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The practice of HRM is merely concern on how the people are being employed and being managed. This means that it covers the activities like strategic HRM, human capital management, knowledge management, performance management and so on. It is clearly emphasise that HRM means, strategic, coherent and integrated approach to the development and success of the people working in the organisations. Here are some of the objectives of HRM: 1) to increase the organisations effectiveness and capability. 2) Ensure that organisation is able to achieve the goal and success through the help of the people or member. 3) Needs and rights of the people in an organisation is one of the concerns by exercising social responsibility.
There are different cases to see if the business or organisation is said to be successful. These includes the high levels of profits and sales, high level of satisfaction, strong reputation and the production of high quality products. In developing a better strategy we should know what approach to use to develop it. Some of us use brainstorm and then plan to know how it'll take. One of the experts in management, Henry Mintzberg, said that it is hard to get the strategy right. Then he developed 5Ps of strategy. These are; Plan, Ploy, Pattern, Position, Perspective. In using the 5Ps as process, we should think also about some viewpoints to consider while developing a successful strategy. Here are some points in strategic planning that is also helpful to use the 5Ps: (1) In gathering information or conducting analysis that is needed in developing strategy as a way of ensuring that everything is relevant. (2) When it comes to initial ideas, as a way of trying if it is realistic and practical. (3) In checking the final strategy that we developed, to remove the inconsistencies and the things that is not considered.
Always remember, it is better to identify the problems and issues at the planning stage rather than realising it after some years. Aim of the strategic HRM is to generate organisational capability by means of ensuring that the organisation has the commitment, skills and motivation that is needed to achieve competitive advantage. Best fit model seems to be more realistic compare to the best practice model. The concept of best fit emphasise that the HR strategies agreeing with the facts and circumstances of organisation. It tends to be fixed and doesn't take account to any changes. This approach proposes that HR strategy will benefit if it is properly linked with its organisational framework as well as environmental framework. Best fit approach focuses on learning what will work and what is not going to work in relation to the organisation. The concept of best practice is based on the set of best HRM practices that is universal like it is best in any other situation. A number of best practice lists have been produced by Pfeffer (1998a); Employment security, hiring, self-managed teams, training to provide skilled and motivated employees, reduction of status differential, sharing information and high compensation on performance. It is accepted that best fit model is more important compare to the best practice model.
In connection with this, let us know what Strategic Human Resource Management is. It is the process of connecting the function of human resource with the strategic objectives of the organisation to improve their performance. Following this, the head or the leader must be the first person that known their priority and that is to know their purpose and organisations direction to achieve the customers' expectations. As defined by Pearce and Robinson (1988), Strategic management is the set of decisions or actions that is result of formulation and implementation of strategies to achieve the set goals and objectives.
Strategy has three fundamental characteristics. (1) Looking forward for the organisation. It's all about deciding where to go and how to get there. In short, the organisation's point of view is thinking what they want to do and formulating the plan on how to do it. (2) Capacity of the organisation to function effectively. It depends on the organisations' resources and their potential to deliver the result. (3) Strategic fit or the need to develop HR strategies to achieve congruence between the organisations' strategies from the internal environment and external. To use up the competitive advantage, the organisation must match the resources and capabilities available in the environment.
HRM plays an important role in improving performance, making sure the satisfaction of the employee as well as the productivity. Managing employees to work effectively, being creative and productive to reach the competitive advantage in today's competitive world. HR is important for an organisation, because they help the organisation to recruit, select the right person for the right job, do the training and development, and empowering the working environment. Main goals and responsibilities of HRM are as follows: (1) Attract new employees, (2) Retaining low employee turnovers by means of inspiring people to work hard for the organisation, (3) To contribute to the development of the employee, (4) Trains and motivate the employees.
New challenges every day comes along in an organisation, and it is certain that new challenges will never cease to arise that is why proper HR techniques are needed in order for the organisation to overcome these challenges.
Employees are the important stakeholders in an organisation because they have their own concerns or needs along with the others such as managers and shareholders. Stakeholders are the group that is affected by an organisation. Stakeholders compose of employees, stockholders, customers and as well as the community. Each of these are affected by everything that's the organisation does, what's good for the one isn't good for the other.
Beer et al (1984) believed that, today many pressures are demanding a broader and more comprehensive and strategic with regards to the organisations' human resources. Harvard school suggested two characteristic features: 1) line managers accept more of the responsibilities to ensure the alignment of competitive strategy and as well as the HR policies, and 2) HR has the mission of making the policies that show how HR activities are being developed or implemented.
