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Human resource management is the "policies and practices involved in carrying out the "people" or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising" (Decenzo, A. 2010). It is concerned with the people in organization. In the world of corporate competition, it is essential for the organization to hire talented people and retain the talent. It is believed that once a person comes into an organization he will bring knowledge and skills into the company, and whenever he/she leaves the company, the talent, skills and knowledge will go out of the company. In order to retain the productive employees, companies are trying hard by motivating them from several procedures. These procedures are described in the text below.
Recruitment Requirements of a Company
The primary activities of human resource management include staffing, training, motivation and maintenance. The processes comes under the staffing are planning, recruitment and selection. The HR planning is a process of determining human resource requirements. This planning process made it possible for an organization to ensure that, it possess the right number and kinds of people, at the right place and right time, who are capable enough to work effectively and efficiently in order to achieve its overall strategic goals. The recruiting requirements of a company involves establishing the organizational structure and after that next is identifying the skills, knowledge, abilities needed on a job. It is to assess the current HR needs and hire people on this basis, by linking the HR needs with organization's strategies. The recruitment and selection process is a stepwise procedure designed to select the most excellent person for the job (Decenzo, A. 2010). For any large company, or multinational organization, the recruitment process has several requirements.
It requires identifying the positions company needs to fill.
Generating a pool of candidates for filling the particular positions.
Select the viable candidate by utilizing different selection procedures, tests and techniques.
Skilled and foresighted supervisors able to identify the hidden talent in the potential candidates.
These all things are required to carry out the successful recruitment process. There are also some legal requirements which employers need to fulfill for recruiting employees.
Avoid any type of discrimination while recruiting such as gender, ethnicity, disability etc.
Protection of the employees' credentials and data.
Safeguarding employees from harassment or any hostile behavior.
Providing equal opportunity for all.
These things employers should consider while recruiting the employees. The best example of this is illustrated from the recruitment policy of the Birkbeck University of London. They fulfill all the requirements mentioned above for the recruitment and selection of their employees. (http://www.bbk.ac.uk, 2010)
Training and Development Program
The training and development program of a well expanded and developed organization is comprised of orientation, training, development, and career development. The training is given for the enhancement of employee's skills on current job, while development deals with the future job training. The training process starts with the socialization of employees including pre arrival, encounter and metamorphosis stages. By undergoing in these three phases, employees or new recruits will become adapted to new environment, and feel accepted. This also makes employees clear that what is expected from them. The benefits which organization can get from proper socialization is increased productivity, reduced turnover and increased commitment or loyalty of employees (Decenzo, 2010).
Next to socialization is training the employees with skills they will perform on their job. The main strategic purpose of the training is to keep the track of employees' working towards achieving corporate goals. The main features of the training and development process are:
Identifying area of training.
Designing training program.
Applying training on small audience to check its results.
If validated, train the whole target group.
Assess training results, via performance after training.
The above mentioned training and development program was utilized by the HR department of Harrah's Entertainment, Incorporation, when they were experiencing problems in achieving targets and also the employee performance. Harrah's people train employees by different methods like job enlargement and rotation, seminars, on job training etc and improve the performance of its workforce. They also employed a socialization process for new recruits, to minimize the early turnover (pre 90 days) in an organization (Vijayaraghavan, 2003).
2.1 Employee Motivation
In order to achieve its corporate goals and objectives, it is essential for the business to keeping its work force happy. As we know the happy workforce is a stable force and as a result it will give best performance. As it has been stated that:
"If management treats employees well, the odds increase that employees will treat the customers well. Happy customers typically become repeat customers, which can positively impact the company's financial performance, which can help the company improve its compensation and benefits packages". (Decenzo, 2010)
The above statement is a clear reflection of employee motivation and how it is conducive in achieving organizational goals. Maintaining human relations into organizations is the need of time. Unless you cannot give value to your people, they will not work for you. The human relation theory is based on the concept of relationship of employee and manager and how employee is motivated to do work. These theories date back to Hawthorne Studies in early 1900s. Several theories come forward to support the work of Hawthrone. These include Herzberg theory, Maslow's motivational theory, McGregor X and Y theories, McClelland and Likert's theories. These all theories focus on the employee motivation, working conditions, employee satisfaction, and collectively emphasize that, in order to keep the work of individuals aligned with organization's mission; they must be motivated and satisfied (Armstrong, 2006).
2.2 Program of Motivational Factors
The major motivational factors include Rewards, compensation, benefits, and Job redesigning. There are several other factors which influence the motivation of employees at work place, such as:
Interesting or challenging tasks
Good working environment
Through designing a reward policy that will be focused towards employees, management can motivate its employees. These rewards can be monetary or non monetary. Another thing which can be done by the management is performance appraisal. It is the process of rewarding employee by evaluating his/her performance. This evaluation is normally done by the manager or supervisor. It gives feedback regarding employee performance and helps manager in identifying area that needs training. We align the goals of employees with that of management and evaluate their performance. This evaluation is done by several methods such as management by objectives, 360-degree appraisal etc. The most recent mantra of organizations across the world is - "get paid according to what you contribute" .The organizations are focusing towards performance management and specifically to individual performance. These things are focused by the small and medium businesses to motivate its employees. The example of this employee motivation is shown by the policies of Watson Auction Company (Armstrong, 2006).
3.1 Classical and Scientific Schools of Management
The process of leading and controlling the activities of the organization, through efficient and effective utilization of resources such as human, financial etc is known as management. The concept of management is not a new thing, yet it has been revised by the work of several researchers.
