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Organizational Resource Management, the term is the precise description of the job of a manager. Any company or industry comprise mainly of four resources.
The duty of a manager is to use these resources and lead the organization in a way that it accomplishes it's goals inside a set deadline and with reasonable profits. To do this a manager must have the ability use the organizations resources skillfully and optimally. Since the question in this assignment is concerning about Human Resource Management we'll focus more on it than the others. Human Resource Strategy defines the plan that a company uses to get optimum quality work from its employees. Every business has its goals and objectives which they expect to achieve as they develop gradually and they have a corporate strategy to acquire these long term goals, this strategy decides what the company's long term goals are and how the company and it's workforce is to achieve them over a period of time. We will discuss here as to why and how Human Resource Management plays a decisive role in a business strategy and how particular processes or approaches influence a business strategy and it's development. The company which I choose to evaluate is Google, which in my belief uses one of the best management technique to align its goals with it's Human Resources Strategy and synchronize them both.
(Armstrong, Michael, 2006)
Human Resource Management
Human resource management deals with the recruitment, management, and motivating, providing direction to individuals and also caters to areas like compensation deciding, development of the organization as a whole and solving issues of the people.
(Gerry Johnson and Kevin Scholes, 2006)
"Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations".
Importance of Alignment
It is very important that a company align it's goals with the goals of it's workforce. The workforce of the company is the resource on which it depends mostly for it's corporate strategy to be successful. The employees in every company have their own personal goals to seek, if a company has a strategy which make the goals of its employees and its own common, then they will be beneficial to both. There are many instances where some companies have incurred heavy losses due to the fact of their workforce being intent on achieving their personal goals which would be very different from the company's corporate strategy. Achieving strategic alignment is like placing the right man for the right job, which would result in better quality of work produced by the worker for the company and which in turn benefits the worker by getting him rewards and appraisals. The company which as I said I would discuss is Google, Their strategy is to accelerate innovation and strengthen brand loyalty through transformational changes while creating an open-source environment. They try to align their strategies right from the recruiting part. If one comes across a well-dressed executive with a formal dress and body language in the company premises, one can be sure that he is a only visitor at Google. At Google formality and convention are alien. Candidates who behave and think conventionally are total misfits in the organisation. However, this does not by any means suggest indiscipline. They look for people with innovative minds and place them in a place where innovation is required. They conduct many group activities to create an environment where the employees feel they belong, they encourage casual attitude and make the workforce feel comfortable at the workplace, this way they negate any stress of work on them and at the same time they indulge them in a feeling of loyalty towards the company. They give their products to the employees on a discounted price or sometimes free of cost so as to achieve a wider consumer base through them, which is a good marketing strategy and works wonderfully. Equipped with its innovative and creative people practices, Google is all set to take over the top slot in the cyberspace. Despite its expansion and "big corporate" status, the company has made a deliberate attempt to maintain the small company feel that provides employees a certain degree of comfort. Unlike its product that puts an end to the most difficult of searches, Google continues to search for talent with an obsessive commitment to perfection. The company has definitely achieved the strategic alignment that is needed and it's products show the result of it.
Change management is a structured approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at empowering employees to accept and embrace changes in their current business environment.. In project management, change management refers to a project management process where changes to a project are formally introduced and approved.
(Jeff Hiatt, 2010)
Change management plays an important role in keeping the company faces a situation where it has to change the way it works or has to change the environment of the workplace. The company then has to adapt its workforce to the change and succeed in retaining them. One way of doing this is by inspiring a feeling of loyalty to the company among the employees, Google has its Human Resource Strategy already working towards achieving that. Although it is mostly successful, nothing is perfect. With its casual and inspiring attitude towards the employees there is a chance that it might induce a lack of serious commitment from the workers, it would be better if they set target or give them a certain amount of work to be completed before a certain deadline. Encouraging competitiveness between the employees will also help, mostly Google allows its employees to work as a group and implies them to take the work and complete it casually. If they would set a competitive environment and award the people who produce the best quality of work, it will help them build a more elite workforce.
Human Resource Strategy
Whenever a new employee is to be hired (because of a new opening or some previous employee leaving) a request is generally made in large organizations to the Human Resource department so as to get a replacement for the same. The request has all the details such as the job description; qualifications required the designation and the department. Than the HR department posts these openings on various job portals and attract applicants. Then after applications receiving they are screened based on the qualifications and experience if required. They also have to take the exit interview when an employee is leaving the organization so as to find out the reason and reduce attrition from that.
(Ulrich, Dave, 1996).Â
Google's need for employees who are flexible and unconventional is evident right from its interview sessions. The interview room usually has different seating arrangements ranging from a leather-upholstered chair to a beanbag. A candidate who prefers the beanbag (unconventional preference for an interview) interests the panel members. At Google, interviewers also look for candidates who believe in their thinking capabilities rather than depending on the team for inputs. This apart, Stacy Sullivan and her team make an effort to keep in regular touch with the top management professors for updates on their best students. This helps them in identifying the best of the talent and making them a part of their invincible team. This way they are also able to retain their best employees by awarding them some special privileges.
Training and Development
Organizations are spending a large amount of money on training of employees now days because it's the foundation. Training takes into account the learning of the skills that are required by an individual to perform a job. Training not only provides better output but also reduces errors or accidents. Developing of individuals is something that organizations have taken into consideration seriously as it retains talent. By this they widen the horizon of an individual and help him to grow within the organization leading to a win-win situation for both (organization and employee).
(Anthony Landale, 1999)
Google has its unique way of training their new recruits, instead of getting them trained by some expert they allow some recently employed to train them. This way they speak the language of the recruit and instruct him in a way he understands better.
4. Performance Appraisals
Appraisal is a matter of pride and satisfaction for an individual as it brings rewards and recognition. People in an organization climb up by outperforming their peers as the timely promotions are outdated now. For this the Human Resources department makes policies of rewards for exemplary performers. The performance is reviewed generally on annual basis and is done by the line managers of the individuals as they are in touch with them every-day and are seeing them work.
There are some different appraisal methods
Ranking of employees together in a group
Rating on scales such as excellent, below average etc.
Critical incidents being recorded such as a failure or a great success.
Managing objectives (objectives are set by individuals and are decided upon by their line managers and then reviewed later on)
Employees try to perform better when they gain something out of their own performance. That will even motivate them to perform better in the future. Reward System in Human Resource Management is a program or scheme which provides incentives for those individuals or groups who perform well in the organization. This reward system in actual motivates employees to perform well by attracting with well designed incentive packages. These incentives can be financial or non-financial.
So as I have given some reasons so as to why Human Strategy and Corporate Strategy alignment is important for a company to run in a cost effective way and how they would be able to improve the quality of work produced by their workforce. In the present day the world has become a very competitive place and every company is competing with each other, with technology improving everyday and demand for products increasing, all the companies are hard pressed to meet them, strategic alignment of their resources helps to be one step better. All the companies today try to achieve this in one way or the other, as I have stated above I believe that Google has one of the best alignments to be seen in today's multinational companies, and it shows in their success of being one of the most profitable companies of the present. I conclude by saying that only when the workforce and the company are working towards common goals can they benefit each other and be able to produce the quality of work which would satisfy its customers.