The need for effective human resources

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In the present age, Human resource management is now often seen as the major factor differentiating between successful and unsuccessful organizations, more important that technology or finance in achieving competitive advantage. This is particularly apparent in the service sector where workers are the primary source of contact with customers, either face-to-face in a service encounter or over the telephone or the internet. Even in manufacturing firms the way in which human resources are managed is seen as an increasingly critical component in the production process, primarily in terms of quality and reliability. Much of this revolves around the extent to which workers are prepared to use their discretion to improve products and services. Many organizations find it advantage to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. Organizations, large or small, must ensure that they have the right people capable of delivering the strategy such as intelligence, skills and expertise that gives the organization its unique character. The human elements of the organization are those who are capable of learning, changing, innovating and providing the creative which is properly can certify the long-term survival of organization.

The rate of change in organizations has never been greater and organizations must absorb and manage change at a much faster rate than in the past. In order to implement a successful business strategy to face this challenge,

People are the most valuable asset in organizations, skilled people is competitive and expensive. The strategic capability of an organization depends on the strategic capabilities of its managers. People who display high levels of strategic capability know where they are going and know how they are going to get there. They recognize that, although they must be successful now to success in the future, it is always necessary to create and sustain a sense of purpose and direction.

Human resource management is about planning, quality specification, and the property in the people so, before start work and until retired from the work that is the duty of organizations.

The idea of HRM, the most thing that emphasize is all duty proceeding. HRM have to consider of the economic condition such as the competition in the world market,

social in people structure and also the law that come to be an influential in organization. Beside this, HRM still emphasize the strategy of the administration in each the duty, Function that must fine give consistent each other with surround condition

For example

- When there is decreases the size of an organization (Downsizing) the strategy of

HRM should emphasize in the sense of discharges from an organization (Recruitment), the training and the development (Training and Development) because the strategy will help aforementioned to increase efficiency in the work for remainder officer and can work replace an officer who discharges

- Training and the development there are important strategy of HRM in the crisis that

suitable current economic, social, politics and all the competition.

- Pay administration (Compensation) must consider that how can economize the capital by possession the cherished of an officer.

- work evaluation (Performance Appraisal) , emphasize evaluation follows the works in fact and pays wages to follow the works or wage distribution like pay for Performance not pay like pay for Position.

- The cause that an organization turns to use Human Resource Management because the idea that try to administrate a person in an organization to be a person who is good

quality and work efficiently and organization doesn't want office excellent person only but want a person who have the responsibility, confidence, honesty , loyalty in an organization, be a leader who can decide and a person who have the behaviors that

will can reach to gather into a group with the colleague well come in to work in an


Strategic human resource management

HR Planning

Human resource planning determines the human resources required by the organization to achieve its strategic goals. As defined by Bulla and Scott(1994), it is 'the process for ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements'. Human resource planning is based on the belief that people are an organization's most important strategic resource. It is generally concerned with matching resources to business needs in the longer term, although it will sometimes address shorter-term requirements. It addresses human resource needs both in quantitative and in qualitative terms. This means answering two basic questions: 1) How many people? And 2) What sort of people? Human resource planning also looks at boarder issues relating to the ways in which people are employed and developed in order to improve organizational effectiveness, It can therefore play an important part in strategic human resource management.

Link to business planning, Human resource planning should be an integral part of business planning. The strategic planning process defines projected changes in the types of activities carried out by the organization and the scale of those activities. It identifies the core competences the organization needs to achieve its goals and therefore its skill and behavioural requirements.