The Harvard Model
Figure 1 The Harvard Framework (Beer et al, 1984)
The framework is based on the conviction that the problems of historical personnel management can only be solved when the manager develop an attitude in mind of how they want to see employees involvement and of what HRM policies and practices may to reach their goals. Stakeholders Interests refers to the shareholders that have the financial interest in the organisation. Situational factors include the workforce and its characteristics like unions, laws and social values, labour market, management philosophy and task technology. HR outcomes from HRM policy and also the manager need to ask on the commitment, competence, congruence, and cost-effectiveness in order to achieve organisational goals. Long-term consequence follows from HRM policy and outcome and refers to the individual well-being. Managing diversity is an important issue for the managers today, because they need to be aware not only with the legislation but on how it will affect the employees' morale.
The Harvard model indicates the four HR policy: a Human resource flow that includes the recruitment, selection, placement, promotion, appraisal or assessment, promotion and even termination. Managers must work together to make sure that the right people are in the right work or place. Reward system concerned with how the people are being rewarded base on their work. These are the pay systems, bonuses and other reward that may motivate them. Employee influence, which includes levels of authority, power and responsibility. Refers how the managers shown their power and authority within the organisation while ensuring that the goal is being met. Work system which comprises of definition or design of work and alignment of people. It is important to ensure that work is efficient and productive to meet the organisations' goals.
Strategic direction is a course of action that leads to the achievement of organisational goals. During the planning process the organisation will create a strategic plan including its mission and vision statement. As the market and the environment today is moving faster and more competitive, organisation design and development is a big challenge in an organisation. Organisational design ensures that organisation is appropriately laid-out to deliver its objectives in short and in long-term and that the structural change is being managed effectively. One of the important component of strategic HR management is the strategic HR planning and it links directly to your organisational plan. Based on the strategic plan, the organisation can now develop a HR plan that will allow you to make decisions to support the future of the organisation. It is also important when it comes to budgetary view so that we can see the cost of trainings, recruitments and any other.
HRM is a vital asset of the organisation, it provides the expertise in the field of selection of the employee, managing change and doing the training and development for the team, as well as communicating with the employee including their pensions or benefits. HR managers role is to make sure those business managers are following the HR policies and procedures because this will help the whole organisation to develop and aim their goals and objectives. The term Levels of Management is related to the line or role of the various managerial positions is concern. The 3 levels of management can be classified as; Top or Administrative level consists of board of directors, or managing director. Top management roles are as follows: lay down the objectives and policies, provides direction and guidance for the team, issuing of important instruction for example in budget or any other procedures, appointed the executive for the middle level, controlling and coordinating within the plans or activities of the departments and responsible for the shareholders performance of enterprise. Middle or executor includes the branch managers and managers in different department. Their roles are: Execute the plans for the organisation in relation to the policies, participate in the training of lower management, responsible in coordinating the activities in all departments, sending important report to the top management and evaluates the performance of junior management. Low or supervisory or first-line managers or also known as the supervisors and or section officers. Their activities are: Guiding the workers in daily activities, responsible for the quality and quantity of production, assigning the job or tasks to the employee, communicates with the employee together with their suggestions and appeals, responsible for the training of the employee, doing reports regarding the performance of the workers and motivating the team.
Primarily when it comes to the HR consultants, they should be knowledgeable in the field. An HR consultant duty includes the making of proposals, and doing recommendations to specific clients that might help their organisation. They usually act as facilitator on a conference and delivering speeches to some associates. HR consultant also engages in business development activities in order to build a strong relationship and trust with the clients for a greater chance of business opportunities.
There are no standard model on how HR strategy must be set out because in the end it is all depends on the circumstances of own organisation. HR strategies is set out what's the organisation wants to do about its HRM policies and on how it should be related with the business strategy and on the others. All organisation is different from any other organisation as well as when it comes to their strategies. The general areas of HR strategy are; High performance management, high commitment management and high involvement management. On the other hand, specific HR strategy areas are the following; human capital management, organisation development, engagement, knowledge management, corporate social responsibility, employee resourcing, learning and development, reward and employee relations. Here are some criteria for an effective HR strategy: (1) Coherent and integrated, (2) Satisfy the needs of the business, (3) Founded on a detailed study and analysis, (4) Knows the need of line managers and also the employee including those who belong in an organisation and stakeholders.
How HR strategies can be implemented are as follows: First is to analyse the business needs and on how the HR strategy will help to meet that. Communication is important especially with the full information and in to what to expect. Make sure to involve those concerns in implementing problems and on how to deal with it. Preparation of the action plans. Planning and executing the program of management that ensures the specific action plans are met or achieved.
HR plans are needed to be updated regularly. It is important to established information that is necessary to evaluate the success of the said plan. Benchmarking is vital to determine if the plans are being met and success in achieving the desired mission and as well as their objectives.