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In present day business scenario each and every organisation is striving hard to achieve competitive advantage over its competitors in every possible way. The business operations are being carried out in a specialised manner. The organisation is run mainly by the specialist in each of the departments of the organisation like HR, Finance, Marketing, IT, etc. Almost all the departments require specialist to help the organisation in achieving the organisational objectives. So, it can be said that an organisation will also need specialists in the HR department in order to operate efficiently and effectively, and in turn achieve the objectives. Let's discuss about the HRM and its impact on the organisation.
Human Resource Management: Human resource management is nothing but managing the people or human resources of an organisation. An organisation requires various people at various positions, with varied job profiles. It is important to manage all these people, so that they can work collectively keeping in mind the organisational objectives. Managing human resources is an important aspect of any business. Over the last few decades there have been numerous theories which suggest that the business organisation depends on people and it is successful only if the people of the organisation are efficiently managed (Mathis, Jackson, 2007).
Importance of HRM: The HRM is very important for a business. A business needs various resources like machinery, material, money, men, etc. All the resources of the organisation are used by the people, so it is very vital for an organisation to possess right people with right skills at the right position, as they play a key role in the success of the business. It is very important for an organisation to manage people, because the people or human resources play a significant role in the success of the business organisation (Huselid, 1995). It is hard to imagine the success of the organisation without the efficient people. It can be said that it is not only important to acquire talented people but also to manage them properly. If the people are not managed properly, then it is likely that they may leave the organisation. So, in order to effectively manage the human resources of the business organisation like Allied Breweries, HR professionals are needed at all levels. Therefore, in a large organisation HR director plays a significant role in ensuring that the people are managed properly, and thus the success of Allied Breweries is dependent on effective management of the people or Human Resources.
Organisational Performance and People Management: It is often seen that the organisational performance is linked with the people management. The people management should be given utmost importance, as the performance of the organisation is directly linked with the people management in an organisation. Most of the organisations with better people management systems perform better, as compared to the organisation with ineffective people management systems. A business organisation may not be able to achieve its objectives with ineffective human resources, even if the human resources are highly skilled, the organisation needs to manage these human resources effectively in order to increase their productivity, in turn improving the organisational performance (Tzafrir, 2005).
Role of HRM: HRM plays a significant role in day to day operations of a business organisation. A business operation requires large number of people with varied skills, educational levels, ethnicity, etc, so it is vital to manage all these people, so that they can work collectively as a team, and help the organisation in achieving its objectives. Since, the HRM is an important field, it is supposed to be managed by specialists in human resources (Mathis, Jackson, 2007). An organisation cannot work effectively and efficiently if the people aren't managed properly. Therefore, it is vital for a company like Allied Breweries to use the services of specialists who can manage its human resources, thereby, contributing in the success of Allied Breweries. On the other hand, if the human director is removed then it might be difficult to operate effectively and efficiently for Allied Breweries.
Role of Line Managers: The line managers also play a significant role in carrying out the operations of a business organisation. The line managers act as a link between the specialist managers and the workers. The line managers ensure that the workers work as per the orders or instructions given by the specialist mangers. The workers are low skilled and uneducated, so there is likelihood that the workers might deviate from the instructions given to them. Therefore, in order to ensure that they adhere to the specific instructions given to them, the line managers makes sure that the workers are working effectively and efficiently, as per the instructions given. The workers work under the supervision of Line managers.
Huselid (1995), 'The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance', Academy of Management Journal, 38: 635-72.
Mathis, Jackson (2007), Human Resource Management; Publisher: South-Western College Pub; 12 edition (September 11, 2007).
Tzafrir S.S. (2005), The relationship between trust, HRM practices and firm performance; Int. J. of Human Resource Management 16:9 September 2005 1600-1622.
Task two - Word Count: 1500 words
Introduction: The two areas of Human Resource Management selected are recruitment and selection, training and development. The recruitment and selection, as well as training and development are important functions of Human Resource Management. The organisational objectives of a business can be achieved by the employees, and it is very vital to select the right people and provide them the right training, so that they can contribute significantly to the achievement of the organisational objectives.
