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Human resource management concerns with the human side of management of enterprise and employees relationship with the organization. Its role is to ensure that employees of the firm i.e. the human resource are used to the advantage of the firm.
In other hand human resource are pretty much difficult to manage than other resource such as material resources. So the new CEO should more careful on human resources management department since success or failure relies on the department choosing the right personnel. Thus the main role of human resource is to further maximize return on investment of the organization.
Roles of human resources management
As mentioned above one strategy for human resources management is to maximize return on investment for the organization's human capital and minimize financial risk.
Additionally, human resource manager tend to achieve their goals like the above role by integrating skilled and qualified individual and capabilities of the organization.
Key functions of human resources
Human resources is set by organization in order to conduct recruitment, selection and on boarding.
Human resource managers make sure that the employee are motivated and their morale is always high so that they perform to the organization's expectation, thus retention is curbed and increase employee loyalty.
Another HR function is to ensure the organization's employees are well trained and developed accordingly so that they can meet the objectives of the organization.
Similarly, Autoclad CEO should realize the importance of compensating and rewarding its employees so that they can feel part and parcel of the organization, including employee benefit scheme.
http://en.wikipedia.org/wiki/Human_resources#Human_resources_purpose_and_role accessed on 5th April 2011
Summary for Autoclad CEO about Human resources management
The CEO should consider the above elements as the core foundation of human resources management importance and what it they elements can do for the organization. The CEO should emphasize the HR manager to come with best strategy that yield good performance.
Role of HRM policies and practices contributing to the organization effectiveness
So how can a company use HRM policies and practices so that employees can build the company or bring effectiveness? The answer is found in addressing the importance element related to development and deployment of policies and practices:
Employees and managers have to understand very well the company's acceptable behavior. Today's workplace tends to blame the employer for the employees bad behavior, particularly when that bad behavior affects other employees, customer or even individual.
So setting a clear behavior standard would contribute to organization effectiveness from employees and the company itself.
Employees like anyone else like to understand their roles in the firm. The Autoclad CEO should be able to specify employees' roles before redundancy has to take place. In additional role definition would give an indication that the company has well established HRM polices and practices which bring good performance.
It is crucial for the HRM policies and practices to indicate the consequences of violation of behavior standard so that employees can understand before hand. The CEO should realize the consequences of violations of code of conduct might drawback performance. The Autoclad CEO should see through the problems facing the company with most knowledge possible. So, human resource should assist the new CEO to communicate her expectations to employees. This should go hand in hand with treating the employee fairly. Unfairly treated employee would demise the company objectives.
Establishing good company depends on how the employees work together. With that being said HR policies and practices can improve the way Autoclad employees interact at the same time reducing the personnel obstacles.
This element of HR policies and practices should be understood by Ellie the new CEO that people need to be supported by resources or even experts. If Autoclad is faced by personnel issues expert or managers have to resolve the concern. The management also has to see which resource is available. Tools can answer the question for the new CEO well, for instance what about training in organization policies and practices, combine with easy to use forms that lead while tackling pressing issues. Whatever the strategy, the main important point for success is to devote time and the resources it take to come up with policies and practices for the organization before need arises.
Key reasons for a good Business case for designing employee involvement initiatives
The impact of Trade unions or Labor Unions in an Organization
Trade unions or labor unions is an organization of workers that banded together to achieve common goals for example to have better working condition, to stop redundancy or increase salary or wages for workers. The trade union leadership bargain with employer on the problem facing the employees so that they neutralized or abolished.
Advantage of trade union
The following advantage should be looked by new CEO so that she can consider the concerns that the trade union and employees are raising. So the new CEO should not bad look down on trade unions before realizing their benefit for the company.
The trade union role is to protect the best interest of its members. Employees join the trade union in order to be assured that their interests are being monitored by someone. One employee can not power over the employer who is suppressing the employees. So employees to have power over the employee they should join the trade union as an organization. Employees expect the employer to provide for better working condition, give wages or salary in time and pay overtime if not to over work the employees.
Trade union or labor unions build good relationship between employer and employees. If employer is not satisfied with employees can go to trade unions and raise his/her concerns and they are taken care hence improve the relationship between them. Moreover, the employer will be avoiding to deal with the trade union as they can also bring a political outlook of the problem hence the employer will spend plenty of time with his/her employees.
Trade unions organize social, cultural and recreational activities for the members. Employees should have leisure time together with the employer. Employer should have a way to be close to the employees so that he/she can understand the employees in more individual way. Trade unions will play a very major role to organize such events that have mutual benefits for both parties. By doing so both parties will deeply understand the importance for working hand in hand with each other.