The classical school of management concept originates from the findings of Weber, the scientific management results of Taylor, Gantt and Gilbreth, and the administration focused theories of Henri Fayol, Urwick and Brech. The classical management theory was emphasized to attain economic growth of the organization. The main consideration of these theories is towards organization specifically not on employees. According to the contributors of this school, the employees should emphasize on organization development and operational efficiency of the organization. These theorists focus on the development of a hierarchical structures, discipline, centralization, bureaucracy, etc within the organizations.
In contrast to classical school of management, there comes scientific school of management. According to Mary Parker Follet (1941) "Getting things done through people", is management. This scientific management theory was evolved from the findings of Taylor who was of the point that old ways of doing work and making decisions in an organization must replaced by the new ways or procedures to improve the productivity of employees. The Taylor's perspective was that employees should be motivated to do work instead of doing work by the command of manager or supervisor above him. Secondly, the pay system of employees also needs to revise according to their performance and work efficiency. The main difference in the two schools of management was that, scientific school worked on the concept of improving employee productivity and classical was focusing only the organizational growth (Wall, 2007).
3.2 Maslow's Theory
In 1943, Maslow provided the theory of employee motivation, which is known as Maslow's hierarchy of needs. In this theory Maslow identified the main needs of human beings. He presented a model of needs starting with basic physiological needs and ending at need for self actualization. In his point of view, the foremost need of a person is for food, sleep. Next is need for security, shelter and protection. After satisfying these needs, the next is need for social affiliation as friendship, social set up etc. after this, is the need for recognition and self respect. The top most need after satisfying all above needs is need for self actualization.
The Maslow's theory provides the basic framework to employers as how to motivate their work force. The managers of this age, used the concept of Maslow, to motivate and bring satisfaction in their employees. Managers must focus on satisfying these needs of employees by providing lunch breaks, giving house allowance, gatherings, and rewarding their work, and provide them recognition (Wall, 2007). This is how the Maslow's finding is helping today's managers in motivating workforce. But according to latest researchers we can modify the Maslow's need pyramid according to the culture of organization and country as well because every culture has different priorities from the other.
4.1 Autocratic and Democratic Ways of Implementing Change
The change is a necessary step for organizational development. The organization development is a process of facilitating system wide changes in the company to enhance productivity of employees and ensure that their efforts are in a direction of achieving organization's goal. Before going into the details of autocratic and democratic change, one must have clear understanding of process. The change is a process of moving from a current state to the required or desired state to enhance effectiveness and efficiency. The change normally comes from changing the values, attitudes, culture of the organization and employees working in it (Decenzo, 2010).
The autocratic approach of change is the process in which change comes from the top hierarchy to lower one. It is the top to down approach. The senior executives devise the new strategy, pass it down to middle management and they will implement it on the lower management. Here there is no involvement of low level management in bringing out change. The effect of autocratic change is that it will be a burden on employees and they will feel agitated to this change. The effect of this change is that lack of motivation in employees and as a result compromised productivity and performance (Armstrong, 2006).
In contrast, democratic approach is a bottom to top approach. The people sitting in a lower level management will coordinate with middle management and formulate the change process, then pass it to senior management. This gives them feeling of a recognition, motivation and satisfaction. The best example of this is organizational development in which employees formulate change and implement it. They can change attitudes, perception, working style, environment and culture of the organization. This will increase the productivity and help in maximizing profits (Wall, 2007).
4.2 Management Styles and Motivational Programs
It is the management of the company who has to take a stance to retain their employees and motivate them to align their work with organizational goals. The managers should create strategies of decision making and transferring the decisions to subordinates. By following the kirt Lewin's process of implementing change, managers can implement the change along with motivation of employees. Managers can consider following points to motivate their employees. Several types of management styles include:
The autocratic style is a one man show approach. Here the manager leaves very little or no room for the employee motivation. Here the motivation to do work is via fear that if I will not perform well, I will suffer, else I will be rewarded for the good performance and penalized for the weak one (Armstrong, 2006).
The paternalistic style is also based on dictatorship approach, as the flow of information and decisions is from upper to lower management. The only difference is that it also focuses on employees' welfare in addition to the organization. Here the feedback is encouraged. This will motivate employees in a way that they will be able to comment on the decisions and increases the loyalty. The rest is same like autocratic way of managing (Wall, 2007).
Democratic style encourages employees to take initiatives and participate in decision making. It is two way communication process. The motivation of employees is highest in this style. It motivates employees in monetary and non monetary aspects both.
The Laissez-faire style is practiced mostly in extreme flatter organizations. The communication is equal in both directions, and managers are not involved in subordinate's activities. The lack of check and balance results in poor productivity. But it is profitable sometime in case, when teams are creative, hardworking and devoted to organization. In this case employees are motivated to do work on their own (Wall, 2007).
Hence, the managers of the organization should adopt the management style which will be productive for the organization and as well as employees. The democratic style with proper checks, motivational programs as compensations, rewards, recognition appraisals etc will be the most beneficial for employees and company.
The human resource management has incorporated several new concepts over the period of time. These includes talent management, human capital management etc. the companies are changing from the traditional HR strategies to novel strategies of finding and retaining talent. For this HR managers are working on competency based recruitment, training and development, reward systems, performance appraisals, job redesigning and etc to keep their employees motivated and productive. The motivation is an essential player of employee performance and consequently leads to the organization's success.