Human resource planning interprets these plans in terms of people requirements. But it may influence the business strategy by drawing attention to ways in which people could be developed and deployed more effectively to further the achievement of business goals as well as focusing on any problems that might have to be resolved in order to ensure that the people required will be available and will be capable of making the necessary contribution. As Quinn Mills(1983) indicates, human resource planning is 'a decision-making process that combines three important activities: (1) identifying and acquiring the right number of people with the proper skills, (2) motivating them to achieve high performance, and (3) creating interactive links between business objectives and people-planning activities'. (Human Resource Planning, (Strategic Human Resource Management, A Guide to Action, Michael Armstrong, 2006, ISBN 0 7494 4511 4, the third edition)

Job Analysis

To achieve high-quality performance, organizations have to understand and match job requirements and people. This understanding requires jib analysis, the process of getting detailed information about jobs. Analysis jobs and understanding what is requires to carry out a job provide essential knowledge for staffing, training, performance appraisal, and many other HR activities. For instance, a supervisor's evaluation of an employee's work should be on performance relative to job requirements. In very small organizations, line managers may perform a job analysis, but usually the work is done by a human resource professional. A large company may have a compensation management department that includes job analysts (also called personnel analysis). Organizations may also contract with firms that provide this service. (Fundamentals of human resource management,2004,71, Raymond A Noe)

Recruitment selection induction

Performance Appraisal

Employees and line managers may meet performance appraisal schemes with distrust, suspicion and fear, but an integrated and effective process can lead to increased organizational performance and employee motivation. It is important for employees to be genuinely involved in the design of an appraisal scheme, the evaluation of performance, and the objectives-setting process. An appraisal scheme should be set up in an atmosphere of openness, with agreement between management, employees and employee representative of the design of the scheme (Grayson, 1984:177). Employees need to have a clear understanding of the purpose of the process (evaluative or developmental). The following are key principles in the design of a performance appraisal scheme:

It creates motivation to change or improve behavior.

It provides recognition for successful performance.

It provides valid and reliable information for pay decisions.

It provides guidance on what skills, competences and behavior are required to meet expectations.

It need to be simple, clear, and written in accessible language.

It must be seen as providing business and to be relevant to day-to-day tasks and local needs.

It must make realistic demands on employees' and managers' time and other resources.

It must be perceived to be fair.

(Key principles in the design of performance appraisal schemes, Performance-Related pay, Human Resource management, a contemporary approach, Ian Beardwell and Len Holden, De Monfort University, Leicester, 2001, ISBN 0 273 643169,540, the third edition)

Training and Development

Training and Development refers to the imparting of specific skills, abilities and knowledge to employees as the attempt to improve current or future employee performance by increasing an employee's ability to perform through learning usually by changing the employee's attitude or increasing his or her skills and knowledge. The need for training and development is determined by the employee's performance deficiency. (Nature of Training and Development, May 21st,2010,

The fundamental aim of training is to help the organization achieve its purpose by adding value to its key resource-the people it employs, Training means investing in the people to enable them to perform better and to empower them to make the best use of their natural abilities. The particular objectives of training are to:

Develop the competences of employees and improve their performance

Help people to grow within the organization in order that, as far as possible, its future needs for human resource can be met from within

Reduce the learning time for employees starting in new jobs on appointment, transfers or promotion, and ensure that they become fully competent as quickly and economically as possible. (Aims/Objectives of Training and Development, May 21st,2010,

Another component of a training and development which is less skill oriented but stressed on knowledge. Knowledge about business environment, management principles and techniques, human relations, specific industry analysis and the like is useful for better management of the company.

There is greater stability, flexibility, and capacity for growth in an organization. Training contributes to employee stability in at least two ways. Employees become efficient after undergoing training. Efficient employees contribute to the growth of the organization. Growth renders stability to the workforce. Further, trained employees tend to stay with the organization. They seldom leave the company. Training makes the employees versatile in operations. All rounders can be transferred to any job. Flexibility is therefore ensured. Growth indicates prosperity, which is reflected in increased profits from year to year. Who else but well-trained employees can contribute to the prosperity of an enterprise?

