Human Resource Management And The Types Of Hrm Objectives Business Essay

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KPMG was formed in 1987 with the merger of Peat Marwick International (PMI) and Klynveld Main Goerdeler (KMG) and their individual member firms. Spanning three centuries, the organization's history can be traced through the names of its principal founding members whose initials form the name 'KPMG'.

'K' stands for Klynveld. Piet Klynveld founded the accounting firm Klynveld Kraayenhof & Co. in Amsterdam in 1917.

'P' is for Peat. William Barclay Peat founded the accounting firm William Barclay Peat & Co. in London in 1870.

'M' stands for Marwick. James Marwick founded the accounting firm Marwick, Mitchell & Co. with Roger Mitchell in New York City in 1897.

'G' is for Goerdeler. Dr. Reinhard Goerdeler was for many years chairman of Deutsche Treuhand-Gesellschaft and later chairman of KPMG. He is credited with laying much of the groundwork for the KMG merger.

KPMG combines a multi-disciplinary approach with deep, practical industry knowledge to help clients meet challenges and respond to opportunities. "The economic downturn means the old model of employment no longer applies.  To create a more agile workforce companies must start to think in a new way." said David Knight, Associate partner, KPMG LLP. " This is not just about cost cutting; it's about creating new employment practices that provide real sustainable advantage in a competitive market place."

Question 1: Human Resource Management

Types of HRM Objectives

The Human Resources organization will develop its professional competencies to further the institution's fulfillment of its mission and achievement of the KPMG's strategic plan goals (Also known as Organizational Effectiveness). Otherwise, it also sure conformity to formal discipline while promoting informal interactions that is to say, underscore competence, compassion, contribution, collective efforts, dignity and decorum in all that matters to the organization.

Moreover, HR will undertake review and enhancement of HR systems, processes, procedures and policies using the principles of continuous quality improvement and excellent and seamless client service (Ankur, 2009). In short, the objectives will help KPMG to build on its strengths and to reduce, if not eliminate its weaknesses. All efforts should be focused to make the organization more and more effective each day and HR has a wonderful opportunity as a catalyst and a facilitator to contribute in a meaningful way.

Furthermore, HR will develop and deliver training programs to help staff and managers accomplish the goals of the KPMG's strategic plan, which mean create or develop the cultural of perpetual learning (Dwivedi, R., 2007). From there, HR department will consider and contribute to the minimization of socio-economic evils such as unemployment, under-employment, inequalities in the distribution of income and wealth and to improve the welfare of the society by providing employment opportunities to women and disadvantaged sections of the society.

On the other hand, HR will provide support of Enterprise Resources Planning (ERP) initiatives, including change management, and systems development activities. The outcome of the review has established the direction for Human Resource Management (Dwivedi, R., 2007). First the KPMG is now concentrating more on its strategic role, determining policy, setting guidelines and rules, and advising branches and departments on implementation. Within this, KPMG is delegating as much authority as possible to departments, and simplifying rules and procedures. Second, the emphasis is now more on the management of people rather than the administration of rules. Third, the company departments are expected to review and develop their own Human Resource Management plans to help them meet their operational requirements.

Characteristics of Human Resource Management Strategy (HRMS)

Human Resource Management Strategy is a process of bringing people and organization together so that the goals of each are met. It tries to secure the best from people by winning their wholehearted cooperation. It is an art of procuring, developing and maintaining competent workforce to achieve the goals of an organization effective (Nankervis, A. R., & Compton, R. L., & Baird, M., 2001).

A longer term focus.

An addition of several years strategic, plans for human resource utilization is frequently measured as the beginning in the development of a strategically oriented HRM function.

New linkages between HRM and strategic planning.

It is come into view as an important feature in many models of HRMS. One-way linkage will give attention to the roles of HRM activities by supporting strategy implementation, while a two-way linkage explains a more practice approach where HRM puts forth control on strategy formulation as well (Alan R. Nankervis, A. R., & Compton, R. L., & Baird, M., 2001).

HRMS concerns for the employees to help them.

