Human resource management Essay Example for Free

Human resource management Essay Human resource management is a sequence of decisions that gives the employment relationships, these decisions leads to the success of the organization and allows the employees to reach their target. Human resource management is related with the attitudes of the people and their taste. As every company works with the people, by taking their services, it develops their skills so that they give their level best talent and giving the support so that they can continue in the organization showing their talent that is necessary for the organization to achieve their goals. This is the necessary condition for every company like: business, government, education, social and education, health departments. Human resource planning, directing , organizing of the procurement is to develop, maintain, separate the human resource to the end of the individual, organization and social objectives to be achieved. The term Human Resource Management has many forms of definitions stated by different people in different perspectives, and still there is no standard and fixed definition for it. Because it is the management of different people with varieties of needs and vast individual opinions, there is no standard or strict policy kind of rules to manage people. The Human Resource Management is nothing but managing the employees in an organization with certain policies particularly dependent on the basis of organization and the kind of business it does. 1. 4 Purpose Statement The main purpose of selecting this particular topic is that I my self very much interested in the human resource management and its concepts. Because of the interest on HRM I have read many books and articles on the human resource management and the human resource strategies I came to know that the HRM and the HRM strategies are the main aspects that are leading to the success of the organization, so this statement initiated me to conduct the research on the HRM and get more information on it and provide my new ideas and views for the future enhancements. Chapter 2 Literature Review Meaning of human resource management Human resource management is the management function that allows the human resource managers to select, train, and develop the skills of the members in the organization. In addition, human resource management is associated with the needs of the people. Human resource management is referred by the activities, functions and programs that are carried out.Core Elements of human resource management People: organization itself is the people. It works with the talent of the people. Management: human resource management has to maintain the organization, solve the problems that are present in the organization. Integration and consistency: decisions taken by the human resource management regarding the people must be integrated and consisted. Influence: decisions taken should influence the people by increasing their productivity in the market and allowing the company to get succeed. Applicability: human resource management principles and policies are applicable to human resource management and non human resource management like education, health, etc. 2. 2 Role of human resource management 2. 2. 1 Advisory role: Human resource management gives solutions to any problems that are affecting the people, personnel policies and procedures. a). Personnel policies: organizational structure, social responsibility, employee terms and conditions, rewards, career and promotion, development and industrial policies are the personnel policies. b). Personnel procedures: man power planning procedures, recruitment and selection procedures, employment and training, management and development, industrial relations are the personnel procedures. 2. 2. 2 Functional role: The personnel functions help to communicate the personnel policies. It provides the support to the manager, which will enable that the given policies are implemented. 2. 2. 3 Service role: Personnel functions are provided by the employees who will work for the all time. The services are in the hands of personnel departments. They carry out the main activities of their services and implement the policies and practices that are given above. 2. 3 Challenges of human resource management in Indian economy 2. 3. 1 Globalization Growing the business to the world wide involves the problems on the human resource management in terms of laws, practices, competitions, management styles, work ethics and more. Human resource managers have to deal with many challenges of functions, more heterogeneous functions, more involvement in employees personnel. 2. 3. 2 Corporate re-organization Reorganization relates to mergers and acquisitions, joint ventures, takeovers, internal constructions of organization. In these situations it is more difficult to imagine the circumstances that create great problems to them than reorganizing itself. It is a challenge to manage employees fears during the dynamic trends. 2. 3. 3 New organizational forms The main challenge for the human resource management comes from the changing the characters. The competitions are not between the individual forms and group firms. Major companies are running through the local suppliers and forgings. This leads to rise of the new organizational forms. 2. 3. 4 Challenging demographics of work place Changes in the work place are largely related by the dual nature. There is difference between the young blood and old age employees, working mothers, more educated and sensitive workers. These challenging work forces have their effects on human resource managers and from the human resource point of view it is a great challenge. 2. 3. 5 Changed employee expenditure With the changes in the work place the employees attitude also has to be changed. Traditional things like giving house, job security, remuneration are not interested by the employees today instead they the equality and power along with the management. Hence it is the challenge for the human resource management to redesign the profile of the workers and discover the new methods that are liked by the workers like training and supporting them for their work. 2. 3. 6 New industrial relation approach In todays world the employees union has understood that strikes and militancy are not having much importance and are unnatural. The employee union membership has fallen severely and the future labor is of dangerous. The challenge before the human resource management is to maintain the industrial relations so as control the challenges and get grip over them. 2. 3. 7 Renewed people focus Todays world and business need is the peoples approach. The structure, strategy and systems that had worked in the past have no importance in the present situation with the increasing competitions. The challenge of the human resource management is to make people continue and reasonable to the work in the organization. 2. 3. 