Disadvantage of trade unions
Trade unions have also demerit on employer or the organization. If these disadvantages are not looked at they will negatively affect the performance of the organization. For example; -
In a competitive labor markets there are high wages which will cause unemployment. So having a trade union championing for wages increase by striking, the company will experience bad performance as a result. Additionally, if the wages are above the equilibrium they will cause a fall in employment.
In most cases if not all, trade unions consider only the interest of its members excluding the interest or difficulty of those who are not yet employed. If a strike occurred the output of the firm will depreciate thus the business will go out of business or unable to employee further.
A powerful trade union might cause a general inflation by reducing the higher wages above the rate of inflation. For example in 1979, powerful trade unions cause for 27% inflation rate in UK.
Importance of training
The new CEO should realize the aim of training its employees. Training and development are a way of organization through human resource department to better the performance of individual or group in a firm.
Training and development increases job satisfaction and the morale among the employees.
Training also keep motivation on check among employees
Training improves innovation in products or service and strategies.
Increase the efficiencies of the employees on the task that are given to them.
Reasoning for training employees
Employees are being trained about a specific topic which is new in an organization.
Also employees are trained to 'pilot' or test on the new performance management system
To 'benchmark' the performance
Training can be carried if performance appraisal indicates so.
Employee involvement (theory x and y)
Douglas McGregor came up with two theories that explain two different set of employees. The two opposing assumption have been able two characterized two set of human behavior in relation to the employee involvement. Organization or manager follows one of the following two theories: -
This assumption view that an average employee dislikes work and will want to do away with responsibilities.
Employee must be coerced, controlled, directed or threatened in order to get work done.
They little or no ambition at all.
Employee seeks security of their job above everything else.
Employees of this nature believe work is natural.
Employees can self direct in order to achieve the organization goals thus they are not lazy.
They learn to accept and seek new responsibilities.
Commitment is a function of the reward associated with their achievement.
This is a departmental worker discussion group that come together regularly to consider, analyze, investigate and ultimately resolve production or quality problems. The group is trained in problem-solving technique and is given the resource and authority to implement the decision that is reached. Involving the employees in this way would have given the new CEO on other option to take rather than redundancy.
Advantage of Quality circles
Improve morale as employees become involved in departmental decision- making.
Employees are able to their knowledge, skill and experience for better performance.
Circles decisions are taken by people who must perform them so there is a high chance the task will be implemented.
5 reasons for employee involvement
Employees like to be involved and appreciate involvement initiatives
Employee involvement initiatives improve organizational commitment
Involvement makes changes easier for employees to accept
Involvement increase level of job satisfaction
Involvement is associated with lower level of staff turnover.
Leadership and management
Management and Leadership are two different prospect but at the same time they go hand in hand. For instance they way manager motivate their employees is totally different to how leader motivate the employees. One biggest different between these two is managers have subordinates while leaders have followers. Leadership is said to be a process; that involve influence; it occurs within group context; and involves goal attainment
Goleman's 5 components of emotional intelligence
Goleman carried this leadership competence framework in different companies; the framework described the competencies related to outstanding leadership performance. Goleman analyzed the emotional intelligence on leading pointing of view. Goleman looked at 5 emotional intelligence
Self-awareness: Goleman defines this as a deep understanding of individual strength, weakness, needs, values and goals. This managers are aware of own limitations
Self-regulation: the control of emotional or feelings, the ability to channel them in more meaningful manner. The ability to feel in sound mind with ambiguity and not panic.
Motivation: the desire to reach goals beyond expectations, being driven by internal rather than external factors and to be involved in a continuous pushy for improvement.
Empathy: another leading workers that Goleman described is how the manager is able to consider employees feelings along side other factor when he/she is making corporate decision
Social skill: Managers should develop friendship with a purpose, good at finding a common ground for everyone and building rapport. Manager with this competency usually are good at persuading, natural networkers and are collaborative.
Six leadership style brought by Goleman
In corporate environment, this is the most common type of leading style. It is the "do what I tell you to do" technique that many corporate depend on. This is style will definitely dampens employees motivation especially the junior one, who do not have the knowledge to make informed decisions.
The name of this style has a negative connotation but yet it is said to be effective in most situations. This type of leader has the authority to make decision and not rely on feedback from lower level employees. For example an authoritarian leader uses the "come with me" approach by stating the overall objective.
This type of style believes that "people come first" and this type of leader usually build emotions and create harmony in the organization and also build team morale as result. The unfortunate thing about this approach is performance can go uncorrected.
This type of a leader encourages participation of employees even in making decision that can affect the organization existence. The leader is able to build flexibility and responsibility and generation of new ideas from pool of talent.