The work team successful depends on how well each group can work together in efforts to raise productivity and performance. Other point is to ensure that the areas of responsibility and authority of both line and staff personnel are recognized. With clearly recognized lines of authority and responsibility, each group may better understand their role in the organization. Furthermore, one way to minimize conflict between the line manager and staffs is to hold both line and staff personnel accountable for the results of their own activities. In other words, line manager should not be entirely responsible for poor performance resulting from staff personnel suggest.

Proposed linkages between HRM and organizational performance.

Most models of HRMS include the proposal that HRM plays an important role in reaching the strategic goals. As the usual outcome of company strategies is development of the firm's economic value, HRM should straight away contribute to the firm's bottom line in order to be judged efficiently.

Inclusion of line managers in the HRM policy making process.

The importance of HRM's strategic worth may well create an added line of management responsibility, mainly in regions concerning the selection and compensation of managers. Meanwhile, Human Resource normally would be responsible for staff applications, staff files and any problems such time off sick, dealing with staff transfers and so on. The line manager is also responsible for you whilst at work, so any problems, you would report to him. If you can't show up for work then you will need to contact the line manager and he is also responsible for handling all staff and their daily duties. In other words, making sure the work gets done (Timothy A. J., & Heneman, H. G., 2006).

It attempts at getting the willing cooperation of the people for the attainment of desired goals.

Employee's authority is the right to advise or intention those with line authority. For instance, human resource department help other departments by selecting and developing a qualified workforce. A quality control manager aids a production manager by determining the standard quality level of products or services at a manufacturing company, initiating quality programs, and carrying out statistical analysis to ensure compliance with quality standards. Therefore, staff authority gives staff personnel the right to offer advice in an effort to improve line operations.

Question 2: Planning

Basic Components of Job Analysis

Human resource planning is the process by which managers ensure that they have the right number and kinds of people in the right places, with the right skills, experience and competencies in the right jobs at the right time at the right cost, which are capable of effectively and efficiently performing assigned tasks. Through planning, organizations can avoid sudden talent shortages and surpluses. HR planning can be condensed into two steps: (1) assessing current HRs and (2) assessing future HRs needs and developing a program to meet those future needs (Stone, R. J., 2007).

Job content: explains the duties and responsibilities of the job in the way that can vary from global statements to a very complete description of tasks and procedural steps. Job content are the factors controlled by the individual oneself like performance, recognition, autonomy etc. job content factors are directly related to individual's job. For an individual to succeed at accountant assistant job at KPMG to reap the optimum level of performance out of the individual, it is paramount for the individual as well as the organization to incorporate motivation techniques that will encourage the worker to be of maximum utility and minimum cost. To instill that motivation within the mindset of the individual worker, there are certain factors that help in instigating that certain level of motivation that an individual needs to bring out the best of his potential. These factors are further divided into two categories, namely job-content factors and job-context factors.

Job requirements: recognizes the prescribed qualification, knowledge, skills abilities and personal characteristics that employees require to execute the content of the job in a specific situation. An employer's recruitment and selection practices seek to identify and hire the most suitable applicants. Job analysis information helps employers achieve this aim by identifying selection criteria, such as the knowledge, skills, and abilities needed to perform a job successfully. A firm's managers and human resource professionals can then use this information to choose or develop the appropriate selection devices, for example, interview questions, tests. This approach to selection is legally required.

Job context: refers to situational and supporting information about a particular job, its aim, where it fits within the organization, maintenance of human or material resources, availability of guidelines, likely consequences of error, amount of supervision received or provided (Stone, R. J., 2005). Job context are the factors controlled by the organization like work condition, base salary, company policies etc. individual has no control over it. Look at the Herzberg's motivation-hygiene theory, the hygiene factors are job context, and motivation factors are job content (Stone, R. J., 2007).

Environmental Trends

As part of the complete planning process, human resource planning must consider the environmental impacts on the organization, its objectives, culture, structure and human resource management. This is because human resource planning must expose the environmental trends and issues that affect the human resource management of an organization (Stone, R. J., 2005).

Economic Factors

This factors including interest rates, inflation, taxation changes, economic growth, and exchange rates. As we can see throughout the KPMG economic change can have big impact on a firm's behavior. For instance:

Higher interest rates may barrier investment because of increasing costs to borrow.

