How HRM is vital for achving goals in organization
In this assignment author has tried to explain, how hrm is vital for achving goals in organization. This assignment is divided in to three parts, first part is explain about what is Human resource management and planning with the help of theory and references. In the second part of the first part author has tried to explain, how human resource planning play its role in achieving gole of organization, it explained with the help of HRM cycle. In the third part of report explain each and evey tools of HRM which is applied in organization and how it can effect to employess and their motivation power to do daily work for organization and finally this reports end with conclusion.
HRM, the term is not easy to define. The reason because it is a commonly use in two different ways, One way it describes the structure of management activities. On the other hand, the term equally widely used to denote a particular approach to the management of the people which is clearly different from personal management. (Derek Torrington, 2008) HRM is the planned approach to the management of an organization’s extremely useful asset – its people. (Simms, 2005) The term ‘human resource management’ (HRM) and ‘human resource’ (HR) have entirely replaced the ‘personal management’ as a description of the processes involved in managing the human force to run the business smoothly. (Armstrong, 2006) Many organizations invest plenty amount of time and revenue deciding what equipment to purchase, how much money to spend on materials and the return on such an investment. But it is not much important how well this is done, without the right people, these strategy unlikely to succeed. (Simms, 2005) The definition of ‘HRM’ according to Graham and Bennett (1998), is ‘Human resources management concerns the human side of the management of enterprises and employees relations with their firms. Its purpose is to ensure that the employees of a company, ie its human resources, are used in such a way that the employer obtains the greatest possible benefit from their abilities and the employees obtain both material and psychological rewards from their work. Human resource management is based on the findings of work psychology.’ (Simms, 2005) To achieve any set objectives, tapping the appropriate human resource is the key. You may have a business house worth millions of dollars but what if there is not the manpower that suits the nature of the business (Buzzle, 2011a).
Human Resource Planning
The term human resource indicates that human capital that run an organization. The term planning suggests a course of action. Thus the human resource planning is defined as, ‘an area of action that the human capital takes up for a systematic work to achieve predetermined goals. Human resource planning is nothing but recognizing and quantifying current personnel resources and future needs (Buzzle, 2011b).
Human resource planning is a process which is characterized by constant change, backward - thiniking process conducted by both senior or line managers and human resource experts. (Allan Bandt, 2002) This kind of planning is ideally a partnership between all different groups. Together they describe their ideal future of people management for the organization and the core strategies required to achieve people effectiveness. Depand on this all strategies they then develop very important, annual operating plans and estimate budgets. Then this plan takes through the achievement and measurement of the people management vision. (Allan Bandt, 2002). Like we already discuss there is no single definition for human resources planning with which everyone accept. Many definitions and models of HRP exsist. For some center of attention is technical side – that is, the mathematical and behavioral systems of forecasting HR needs. Others prefere the managerial side – that is, the way decision makers tackle human resource issues affecting an organization.(William J. Rothwell, 2003)
Q – How does Human Resource Planning contribute to achieving an organization’s goals?
Those who are working in human resource planning, they have to understand the nature and the value of contribution which every can bring. In addition they need to aware of the HR cycle through which individual employees pass as they move into and through the organisation. This may be represented in simple term as a cycle as shown in diagram below. (Simms, 2005)
Identifies need: The human resource planning needs to extend a fairly wide net. It must embrace the practical required and objectives of individuals within an
organization and simultaneously personal requirements of departments and divisions. For example it should take in to account the organizations successions requirements – its need for future ‘movers and shakers’. The young and bright generation entering corporate life with full of high – flying talent who need the right training and the right kind of career framework if they are to reach higher positions. This process can be seen in the HR cycle diagram on the below page. (Simms, 2005)
(Identifies need) Recruitment and Selection
(Identifies right people)
(Introduce them to team)
Promotion and outplacement
(Removes them from the team) Job description
(Clarifies their role)
Training and Development Coaching and counselling
(Develops them and their skills) (Gets the best out of them)
(Reviews their performance)
The Harvard school suggested that HRM had two properties:
The line managers take more responsibility for ensuring the correct relative position of competitive strategy and personnel policies.
Personnel has the aim of setting policies that influence how personnel activities are developed and implemented in ways that make them more mutually support.
Human resource flow
Business strategy and conditions
Laws and social values
The Harvard framework for Human Resource Management (Beer et al, 1984)
According to Harvard framework ‘Human resource management involves all decisions taken by management and action that affect the nature of the relationship between the organization and its employees – its human resource management. (Armstrong, 2006)
Recruitment and selection:
Recruitment is the process of attracting new people to the organisation and Selection is the process of identifying a particular person to fill a particular postion either from within or from outside the organisation. (Simms, 2005). For many managers, recruitment and selection is a significant part of their involvement with the HRM process. Finding the accurate person for the job has always been important and the decision to appoint an individual is one of the most crucial for any employer.
The Chartered institute of Personnel and Development’s (UK) position on recruitment (2003) is as follows:
‘CIPD believes that the effective recruitmentis central and crucial to the successful day-to-day functioning of any organisation. Successful recruitment depands upon finding people with both the necessary skills, expertise and qualifications to deliver organisational objectives and the ability to make a positive contribution to the value and aims of the organisation.’ (Simms, 2005) The main goal of recruitment and selection in HRM is to decide which jobs are available in the present and how these relate to the jobs that will be required in the future, simply managers should have a clear vision of:
1 – Current needs
2 – Future needs
In other words, Changing organisational requirements, the new person’s role in organisation should be developed in line. (Simms, 2005). According to mullins (1999) identifies five main phases in a planned and systematic approach to recruitment and selection:
1 – The need to know about the job to be filled.
