Analysing the effectiveness of human resources

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Human resource management (HRM) is an articulated strategic approach towards managing an organization's highly valued assets i.e. the staff who add their workmanship individually/team in order to meet the objectives of the company. In other words, HRM deals with employment of people, upgrading their resources, utilize skills, monitor and alter their services w.r.t the job and organizational requirement.


Its features include:

Management of Organization

Personnel administration

Resource Management

Industry-level Management

Bu the above features are not found limited to the theoretical discipline. In some cases, industrial relations with an employee are found typically in common natures. So, they are usually meant to built relationship between management and the staff and the workmanship of workers.

The above theory addresses the basic principles or assumptions that employees are individuals with varied goals and aims. But practically, the HR role takes a common nature towards all kind of staff hierarchy and that he fills the gap of any obstacles to employees in terms of knowledge, training, and failures reviews.

Human Resource Management(HRM) is found to be an innovative and challenging field as when compared to traditional approach. There act towards taking decisions, defining new approach, setting goals etc…helps organization managers to get them the right resources which can fulfill the workforce needed to achieve upcoming goals and objectives of the organization. As these HR techniques are properly exercised, they help in avoiding risk within the organization.

The relate profile of an HR is not addressed to be just personnel management as it restricts your profile to and even gives a sense the activities that are necessary in workforce recruitments, along 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"


HRM include variety of activities, and among them is staff requirement and proper usage of contract employees to fulfill organization needs, recruiting, outsourcing and training the best employees, to achieve high expectations from the resource, deal with performance issues, and making sure that your management practices is connected to various regulations/policies.

Managing 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.

 Policy Area

Control-Based HRM

Commitment-based HRM

Job design principles

sub-division of work; specific job responsibility - with accountability ; planning separate from implementation

broader jobs; combined planning and implementation; teams

Management Organisation

top-down control and coordination; hierarchy; status symbols

flat structure; shared goals for coordination and control; status minimized


fair day's pay for a fair day's work; job evaluation and appraisal; individual incentives

reinforcing group achievements; pay geared to skill and other contribution criteria; profit sharing

Employee Voice

Unionised (damage control, bargaining); Non unionised (attitude surveys)

mutual mechanisms for communications and participation; mechanisms for giving employee voice on issues

Labour Management Relations


mutuality; joint problem-solving and planning

Management Philosophy

the boss dictates; management obligated to stakeholders

fulfilment of employee's needs is a goal rather than an end

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




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:




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 contribution of individuals at the same time attempting to manage other societal and individual employee objectives that has undergone extreme change with the present generation.

HRM is concerned with the people and realize the fact that HRM allows obtaining, increasing, stimulating & retaining the outstanding employees as it recommends both effectiveness & efficiency for the organization. It has been started strategically and is now termed as Strategic human resource management.

Change in role of HRM

Now a days, there is a drastic change is observed in the role of human resource management, to help companies in achieving their goals. HRM has under gone many phases - from hiring and firing to connection structure, from there to legislation role, and now the role has been modified from protector and screener to strategic associate an as a change agent.

SHRM is defined as utilization of employees to achieve or to maintain a competitive sprit against the competitors. It even involves arranging initiatives including how people are managed with the present organizational missions 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. The following are the terms which help us in understanding the modern aspect of HR concept:

Core Competency- A unique capability in the organization that generates high value and also helps in differentiating the organization from its competition.

Mission Statement: explains about the function and cause for existence. It even serves as a foundation for everything the organization does.

Strategy: Deals with the company's plan to balance their internal capabilities & weaknesses with the present external opportunities & threats in order to maintain a competitive advantage. Line manager used to these activities, but now HR executes these activities.

Strategies generally strengthen organizational competitiveness and on building committed work teams, because of which HR in considered as the main role. The present system is changing, and is globally competitive and attains value oriented business environment, and it is the firm's employees and the human resources who often give the competitive key for achievement. 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 executing 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 among organization and its environment

Review and modify the strategic plan

Process involved in Strategic Management:

Mission statement is defined as business analysis and upcoming plan for success

Environmental analysis refers to the OT analysis and plan to meet environmental pressures

Organizational self assessment: SW analysis and chalking road map for attaining goals

Establishing goals and objectives: Lying concrete figures help in reducing the performance. These benchmarks will lead to the growth of strategy and help in deciding how the company intends to meet its environmental challenges for resource constraints.

Benefits of a Strategic Approach to HR

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

Contribution from employees 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

Each color in the above diagram indicates individual stage of a HR life cycle.

At the first stage, it deals with the resource planning and managing the resources internally. This leads to proper functioning of the recruited manpower and assigning them to a right job based upon the skill and the tools used by them. Such new plans will reflect company norms and helps determining future scope of recruitment in terms of qualification and the payrolls.

In the next stage, the major role played is sustaining the hired resources and ensuring that they are productive as per the assigned work and in turn helping the company grow parallel. It strengths the company growth and results in achieving corporate vision and mission of the company effectively. This is marked by addressing well performed employees with performance ratings and comparing their benchmarks.

In last stage, bidding farewell to the resources that were found under performing based on the work assigned and the completion of their task.

HR Plans and Strategies Linkages:

The diagram describes various factors that effect HR plans and Strategy and the interlinking between each other. Their connections, effect on each element, the resulting change in HR Plan and the policy is indicated clearly.

The above table describes about two of the generic strategies and the strategic focus required to generate HR strategy and the other activities which are done by the HR Department to help the organization in producing these strategic advantages and to move successfully towards desired goals and objectives.

In order to understand the above strategies we can consider them as tasks or steps to complete the tasks. The selected strategy should be 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.

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.

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.

Managing Staff Performance

In 1929, most of the banks in USA were in great demand as most of the customer found saving options were beneficial but their customers weren't comfortable given that they had fear of losing their deposits and finally, they used to rush for withdraw for security reasons. Slowly, as the banks were not able to solve the problem, they became insolvent.

Effect on Staff

Set performance standards in your staff to make your expectations clear with your staff. Then, they will know what exactly you need and you will inturn receive far more than what you expect from them.

Effect On the way it is Managed

When you expect your people to follow certain performance standards, it is essential for you to set proper resources to fulfill their actions. For instance, it is necessary for you to engage a proper parking system for your resources to motivate them to achieve their objectives to an certain extent. In other case, your staff will realize that you don't expect them to come on time.

Monitoring and Measuring

As you set standards and resources for your staff, it is essential that they are timely monitored and measured as per the changing organization. A proper measurement can upbring genuine expectations. Your monitoring should enable your staff to realize their performance level and should measured it against previous set standards.

Staff Treatment

As you find the performance of the staff are meeting the set standards, Managers needs to treat the staff as a successful individual/group/team.

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:

Recruiting and retaining the human resources of required quantity and quality.

To predict the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies

To meet the needs of the program of expansion, diversification etc.,

To foresee the impact of technology on work, existing employees and future human resources requirements

To improve the standards skill .knowledge,, ability, discipline etc.,

To assess the surplus or shortage of human resources and take measures accordingly.,

To maintain congenial industrial relations by maintaining optimum level and structure of human resources;

To minimize imbalances caused due to non-availability of human resources of right kind ,right number in right time and right place;

To make the best use of its human resources; and

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

Making necessary adjustments between these two and organizational plans ;and

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:

Define human resource planning (HRP)

Summarize the relationship between HRP and organizational planning

Explain strategy-linked HRP

Identify the procedure followed in the HRP process

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


Human Resource Management(HRM) is found to be an innovative and challenging field as when compared to traditional approach. There act towards taking decisions, defining new approach, setting goals etc