8 Managing the managers Managers are very unique from the others, they thing that they are different class apart from the others. They command for the decision making, bossism, and operational freedom. When these things are given to them in the past they have misused their powers in removing their coworkers and the talent, hard working employees. The challenge before the human resource management is how to manage this problem. How to make them realize that they have given freedom to make the decisions and implement them but not to misuse. 2. 3. 9 Weaker society interests Other important challenge for the human resource management is to protect the interest of weaker society. The increase in the women workers, minorities and the backward communities has lead to re-examine the practices policies and values. In the name of the globalization, the productivity, quality, the needs of weaker should not be given up. It is a challenge for human resource management to see that weaker sections are not seen and their rightful jobs are not discriminated in services. 2. 3. 10 Contribution to the success of organization The main challenge of the human resource management is to make all the employees to work for the success of the company in an ethical and culturally responsible way, because the society mainly depends on the organization. 2. 4 Human resource management overview The term Human Resource Management has many forms of definitions stated by different people in different perspectives, and still there is no standard and fixed definition for it. Because it is the management of different people with varieties of needs and vast individual opinions, there is no standard or strict policy kind of rules to manage people. The Human Resource Management is nothing but managing the employees in an organization with certain policies particularly dependent on the basis of organization and the kind of business it does. Managing the people with different mentalities, different approaches they follow, different complexities in their thinking, makes the task very difficult for the management. So to continuously improve this process of managing the human resources in the organization, the institutional (e. g. universities) and specialized bodies (e. g.Chattered institute of personal and development CPID) keep busy in investigating on development of new HR related issues faced or to be faced and at the same time practices and remedies to be followed. Managing the people with different mentalities, different approaches they follow, different complexities in their thinking, makes the task very difficult for the management. So to continuously improve this process of managing the human resources in the organization, the institutional (e. g. universities) and specialized bodies (e. g.Chattered institute of personal and development CPID) keep busy in investigating on development of new HR related issues faced or to be faced and at the same time practices and remedies to be followed. 2. 5 HRM resoruces As stated by Werner felt, the word Resource in the context of an organization is defined as Any aspect that may become a strength or weakness of a given organization including substantial and visionary valuable assets of the organization. The organizational resources can be segregated into human resources, technological resources and financial resources. In these three resources of organization, philosophy and the character of human resource management is under considerable scrutiny with continuous debate on the subject. As it is dealing with managing vast varieties of individuals, there is no widely accepted definition. But below given are some of the definitions of Human Resource Management from early years specified by different people in different perspective, which can be used for capturing the glimpse of its idea in use: The main function of the Human Resource Management for an organization is to find the best possible way to utilize the abilities of the employees to the greatest possible benefit and development of the organization and at the same time make sure that employees get financial as well as personal growth and psychological rewards for their work (Graham, 1978). Storey (1995: 5) stated Human Resource Management is individual approach for the management of employees, which needs structural, cultural and skilful measures to take advantage of well capable and dedicated employee resources. 2. 6 Human resource management in the organization The department of Human Resource is treated by most of the organizations as an administrative body and its association with the strategic plans is mostly ignored. Even though HR is about the employees who are very important for any organization, the Human resource department is only included in planning of the organization, but most of the time it is not utilized actively and strategically. Even though the Human Resource is not considered as an important factor in the strategy development and is not associated with strategy of the organization, the effect and success of the Human resource is invisible. Human resource is treated as a department policing the administration properly in hiring and firing as per the letter of law. Strategic Human resource practices are more existing concepts, which is entirely different from administrative function. So organizations ignore most of the time these practices to improve the bottom line business results (Huselid, Jackson, Schuler, 1997). Strategic Human Resource management can be defined by (Huselid, Jackson, Schuler, 1997) as the design and fulfillment of a group of policy practices made by the organization for the best utilization of the human capital contributions for the achievement of the required business objectives. Human resource people often do not act as the exact business persons and become responsible for lack of credibility in gaining business, so are unable to contribute for the success of the organization and its strategies for the development. 2. 7 The importance of Human Resource being Strategic Human resource should not be involved only in the strong administrative foundation of the organization, but also come up with the successful strategy which influences the financial bottom line of the company. Human resource should take active role in planning, guiding itself to provide continuous eventually effective strategies which will be recognized by the organization for the competitive success. It should monitor at regular intervals and also evaluate the strategies being followed and strategies need to be improved, so that Human resource play active role to be recognized as the peoples department in success of the organization. This concludes that strategic approach of the company along with Human resource completely involved in every strategy implementation will ensure that the organizations business goals can be effectively achieved by the use of skilful and able employees to the maximum effect (Huselid, Jackson, Schuler, 1997). 2. 8 The consequences of Human resource not being strategic 2. 8. 