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Human resources management is a strategic and logical approach to managing an organisation's employees who are working in the organisation contributing collectively and individually to the achievement to its goals and objectives. Human resource management is carried out by development of personal management. Personal management means the managing of people in an organisation concerning with establishing, maintaining and developing systems which provide the structure of employment .The development of human resource management system is the development of business strategy because of improvement in HRM increases the performance of organisation which achieves the goals of company. The main function of human resources management is focused on recruitment, management and giving direction for the employees of the organisation. Human resource management is the managing of the people who work in organisation. So it is concerning with performance of the employee to achieve the objectives of an organisation. Human resource management is widely defined three areas which interconnect to each other. The three areas are:
Work relation area cover the way work is organised and operation of the employee about technology and production system .Employment relation area which concentred with the arrangement governing such apart of employment like recruitment, training and reward system. The industrial relation which cover the voice aspiration of worker and industrial arrangement this area address as joint consultant, work councils and group bargaining.
Every smallest or largest organisation have variety of human resources management. These HRM implemented the HR polices in the daily practices of supervisors and managers which is developed by company.
According to beer et al (1984) "human resources management involves all management decisions and action that affect the nature of the relation between the organisation and its employees-its human resources."
The Human resource cycle of an organisation is show below
Selection performance evaluation
The human resource management of an organisation need to understand and create include
Recruiting the qualified people and retaining them also
Selecting right people in right place and right time.
Training and developing a competitive workforce
Providing benefit and services
Promoting workforce health and safety
Objective of HRM system
The following list are reflect the major item of objective relating to the HR system(Armstrong,1992).
The HR polices create toward effective organisation performance is necessary requirement for company to make maximum use of resources
The creation of flexible organisational system which is responsive and adoptive and helps the organisation to meet demanding objective in a competitive environment.
Combination of HRM polices and business objectives should be sought.
Improvement and maintenance of both workforce and product
Human resources management provides the competitive advantage to the organisation .so the research by Patterson et al (1997) show that the management of people makes a difference to company performance. The 1997 study conclude that
When the worker are more satisfaction with their jobs that gives the organisation better performance, more productivity and profitability.
The practices which appear to be most important in affecting performance are jobs design and development of skills (selection induction, training and evaluation).
HRM practices are more important in how successful a company will be than either investment in research and development, the difficulty of the technology used and use of competitive strategies.
So the human resource management is the back bone of the company which implement the business strategy and achieved the organisation goals .On the basis of strategic human resources management linking human resource management to the organisational strategy.
Strategic human resource management is defined that how organisation will achieve its objective through people by means HR strategies and integrated human resource polices and practice. It gives the main base of strategic reviews by which analysis of the organisation background and exiting Human resource practices make to choices on strategic plans for the development of overall human resource strategies.
Human resource management strategy is not only concern with strategic planning, it concerned with implementation of business strategy .human resource management linking to the organisation's strategy on basis of human resource management. So that human resource management to give support the business goal and vision of the organisation. The importance of successfully integrating the HRM It would give positive advantage if the HRM director is involved in decision making with respect to strategy with the business strategy. Normal business issues at board level. In this way he or she is in a better position to coordinate the HRM strategy development related to selection, training and development, reward and employee relation.
From integrating of HR strategy with business strategy it gives the more productivity to the company. Human resource management is the key of business strategy because it makes the HR strategy by this implement the business strategy and achieved the objectives of organisation.
The approaches to development of human resource strategy to aid the development of business strateges. The main three approaches to development of HR strategy are defined by Richardson and Thompson (1999) as fallow
First one is the best practice approach it is based on the implementation of the advanced human resource management practice which wills leads the higher organisation performance. Second is the best fit approach it based on the belief that it is all dependent on the organisation context and its business strategy not the universal instruction for HRM policies and practices. The third approaches is configuration approach which is centralize on the unique configurational -arrangements of joined-up HR stralategy. After combined together the function will effectively. From these approaches to development of HR strategy .It gives the better performance of employee which increased the productivity of an organisation.
In an organisation corporate strategy and human resource strategy are interrelated. so organisation necessary to alignment between these two strategy for the achievement of its objectives. All of the company or organisation have own objectives. For the achieved of this objectives overall organisation making corporate strategy. This is implementing by human resource management by its HR Strategy. Organisation objectives and corporate strategy only success if the Human resource management make advanced and unique HR strategy and implement effectively .Then organisation can get competitive advantage with competitor.
The processes required for effectiveness humn resource strategy are recruitment, retention learning and development of people in an organisation. These processes should be impact on overall corporate strategy of an organisation. So recruitment is the process of finding and engaging the people in organisation needs. Selection is one of the parts of recruitment process concerned with deciding which candidate should be appointed to job. The process of recruitment stages are four, first is define requirement: that means preparing role profiles and person specification which deciding terms and condition of employment. Second is the planning requirement campaign. Third is attracting candidates that means reviewing and evaluating alternative source of applicants inside and outside the company by advertising ,e-recruitment agencies and consultants .Lastly fourth is selecting candidates that means sifting applicants, taking interviewing, testing assessing candidates, offering employment, obtaining reference and preparing contract of employment.
