The Human Resource Management (HRM) includes variety of activities. The key activity of this function can be identified as responsibility for human resources. Managing human resources include activities such as identify the requirements of staff, selection and training best employees, managing their performance and setting some regulations. Further this includes activities such as managing employee benefit, handling compensation, employee records and personal policies. Normally in small organizations, these activities are handled by the owner or the person who responsible for organizational operations. They cannot afford allocating a person or department for human resource management. However, they should ensure that the employees are well aware of the organizational policies and regulations.
The Human Resource Development (HRD) can be identified separately from the HRM. As the HRD activities, we could identified activities such as develop personnel inside of organizations, e.g., career development, training, organization development, etc.
Even though, the HRD and HRM can be identified separately, universally, the abbreviation of HR is used to represent all the functions involve with Human Resource Management. It is considered as more convenient method to represent all these phases. However, this creates a long lasting argument whether HR should be an organisation development department or other way around.
Past 20-30 years, the HRM function and HRD profession have been undergone tremendous changes. Earlier the HRM/ Personnel Department have been identified as a department which mostly does paper work related to hiring and paying employees. The role in relation to staffing, training and managing people to perform at their maximum capacity has identified as the key roles of HRM more recently.
Talent Management is being used as a phrase to refer the activities of attracting, developing and retaining employees with the organization. However, some organizations use their term to represent the talented or high performing employees. Talent Management is used interchangeable with HR.
Different Approaches of HRM
Different approaches of HRM can be identified as follows.
Traditional Approach - the traditional belief is the managers are born and not made. Therefore, most of the organizations never believe employee training. In their point of view trainings are worthless costly activity for the organization.
Modern approach - Recently some organizations have been identified the importance of corporate training. Today training the importance of training is identified above the cost that involve with it. In order to yield best results, Indian firms devote from their conventional training methods and create the smarter workshop concept.
Through training and developments the organization should develop talented and skill full staff to run the business and earn long term profit. Also we can realize major four areas under objectives such as individual objectives, organizational objectives, functional objectives and societal objectives in the well established organizations.
Individual objectives means the organization help to employees for their personal goal achievements such as learning benefits, family entertainments, promotions and salary increase will give the favorable return to the company. When organization tries to go to their primary objectives named as organizational objectives. Under the functional objectives discuss the interdepartmental objectives and their contribution to the corporate goals. Each organization should conduct the operations in socially accepted and ethical conditions. Therefore organizations have to have societal objectives in addition to the other goals.
HRM in Mergers and Acquisitions
In the increasing competitive and complex business environment, the organizations which seek for developing competitive advantage select the path of merger and acquisitions. When matching two organizational cultures together, the role of HRM department is crucial. This will be further important when cross-broader organizations are getting merged. However, this role is not been able to justify through the existing and researches. Therefore, this paper focuses on this neglected side of human resources and provide strategic fit framework for M&A and HRM strategies. Further this paper focuses on the national context that impact on the outcome of merger process. There are few areas can be selected as common factors in mergers and acquisitions;
Should identify the key layers (Strategic, Operational and functional) of the organization and key objectives to be achieve.
Access the key players of the organization and main compliance agents of the new organization.
Required to develop combined reward scheme to the entire group of companies to give similar benefits.
Efficient and effective communication process required.
Salaries, payrolls and other rewarding systems should be integrated.
Internal marketing campaign recquired to educate staff of the existing as well as newly joint company.
Resistance from the trade unions and other pressure groups.
Human Resources Management Process
2.1 Search and Selection
Through an accurate recruitment process organizations can select most suitable employees to the staff. Most of the companies are having long term recruitment plans and check the perfect candidate through several selection processing. Common first step is publishing the vacancy both internal and external communication methods and get applications of the qualified and well experienced applicants after screening. Then the interviewing process and select the suitable employee. Though orientation program HR can give better idea about the organization to new member. Also continuous trainings and skill development programs will enhance the capabilities of the employee and give better returns to the organization. Performance evaluation methods will measure the performance of the employees and decide promotions and other reward schemes.
There are two main areas in the recruitment as internal and external recruitment. When recruiting internally there are several advantages such as cost saving in orientation and training, familiar about the industry and organization, prior experiences and minimum supervision, easily maintain the existing organizational culture, creating motivation towards future career goals within the organization and etc. The company should replace the position of the promoted person and it will be a new recruitment. Also this will cause to create internal conflicts of the organization and dispute in operational activities.