A strong currency can make exporting more difficult because it may get higher price in terms of foreign currency.

Inflation may rouse higher wage demands from employees and raise costs.

Higher national income growth may boost demand for a firm's products.

Social Factors

Changes in social trends can effect on the demand for a firm's products and the availability and willingness of individuals work. In Singapore, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staffs are living longer. It also means some firms such as KPMG have started to recruit older employees to tap into this growing labor pool. The ageing population also has impact on demand, for instance, demand for sheltered accommodation and medicines have increased.

Demographic Factors

Asia's demographic success story is associated with the stunning economic and social changes that have occurred during this period. Big social changes occurred alongside spectacular economic growth. Moreover, there were big rises in real incomes and massive reductions in poverty levels as the region's economies transform from almost depends on agriculture to increasing emphasis on modern urban-based industries. These include, in particular, the spread of basic education and the associated rise in literacy levels (Singh, M. P. & Narlawar, V., 2010).

At the same time, it is hardly magnify to say that the region's demographic transformation has made a real and significant contribution to what can be called the Asian miracle. As Asia's demographic transition gathered growth in the early 1970s, following the sharp reduction in mortality, especially of infants and children, the population growth very fast. Subsequently, as birth rate decline gained momentum, the growth rate has almost reduced into half, with the inertia of demographic momentum accounting for much of the current 1.3% annual growth in population. Among the most populous countries, China has come closest to attaining population stabilization. Meanwhile, Pakistan's current population growth rate at 2.6% implies a doubling of its population of 138.7 million by around the end of the first quarter of the 21st century. The other Asian population giants, India and Indonesia, are currently growing at an annual rate of around 1.5%. However, their growth rates are expected to decline rapidly in the early decades of the twenty-first century (Health Status Report, 2005).

Technological Factors

Nowadays, new technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation (Kleiman, L. S., n.d.). These developments can benefit consumers as well as the organizations providing the products, especially in the financial market today.

Question 3: Resourcing & Development

Approaches Used to Attract External Candidates

For recruiting successful, each job must be clearly defined. Recruiting strategy entails identifying where to recruit, whom to recruit, and what the job requirements will be (Stone, R. J., 2005). An important decision, which is to be taken by the company, is whether to follow internal recruitment or external recruitment for the job vacancy that has arisen in the KPMG Company.

Various approaches can be used to locate and attract external candidates and it is quite common for the human resource department to use more than one approach in filling a job vacancy.


Advertising is a way of communicating the firm's employment needs to the public through media such as radio, television, newspapers, or industry publications. The internet is the newest and fastest growing ERM. Regardless of the advertising method utilized, in determining the content of an advertising message, a firm must decide on the corporate image its wants to project. Obviously, the firm should give prospective employees an accurate picture of the job and the organization.

Employment Agencies

Employment agency is an organization that helps firms recruit employees and at the same time aids individuals in their attempt to locate jobs. There are 2 types of employment agency. (1) Private employment agencies, known best for recruiting white-collar employees, offer an important service in bringing qualified applicants and open positions together. (2) Public employment agencies, operated by each state, receive overall policy direction from the U.S. Employment Service. Public employment agencies, best known for recruiting and placing individuals in operative jobs, have become increasingly involved in matching people with technical, professional, and managerial positions.

Professional Organization

Professional associations in business areas including finance, marketing, accounting, and human resources provide recruitment and placement services for their members. The Society for HRM, for example, operates a job referral service for members seeking new positions and employers with positions to fill. SHRM has a first-rate Web site for HR professionals.

Open House

Open houses are a valuable recruiting tool, especially during days of low unemployment. Open houses are cheaper and faster than hiring through recruitment agencies, and they are also more popular than job fairs. There are pros and cons to holding a truly open house. Advertising of open houses may be through both conventional media and the Internet, where a firm might feature its open house on its homepage.


Internet is a way that finding acceptable qualified applicants quickly at the lowest possible cost is a primary goal for employers. The advantages of internet are more cost-effective than most recruitment methods, access to more people and a larger selection of applicants, the ability to target the type of people needed, easy to use, convenience, and so on. However, disadvantages of internet are increased volume of applicants may also become a problem if internet recruiting is used. To find these passive job seekers, companies might consider setting up their own Web sites which welcome applicants, which is poses a dilemma with respect to attracting the 'passive job seeker'.

