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Human Resource Management is the Strategic and coherent approach to management of an organization most valued assets of people working there who individually and collectively contribute to achievements of objectives of the business. Earlier days human resource management was named as personnel management. In simple words HRM means employing people, developing their capabilities, utilizing, maintaining and compensating their services in job and organizational requirements. The main features of Human Resource Management are
Industrial Management (Effy Oz, 2008)
Human Resource Management is seen by practitioners in the field as a more innovative view of work place. It techniques force the manager to express the goals of an enterprise which should understood and undertaken by them, and should provide sufficient resources to accomplish the work. An HRM strategy means has to implement the specific functions of the human resource management of an organization, HR function posses recruitment and selection, disciplinary procedures, reward policies, recognition policies and development procedures. HRM typical strategies are
Best fit and Best practice- proper correlation between the human resource management strategy and overall organizational strategy, where in order it seeks to achieve the goals and objective of the organization
A proper co-operation between the Human Resource Management and Top level management
Continuous monitoring of the strategy through employee feedback, surveys, etc (Effy Oz, 2008)
HRM strategy is divided into two facts - the people strategy and HR functional strategy. All these strategies part of gaining profits to individual and organizational level (Effy Oz, 2008). Thus HRM can be said as the key aspect that needs to be considered in all the organizations to improve both organizational and employee performance.
Due to globalization Human Resource Management (HRM) importance is increasing in all the sectors of business and work. The role of HR is focused on the Training, Performance Appraisal, Career Planning, Employee Participation, Job Definition, Compensation and Selection (Effy Oz, 2008).
According to Flippo (n.d), "Training is the act of increasing knowledge and skills of an employee for doing a particular job" The major outcome of training is learning. A trainee learns new habits, refined skills and useful knowledge during their training program, which helps them to improve their performance. Training can also be defined as activities designed to change the behavior.
Every organization needs to have well trained and experienced people to perform the activities that have to be done. Training is process of learning a sequence of programmed behavior. It is application of knowledge; it attempts to improve their performance on the current job. Training plays important role in helping the corporation to reach commanding heights of performance. Any training would be considered to be successful when gained knowledge is transferred to job performance, the impact of training program is to mould the employee's attitude and help them to synergies individual goals with organizational goals. It also helps in reducing the dissatisfaction, complaints, absenteeism and labor turnover (Effy Oz, 2008).
Of all activities in HRM, performance appraisal is most continuous and least people involved where in human resource managers, as guardians create and implement organization's appraisal policies and procedures to follow. It is accepted part of management and which performance is measured, monitored and controlled. In recent year performance appraisal is key feature of organization improvement. This resulted in the development of performance management system. Performance appraisal is main objective to reach the heights in present competitive market, performance appraisal is classified as individual and team appraisal according to their performance and appraisal are given in the form of incentives, bonus, promotions and hikes in salaries, these all are applied to increase the performance of individual and organization goals (Bratton & Gold, 2001)
An individual career signifies the work life, every one have specific career goal in life. Career viewed in two aspects one is objective and another one is subjective. Career planning is collective responsibility of the organization. The main aim of career planning is to help employees achieve career progression with in organization. Through career planning an organization can attract and remain its best people for relative long period. Career path is shaped by factors such as an individual knowledge, skills, ability and opportunities available. The career management is divided in to personal career management and organizational career management, where personal career management self managing the career by an individual toward reaching the goals and where as organizational career management it helps individual reach the goals with in the organization as per their policies and procedures. The career counseling is guidance given by the experts and high officials to individuals to be adopted by them accomplishing their career goals. The career counselor assist employer to discover their potentials and weakness.
Process of career planning:
Self assessment by the individual
Evaluation of career opportunities available
Undergoing career oriented skill development exercises
Matching and decision making
Implementation and review (Deb, 2006)
Human Resource Management helps in creating and implementing employee participation in company policies and procedures. A process of employee participation designed to provide employees with opportunity to influence and where appropriate take part in decision making on matters which effect organization. In this part of participation should be proper communication with in the organization, mean while many organizations involve the participation of the employee in framing goals and objectives. Mostly they are participated in decision makings related to the welfare of individual and organization which lead them in profit region (Blyton, Turnbull 1992).