1 Human Resource being too involved in administration Apart from the main function of the Human resource department being strategic effectiveness in the development of the employees, the other function is to take care of the administration of the organization, where the department spends most of the time. This administrative work involves Human resource person in handling the selection process, recruitment strategies, appraisals based on performance, plans for the compensation (Huselid, Jackson, Schuler, 1997). Human resource department should give importance to both administrative and strategic effectiveness, because the administration is the basic building blocks for the foundation and functioning of the organization and cannot be ignored. So after the basic organization is formed, the Human resource should concentrate more on the strategic development for the effective utilization of the employees skills effectively. 2. 8. 2 The poor human resource Personal competencies Due to the reason that sometimes the human resource is ineffective in tasks, incompetent and costly in maintenance, Human resource bad reputation is treated as well deserved. The change in the Human resource persons thinking and acting could bring the change expected by the senior management and they can start believing that Human resource can play active role in strategic planning and implementation of the organization. Human resource must upgrade them by learning about the business, culture of the work to influence the positive change in the organization and at the same time increase the credibility of the human resource department. Human resource should give more importance to the business competitiveness than employees personal good feelings and must also lead the organizations work culture. Human resource should be more competent supporting staff as well for the organization (Ulrich, 1997). 2. 8. 3 The human resource not measured in dollars As most of the people believe that Human resource is group of clerks who work more in processing benefit forms, taking care of administration paper work and tracking employees vacation days, and think that there is no strategic accountability apart from these administrative functions, the accountability of the Human resource is always being questioned (Galford, 1998). The Human resource department should play active role with full potential in creating the organization value and work with good strategies for profitable returns on the investment made by the organization (Frangos, Fitzenz, 2002). Normally, Human resource strategic play brings more business returns to the organization, but there is no proper business measure for this achievement. Mostly the human resource value is measured based on the cost savings in administrative and recruiting process of the employees. As Human resource lack the tools to measure the business value of the strategic gains for the organization, most of the industry researches reveal that 60% so the Human resource people play less role and only 40% of the people actively take part in strategy table for the development of the company. This is the conclusive reason for Human resource not being considered as an strategic asset to the organization. 2. 8. 4 The human resource not in co-ordination with other department goals. Human resource need to me more aligned with the over-all strategy of the organization to be more effective in business development of the organization. One of the Harward university survey says 80% of the Human resource departments has no planning for aligning itself with the other departments and its expenditures within the organization (Norton, 2001). Human resource need to be more interdependent and consulting body with all the departments and should take strategic approaches to align itself with entire departments and their strategies. Human resource need to support and contribute more in strategic involvement into different departments and different layers of the employees. This will improve the competitive advantage in the organization and leads to the business development. The main goal for human resource is to manage the human capital, motivate them which are one of the roles in being part of the broader organization management strategy. The human resource should be more involved with the top management and give appropriate support and align itself with the company strategy for the business development of the organization (Freedman, 2004). The overall company profits in the business depends on the Human resource involvement in the recruitment of persons with perfect match for the role, effectively encourage and motivate the employees, full contact with the top management, communicate well with the customers and co-coordinating all these departments. 2. 9 Strategic human resource management The way of doing something is the strategy. It includes t he execution of goals and set of action plans for gaining of the goal. Strategic management is a process of theorizing, executing and passing on the business plannings to achieve the companies goals. A set of managerial decisions and actions that determine the long term performance of organization is the strategic management. Environmental scanning, strategy theorizing, strategy execution, judging and control are included in this strategic management. The study of strategic management allows understanding the strengths and weakness of organization by evaluating the environmental opportunities. 2. 10 Role of human resource management in strategic management Role of strategy formulation: human resource management plays an unique role in supplying the competitive intelligence that will be helpful in strategic formulation. The human resource management can provide the details like advanced motivation plans used by the competitors the opinions given by the employees, bringing out the complaints given by the customers, information about the pending plannings etc. In strategic formulation the human resource capabilities serve as a driving force. Role of strategy implementation: human resource management gives the competition and the work force that will give the success of strategies. It is important that linkage strategy and human resource management needs the series of practice choice. The challenge is to develop the human resource practice choice that will be helpful in implanting the organization strategy and increase its competition. 2. 11 Human resource development Human resource development is the executing and increasing the physical, mental and emotional capabilities of individuals for productive work. Human resource development means to bring out the talent and the individual growth. Human resource development is a process to help the individual to gain the knowledge, improve the skills and capabilities, to performance well in the organization and increase the productivity. 2. 