM. These include human resource development, planning, recruitment, promotion, diversity management and reward management among others. The ultimate aim of all these approaches is to enhance productivity of the employees and thus, help in value creation and attainment of market leadership. This paper focused on two major aspects of effective HRM. The two are performance management through motivational approaches like reward management. The second being employee development. The emerging observation out of these two is that motivating employees contribute to enhanced productivity and thus, the realisation of the organisation’s goals and strategic plan. The same is extensible to skill of employee as they enhance their capacity for delivery according to the requirements of the company. References Alliance for work-life progress 2006. Work and life: what is total rewards? Retrieved on 13 December 2012 from: http://www.awlp.org/awlp/about/html/aboutus-whatis.html Armstrong, H. and Murlis, M. 2007. Reward management: a handbook of remuneration strategy and practice. London: Kogan Page. Bacal, R. 2012. Performance management. New York: McGraw-Hill. Brim, R. 2012. A history of MBO, and recommendation for today’s manager. Retrieved on 13 December, from: www.managePro.com. Denning, S. L. 2000. Practice of workplace participation: management-employee relations at three participatory firms. West port, CT: Greenwood publishing group. Joy-Matthews, J., Megginson, D. and Surtees, M. 2004. Human resource development. London: Kogan Page. Kakabadse et al., 2004. Working in Organizations, Burlington: Gower Publishing Company. Koontz, H. and Weihrich, H. 2008. Essentials of management: an international perspective. New Delhi: Tata McGraw-Hill. Weightman, J. 2004. Managing people. London: Chartered Institute of Personnel and Development Read More