In Human Resource Strategies Job Definition is most important concept in management. Defining the responsibilities and terms of job, the main strategy of the job definition is analyzing the work and defining it properly in management. Job definition is based on the objective information obtained through job analysis.
Most important contributions and out comes needed from a position
Required qualification of candidate
Reporting relationship and coworkers of a particular job ( Hendry, 1995)
In Strategic Human Resource Management, Compensation is major part in economic development of the organization. It is basic principle of the human resource management, organizations are becoming more concerned with positioning the employee compensation as a strategic human resource management function from the clutches of traditional wage and salary administration in order to gain competitive advantage. Thus, the training programme is to provide approach to employee compensation as a strategic human resource function. By introducing compensation management the participants to learning experience of different organizations in designing and implementing various compensation systems for different categories of work force (Geol, 2008).
Compensation program contents includes
Understanding compensation procedures
Traditional basis of payments
Modern basis of payments
Creating market competitive compensation pay systems
Aligning compensation strategy with organizational strategy and human resource strategy
Managing and compensating individual contributions
Managing incentive compensation
Changing the nature of benefits
Compensation for special groups
Administration of compensation systems (Geol, 2008)
Selection is also one of the main functions of Human Resource Management in an Organization. Selection is conceptualized in choosing fit candidates or rejecting unfit candidates. Selection means selecting appropriate candidates from the group of members by testing their abilities and skills according to the use of organization. Mainly to study and know about employment laws that effect selections process, prepare a correct position vacant and verifying correct person to that position via selecting, later proper orientation should be given to selected candidate on job profile. Selection is main prospect in human resource management to pick up right candidate who is useful for the organization (Corpuz, 2006). Some steps in selection process
Allocating proper resources for selection
Identifying the position which is vacant
Then making announcement for selecting candidates
Preparing proper screening tests and questionnaire
Analyzing the proper candidates
Giving orientation for selected candidates (Corpuz, 2006)
STATEMENT OF THE PROBLEM
Employee performance is one of the major aspects of any successful organization. Effective outcomes of an organization could be viewed only through effective participation of employees and management in the organization. In this context this research tries to measure the Human Resource Strategies and their impact on the Employee and organizational performance.
AIM AND OBJECTIVES
The main aim of this research is to study the impact of Al Ain Municipality HR strategies on employee performance and on the organization
The objective of this research includes
Examine the various strategies of HRM in Al Ain Municipality
Analyze the impact of HR strategies on employee performance
Analyze the impact of HR strategies on organizational performance
Finally put forward few recommendations based on the results
SCOPE OF THE PROJECT
Strategic Human Resource Management is a major subject which needs to be studied of which this research tries to examine the how an organizations HR strategies show their impact on employee and organizational performance. This research study helps the readers to understand the concept of HR strategies and their importance on employee performance. Next this research helps to understand how an employee performance depends on organizational effectiveness and how the changing in strategies bring about changes in the organizational performance as well.
FOCUS OF THE STUDY
The study emphasis on the issues related to impact of Human Resource strategies on Employee and organizational Performance
SIGNIFICANCE OF THE STUDY
Considering the importance of role played by Human Resource strategies on Employee performance, it is important that result of the study should be used to upgrade and formulate effective strategies and emerging guidelines if suitable for company and the employees. The significance of this study is that it may be used a reference manual for future study of performance of employee on the basis of HR strategies.
