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The function of Human Resources Management (HRM) contains lot of responsibilities and more important is to decide about deciding how to fulfil staffing needs you have and whether to utilize neutral contractors or appoint employees to fill these requirements, to recruit and train the high performing employees, observing that they are best to fulfil their responsibilities. In order to deal with performance issues and to ensure your HR practices confirm to different responsible persons. Authorities include managing your approach to employee benefits and compensation, employee record keeping and HR policies. Normally small scale organizations are to carry out these tasks by themselves because they can never afford part or full-time assistance. However, they ought to always ensure that employees have knowledge about personnel policies which confirm to current rules and regulations. These policies are often in the form of employee manuals, which all employees possess.
The coordination between corporate HR and top agency management differs widely by agency. A few agencies, like SSA, NASA, Air Force, and GSA, have been capable to create consolidating working coordination with management in which HR is a full time member of the agency decision-making body.
Lot of other HR personnel have not been so lucky. They are normally brought into the agency decision making process throughout the implementation phase rather than being discussed in the starting on how decisions may affect agency HR or vice versa.
For few agencies, it is difficult trip to reach at destination. For others, it is of a natural transition. In exploring how to enhance HR's part to management partner, agencies where this has been obtained attribute their success to a combination of components mentioned below:
Reporting relationships - There are straight relation of reporting between head of HR and the head of the agency in agency, HR generally has a more clear and transparent role in agency decision-making.
Management advocates - There are strong HR advocate in senior management, HR gets more involvement in the agency decision-making.
Credibility - Those HR representatives who are authorized program managers tend to earn more credibility from the other managers. This kind of individual knows first hand what the program about and how HR decisions will affect the program, and can speak the similar programmatic language.
Culture - The prestige that its people are more important asset has normally been part of the culture. So that it is natural for the HR leader to have strong decisions in agency.
Value - different scenarios refer that HR has to bring value to the coordination as to understand a member of the management team. If you have some or no offer, you will not keep your seat at the table.
Appointment of right persons to align business operations to corporate values is the strategy of the business. Well organized and developed organization creates relevance of employees the core values of business. There is cooperative culture HR plays liaison role. Use of information technology is very much positives strong leadership due to right selection of HR. That has created strategic importance of HR in modern world. Outdated practice in HR badly affected organization.
Why make HR as organizational strategic partner:
Some of the reason you may know better. In order to increase productivity and competency of labour HR must select right person and then train them to get optimum results. Different activities performed in the dynamically changing business world are very important. Effect of globalization is very positive on business operations.
The HR Function and Strategic Business Plan.
It has come to know in a survey that there is positive correlation between business partner and effectiveness of HR. You are required to ensure strategic HR functions and organizational productivity. Due to aggressive and reactive approach adopted from different organization made employees disloyal.
Strategy Development and Implementation.
If in strategy development HR is involved then it can play good role in the progress of business. It ensures that HR manager works according to expectation of organization.
The Future of SHRM
It is an emerging concept and world wide accepted different organization now focusing to adopt and give trainings to employees in order to get better results. It has been implemented by some large organizations. Though some immature efforts made by organization led it to inefficiencies. Though people will carry it on no matter what ever the size of business is. It will play vital role in the development of business. Now day's businesses are very complex and challenging. Concept of SHRM will continuously grow in the organizations.
The Importance of SHRM
The ultimate purpose of organization is to generate profits and basic purpose of HRM is also to attain this target by selecting right person on right positions, train them and get better productivity from Human Resources. HR also as important as finance and R & D but it is mandatory to effectively use it. In the different non profit organization people offer their services at optimum and desired level. They serve in satisfactory level. Good professionals are required to develop and implement HR policy, such professional who expert in finance and negotiations issues. The HR strategic plan aligns HR functions with corporate goal; good knowledge about organization is basic requirement to implement and HR policies and get desired results.
A successful business strategy, one which is almost successful is known by people factors. One of the main reason behind the evaluation and reporting of human resource data is the requirement for good information to feed into the business strategy formulation process. HR is also as important as some other departments.
People are considered major asset In the majority of organisations. The knowledge, skills, expertise and abilities have to be enhanced and used to the development maximum effect if the organisation is to increase value. The hidden value of an organisation which lies in the people it hires is obtaining recognition by accountants and investors, and it is generally now appreciated that this has implications for longer tenure consistent performance.
That's why; it is so simple to say that strategic human resource management grows from the business strategy. The two must be mutually informative. People are managed in such a way, motivated and hired, and the availability of expertise and knowledge will all give shape the business strategy. It is found now every where business strategies which are directly connected with and embedded to strategic HRM, explaining the management of all resources within the organisation.
Separate HR strategies may then be given shape by the business strategy. So if the business strategy is about ameliorating service of customer this may be converted into training plans or performance betterment plans.