Needs of Performance Appraisal

Employers appraise performance for a number of reasons. Performance appraisals frequently are used to support HR decision involving merit increases, promotions, termination, and layoffs. Employers who plan to use a merit pay plan must have a performance appraisal system, which is effective and assesses accurately the employee's performance. Merit pay decision not based on an accurate and fair performance appraisal system can lead to charges of discrimination, as well as employee dissatisfaction with the pay system (Mathis & Jackson, 2000).

Likewise, performance appraisals also can be used to:

Motivate employee performance and improve productivity;

Facilitate employee growth and development;

Identify current and future training needs.

Moreover, employers use a number of methods to appraise and record employee performance. Not all performance appraisal methods work equally well for every employer. Choosing the right performance appraisal method depends on a number of factors, factors to be taken in to consideration when HR staff chooses an appropriate performance appraisal method in KPMG will be as follow:

Categories of Employees to be Appraised: Does the performance appraisal method provide a way to measure supervisor' and managers' ability to motivate employees? Does it measure individual output of non-managers?

Types of jobs Employees Perform: What types of jobs are involved? Will one method work equally well in all or most cases?

Nature of Relationship: What is the nature of the relationship between employees and supervisors, employees and subordinates, and employees and customers?

Reliability of Method: Does the method provide employees with the same or similar scores, regardless of who does the appraisal?

Validity or Relevance of Method: Does the method measure the aspects of performance that the employer wants to reward?

Minimization of Biases and Error: Does the method reduce the chance of employers making errors or acting on biases?

Usefulness in Productivity Improvement: Is the method useful as a tool to improve productivity and manage performance?

Ease of Use: is the method understood and accepted by both employers and employees? Is it easy to use?

Question 4: Rewarding

Managing Employees' Motivation

Maslow has attempted a more sophisticated classification ranking the various needs in a definite order. According to him there are five types of needs, which include any man into action, depending on the priority, which he links with each other.

Source: (, 2007).

Physiological Needs

These are biological needs. They consist of needs for oxygen, food, water, and a relatively constant body temperature. They are the strongest needs because if a person were deprived of all needs, the physiological ones would come first in the person's search for satisfaction.

Safety Needs

When all physiological needs are satisfied and are no longer controlling thoughts and behaviors, the needs for security can become active. Adults have little awareness of their security needs except in times of emergency or periods of disorganization in the social structure (such as widespread rioting). Children often display the signs of insecurity and the need to be safe (Maslow, A. H., 1954).

Needs of Love, Affection and Belongingness

When the needs for safety and for physiological well-being are satisfied, the next class of needs for love, affection and belongingness can emerge. Maslow states that people seek to overcome feelings of loneliness and alienation. This involves both giving and receiving love, affection and the sense of belonging (, 2009).

Needs for Esteem

When the first three classes of needs are satisfied, the needs for esteem can become dominant. These involve needs for both self-esteem and for the esteem a person gets from others. Humans have a need for a stable, firmly based, high level of self-respect, and respect from others. When these needs are satisfied, the person feels self-confident and valuable as a person in the world. When these needs are frustrated, the person feels inferior, weak, helpless and worthless.

Needs for Self-Actualization

When all of the foregoing needs are satisfied, then and only then are the needs for self-actualization activated. Maslow describes self-actualization as a person's need to be and do that which the person was "born to do." "A musician must make music, an artist must paint, and a poet must write." These needs make themselves felt in signs of restlessness. The person feels on edge, tense, lacking something, in short, restless. If a person is hungry, unsafe, not loved or accepted, or lacking self-esteem, it is very easy to know what the person is restless about. It is not always clear what a person wants when there is a need for self-actualization (NetMBA, 2004).

Traditional Pay and Incentive Pay

Incentive pay, also referred to as variable pay, is used by employers instead of the traditional pay mechanism, like merit increases and fixed salaries. Under an incentive pay program, salary levels can be linked to the performance of the individual, group, or overall organization. Incentive can be offered to higher-level executives, lower-level management, and non-management employees.