Most of the organizations are practicing the external recruitment process. They can find fresh person to the team and get out of the box thinking and new value additions to the organization. When company is entering to the new business areas or expanding the business operations can recruit outsiders. This is a costly exercise and risk on finding the most suitable and accurate person to the company. Also very importantly consider the attitude, values and relevant skills preferably match with the existing requirement of the organization. Previous track records and experiences will be important prior to sect the candidate.
Human resource management team has to conduct several procediures and responsibilities in recruitment and selection prcocess. However because the HRM departments consists by only few people I believe some gaps can easily appear without noticing because the HR manager is the in charge of many other activities inside the company which takes away his full attention to the administration duties, hence at the same time making the decisions slower and waste time, and also there is a lack of communication because of those other activities such as deliveries, meetings and everything else related to the company, reducing the time to communication between then as well as the time to share ideas, to discuss, to take decisions.
This negatively affects the achievement of HR objectives. I suppose that would be much more efficient and sensible to more staff to share and help in general activities inside the company mainly in the HR and administration sector, and also get a bigger place to organize the company better with different sectors to keep everything well organized and give to the company good conditions to work and more opportunities to grow.
Doing that the organization has more opportunities to adopt a different organizational structure which is more recommended and fits better with size and age, and that is the Brand structure focusing the marketing infrastructure around the brand, following the right steps from the begging with market research until the final services such as employee communications, distribution and after recruitments, HRM budgets would also be built around the company's major administration requirements.
The level of effectiveness of the whole company could be better if the managers would improve their leadership skills and take on the role of authority and responsibility in order to invest more on its team structure to create new objectives internally and externally to grow, because the UK market is getting better and better and the opportunities to grow are real.
2.2 Learning Oriented Culture
One of the key questions that the leaders of an organization have is how they could increase the ability of learning within organization dramatically. The answer might not be the technology. Consider, Even though he developed high tech equipments, these cannot replace the human ingenuity.
By gathering information and generating new insights technology as well can support active learners. Technology can enhance the experience of learners in a vibrant culture that people responsible for their own learning and support others learning.
If leaders want to create adaptive organizations, there are two fundamental issues that should be considered first.
how people learn in the workplace and
how to create a learning culture in which technology plays an appropriate supporting role.
2.3 Team Building
The type of management style within the UK Field Marketing team is McGregor's Theory Y, which is a participative management style. Team members are widely encouraged to use imagination and seek responsibility by seeking self direction to meet objectives. (Sherrat et al, 2009). As a form of analyzing the team structure and to see where the teams may require development, Tuckman's Team Development theory was used on the three main marketing teams which worked on this particular activity. (Rickards, T. & Moger, S. 2000)
The teams were not formed for this particular activity, so the forming stage was not used; therefore no uncertainty and anxiousness between members appeared. However, if we were to acquire new team members we would have had to identify the competencies the team required and then carry out the entire recruitment process.
There were disagreements due to the designs the Central Marketing team produced with the external design agency. The artworks were share only at their final stages which at this point caused some issues as the teams were not 100% satisfied with the designs and later came to see the quality provided was very low. The quality of the artwork caused the UK Marketing team and the internal Creative team huge difficulties with producing high standard materials.
The designs provided by the Central Marketing team were accepted and the UK team had to work on the artwork to solve the issues, as they had deadlines to meet.
Each team worked individually on own campaigns and at times worked together, for example on the internal communications plan. By this stage they were all productive and were able to make their own decisions as certain rules and limitations were set and everybody followed these.
Once the launch took place the team dispersed and everyone returned to their own responsibilities. In the future there will be bigger campaigns which will require all three teams to join together again.
For this marketing activity all three marketing teams joined forces on certain aspects of the launch to make sure they were all aligned with one another and delivered the activity successfully. This ensured no activity being repeated, design and messaging being consistent and that all teams met their goals and objectives. The Central Marketing team liaised with the Product Development team to ensure the designs and messaging were in line with what they required, and then fed the work produced to other marketing teams to manage their own areas of the activity.
The skills in all three teams were varied and were of high standard. Tasks were allocated to individuals that had previously demonstrated strength in specific competencies which were required for the activity.
2.4 Performance Review Systems
The satisfaction of team members will be measured before and after the changes have been implemented. The Training Manager will speak to the team members confidentially, as the members may be reluctant to be completely honest with the management. To measure revenue generated as a result of the delegated work and record the number of meetings the Executives have attended.