2 – The need to know about the type of person to do the job.
3 – The need to know the likely means of best attracting a range of suitable applicants.
4 – The need to know how best to assess the candidate’s likely suitability for the job.
5 – The need for induction and follow-up. (Simms, 2005)
Induction/Orientation: If an organization does not give the necessary attention to induction and training system will not provide optimum results. (Booyens, 2007) Induction process is the collection of activities of planning and monitoring for integration and maintenance of new employees in the organization. The process statrs with the information provided to the new employee with the application form, during the selection process and before employee starts work. (Deb, 2006)
Induction Process is classified in three steps: (Deb, 2006)
Promotion and outplacement: Simple meaning of Promotion and Outplacement is talent employees must be recognised and personal strengths given opportunities to develop. It is meaningful identifying employees who are appropriate for promotion well in advance of the event. Promotion alone will not guarantee success – but prior training in the required skills, subject knowledge and self confidence can increase an individual’s chances of achieving it. (Simms, 2005)
Motivation and Appraisal: Human resources management seems to be mostly good intentions and whistling in the dark or averting unionization. The poor management of work force is damaging the any nation and standard of living. A small of large and certainly many medium – sized and smaller companies appear to have made their work forces into compititive assets. From the organization’s point of view, rewards are intended to motivate definite behaviors. To be useful, rewards must be seen as timely and tied to effective performance. According to one theory the following conditions are required for employee motivation. (Vroom, 1990) 1- Employees must believe effective performance will lead to certain rewards. Means attaining certain results will lead to a bonus or approval from others.
2 – Employees must feel that the rewards offered are attractive because some employees may desire promotion because hunt for power but others may want a edging benefit such as a pension just because they are older and want retirement security.
3 – Employees must believe a certain level of individual effort will lead to achieving the corporation’s standards of performance.
Rewards fall into two categories: extrinsic and fundamental. Extrinsic reward comes from the organization as money, privilege, or promotion or from supervisors and co-workers as appreciation. Fundamental rewards build up from performing the task itself and may include the satisfaction of accomplishment or a sense of influence. The organization which seeking to increase fundamental rewards must provide a work environment that allows these satisfactions to occure. So that organizations are redesigning work and delegating responsibility to improve employee involvement. (Vroom, 1990)
MASLOW’S THEORY OF NEEDS FOR MOTIVATION
Maslow’s theory of basic human needs has also had a major impact on the behavioral approach to management. Maslow placed needs in the five levels. From lowest to highest in order, are physiological, safety, social, esteem and self-actualization needs. (John R. Schermerhorn, 2011) Maslow’s theory is based on two main principles. The first is based on scarcity principle – satisfied need is not a motivator of behavior. The second is progression principles – the five needs exist in a hierarchy of ‘prepotency’. A need at any level is activated when the next lower level need is satisfied. (John R. Schermerhorn, 2011) Research indicates that even the person at the lowest step wants to be held in esteem and desire for self – actualization also. Same way a supervisor in an office might be happy with a small and simple office, while an executive would be very happy with a large and well-furnished office.(Sapru, 2008) Satisfying need is healthy, blocking fulfilment makes everybody unwell or evil. (Saraf, 2006) Management by direction and control may not be effective to motivate individuals whose physiological and safety needs are resonably satisfied and whose social, esteem and self-actualization needs are becoming prominent and motivated people can best achieve goals by directing their own efforts towards accomplishing organizational goals.(Pattanayak, 2005).
Highest level : need for self fullfillment
Need for esteem in eye of others: need for respect, prestige
Need for sence of belongingness in one’s relationships
Need for security, protection and stability
Most basic of all human need for biological maintenance
Maslow’s Theory for needs and Motivation (John R. Schermerhorn, 2011)
CLASSICAL AND SCIENTIFIC SCHOOL OF MANAGEMENT
The classical school of management did the industrial revolution, which marked a major shift from agrarian-based to industrial-based societies. This attitude of management focused on improving the means of production and increasing productivity among the workers.(Alan B. Albarran, 2006) The three main area of classical management are Scientific management, administrative management and bureaucratic management.
Scientific management offered a systematic approach to the challenge of increasing production. This approach introduced many and important practices like determination of the most effective way to coordinate tasks, careful selection of employees for different positions, proper training and development of the workforce and introduction of economic incentives to motivate employees. Each and every part of production process received careful scrutiny toward the goal of higher efficiency. In 20th centure, Frederick W. Taylor, by profession a mechanical engineer, is also known as father of scientific management, made a number of contributions to management theory. He gave ideas of careful and systematic analysis of each job and task identification of the best employee to fit individual task. (Alan B. Albarran, 2006)
This report justify human resourse management is very important for acheving organization goal for any organization. Author is try to say motivation and reward from management is play vital roal for achieving goals for organization. HRM cycle also explained in this report how each factor is connceted to each other in organization and that factors directly or indirecty affects on performance of employee which gradually put organization in forward direction or downward direction towards goals, finally conclusion is if companies workforce is happy to work for organization that means your human resource mananagement is doing good for company if not than, organization needs to change HRM policy to achieve set goals of organization.
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