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Human resource management is the sense of getting work done through employee. Its a vital part of every manager's task, however many organisations find it as an advantage to set up a special division in providing an expert service committed in ensuring that the human resource function is performing well.
Strategic Human resource management is a method that aims how the organization will be obtained through people by means of human resource strategies and combined human resource practices and policies. Strategic Human resource management is also based with viewing the people of the organization as a strategic element for the acquirement of competitive benefit (Huslid, 2003). According to Kaplan and Hurd (2002), strategic human resource management is a compilation of processes and tasks united by line managers and human resources to answer and solve the business issues and problems based on people. Michie and Sheehan (2005) define strategic human resource management as a pattern of organized human resource tasks and placement intended to improve an organization to gain its goals. Cheng (2005) describes strategic Human Resource Management as a collection of deeds and decisions causing in the formulation and implementation of strategies designed to achieve the organizational goals and objectives.
Models of strategic human resource management are developed to evaluate the effect of HRM outcome, strategy and performance. Best practice model (Johnson, 2000) is where the high performance work practices are described as HR methods and systems that have additive, general, and positive result on the organisation's performance. This definition reports the reality that best practice that an organistaion utilizes will be added to the previous, therefore comparing the performance of the organisation. Best fit or contingency model argues that Human resource strategy becomes more effective when it is linked to the environment of the organisation or business. Contingency model have two elements these are external fit and internal fit. External fit includes the competitive strategy of the overall organisation. Internal fit includes the human resource policies and procedures. In other words human resource management should be strategic; companies need to accept strategic human resource management in order to develop organisational performance and to achieve its objectives.
Human resource management in a vital part of every organisation for a variety of reasons, but all of the reasons focuses on employee. Employees are the main aspect of any company, without employees, may not succeed and business could not run properly. . Successful companies are those that consider their employee as their most essential asset. Another reason why it is important is that it helps managers to monitor the employee performance. And it also helps in creating better relationship between the management and its people. It helps the employee to realize the organisational objective and goals. Human resource management is also important in training and development of the employees. Human resource management assesses the organization's present workforce to determine the type of training and development employees need necessary for improving skills, knowledge and qualifications. Companies can profit from identifying training needs for existing employee. Human resource management is vital in controlling the budget of the organisation. Human resource controls the excessive spending though methods of lowering workforce management cost that includes discussing better rates for benefits such as health care benefits. Human resources also develop the performance management systems. Without human resources employees can work in jobs that are not appropriate for their skills and knowledge.
Harvard framework is developed by Beer, et.al, 1984. The framework is a strategic map that directs all managers in their relationship with the employees and focus on the human aspect of human resource management. This framework is grounded on their belief that the problems of management can only be resolve when general managers create a point of view on how they want to see the employees involved in the organisation. Employees are important stakeholders in a company. Employees have their own concerns and needs together with other groups such as customers and shareholders. This framework established through systematic approach and provides wide picture of the causes and consequences of human resource management policies. Human resource policies are influenced by two important considerations there are: situational factors and stakeholder interest. Situational factors are factors that can be outside the business environment or within the organisation such as unions, workforce characteristics, laws, business strategy, task technology and management philosophy. According to Beer et al, 1984 these factors may restrict the creation of human resource management policies. Stakeholder interest includes shareholders, unions, community, employees and government. Human resource policies should affect all stakeholders. If not, the business will fail to meet the needs of the stakeholders. Harvard model is consisting of four human resource policy areas these are, human resource flows, reward system, employee influence and work system. Human resource flows includes the selection, recruitment, promotion, placement, assessment, termination and appraisal. Reward system includes motivation and pay system. Employee influence consists of responsibility, power and authority. Work system is the alignment of people and the design of work.
Every organisation works towards achieving one goal. Identifying the level of human resources a business needs is one of the main element of Human resource management. This includes the knowledge and skills that an organisation will acquire no and in the future. An integrated process is involved in observing each area of the organisation. The Human resource processes are the following: human resource planning is the process of forecasting the people. It involves process of evaluation, promotion and layoff. Employee remuneration and benefits administration this process involves deciding about the wages and salaries, fringe benefits and incentives. Money is a major motivator in any job therefore this process is important. Employees that perform well seek better pay and bonuses. Performance management is a process that help the company to motivate, reward and train workers. It also intended to ensure that the company's goals are met accordingly. Employee relations include working environment, health and safety, workers compensation, employee's wellness, labor law and relations and assistance programs. All processes are essential in the success and survival of human resources strategies and all processes should work together.
The people in an organisation are the one that carry out many important activities and work. Human resource professional and managers have the vital role in organizing people so that they can perform these activities effectively. The human resource management is the one that suggest to the team how to manage people as the organisation resources. This includes recruiting and hiring qualified employees, organizing employee's benefits and providing training and development for the employee. Recruitment of employees is one of the most essential roles of the human resource department. Due to the reason that this function makes sure that the company selects the most competent and skillful person that can become the asset of the company. This role involves assessment of skills, ability and competency of the potential employee in line with the company's needs. Improvement of compensation packages is a major role of human resource department in motivating its employees. This can be performed through reward especially for those who contributes a lot to the success of the company. These packages can come in the following ways: awards, salary increase, promotion, holiday offers, bonuses and fringe benefits. Training and development of employees is also one of the important functions of human resource department. The company should not guarantee that candidate who performs well in recruitment process can be the best in performing the organisation's function. New hired employees need orientation into the organisation's functions. Trainings is also important for employees who have been working for the company for a long time, this will permit more development in the part of the employee. For example this employees needs to be trained for legal changes, changes in service delivery and technological advancements. Training should not be limited to improvement of skills; it can also involve improvement of character and attitudes. Employees can attend workshops and seminars that will boost their character. At all levels of the organisation, managers work hand in hand in developing employee's skills. For example managers advise supervisors how to appoint employees to different roles in the organisation, thus helping the company to adapt to its environment. Managers also propose strategies in increasing the employee's commitment to the organisation. This starts with the recruiting process and matching employees with the proper positions according to their qualifications. The human resource department is granted with the responsibility of making sure that all employees perform to their best ability. Human resource department can improve this area by enabling better use of time in all departments of the organisation. Time is the most critical yet intangible asset of the organisation. The human resource management main function is to manage people effectively. There are negative and positive aspects in this function however; the negative aspects can be reduced by improving their functions and roles.
The human resource strategy development is time consuming and a hard process as a successful business depends on having the right strategy. Businesses nowadays faced with fast change, due to this organisation need to develop a more direct and clear approach in managing its people. Effective planning is important in the success of any organisation and a vital role in human resource. Putting these strategies can be very challenging for the managers. There are two factors that can impede the implementation of the said strategies these are external factors and internal factors. In order to be successful in implementing the HR strategies, human resource strategies should be aligned with the overall business goals and objectives. Managers should measure the present level of support for human resource strategy. When staffs sense the lack of harmony between management and human resource the chances of failure will increase. All of the departments in the organisation should show high levels of support for the human resource strategy goals. If employees in one department accept the change and employees in the other department resist change the management will then suffer. Applying the SMART method (specific, measurable, attainable, realistic and time-bound) in developing and implementing the human resource strategy will be helpful in attaining the success in the organisation. Focusing the attention on measurable progress and productivity of the organisation will lead to attaining the goals and objectives of the business.