Human Resource Management Strategies Accounting Essay

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Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.


Its features include:

  • Organizational management
  • Personnel administration
  • Manpower management
  • Industrial management

But these traditional expressions are becoming less common for the theoretical discipline. Sometimes even employee and industrial relations are confusingly listed as synonyms,[4] although these normally refer to the relationship between management and workers and the behavior of workers in companies.

The theoretical discipline is based primarily on the assumption that employees are individuals with varying goals and needs, and as such should not be thought of as basic business resources, such as trucks and filing cabinets. The field takes a positive view of workers, assuming that virtually all wish to contribute to the enterprise productively, and that the main obstacles to their endeavors are lack of knowledge, insufficient training, and failures of process.

Human Resource Management(HRM) is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce, and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organizations.

Synonyms such as personnel management are often used in a more restricted sense to describe activities that are necessary in the recruiting of a workforce, providing its members with payroll and benefits, and administrating their work-life needs. So if we move to actual definitions, Torrington and Hall (1987) define personnel management as being:

"a series of activities which: first enable working people and their employing organisations to agree about the objectives and nature of their working relationship and, secondly, ensures that the agreement is fulfilled"

While Miller (1987) suggests that HRM relates to:

".......those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage"


The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding about the staffing requirement and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations.

Activities include managing the employees approach to benefit, compensation, employee records and personnel policies. Usually small businesses carry out these activities themselves as they can't afford part- or full-time help. However, they should always ensure that employees have and are aware of personnel policies which conform to current regulations.

Past 20-30 years, the HRM function and HRD profession have undergone tremendous change. Several years ago, Personnel Department was given more importance in large organizations, to manage the paperwork about hiring and paying people. More recently, staffing, training and helping are considered as the role of the "HR Department". It is used to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner.

Human Resource Management

Every management needs professional people to perform its tasks efficiently and achieve its common objectives.

Earlier than 1970s the personal management used to perform the task of finding and controlling which was largely an administrative function which include dealing with the management and control of subordinates.

The management is responsible for the creative and productive people.

Following are the four HR policies that have to be achieved:

  • Commitment
  • Congruence
  • Competence
  • Cost effectiveness

Where do HRM models come from?

There are numerous models and many ways to classifying HRM - for example, 'hard and soft', 'normative and prescriptive'. Four ways of classification was develop by Legge, dividing models into the following types:

  • Normative
  • Descriptive-functional
  • Descriptive-behavioural
  • Critical evaluative

On the other hand, Tyson has a three-way breakdown: normative, descriptive and analytical. We can consider HRM models from two fundamental perspectives when our analysis is considered at a basic level:

  • What are the similarities between them?
  • Conversely, how do they differ?

Bratton and Gould (1999: 17) argue that: "Many of the key elements of the HRM model are drawn from organizational behaviour theories, such as motivation, team building and leadership." They go on to cite Legge (1989) as a reference for the assertion that 'most normative HRM models, whether US or British, assert that the organization's 'human resources' are valued assets, not a variable cost, and emphasise the commitment of employees as a source of competitive advantage.' They identify the classic theories of Maslow (1954) and Herzberg (1966) as being at the root of assumptions about the nature and exploitation of human potential while McGregor's Theory Y underpins notions of commitment and trust.

Strategic Human Resource Management

The human resource management aims to acquire better productive contribution of individuals while simultaneously attempting to manage other societal and individual employee objectives which has undergone drastic change with the passing of years.

HRM is concerned with the people and fact that HRM helps in acquiring, developing, stimulating & retaining the outstanding employees as it offer both effectiveness & efficiency to the working of the organization. It has been started strategically and is now termedas Strategic human resource management.

The changing role of HRM

The role of human resource management is changing very fast, to help companies in achieving their goals. HRM has under gone many phases - from hiring and firing to relationship building, from there to legislation role, and now the role has been modified from protector and screener to strategic partner & as a change agent.

SHRM is defined as use of employees to gain or keep a competitive advantage against competitors. It even involves aligning initiatives involving how people are managed with organizational mission and objectives.

Today's organizations are flattened, downsized and high-performing organizations. They have highly trained and committed employees rather than machines which are mainly considered as the firm's competitive key.