Management by Objectives Method (MBO)
The method can be identified as the best performance review method. In this method, managers and employees set one particular objective periodically. After goals are achieved, employees are rewarded accordingly.
Critical Incident Method
According to this process, managers investigate the positive and negative behavior of employees and evaluate their performance accordingly. Throughout the process this investigation is continued and final report is prepared as the assessment of the employee. This method is important for employees in order to improve their performance in work place.
Behaviorally Anchored Rating Scales Method
This method is to rate performances of the employees and focus on specific behaviors of the individual person. The attitude and behavior of people, can evaluate personal characteristics.
Behavioral Observation Scales Method (BOS)
In this method the performance of employees is observed over a period of specific time duration. The performance is measured on methods like graphic rating scales and supervisors cannot get the accurate decision based on wrong judgments.
360 Degree Performance Appraisal Method
According to this method, employees receive some performance feedback examples. These examples are anonymous and confidential from co-workers. Managers measure the performance of their team members based on target achievements, skills, attitude, accuracy and understanding capabilities.
The above are the commonly used performance evaluation methods of organizations. Measuring performance is very important for the relationship between employer and employee. Through these methods, companies attempts to create excellent and preferred working conditions.
The relevant Manager will seek 360 degree feedback from stakeholders (Mail Classified staff members and connected stakeholders, such as DMGT designers etc) to measure the quality of work that has been delegated, e.g. ensure html emails are going out on time and delivering responses, and take any necessary action to ensure projects and tasks are delivered to a high standard. This will include feedback from the individual Sales Managers, to gauge whether or not the Executives have excellent knowledge on the relevant category/sector and how well the Executives are interacting with the sales staff.
Through effective employee relations the company will push to the profitable operations with high commitment from each and every person. Keeping employee relation and identify them as an extension of company is easy to forget within day to day business operations. For a savvy business owner the employee interaction with each other would be the prime concern when handle the organizational culture. Employee relations mainly impact to maintain better relationship with trade unions, staff, pressure groups, and other government bodies. It will enhance the corporate reputation through adding value to the goodwill of the organization.
Employees in any organization are the most important connection to corporate reputation management as they are the link to managing it (quote). A well managed reputation and work force are resources that generate positive financial performance and sustainable competitive advantage.
In order to have a thorough understanding as to how to engage employees to build corporate reputation, it is necessary to appraise the current opportunities that these employees have to contribute to the development of reputation. Since finding out the opportunities available for employees for contribution will give an understanding extend of the role that employees are playing in the general positioning of the corporate reputation.
Even though management communication looks to strengthen the identification of employees with the organization, at present limited forums for employees to contribute to the organization's reputation, as employees are not having a forum to make contributions towards this matter. Furthermore and although there are managerial meetings and quarterly meetings with the CEO / Managing Director, this are more aim at presenting achievements or informing plans in the organization rather than allowing interaction hence there is not opportunity to contribute.
This scenario is also preset in employee communication and in internal communication. At present there is only a quarterly employee forums, however these forums is to talk about issues at work in term of salary, office needs, etc rather than matters involving corporate reputation. Furthermore, there are not employee corporate initiatives, employee feedback forums, suggestions schemes or any kind of interactive internal communication tool such as intranet that could allow management to gather valuable information to design strategies to maximize corporate reputation. In addition, the lack of test to measure the levels of identification of employees alignment with corporate values means that the company is not interested in managing its employees to build the desired positioning and in consequence reputation.
The only form of opportunities for contribution are happening trough informal channels, this is done trough spontaneous feedback from employees in different departments as it happens, for example, when potential or current customers are not being called back employees report this and suggested to implement a systems to avoid this. However due to a lack of systems and forum where employees can contribute, this feedback and ideas are not being recorder.
At present not creating any employment engagement as it is not giving opportunities for employees to contribute to the organization's reputation or taking employee's contributions seriously, allowing for thoughts and ideas (the intellectual capital) of employees that can benefit the organization disappear. Many companies need to implement systems within organizational, internal and employee communication that allows for employee contribution to happen as the purpose of managing employees to build a desired corporate reputation is directly link with the alignment of employees with corporate values, which at the moment is not happening due to poor communication strategy that inhibits contributions from employees, which as a consequence stalls buy-in that stops this alignment to happen.