This type of leader expects self-direction and excellence from his/her followers. This leader sets high standards and exemplifies them himself so that his/her followers can imitate from him.
This type of a leader develop individual for the future but not the immediate work related assignments. This type of style is much effective when employees know their shortcomings and they need to improve.
Leadership used by the two brother and Ellie
We have looked at six type of leadership style discussed by Goleman (2000) and seen how firm can adopt any of the styles. Autoclad directors before Ellie preferred democratic style and Affiliative style. The two brothers valued participation and harmony in the organization unlike Ellie. She is very competent and forceful character her leadership could be described as visionary and fast paced.
The new leadership style that was taken by the new CEO (Ellie) had a very negative impact on the company. Logically, the motivation was down for employees by experiencing difficulties from Ellie. She proposed for a 50 redundancies from the total workforce, the news definitely brought motivation and all aspect down.
Recommendation to Ellie propose changes
Ellie should have considered the leadership style that was used by the two brothers so that could adjust from that. The drastic changes that she brought in had a negative impact on employees. The change should have come in slow manner so that the employees can anticipate Ellie leadership style.
Recruitment and selection
Recruitment refers to the process of attracting, screening and selecting qualified personnel for the job. The process starts when the new recruits are sought and ends when their requirements are submitted. This makes the firm to have a pool of applicants from which new recruits are derived. Prasad, L.M, (2005. p. 218).
Recruitment related functions are carried by human resources manager, who is able to integrate with other department and come up with recruitment process which will identify the right candidate for the job. This is the first step for HRM, whereby information is collected and evaluation is conducted through the process. The below diagram elaborate the process of recruitment
Recruitment process diagram: Source: Prasad, L.M, (2005, p. 218).
This is a stage where the expected qualified candidates are known for the job. Selection is concerned about predicting which candidate will contribute to the organization goals in the future.
Human resource management function oversees the screening and selecting of right candidate by looking at the applicants requirement such as qualification, training or work experience.
Job advertisement should be well design so that during selecting a pool of talent and skill should be available to choose from. The following elements should be available in job design: job analysis and review which provide details about job characteristics, job identification and location. The below diagram shows the selection process
Selection process diagram
Source: Prasad, L.M, (2005. p.247).
Importance of recruitment and selection
Recruitment and selection process help the HR to create fit in the organization by gaining the right candidate for the right job. Failing to choose the right one would result to increase in cost for doing another recruitment and selection after firing the incompetent.
Choosing the competent skilled recruits will grow the organization faster and wide as the new employees will bring new ideas and look for new opportunities that organization had not exploit.
A well carried out recruitment and selection process will save the organization time and money to carry another process in long duration. Also the process will identify the right personnel who will not need to be taken for training.
Recruitment and selection process strategy or approaches
There are two approaches recruitment and selection the employer can decide to choose one that is suitable for his/her organization at that time. Moreover, this type of approach is very cheap compare to the other approach.
Organization decides to advertise vacancy on the organization's notice board where every employee will see.
HRM can review the previous sent applications on file to recruit and select the potential candidate.
The organizations can internally by promotion the employees who show effort and ability to do the vacant job.
External source of employee recruitment is very influential, bringing well experienced, skilled and innovative recruits. Due to the limited experience, skilled and competent employees within, the organization opt to look from outside to fill the vacancy appropriately.
Many employers prefer to use advertising agency to draft and placing the advert in suitable media, which can reach many recipient. This agency will provide advice on the issue tackling every detail that is required. The aim of using recruitment advertising company is to attract as many people as possible.
The main aim of e-recruitment is the recent growth of international recruitment. As much as the online internet is substantially growing still its not the best means as still some candidate who can meet every requirement for the job, are not computer literate. For Autoclad this could be the best means due to the nature of the product require skilled people around the world. This is inexpensively means, additionally.
Sometime the host country does not offer wide skilled people or the firm wants to bridge culture gap, the only reasonable thing is to recruit overseas or that is where labor market is less costly.
Contact with known university
Companies tend to establish relationship with known university so that they give best students after graduation as they bring freshness to the organization.
Recently, application forms have gained popularity during selection. They now act as a useful tool to employment interview and decision for the employer as they give a standard history of the employee.
Self-assessment and peer assessment
Interest is increasing in providing real-time applicants information about the job.
Telephone is importantly used if there is need of speedy completion of events or if there is issue of geographic distance.
Recommended approach for the Autoclad CEO
On my view recruitment and selection process should conducted normally in standard manner i.e. no fancy adjustment should looked at so that all applicants can participate in the process. With being said Autoclad should take external approach in recruiting and selecting applicants.
