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Human Resource management is term that basically describes the individuals in shape of group or labor force working in an organization. Human resource management deals with the advertisement of job for Organizations, hiring of right person for right job at right time. Human resource management is mainly responsible for all the strategy making and policies regarding organizational objectives and goals.
What is human resource management?
According to Amstrong, M. (2006)
"Human Resource Management is defined as a 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 its objectives."
Storey (1989), cited by (Armstrong M. 2006)
"A set of interrelated policies with an ideology and philosophical underpinning."
Storey (1989) suggested that is the real mixture of Human Resource Management:
A particular constellation of beliefs and assumptions.
A strategic trust and informing decisions about people management.
The central involvement of line managers, and
Reliance upon a set of levers to shape the employment ship.
Human Resource System:
Human Resource Management walks along with Human Resource System that combines in following way:
HR Philosophy: it talks about values and guiding principles that are linked in the range of Human Resource Management.
HR Strategies: it defines the directions of Human Resource Management.
HR Policies: it describes how philosophy and strategies, value and principles would be applied in the scope of Human Resource Management.
HR Process: it shows the formal processes and ways that how to adopt and implement HR Strategic plan and policies.
HR Practices: it includes casual approaches to deals in the scope of Human Resource Management.
HR Program: this program enables all philosophies, policies, procedures, strategies and practices to get into practical form according to action plan (Armstrong M. 2006).
Developing a HRM strategy:
HRM strategy is made for the organizational objectives to deals with the coherent approach of management of people in the organizations. It is same like other strategies that are made for marketing, finance, and similarly there is a strategy for human resource management.
In the process of developing strategies for human resource management one of the critical point should keep in mind (Alan Mumford, Jeffrey Gold, 2004).
"What kinds of people do you need to manage and run your business to meet your strategic business objectives?
What people programs and initiatives must be designed and implemented to attract, develop and retain staff to compete effectively?"( Alan Mumford, Jeffrey Gold, 2004)
In order to answer these questions four key points of an organization must be addressed. These are:
Culture: one should keep an eye on organizational culture and the beliefs, values, norms and management style.
Organization: the structure, job roles and organizational hierarchy of the organization
People: the skill levels, staff potential and management capability and skills of the staff.
Human resources systems: one should keep an eye on the mechanisms which deliver the strategy - employee selection, communications, training, rewards, and career development.
In the HR strategy it is sometimes overlooked by the strategy maker focus on all the senior managers they deal with the main dimensions of the business and neglect the smaller ones. Then these companies reengineer their organizations to free managers to have more business oriented but they have some loopholes in the training and reward system. "When the desired entrepreneurial behavior does not emerge managers frequently look confused at the apparent failure of the changes to deliver results. The fact is that seldom can you focus on only one area. What is required is a strategic perspective aimed at identifying the relationship between all four dimensions.
If you require an organization which really values quality and service you not only have to retrain staff, you must also review the organization, reward, and appraisal and communications systems.
The pay and reward system is a classic problem in this area. Frequently organizations have payment systems which are designed around the volume of output produced. If you then seek to develop a company which emphasizes the product's quality you must change the pay systems. Otherwise you have a contradiction between what the chief executive is saying about quality and what your payment system is encouraging staff to do."
Process of developing HRM strategy:
Step 1: Get the 'big picture'
Understand your business strategy.
The management should indentify the key forces of business those can be technology, distribution, competition, the markets.
What are the implications of these driving forces in to you organization. Noggin
What are the different contribution your operations.
Step 2: Develop a Mission Statement or Statement of Intent
That relates to the people side of the business.
In the mission statement, organization should be realistic and don't not put fake ideas to the statements. It will give a bad impression to the readers and customers. Add that what you people are going to add in this.
Step 3: Conduct a SWOT analysis of the organization
Organization should focus on the internal strengths and weakness, and make improvements to overcome these weaknesses. They must use current skill, and capabilities. They must do external research and look what are the opportunities they would have in future and what are the threats they are going to face in future. This SWOT will defiantly adds to the performance of the organization.
Step 4: Conduct a detailed human resources analysis
They must do the details analysis of human resource management to see the culture, people and the HR strategies. Must look into what you are at this time and what you want to be in future as organization.