The process of recruitment and selection should be evaluate for the less money on the process for get good result and reliably attracting and selecting the most suitable candidate. So from the recruitment process organisation can attracting, finding and selecting qualified right people in right place. By this human resource management can implement the HR strategy effectively and successful to achieved objective of an organisation .So effective HR strategy can increase the productivity of organisation's people which successful the hole corporate strategy of an organisation.
Retention is another recruitment of effectiveness of HR Strategy. It means the process of retain exiting talent or key employees persuading these employee and do not give chance to work for other organisation .It is not sufficient to get qualified or talent people in to organisation. They need to kept there. This is main aim of retention, which is on the basis of information about how many people leave and what is the reason for leave, establishes what steps are necessary to retain these employee.
By retaining strategy, human resource management can kept the talent employee and analyze the effectiveness of these employee in human resource strategy. Retention stops the leave of talent employee from an organisation which increases the productivity and achieved the objective of corporate strategy.
Training is most effective factor for human resource strategy which is providing to employee. It means the investing in employee to make possible them to perform better and make powerful them to make the best use of their natural abilities .The main objective of training is to develop the skills and competences of employee and improve their performance. The effective training can improve individual, team and overall performance in terms of output, quality and overall productivity of an organisation. It can help to manage change and giving employee with knowledge and skills so they needs to adjust to new situations and it can provide the optimum level of service to customer. This gives the better performance of organisation and increase productivity of organisation.
The strategy of learning and development in an organisation represent that the approach an organisation adopts to guarantee that now and in the future, the activities of learning and development support the susses of organisation goals by developing the knowledge or skill and capacity of individual and team. The distinction between learning and development made by pedler et al (1989) 'who see learning is concentrated with an increase in knowledge of an existing skill, where as development is about moving towards a different state of functioning'.
The research by Benabou (1996) shows that the relationship between learning and development activities and organisational performance. The research examined that the impact of various learning programmes on business and financial result in 50 Canadian organisations. The research concludes that in most cases well return on investment in learning programme is very high. So learning programme to employee is very effective process of HR strategy, which increases the existing knowledge and skill of employee that gives better performance of organisation the productivity of an organisation should be increase.
One of the strategies of human resource management is deployment and redeployment of employee. HRM of an organisation deploy these employees who are talented or qualified and necessary in work and redeployed by motivation and by providing extra facilities. From these processes, the performance of the organisation enhances and productivity increases. This strategy of HRM is based on coping with poor performance and undertaking employee retention. From this process company can get more output by less input. Those employees who show poor performance are provided with learning and training programmes making them fit to be deployed. If these employees start showing better performances, they are to be redeployed. Retaining these employees who are talented or qualified are necessary in work. So this human resource management strategy is focused on deployment and redeployment of employees and deals successfully with poor performance and retains the qualified employees who are necessary for organisation.
According to pedler et al (1991) 'an organisation which facilitates the learning of all its members and continuously transform itself' and according to senge (1990) "the vital meaning of a learning organisation is an organisation that is continually expanding its capacity to create its future. So the basic concept of the learning organisation is based on view that the organisation will not survive in business if it does not learn and in front of its competitor.
Learning organisation focus on the learning process reflects on how the learning can be applied in organisation and knowledge management focus on the avaibility and transference of knowledge that exist in organisation. So learning organisation is creation through knowledge management because they both emphasize the importance to the organisation of continuous development. Self managed learning means individual employee self learn about new development, technology and create new idea and applied in work which gives better performance of an organisation.
Intellectual capital means the stocks and flow of knowledge available to an organisation. If promote the knowledge, skills and abilities of employee that will be create the learning organisation. Then the organisation can change and compete with competitor in any situation that makes the success the organisation. Knowledge management focus on development of stock knowledge and skill that are the result of organisation learning process .so the learning organisation interlink with self managed learning, intellectual capital and knowledge management by this organisation can do better performance and success in any environment.
Performance review is most important factor of human resource strategy .it means the discussion about past performance as a basic of making future plane. The analysis of performance concentrates not only what happen but also on why happened .From this process necessary data are obtained for planning purposes and organisation can do what should be do in future. In this process, discussion involves a full, free and frank exchange of view about what has been achieved, what needs to be done to achieve more and what individual think about their work and they are guided and manage their goals .From this process human resource management can making development and improvement plan and implement effectively then productivity of organisation should be increases. Management development means the improving manager's performance in their existing roles and preparing them for higher responsibilities in the future .It improves the manager's performance, give them development opportunities and provides for management progression. Management development makes managers every time to fit for new challenges and can adopt easily new planning. So they can do better performance and mobilize the all employee effectively.
Employee relation process consists of the approaches and method adopted by employers to deal with individual employee and trade unions. The HR strategy of employee relation define as the intention of organisation about what need to be done and what need to be changed for the manage it relationship with employee and their trade unions. The four approaches to employee relation polices by industrial relations services (1994):
The partnership approaches of employee relation are benefit for organisation because in this approach, the organisation involves employee in the drawing up and implementation of its policies. so employee motivate to do work effectively. In an involvement and engagement approach, employee involve in both day to day and strategic decision making. From all these process overall performance of employee should be better and they are highly motivated to work. That makes the organisation successes.