Universally there is no applied definition for Human Resource Management by any university. Human Resource management is defined as the creation and maintenance of an internal environment in an enterprise where individual working together in groups can perform efficiently and effectively towards attainment of group's goals - Knootz and O'donnel (year)
These days if business should run in profits, Human Resource Management is main department which should workout well, HRM strategies shows impact on the employee performance, to reach heights in business; management should link competitive strategies with effective Human Resource practices. To see changes in business first recruiting outside employees through which adopting different working culture and technology, meanwhile strategies should be competitive and for these role behaviors are required simply responsible persons in management. According to Schuler and Jackson (1987), mostly there should be Quality enhancement strategy with proper supervision and direction in work life promoting every one towards achievements. Innovative thoughts and technologies should be encouraged by the management for better surplus results.
Cost reduction is also one main objective of HRM, guiding employee towards correct career paths, apart from all this giving promotion and increasing responsibilities of individuals towards task. Most important activity of HRM is proper training and development should be given, the above mentioned qualities and strategies are implemented by Honda company of Chicago USA and observed many changes in employee performance, through encouraging spouses of employees for betterment of their life's and also betterment of the organization (Schuler and Jackson, 1987)
Human Resource Management is principally task of planning, coordinating, motivating and controlling the efforts of others toward the specific objective - James L Lundy (year)
The Human Resource Management strategy and Business Strategy both are interdependent next, competitive strategy is collective of Economic Conditions, Industry Structure, Distinct Competence, Competitive Advantage and Product or Market Scope, these are demand for skills and employees with interpedently human resource strategy like labor conditions, skills and values, culture and economic conditions with organizational availability. This is going to increase the productivity, expansion, development and redirection of the business in the competitive corporate culture (Lengnick-Hall, 1988).
According to Lengnick-Hall (1988), the Reciprocal interdependence between firm and its human resource strategy underlies the proposed approach to the strategic management of human resource. The highlight some of advantages and disadvantages of integrating human resource management with in strategic management process, if a firm not adopt strategic human resource perspective, it must solve human resource problems through human resource, by implication to solve competitive problems with solving other types of resource (Lengnick-Hall, 1988)
Human Resource Management is the process and agency which directs and guides the operations of an organization in realizing of established aims- Ordway Tead (year)
Strategic Human Resource Management includes aligning with the mission of the organization. Human Resource Aligning means integrating decisions about the people with decisions about the results an organization is trying to obtain. By integrating HRM into the agency planning process, emphasizing human resources activities that support board agency goals, building strong relationship between human resource and management, agencies are able to ensure that the management of human resource contributes to mission accomplishment. Assess how well human resource management is linked to agency mission accomplishment; explore the role played by HR to carry out agency strategic goal , identify best practices aligning HRM with the agency strategic plan and goal. Some strategic planning process steps follow (US office of Personnel Management, 1999)
Strategic plan with high level agency goal, strategies and needed goals
Annual performance plan with operational level, strategies, measures and timeframes to support strategic goals
Performance goals with status report on agency achievements of goals
Well done is better than well said because strategic implementation is better than strategic planning (US office of Personnel Management, 1999).
Strategic HRM activities
According to US office of Personnel Management (1999)
Agency reorganization of all the downsizing, streamlining and budget cuts that have been occurring in recent years, many agencies and sub component have to redefine their mission and restructure missions and goals
Work force planning of budget cuts, downsizing and aging federal work force, work force becoming extremely important in increasing the ability to reach the mission and vision of an agency
Linking the performance management with mission accomplishment of the organization
Human Resource self assessment is major part of how well programs are focusing on accomplishments of the missions of the organization
HRM measurement can only determine its value of organization by measuring it, HRM measure the performance of the employee by fixing specific targets to each and every individual and measuring them with reports and through these organization performance is measure in annual report
E.F.L. Brech (n.d) - "Human Resource Management is a social process entailing responsibility for the effective and economical planning and regulation of the operations of an enterprise, in fulfillment of a given purpose or task, such responsibility involving:
Judgment and decision in determining plans and in using data to control performance, and progress against plans; and
The guidance, integration, motivation and supervision of the personnel composing the enterprise and carrying out its operations".