By taking the external approach the company would have a wide pool of talent to choose from. The company could also move beyond borders to recruit regardless of cost issue since the long term benefits can be logically seen.
Implication of Autoclad Conflict and stress and work-life balance practices
Conflicts is a process that occurs when a group or a employee hinder frustrate the goal attainment of another in organization. For example, employees' goal attainment was being frustrated by the newly appointed CEO Ellie. The changes (redundancies) that were about to take place in the organization stressed the employees who saw they jobs were being threaten by the new CEO.
Causes of conflicts in an organization
If an organization has a tendency of its employees developing a positive attitude towards their own "in-group" and having otherwise tendency towards an "out-group ", then conflicts will slowly rise and hinder organization goals.
Conflicts will exists if individual or subunits mutually dependent on each other to accomplish their own goals.
Power difference will be realized when resources are in short supply, resource may act as cushion in sufficient which, if removed conflict will rise.
Causes of stress in an organization
Long unsociable hours
Redundancies that Ellie is proposing will reduce the workforce and the remaining workforce will have long hours of work and reduced social life resulting to stress.
Poor promotion prospects
If an organization has poor promotion prospect will result to employees stress since employees see that their work or effort are going unnoticed. If HR manager does not address the problem careful, then the performance will slide down as result.
Uncertainty and insecurity
There is a negative feeling of uncertainty of what will happen to the number of redundancies if the CEO continues to settle in the organization. As result employees are feeling a sense of insecurity for the job thus increase stress at work hence increasing chances of making mistakes during tasks.
Work-life balance practices
These options of practices mainly focus on three different type of flexibility. These concepts prioritize work (career and one ambition) on one hand and life (health, pleasure, leisure, family and spiritual) on the other. The three type of flexibility include:
Number of hours worked
The exact time of those hours
The location at which work is carried
As it has been said as "too much of anything is position", too much of work would also affect the performance of the organization and the individual. These effects could be social or health wise. A balance work life would have the following benefits for the individual and the organization.
Benefits of work-life balance
Work-life balance evidently showed that employee absenteeism was descending. This is because employees had good share of their life and work balanced.
At work the employees would work more productively as the morale is on ascendance due to introduction of work-life balance practices.
Work-life balance increased the level of job satisfaction as result employees are able to fulfill their task effectively.
CIPD survey (2005) reported that work-life balance practices had a positive impact on motivation.
Kodz et al. (2002) research found that work-life balance practices had improved both productivity and quality.
Kodz et al. (2002 also found as a result of work-life balance practices employees retention and ability to recruit had change in more positive note.
An individual will be able to have time to strengthen relationship with his/her family or friends as a result the individual will be in better mental state and health after having a good leisure time. Due to this fact, the individual will be able to make priorities rather than making sacrifice.
Barriers of work-life balance practices
Who is entitled to work-life balance? It is hard to understand who is entitled to the practices especially when government laws are suggesting otherwise on the practices. For instance manager would feel that they control of their employees has been taken or employees are being underutilized.
Another barrier to achieving work-life balance is rapid pace of change which is a concern for employees. The researches have conclude that management wanting to make change in an organization did not seek input from employees who will be definitely be affected by change.
Workload has been viewed as barrier to achieving work-life balance. Increased in workload require employees to work longer hours, to work on weekends or to continue work at home and to do away with vacation. Work overload makes employees to spend less required time with their families.
Identifying learning and training needs and method of training
Identifying training and learning needs is a very important activity in an organization that would have an overall impact of performance. Employees experience a lot of difficulties especially if they are new or the task is new to them. Additionally, employees would find work boring after they do task repetitively.
Training is required to cover and maintain work related skills, technique and knowledge so that the performance of the organization can be steadily throughout operations. Its is should also be noted that employees might respond negatively about training since it does not have impact on their individual talent, so after a work related training, organization should focus on development of individual talent. Training can be carried in different method.
Method of training or learning
Autoclad can use two different method of training its employees so that the demands of union and employees can be met. These methods include off-job training and On-job training, but in this case we deeply look at On-job training methods.
On-job training methods
This type of training takes place in normal working environments, using actual working equipments, tools and materials.
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Reasons for On-job training for Autoclad
On-job training seems to be cheap compare to off- job training because the training takes place in normal surroundings and uses normal equipments and materials. Autoclad would not have to move its employees to another location where renting premises would cost a fortune.
On-job training is task based, since training is carried at work environment where trainees focus on real jobs that can still have impact on production. Employees will be able to train well since they are family with environment that training is being conducted.
The learning will take place on the equipment which will be actually used when employees is proficient. They are no transfer of learning problems.