Step 5: Determine critical people issues
Look into the initials on the organization from where you start; either you strategies are matching with your SWOT and PESTLE analysis. Indentify the critical issues associated with the organization. Indentify what are the failures and the reasons behind it. Always make sure that where you want to go as organization, keep eye on your goals and objectives.
Step 6: Develop consequences and solutions
Always try for bad time, and get ready got the back up plans and action plans. Don't stick to assumptions, try to indentify where the problem is and think about the consequences of it. Indentify what are the implications for the business HR department have with it. Take out the broad objectives of the organization out, some of them are as follows:
employee training and development
employee selection and recruitment
Step 7: Implementation and evaluation of the action plans
The ultimate goal of developing HR strategy is that all the objectives are set in a effective form and these objectives are achievable, and all these objectives are integrated.
Intellectual capital' and knowledge management:
The terms refers to the all resources of any organizations have with it. They have competitive advantage of these intellectual property rights. As such, it includes as subsets the attributes that concur to building all financial statements as well as the balance sheet.
According to Nermien Al-Ali, N. (2003)
"Intellectual Capital of an organization such intangible resources and assets that an organization can be use to create value by converting into new processes , products and services."
Knowledge Management (KM) comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences. Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organizational processes or practice (Wikipedia).
According to Awad & Ghaziri, H. (2007)
"Knowledge Management is newly, interdisciplinary business model that has knowledge within the frame work of an organization and it focus. It is rooted in many disciplines, including business, economics, and psychology and information management."
"Intellectual capital (IC) is a key driver of innovation and competitive advantage in today's knowledge based economy. At the same time, knowledge management (KM) is recognized as the fundamental activity for obtaining, growing and sustaining IC in organizations. This means that the successful management of IC is closely linked to the KM processes an organization has in place; which in turn implies that the successful implementation and usage of KM ensures the acquisition and growth of IC."
Source : <www.emeraldinsight.com/0025-1747.htm>
Strategies for management development:
According to Lee (1992) cited by Alan Mumford, Jeffrey Gold (2004) "the entire system of corporate activities with the espoused goal of improving the managerial stock in the context of organizational and environmental change."
This definition tells the number of objectives:
This is a powerful device that reengineers the organizational structure.
This tool gives cost reduction but gives quality and profitability.
It contributes to the development of a learning organization.
It also assists in self development.
Management developments ensure some benefits to the organization, that includes;
This always adds to the performance of the organization. The performance can be gauge from the terms of agriculture; agriculture is way of repeating the view of some organization that we need to grow our own managers.
It uses to say that if management development has purpose in the organization then this has a link with organizational strategy. Every organizations responds to global influences and environmental changes like; globalization, technological change and customer demands, here Management Development plays a role as strategic tool to the implementation of strategy development and consequently improves business and organization externally.
Figure - Sustaining Model of Development (Mumford. A, Gold. J, 2004)
Managers need to come up with the new role and skills to become productive. Management Developments provides the sustain opportunity to organizations to have "winning positions".
Sustaining model defines some points here which are:
Strategy is sets of outcomes to gauge the changes occurred in the environment.
Strategy provides guidance on the requirement to the managers; new skills and performance and productivity.
Management development policies define that requirement to provide management developments activities.
The outcomes of developments being assessed and management provides feedback to organizational strategy.
There are various reasons to form a Management Development strategy, which includes:
Some time it happens that there is some change in technology that changes job and work design and organizational structure. Management development strategy can be form under some mergers and acquisitions. This strategy also forms when they are market development or come up with new services. It also helps in identifying weakness and poor performance.
There are Five Partnership Principles model. The following principles form the satisfaction axis of the model:
Systems and Leadership: this is important to give job security, input on decisions, recognition, communication and information, fairwaters in employee partnership.
Resources: in the employee partnership it must be including physical environment, equipment, staffing.
Teamwork: including respect and coordination are part of principles.
Direct management: in the employee partnership model feedback, coaching, trust, communication, recognition is important to look forward.
Job engagement: it is mandatory fulfillment from the work performed, use of skills, and feeling of accomplishment by performing the jobs.
Work engagement: participating in a work group that shares attentiveness to quality and customer needs, to enhance the productivity, sense of connection.
Organizational engagement: as evidenced by a willingness to stay with a facility and recommend it to others, along with pride in the organization and alignment with its values (press ganey, 2010).