The impact of human resource management practices on perception of organizational performance, recently many of companies adopted variety human resource management to see the changes in performance of employee and organization. Usually company growth is based on the back ground and measurements of the company in reaching the goals and mission. Organization can adopt different types of HRM to enhance the employee skills. Different styles are there to measure the performance of organization and employee on the basis of hypothesis testing, progressive HRM practices which effecting the employee skills, employee motivation and structure of work those are positively related to the organizational performance. Synergies among HRM practices will be related to organizational performance and related data is collected on the performance of individual and organization and taking related measurements to improve the performance of both organization and employees on this basis decision making done (Delaney, 1996).
"We adopted a training system that helps us work from common ground. (A training firm) worked with a cross-section of our employees to create a picture of our logistics system, a physical picture, that we could share with every employee. You can see where every job fits in the picture. After we put together the picture, we worked with employees to create a list of competencies for each job. The competencies fit the picture." -Manufacturing Director of Logistics Training
Concept of Human Resource Management
Human Resource Management reflects a long standing capitalist tradition in which the worker is regarded as a commodity. The interests of management is adopting a strategic approach that is closely integrated with business strategy, obtaining added value from people by the process of human resource development and performance management, the needed for strong corporate culture expressed in mission and value statements and reinforced by communication, training and performance management process. Enable the organization to obtain and retain skilled, committed and well motivated workforce it needed. Enhance and develop the inherent capacity of people and their contribution, potentiality and employability by providing learning and continuous development opportunities (Amstrong, 2000)
Where as human resource management is a main branch of the business where it applies all the forces work together instantly to gain the profits for individual and organization level, it is only force where all the branches work together for one mission with individual works. No doubt that human resource management is the main source to work done with all the efforts of the agency properly. It enables the organization towards toward the profit and development region (Amstrong, 2000).
Strategic Training and Performance Appraisal in HRM
Training is the prime instrument in human resource and plays vital role in securing organizational goals, performance appraisal is the corner stone of an effective human resource management. Training is most important part in human resource where training is giving in reaching of goals of the organization based and proper training is given to an individual to succeed in his or her career to prove themselves. Where as performance appraisal is the moral boast which given by the organization to worker for his or her better performance in the job profile with attracting pay, incentive and bonus which are related to work environment of the organization (Kandula 2004).
Career Planning and Employee Participation of HRM
Career planning is a tool that aligns with HR needs and encourages employees towards reaching the goals and objectives of an organization for his or her personal development, By increasing employee participation, it will increase the range of productivity and resource which benefit the firm to increasing commitment of employee. Strategic HRM helps individual in proper planning of career with in the organization which helps both for organization and employee and where as employee participation reduces the risk and uncertainty of by participating them in decision making of company policies and procedures ( William B (1996). In business environment, Human Resource Management role is very important in concern of career planning of workers with proper guidance and approach which leads the group or firm into leading position, apart from this employee participation is most important in all the aspects of the company decisions, why because they are the real workers those who know exact problems in work field.
Strategic HRM role in Compensation and Selection
At Hewlett-Packard, entrepreneurial behavior is stimulated in project leaders by giving more rewards for their success in work. For successful leaders are being giving banquets, stock options and personal computers. This is a continuous process in business management which is an competitive advantage for company, where selections is also one of main schedule in HRM for selecting consultants and workers for company with well trained and skilled for better utilization of the resource in the environment (Schuler & MacMillan, 1984).
Yes it is true that selection is not only important concept, there is a compensation which is one module in HRM, where selected candidate encourage by better compensation for the betterment of the work and productivity. Selection is tough job for the Human Resource Management to identify the position which is vacant later on selecting appropriate candidate who is suitable for the working condition of the organization. HRM role is not yet finished by selecting a candidate, the main work of HRM starts after selecting an individual, because they are responsible to higher authority for work completion, in this concern they start applying different strategies in that compensation is one strategy attracting the employee toward work, with better payments, incentives, bonus and extra curricular income . So both are the main function of the Strategic Human Resources Management (Schuler & MacMillan, 1984)