Accidents, scrap and damage to machinery and equipment can be avoided or minimized through training. Even dissatisfaction, complaints, absenteeism, and turnover can be reduced if employees are trained well. (Training and Development as source of competitive advantage, May 21st,2010,


The expectancy theory of motivation argues that there is little direct incentive for employees to increase their effort when there is no direct link between effort and a valued outcome. Thus performance-related pay (PRP) schemes posit than financial reward is a valued outcome, and that by directly and explicitly inking that financial reward with performance, employees will increase their efforts. Employees must expect that higher levels of performance will lead to higher levels of financial reward. PRP may also help to maintain the motivation of employees who have limited opportunities for promotion or salary growth IDS, 1998), (Performance-Related pay, Human Resource management, a contemporary approach, Ian Beardwell and Len Holden, De Monfort University, Leicester, 2001, ISBN 0 273 643169,523, the fifth edition)


Motivation is the desire within a person causing that person to act. People usually act for one reason; to reach a goal. Thus, motivation is a goal-directed drive, and it seldom occurs in a void. The words need, want, desire and drive are all similar to motive, from which the word motivation is derived. Understanding motivation is important because performance, reaction to compensation, turnover, and other HR concerns are affected by and influence motivation.

Approaches to understanding motivation vary because different theorists have developed their own views and models. Each approach has contributed to the understanding of human motivation.

Motivation is complex and individualized, and managerial strategies and tactics must be broad based to address the motivation concerns of individuals. For instance, managers must determine whether inadequate individual behavior is due to employee efficiencies, inconsistent reward policies, or low desire for the rewards offered. Additionally, managers may try training to improve employee performance or look at the methods by which they appraise and reward performance.

Many organizations spend considerable money to "motivate" their employees, using a wide range of tactics. For example, firms hire motivational speakers to inspire employees, with some of those "motivational coaches" commanding fees of as much as $50,000 a speech. Other employees give T-shirts, mugs, books, and videos to employees as motivators. Such efforts, not including sales motivation rewards, are estimated to cost in the billions of dollars a year. However, the effectiveness of those expenditures has been questioned, particularly given the short-term nature of many of the programs and rewards. (Management Implications for Motivating Individual performance, Human Resource Management, Robert L. Mathis, John H. Jackson, 73,2007)

Payment and Reward

Rewarding specific behaviors that made a difference to your company is more challenging than rewarding performance, but you can overcome that obstacle by asking, "What am I compensating my employees for?" and "What are the behaviors I want to reward?" For example, are you compensating employees for coming in as early as possible and staying late, or for coming up with new ideas on how to complete their work more efficiently and effectively? In other words, are you compensating someone for innovation or for the amount of time they're sitting at a desk? There's obviously a big difference between the two.

The first step, of course, is to identify the behaviors that are important to your company. Those activities might include enhancing customer relationships, fine-tuning critical processes or helping employees expand their managerial skills.

When business owners think of reward systems, they typically put compensation at the top of the list. There's nothing wrong with that, since few people are willing or able to work for free. But the right strategy should also include an incentive compensation planHYPERLINK ""

that's directly linked to the goals of your company for that period. You might want to include some type of longer-term rewards for key individuals in your organization. Historically, this has often included some form of equity ownership.

Benefits are another type of reward in a strategic reward system, and your employees are definitely going to notice the types of benefits you provide. Companies that don't match or exceed the benefit levels of their competitors will have difficulty attracting and retaining top workers. This is one reason an increasing number of businesses are turning to professional employer organizations like Administaff to gain access to a broader array of company benefits.

However, you can't diminish the importance of recognition and appreciation as integral components of a winning strategic reward system. These two elements rarely receive the attention they deserve from business owners, which is amazing because they're the low-cost/high-return ingredients. Employees like to know whether they're doing good, bad or average, so it's important that you tell them.

Recognition means acknowledging someone before their peers for specific accomplishments achieved, actions taken or attitudes exemplified through their behavior. Appreciation, meanwhile, centers on expressing gratitude to someone for his or her actions. Showing appreciation to your employees by acknowledging excellent performance and the kind of behavior you want to encourage is best done through simple expressions and statements. For example, you might send a personal note or stop by the employee's desk to convey your appreciation. Another approach is to combine recognition and appreciation in the form of a public statement of thanks in front of the employee's co-workers or team, citing specific examples of what they've done that has positively impacted the organization.

Now that you know what it should include, it's time to review your strategic reward system. Does it address compensation, benefits, recognition and appreciation? Is it aligned with your remaining business strategies? Is it driving the right behaviors for your company, as well as your performance goals? If it needs fixing, don't wait. It can mean the difference between your business' success and failure. (The best ways to reward employees,, accessed on May 21st,2010)