4.1 Strategic Planning
Strategy is one of key element in the plan. It determines the direction of the organsiation. Therefore, strategic planning can be identified as an overall planning for the organsiation. It looks at company in a broader perspective beyond the day to day activities of the organisation. It provides a big picture of the company.
Eg: These are long term objectives usually over 5 years. P&G's Purpose is to 'touch and improve consumers' lives by providing branded products of superior quality and value that will improve the lives of the world's customers, now and for generations to come'. Sustainability is embedded in P&G's Purpose, Values and Principles. To achieve Sustainability, in 2007, five strategies were set, with goals to be achieved by 2012. The Strategies where based on Products, Operations, Social Responsibility, Employees and Stakeholders. In addition, P&G's growth strategy underpins its main purpose of touching and improving lives and objectives have been set to support this. Examples of P&G's objective include, to increase organic sales growth by 4% to 6% and to grow market share by 3% to 4%, which are long term goals.
The accuracy of the strategic planning will be depending on the collection of information and way analyzing them. Companies may well know the information that they want to gather, although knowing and actually acquiring the information is not always that straightforward. Ultimately data breaks down into that which is internal, such as sales data, or external, such as information on competitors. Information that is internal would seem easy to gather, however it would depend on the systems that are used and how they store data. For example, at the University of Plymouth very little data is captured on those people interested in continuing professional development courses across the university, although so at department level there are different processes to capture this information. This makes it difficult to collect comparable information. External information can be more difficult to obtain. Certainly competitors would not allow sensitive data about their operations to be viewed by rivals, so data that can be collected may have gaps making it difficult for comparison. Finally, there is a cost involved in gathering information, both time and financial, and it isn't always seen as the best use of resources to gather all of the information that would be ideally needed for a complete assessment of the current situation as day to day operations also need to be carried out.
After gathering all required information it is necessary to analyze all collected data in proper way. There are a number of issues when it comes to the analysis of information. Most organizations gather a huge amount of data and information on their customers, although this is not always adequately utilized, perhaps the systems used by an organization are not sophisticated enough to report on the data they contain. There could also be issues with the people employed to analyze the data not having the required skills needed to make the most of it, or perhaps not understanding the true value of the data. Finally, there is the cost implication, both in terms of time and money. Certainly for small businesses the analysis of date may not been seen as important as the day to day tasks needed for a business to carry out its core functions. However, this is a very short sighted view as the information held can form the basis of future strategies.
A practical example could be of a small garage carrying out MOT's. As these are done on an annual basis it would be straightforward to contact customers shortly before there next MOT is due. However, this may not be possible if the systems are not able to be interrogated to collect these dates, or if there are no backroom staff to support the mechanics in their work.
Once a thorough audit of the current situation has been undertaken and an organization is satisfied that they know where they are positioned in the market in which they operate and they understand their strengths and weaknesses then they can start to produce a strategy that will meet their objectives. There are a number of different models that can be used in order to aid the development of a strategic planning such as BCG Matrix, Ansoff Matrix and etc.
4.2 Operational Planning
The operational plan is the third level of strategic planning process. It comes after the action and monitoring plans. It stands to manage the activities to implement the set goals and objectives of an organization. It covers the aspects of what your capacity needs are, how you will engage resources, how you will deal with risks, and how you will ensure sustainability of the project's achievements. An operational plan doesn't stand alone as one single plan, it integrated with other parts of the strategic plan in order to ensure the overall performance of the strategic plan.
Eg: These are short term objectives usually less than a year. To meet short term objectives, tactical level objectives can be set, for example, promotions, discounts.
Once the major operational components have been fulfilled, the strategic plan could be considered as complete. As the project moves into Implementation, several of these components are then defined in more detail and tested in reality. Thus the Operational Plan provides a critical bridge between the Action and Monitoring Plans (Step 2) and Implementation (Step 3) of those plans. The level of detail and formality of your Operational Plan will vary depending on the size and complexity of your project or program. Small projects may only briefly touch on each of these topics before moving on to implementation. Large, complex program should be able to provide evidence that they have addressed each of the components of an Operational Plan.
Once a plan has been finalized it is then important to make sure that it is implemented correctly in order to get the best results. However, there can be issues that hinder the implementation. Hopefully through careful operational planning these issues will be minimal but can include the following:
Lack of resources - this could be the lack of funds, equipment or people to carry out the plan.
Time constraints - implementing a plan correctly takes time, and there may not be the required capacity to make sure that a plan is implemented correctly. For example, the implementation of a plan may require a member of staff or a particular team to commit time to a particular activity that impacts on their ability to carry out their normal duties.