According to Mathis and Jackson (2000) understanding differences between traditional pay and incentive pay can help employers, in this case will be KPMG's employees, determine what combination of approaches best suites corporate culture and business needs. Traditional pay, sometimes called the hierarchical approach, sets a fixed salary for a particular job based on its level within the company hierarchy. Raises are based on periodic employee job evaluations by the way employees perform their job. The results of the evaluation determine the level of the employee's merit increase, where they get a small percentage increase in their base salary. Incentive pay is based on the performance or result of an employee, a team of employees who works towards specific organization goals. In an incentive plan, performance measures are viewed at least usually to determine the level of incentive pay. The incentive pay can be awarded as a one-time bonus or a percentage of base salary.

Question 5: HRM and Law

Employers and Employees' Duties

The Occupational Safety and Health Administration (OSHA) has developed mandatory and voluntary health and safety requirements to ensure that employers provide safe workplaces, keep records of injuries and illness, and recognize employee's rights to refuse unsafe work. Meanwhile, employers from KPMG that fail to comply with mandatory OSHA guidelines typically are subject to fines or other penalties.

KPMG is committed to ensuring the health, safety and well-being of our people and any visitors to our premises. KPMG comply with current applicable occupational health and safety legislation and offer a range of health, safety and well-being related support systems for their people and visitors (KPMG, n.d.). The company aim to prevent accidents and promote good heath, safety and well-being by:

Reducing health and safety risks associated with their business operations, as far as reasonably practicable.

Developing a health, safety and well-being culture within KPMG.

Actively encouraging and supporting communication on all health, safety and well-being issues within KPMG.

Furthermore, employers are required to provide and maintain a safe and risk free working environment for their employees. Some of the specific duties of the employers are:

Providing and maintaining safe plant and system of work.

Arranging safe systems of work in connection with plant and substances.

Providing a safe working environment.

Providing adequate information on hazards, as well as instruction, training and supervision to employees to enable them to work safely.

Provide information to their employees in such languages as are appropriate.

On the other hand, the duties of employees apply to all the people working in the organization and that includes even the people in the managerial level. Employees are required to take care of their own health and safety, and of their co-workers. Wherever safety procedures are laid down employees must follow them and when appropriate safety equipment is provided, employees must use it. According to Stone (2005), employees must not willfully or carelessly interfere with or misuse anything provided in the interests of health and safety or willfully put at risk the health and safe of other.

Criticisms on Ethical Role

Short and Callaghan (2005) discuss the ethical role of HR development professional in international organizations. In trying to identify what is ethical behavior for an international organization, they propose that the first thing to understand is the possible negative impacts of globalization.

Poor condition of work, including pay levels below poverty lines and extreme health risk. Good health and personal wellbeing help you get the most out of life as well as contributing to superior professional performance. "We want you to stay fit and healthy with plenty of energy and enthusiasm. It's central to our culture and also makes sense for us as a business. KPMG's "myWellbeing" program covers a range of relevant benefits" (KPMG, n.d.).

'Race-to-the-bottom' in term of working standards as firms seek cost efficiencies around the world. Achieving a balance between where organization spend and where they save is crucially important in business - especially in these tough economic times. Businesses need to think about their cost base as an investment and continually review whether the 'investment' is being made in the right areas (KPMG, n.d.).

Company from developing countries cannot compete with large MNEs. HR professionals need to consider the impact that their organization has on the world and take proactive decisions.

Moreover, the social conflict from changing expectation. The conflict can be described as actions and processes which seek to alter the various characteristics and manifestations of conflict by addressing the root causes of a particular conflict over the long term (Lehman, C. R. (1995). Group conflict has often been viewed as a basic mechanism of social change, especially of those radical and sudden social transformations identified as revolutions.

Women and ethnic minorities still find it harder to get a good job than other workers in many countries, and more likely to work in poorly paid jobs without collective representation and poor labor safe-guards, despite impressive improvements in recent years. One reason for this continuing problem is discrimination - unequal treatment of equally productive individuals because of gender or race (ScienceDaily, 2010).