In order to retain employees and develop a stable work force requires a two way process the one is to understand why employees leave, and develop and implement strategies to tide them to stay.
Five major reasons employees leave the organization:
working conditions are dissatisfactory
Recognition process is not undertaken.
Support from top authorities is rarely found
There are no career development chances
Remuneration policy is not according to education and skills
In order to overcome these factors requires the implementation of five specific categories of retention strategies:
Environmental strategies develop and maintain a workplace that is attractive, retaining and nourishing good people.
Relationship strategies concentrate on how your people are treated by you and how they treat each other.
Support strategies engage giving people the tools, equipment and information to perform the job in better way.
Growth strategies treat them with personal and professional growth.
Compensation strategies include the broad range of total compensation, not just base pay and salary.
Top Tips for Retaining Employees
if the following techniques are adopted then companies can retain employees:
Hire right person to right place.
Orientation session must be done with new employees.
Understand the values.
Develop creative pay and performance system.
Introduce personal growth plans annually, semi annually for each employee.
Concentrate non-compete agreements.
Credibility of Recruiter in your company.
Make easy procedures for people to get their jobs done.
Make corporate succession planning.
arrange exit interviews with employees when they resign.
Retaining Key Employees
by targeting on key employees who really make or break your business, you can achieve the most leverage from your employee efforts of retention. Retaining key employees needs a five-step process:
Terrace out main employees and their positions.
Understand what motivates your main employees on an individual level.
Develop a different compensation plan
Look after and manage key employee performance.
Go through the performance key employees annually.
Getting Benefits as an Employee Retention Tool
Employee benefits gives a strong tool to attract and retain top employees. Designing a retention-oriented benefits program, follow the steps given below:
Create a benefits mission statement.
Terrace out your listeners and their personal benefits, wants and needs.
Plan a beneficial budget that fits within the financial limitations of the company.
Allow employees as much controlling as possible over their benefits.
Discuss the plan.
Develop Rewards and Recognition
Recognize people for specific behaviours/results.
Rewards program must be simple and easy to understand.
Involve your employees in designing and running the program.
Systems Thinking: The related structure and the joined components of each of our work systems, give shape a great deal of the behaviour of the individuals who perform their duties inside the system. Focus on Dr. W. Edwards Deming's admonition. When any mistake is made, rather than blaming, ask, what about the work system caused that individual to be failed?
Personal Mastery: States Senge, "Personal mastery is the discipline of continually explaing and deepening our personal vision, of focusing our energies, of developing patience, and of seeing reality objectively." (p. 7) He says that an organization's learning can only be as great as that of each of its individual members. Consequently, personal mastery and the wish for continuous learning integrated deeply in the belief system of each person are difficult for sustaining the competitive advantage in the future.
Mental Models: These are the deeply kept pictures each of us holds in our mind about how the world, work, our families, and so on work. Mental models effects our vision of how things occur at work, why things happen at work, and what we are able to do about them.
Building Shared Vision: By shared vision, Senge is quoting to a process in which the original vision for an organization, probably obtained by the leader, is converted into shared pictures around which the rest of the organization finds meaning, direction, and reasons for being there.
Team Learning: Senge finds that group not individuals, are the rudimentary learning unit in modern organizations." (p. 10) It is the conversation among the members of the team which results in stretching the capability of the organization to grow and develop.
Competent appraisal system of individual performance in an organization or company offers to ameliorate the overall effectiveness of the organization. According to D. McGregor, author of The Human Side of Enterprise, the three main functional areas of performance appraisal systems are: administrative, informative, and motivational. Appraisals offers an administrative role by facilitating an orderly means of determining salary increases and other rewards, and by transferring authority and responsibility to the most capable individuals. The informative function is carried when the appraisal system supplies data to managers and appraises about individual strengths and weaknesses. Finally, the motivational role concludes creating a learning experience that motivates workers to improve their performance. When effectively used, performance appraisals help employees and managers establish goals for the period before the next appraisal.
Appraisees, appraisers (managers), and companies all reap benefits from effective performance appraisals. Appraisees benefit in a number of ways; for example, they discover what is expected of them and are able to set goals. They also gain a better understanding of their faults and strengths and can adjust behavior accordingly. In addition, appraisals create a constructive forum for providing feedback to workers about individual behavior, and for allowing workers to provide input to their managers. Finally, appraisees are (ideally) given assistance in creating plans to improve behavior, and are able to get a better grasp on the goals and priorities of the company.
Appraisers gain from evaluations as well. They are able to effectively identify and measure trends in the performance of their employees, and to more accurately compare subordinates. They also get a better understanding of their workers' needs and expectations. Managers are able to use the information to assist their subordinates in planning long-term and short-term goals and career objectives, and to tailor their job responsibilities to make fuller use of their skills. Importantly, the appraisal process helps managers to make informed decisions about promotions and assignments based on applicable facts.