Skills - does the organizations have the required skills in house to carry out the campaign, or do they need to outsource, and if so, is there the required capital to do this
There are also unpredictable events that impact on the implementation of plans, such as changes in the economy for example.
It is important therefore when operational planning to make sure that you are sure that you have the capacity and resources to carry out your plan. It is also important to make sure that you have the correct people bought in to the process, if all staff is in agreement that the plan is the correct one and agree with the objectives it helps in making it a success.
4.3 Supply Chain Applications and Benefits
The supply chain is one of the most difficult as well as very important processes to each and every organization. Most of manufacturing organizations are facing difficulties in buying material from different territories and bring then to the organization on time. This is time consuming activity and need full attention on each ordering quantity. Accuracy is the key element of the supply chain. Companies need the accurate material on time to the factory for a cheap price in same quality.
As this is a continuous process we have to maintain proper system inside the organization. Therefore many organizations are using supply chain applications to avoided the confusion if operational matters in the supply chain. The system should be interconnected to the inventories and updating the manufacturing / usage progress. Some organizations has given the authority to suppliers to check the required order quantity daily and automatically send goods without waiting the special request. This is one of the most important software to the organization.
Through this type of software the company can avoid the risk of empty stocks and sudden production stoppage due to lack of materials. This is a cost saving to the organization. Also there is not time gap between the order utilizing speed and the placing the material from suppliers as they can access to the system. Even though the initial investment is high the return from the supply chain software is excellent. The entire production / service delivery process will be efficient and add profits to the company.
Information Technology and Internet (how important to the Management)
Information technology developments and Internet already have an enormous impact on the types of communications being offered today. Given their buying power, their reliance on social networking, and their natural demand for products and services that they can fit into their lifestyle rather than to which they have to adapt, digital natives will exert considerable influence over the success or failure of what companies have to offer over the next ten to twenty years. Bearing this in mind marketers have to adapt and embrace new technology and develop marketing campaigns that include social media.
They need to look toward viral marketing including Viral promotions may take the form of video clips, interactive Flash games, adver-games, e-books, brand-able software, images, or even text messages. It can be word-of-mouth delivered or enhanced by the network effects of the Internet. The goal of marketers interested in creating successful viral marketing programs is to identify individuals with high Social Networking Potential (SNP) and create viral messages that appeal to the digital native segment of the population and have a high probability of being taken by another competitor.
Whether used to raise awareness of a brand or product, the power of social networking can't be underestimated. But there are downsides as well. For example, thousands of frustrated customers use social network sites to vent their anger about companies. However Twitter, Facebook, Youtube and Linkedin can offer valuable marketing opportunities. By embracing new technology, IFAs and protection providers have the opportunity to reach out to new customers and enhance communication with existing clients. Joining an online community could be beneficial for those looking to expand their customer database or raise awareness of their products and expertise. Social media is a mainstream communication tool and some advisers and providers use it to communicate and comment on industry issues. Perhaps it won't be too long before the protection industry launches a facebook page of its own. Unum is leading the way with a television campaign due out early 2011 to raise awareness of the need for protection.
Data that that a company collects online will more than likely have gaps of information missing, some of the information might be less important than some but is still useful to have. There are ways that charities and profit organizations such as can fill in these gaps.
Acquire more profile information from customers when they set up an account with internet.
By recording the date and time of telephone and online bookings made by customers, we can establish booking patterns and be more prepared for busy periods. This will improve the experience for the customer.
Responses to email campaigns can help fill in information gaps.
Selection and use of promotional tools
Using the information it's gathered, to use the following promotional tools to inform their customers of the latest services they provide.
Video advertisement through their website
Service launch days
Mail outs to customers and businesses.
These methods were recently carried out when the company got its license to be a travel clinic. As result of the promotional work carried out by the marketing department, the travel clinic is making a profitable income.
Ideal promotional tools to build long term relationships with customers
Product Launch Events, they are a good way to demonstrate to customers and potential customers the quality services the company provides. The customers that would attend this event are going to be either long term customers or potential long term customer as they are showing a keen interest in the company. At launch events the customer gets to meet company directors, managers and other members of staff, helping them to develop a close relationship with the company.
E-letters are an effective way to inform customers of new services and events the company is offering. Regular e-letters keep Express Medicals helps brand awareness high, all this contributes to building a long term relationship with the customer.