Now-a-days the growing involvement in developing and implementing the company's strategy is considered as the drastic change in HR's role. To understand the modern aspect of HR i.e. SHRM, following are the terms which help us in understanding the concept:

  • Core Competency- Is considered as a unique capability in the organization that creates high value and also differentiates the organization from its competition.
  • Mission Statement: explains about the purpose and reason for existence. It is usually very broad, but not more than a few sentences. It even serves as a foundation for everything the organization does.
  • Strategy: Deals with the company's plan to balance its internal strengths & weaknesses with external opportunities & threats in order to maintain a competitive advantage. Earlier this was performed by the line managers, but now they are carried out by the HR manager.

Strategies generally strengthen organizational competitiveness and on building committed work teams, because of which HR in considered as the main role. The present is system changing, and is globally competitive and is attains quality oriented industrial environment, it's often the firm's employees and the human resources who provide the competitive key fro success. So HR is need in the earlier stages of the development and implementation of the firm's strategic plan. And the role of HR is consigned in implement the things but also to plan out in such a manner that the employees can strategically get edge over the competitors.

The Strategic Management Process includes

  • What should be done to achieve corporate objectives
  • Exam organization's and their competitive environment
  • Establishing best possible fit between organization and its environment
  • Reviewing and modify the strategic plan

The Stage in the Process of Strategic Management:

  • Mission statement is defined as business analysis and upcoming plan for success
  • Environmental analysis refers to the OT analysis and preparing to meet environmental pressures
  • Organizational self-assessment is defined as SW analysis and chalking road map for attaining goals
  • Establishing goals and objectives describes about the laying concrete figures that help in benchmarking the performance. These benchmarks will lead to the development of strategy that help in deciding how the company intends to meet its environmental challenges for environmental and resource constraints.

Benefits of a Strategic Approach to HR:

  • Facilitates develop high-quality workforce through to types of people and skills needed
  • Facilitates rate-effective utilization of labor, particularly in some service industries, labor is generally considered as cost
  • Facilitates includes planning and assessment of environmental uncertainty, and help to adapt the external forces of the organization
  • Successful SHRM begin with identification the strategic needs
  • Employee contribution is important to link strategy and HR practices
  • Strategic HR management depends on the organized and analytical approach
  • Corporate HR departments effect organization's hard work to launch strategic plan

Human Resources Life Cycle

The above diagram is divided into four different colours each indicating a separate stage of HR life cycle. Each stage has specific actions or steps that form respective stage for e.g. in third stage there are six different steps involved such as step 3 to step 8. These four stages cover all actions or functions pertaining to HR manager's job and they are related with strategic plan of the organisation.

The cycle starts with laying down a strategic plan, linking HR functions in it, and it provides the basis for Manpower planning and internal mobility. The Manpower planning will lead to the function of acquiring right people for the right job and in accordance recruitment as well as selection exercise will be designed and tools selected. For e.g. if a automobile company decides to launch a new four-wheel model in the time to come their focus will be on Research and Development and then on Market Testing and last but foremost production and after sales. This new plan will act as the guideline for the company and will help in determining how many people do we need and what qualifications they should posses and how many of them can be kept on full-time rolls and as permanent employees.

The next Stage is for sustaining and retaining those who are hired and making sure that they work efficiently and help the company move in the selected direction. They should also facilitate the smooth movement of the company in the desired direction and should result in achievement of corporate goals and objectives effectively and efficiently. Employee's performance should be rated and compared with the benchmarks, recorded deviations are to be corrected, and precautionary measures for the future are implemented. In last stage the separation or farewell to those who are non-performing or may be to those who have completed their job or task i.e. project teams, is bided.

Factor Linkages of HR Plans and Strategies:

Given diagram presents various factors that have an impact on HR plans and Strategy and how are they interlinked with each other. Their interactions and impact on each element and the resulting change in HR Plan and policy is also indicated clearly.

The table given above takes into consideration two of the generic strategies and the strategic focus required to generate each of these competitive advantages along with HR strategy and activities needed to be done by HR Department to help the organization in generating these strategic advantages and to move successfully towards desired goals and objectives.

To understand these linkages we can look at them as tasks and steps needed to be taken in order to complete the tasks. The selected strategic focus should be very clear and well integrated into organizational policy and clearly communicated to HR Department to help in drafting suitable HR strategy and last in carrying out all activities.

Managing Staff

A key to successful leadership in non profit organizations involves managing paid staff. Though not everyone likes the term, this is usually called 'human resources management'. It includes a variety of activities: deciding on your staffing needs, how to fill these positions within budget, recruiting, orienting and training employees, and ensuring they perform well. HR management also includes managing employee benefits and compensation, employee records, legal issues and relations with unions.

Human Resources Policies and Employment Law

The basic policies needed in the area of human resources management are presented here. Also included are sites that cover what laws one needs to comply with when engaging paid staff.