12 Proactive human resource strategies for future plannings and growth In todays competitive and challenging world the human resource development has to take a positive care to maintain the human relations. The human resource development has to play an important role in utilizing the all opportunities that are present to it for the development and success of the organization. Long term goals can be achieved by employing the efficient professionals who have aims to do the work. A proactive human resource development can execute the activities to get the competence and increase the productivity potential of human resource. 2. 13 Human resource planning Human resource planning is a process of having the sufficient people to do the given work at the right time having the ability to work efficiently so that the company can meet its objectives. Human resource planning is useful in giving information like estimating the number of people that are required for the work to be completed. To know how many people are required for the work is know by the human resource planning. Human resource planning plays an important role in avoiding the situations like having more or less people in the work place in future. Human resource enables the organization to go with the changing world like market, technology. Since jobs are based on intellectual skills and technical skills the human resource plannings help to prevent the storage of workers. In addition, due to the technical skills increasing the man power can decrease or increase in future. Human resource planning system Human resource planning system have the following elements for the planning.   The total organizational objectives   The business environment Giving the manpower needs   Evaluating the man power supply   Matching the man power supply demand factors 2. 14 Human resource planning process The objectives of human resource planning process are obtained from the organizational objectives like the necessity and working nature of the employees. Human resource should work on all the objectives by using all the man power that is available. In human resource planning process certain policies are to be made to make decisions like internal employing and external employing, giving the training and developing the plans, union restrictions, job improvement problems, rightsizing the organization, automation needs, continuous availability of the work force. Man power forecasting is the process which gives the information about the number of people that are required in the future. The demand forecasting has the following factors: The internal factor: The internal factor includes controlling of the budget, production levels, new products and services, organizational structure and employee separation. The external factor: The external factor includes competitive environment, economic climate, laws and regulatory bodies, technology changes, social factors. In the man power forecasting techniques the managers across all the levels depend on their own judgment. This can be bottom up or top down approach and judgment is reviewed in all departments and top management concludes on the total number of employees. Man power supply forecasting process measures the number of employees available that are present in and outside the organization after doing some of the changes like promotions, wastages, internal movement, conditions of work. 2. 15 Existing human resources Human resource facilitates the examination of the skills and abilities of employees. The employees that are working in the organization are categorized into skill inventories and managerial inventories. The skill inventories include personal data, special qualifications, salary, skills, job history, company data, capabilities, special preferences. The managerial inventories include work history, strengths, weakness, promotional potentials, personal data, career goals, number of subordinates, type of budget managed, previous management duties. Man power supply forecasting is categorized into internal and external supply. The internal supply is useful to know the following things: the level of production, working times, overtimes, leaves or absence, annual income, recruitments, promotions. The external supply is necessary for the following the reasons: new blood, new experiences, replacing the lost ones, organizational growth. Employees are selected based on the job vacancies. The selection of employees required is done on the basis of supply forecasts. For the selection process the internal and external supplies are used. Human resource professional gives the training to the employees and budget allocation is made for them. When the technology changes the existing employees are to be trained or they have to be shifted to the other departments where they can show their talent. 2. 15. 1 Managerial succession planning. Many methods are used for the managerial succession. Many of the successions involves the top management decisions and commitment. A typical succession plans have the following activities *Examination of demand for managers and professionals   Skills of existing executives   Knowing the future from the supply of external and internal factors   Individual career path planning Career counseling   Increased promotions   Performance related training and development Strategic recruitment Human resource plan should clarify the responsibilities for controlling and establishing of procedures, which will enable the achievements of plans. Succession planning Succession planning is the process of filling of the main positions in the organization by the persons. The main concentration is on the person who is taking the main position of the organization. Succession planning mainly concentrates on the vacancies that are present in the company and filling that vacancy with the appropriate one. Succession planning comes into light when an important person is retired. The employee feels happy when his talents are recognized by the organization and the vacancy is filled by him. By having the talented employee in the organization the organization can get succeeded. 2. 15. 3 Career planning Career planning is the process offered by the company to the employees to know their talents, weakness, jobs they wanted to occupy in the organization. Career planning is a sequence of professional, educational and developmental experiences that allows the individual to go the world of work. It is the sequence of positions occupied by the person. Career can also be considered as the mixtures of the changes in values, attitudes and the support given to the person as he grows. Career planning is regarded as the developmental questions of the organization. It is also concerned with the employment of the graduates, engineers, scientists etc. Career planning gives the succession plans to the employees as per the organizational needs. Career planning is based on the performance, and experience. The objectives of the career planning are building up the confidence in the individual, develop the perspective, reducing the expenses of the employee, make certain organizational effectiveness, allow the employee to reach his goals in the organization.