Chief benefits that can accrue to the entire organization from the appraisal process include: improved communication, which results in more cooperation and better decision making; greater staff motivation; and a more informed and productive workforce, which leads to a greater organizational focus on comprehensive goals. Specifically, the performance appraisal process allows the organization to achieve a more productive division of labor, develop training and education programs, eliminate bias and irrelevant data from evaluations and decisions, and design effective compensation and reward systems.
How the Use of Common Marketing Tools Can Increase Employee Satisfaction While Reducing Costs
Many of our colleagues in human resources are now starting to see their roles as similar to those in the sales and marketing group down the corporate hallway. In many aspects, leaders in human resources are responsible for managing a complex product comprising culture, environment, and reward elements - each element having different cost/value drivers, communication channel needs, process and delivery components, varying preferences across segments, and even shelf life (flexible spending accounts for instance). To guide the strategic development of the employee value proposition, many in HR are now starting to embrace the same sort of tools used for decades by marketing.
Applying the Marketing Model to HR
Like marketers, organizations seek to attract and retain customers - employee customers - often in an extremely competitive environment. Talent can enable or constrain competitive success, and as the war for talent intensifies, whether from changing demographics or critical-talent shortages, more importance will be placed on acquiring and retaining critical people.
As in marketing, the concept is to create an employee value proposition that best satisfies the needs of the workforce (the customer) and is aligned with the strategic objectives of the organization. Although not a sale in terms of an overt and conscious decision by the employee to buy (join/stay with) the company, the sale is reflected in other ways, such as in engagement metrics, reduced attrition, lower employee acquisition costs, and improved productivity.
How can leading HR organizations address the needs of their employees and ensure that sufficient value is offered by their employees?
Listening to Your Employees
Our colleagues in marketing know how important it is to continuously collect consumer feedback in the form of market research. Insights from market research help business leaders shape product and communication strategies by instilling fact-based, decision making processes instead of relying solely on intuition.
Many organizations conduct biennial employee surveys that provide feedback on employee engagement, satisfaction, and attitude and can identify the key drivers behind each of these metrics. However, many of these studies are ill-suited to help guide decision making on how to allocate limited total reward dollars to address the needs of both the employee and the organization.
Companies do not wait two years for customer feedback about their products. In many ways, the employee customer requires as much attention as the revenue-generating customer. To provide this level of attention, it is crucial that an employer go directly to its workforce and listen to its employees, and do so on a regular, and even continuous, basis to identify value misalignments.
Identifying Value Misalignments
If an employee customer puts a significantly lower value on a particular company benefit than on other reward components, there is a misalignment in perceived value.
There are two root causes for these value misalignments. The first is that the employer too often relies on industry data when selecting a particular reward for inclusion in the employer's benefits offering without clearly understanding what its own employees want out of their total rewards package. For instance, one company saw data suggesting that providing employees with legal assistance would be highly valued and would help make the employer more competitive among job seekers. But after two years of expense and administration, internal survey and usage data clearly showed that employees valued this benefit the least of those provided - and by a large margin. It just didn't fit this employer and this workgroup. The money being spent on this benefit was being wasted and could have been spent more effectively elsewhere.
The second cause for value misalignments is a bit more complex. It could arise from a lack of awareness, a lack of understanding, or both. With the complexity and wide range of benefit choices today, it is hardly surprising that employees fail to understand exactly what their employers are offering in their benefit packages. At annual enrollment time, employees are faced with the task of making complex benefit choices from the various savings and retirement vehicles, consumer-directed health care options, and complicated copays and deductibles - choices they may not fully understand.
While consumers generally value choices, in the world of employee benefit plans, we see employees who are overwhelmed and under-informed. The result is often a suboptimal choice, benefiting neither employee nor employer. It is important, then, that the company survey or focus group approach be constructed to yield specific data that identifies both the misalignment and the level of understanding of various benefit components so that the underlying cause of misalignment can be addressed. In many instances, the value misalignment caused by a lack of understanding can be effectively corrected with a communication strategy.
The benefit to the organization that takes the time to understand these elements can take different forms - and can be substantial. First, there is the prospect of finding undervalued benefit dollars that can be pocketed or applied to other rewards. Additionally, where a particular benefit is highly valued, there is the possibility of obtaining additional contributions from the employee customer without affecting satisfaction - similar to asking retail consumers to pay more for a higher-value product. Finally, it is possible to see benefits administration savings (fewer questions about benefits) and lower attrition (resulting in reduced costs and greater productivity).
Employee feedback that is quantitative and actionable will help the employer find the right combination of contribution and satisfaction. These value misalignments can easily be identified by leveraging many of the same tools long used by our colleagues in marketing (such as preference measurement and conjoint analysis). Ultimately, this allows the organization to make decisions with confidence and based on facts.