The basic policies needed in the area of human resources management are presented here. Also included are sites that cover what laws one needs to comply with when engaging paid staff.

Recruiting, Selecting and Motivating the Best Staff

Finding and keeping the best people to work for you is critical for success. See these sites for how to do this well.

Finding and keeping the best people to work for you is critical for success. See these sites for how to do this well.

Staff Training, Development and Performance Appraisal

Finding good people is a start but they need to be properly trained for their job and their performance needs to be monitored to ensure success.

Finding good people is a start but they need to be properly trained for their job and their performance needs to be monitored to ensure success.

Managing Staff Performance

How What You Expect From Your Staff is a Big Influence on What You Get


In 1929, most banks in the USA were solvent. But their customers believed that they weren't. The customers expected to lose their deposits. They rushed to withdraw them. The banks couldn't meet the sudden demand. They became insolvent. Expectation created action. Today we say, "Be careful, you might end up getting what you expect" That's exactly what bank customers got in 1929!

Hope and Expectation

"Hope" is not expectation. "Hope" describes what you'd "like to happen". We often confuse the two. To say that you "hope my staff will treat customers well" is a statement of preference: what you want to happen. To say that "I expect my staff to treat customers well" is a statement of intent: what you believe will happen.

Effect On Staff

When you tell staff what you expect, clearly and unequivocally, you are setting performance standards for your people. When they know exactly what you expect, you're far more likely to get what you want from them.

Effect On You The Manager

To get what you expect from your people, you must provide the resources they need. You can tell your people that you expect them to be at work on time. But if your starting time doesn't match public transport timetables and there's no parking within a reasonable distance of your business, your staff will know that you don't really expect them to be on time.

Monitoring and Measuring

Set the standards. Provide the resources. Then monitor and measure. You can have excellent standards and superb resources. Only measurement will turn these into genuine expectations. If your staff know that their performance won't be monitored and measured against previously stated standards, they'll also know that you're not serious about expectations.

Staff Treatment

Managers who genuinely expect their staff to perform well consistently treat their staff as if they are successful. They do everything they can to ensure staff will be successful. To paraphrase GBS, "If you treat your staff like idiots, they'll behave like idiots". If you're "on their backs" all the time, looking for errors, they'll make errors for you to find because they know you expect them.

Human Resources Planning

Planning for human resource is considered as key point than planning for any other resource as demand for the later depends upon the size and structure of the former whether it is in a country or in an industry. Further, management of human resources hardly begins from human resources planning .In fact it is the basis for most of the other functions.

Objectives of Human Resources Planning

The main objectives of manpower planning in an organization are:

  1. Recruiting and retaining the human resources of required quantity and quality.
  2. To predict the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies
  3. To meet the needs of the program of expansion, diversification etc.,
  4. To foresee the impact of technology on work, existing employees and future human resources requirements
  5. To improve the standards skill .knowledge,, ability, discipline etc.,
  6. To assess the surplus or shortage of human resources and take measures accordingly.,
  7. To maintain congenial industrial relations by maintaining optimum level and structure of human resources;
  8. To minimize imbalances caused due to non-availability of human resources of right kind ,right number in right time and right place;
  9. To make the best use of its human resources; and
  10. To estimate the cost of human resources.

What is Human Resources Planning?

E.W Vetter viewed human resources planning as " a process by which an organization should move from its current manpower position to its desired manpower position. Through planning management strives to have the right number and right kind of people at the right places at the right time, doing things which result in both the organization and the individual receiving maximum long-run benefit".

According to Leon C Megginson human resources planning is an integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organizational objectives and satisfy the individual needs and goals of organizational members.

Human resources planning may be viewed as foreseeing the human resource requirements of an organization and the future supply of human resources and

  1. Making necessary adjustments between these two and organizational plans ;and
  2. Foreseeing the possibility of developing the supply of human resources in order to match it with requirements by introducing necessary changes in the functions of human resources management .In this definition, human resource means skill knowledge, values, ability, commitment, motivation etc., in addition to the number of employees.

The advantages of Human Resources Planning

  • Setting the strategic direction
  • Designing the human resource management system
  • Planning the total workforce
  • Generating the required human resource
  • Investing in human resource developing and performance

Human Resource Planning

Following are the learning objectives to:

  1. Define human resource planning (HRP)
  2. Summarize the relationship between HRP and organizational planning
  3. Explain strategy-linked HRP
  4. Identify the procedure followed in the HRP process

Describe about the need for the methods used in forecasting human resource


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