Recruitment and selection:
Recruitment and selection is one of the important functions of Human Resource Management. It is usually performed after Human resource planning. Once the human resource planning is completed, the next step which the manager needs to follow is to appoint the right kind of people in the right place and also in right number. The Human resource management should not only select right people with skills but also the people, who can feel comfortable with the organization's culture, (Nkomo, et.al, 2007). The best example is GE, which is not only hiring people with the required skills but also whose styles, beliefs and value system are consistent with that of the firm. Any organization which is working at an international level will follow three approaches for staffing that is ethnocentric, polycentric and geocentric, (Batt, 2002).
Ethnocentric approach is an approach, wherein all the vital roles and positions are held by the parent-company nationals. This type of approach can be followed in the initial stages, where the firm is concerned with establishing their business unit in the other country. Few companies which followed ethnocentric approach were P & G, Phillips NV, and Matsushita. In Japanese and South Korean countries all the important positions are held by their country nationals in Toyota, Matsushita and Samsung. The reasons why organizations opt for ethnocentric approach are:
Due to lack of qualified host country nationals.
Trying to maintain and develop a united culture.
Efforts to maintain good communication with headquarters.
Efforts to maintain good coordination with headquarters.
Efforts to maintain good control with headquarters.
Polycentric approach is an approach wherein all the key positions are held by the nationals of the parent company at corporate headquarters. Sometimes the top positions are filled by the home-country people but this is not always a case, (Nkomo, et.al, 2007). For example, Unilever has all the locals in the top positions in an organization. Unless and until the government intervenes in the direct selection process till then there is no preference given for home country citizens. Hiring staff from other countries will help in removing the barriers from language, eliminates expensive training period and cross culture adjustment problems of the mangers and their families, (Brewster, Larsen, 1992).
Geocentric approach is an approach, wherein the key positions are given to those people who are capable enough and acre competent enough irrespective of their nationality. Colgate Palmolive is a very good example for this approach which is operating since fifty years within 170 countries, (Randall, et.al, 2008).
In an organisation like GE, the recruitment and selection process consists of various stages. Usually, the company aims to attract the best available talent in an industry, and to attract the best people in the industry, it advertises its vacancies with leading newspapers, on its websites, etc. A large number of employees are recruited through employee referrals. The employee referrals have also been one of the important sources of recruiting the best talent in the industry. Large numbers of people are attracted, and thus, number of vacancies is filled by selecting the people from the large number of applicants that are attracted. The large number of applicants makes it easier for the HR managers at GE to recruit only the best available people. The group of people are invited for interview rounds, and only few go to the next round. At the end of the final round of interview, GE is able to select the best people which improve the standard of the employees hired by GE.
GE realised that the organisational performance can be improved only with the best employees, as the manpower has been identified as the most valuable resource of an organisation. Therefore, the emphasis is on the recruitment and selection of highly qualified and highly experienced employees. The overall performance, efficiency and effectiveness in the operations of GE can be achieved only with the improved productivity of the employees.
Training and development:
Soon after the selection of the right candidate is done, the next step to follow is to provide them with right kind of training which would help the employees to develop. Training basically aims at enhancing the present working skills and behaviour, whereas development seeks to improve the overall skills of the manager through a mix of ongoing management education and rotations of managers through a number of jobs within the firm to give them different experience, (Brewster, Larsen, 1992). Different types of trainings are provided such as cultural training, expatriate training, language training, practical training etc.
Training forms an important part of employee development, as it improves the productivity of the employees. Training is needed for both the new and experienced employees. The training sessions for new employees are aimed at helping the new employees to get accustomed to the work environment of GE, whereas the experienced employees are provided training, so as to improve their skills. The improved skills of the employees are beneficial not only to the employees but also to the employer. The productivity and efficiency in the operations of the organisation improves mainly due to training.
The employees are provided training in the form of seminars, lectures, workshops, and various other sessions, which are all aimed at improving the skills of the employees. The employees of GE are provided training from time to time and these training sessions range from simple interactive sessions to practical training sessions. The training is aimed at the employee development, which in turn helps the development of a business organisation like GE.
Achievement of Organisational objectives: The organisational objectives are objectives that an organisation aims to achieve by carrying out its business activities. The recruitment and selection of highly skilled employees helps a business like GE in achieving its business objectives over a period of time. The objectives of the business could be to achieve certain targets pertaining to sales, profits, etc, and these can be achieved only with the efficient employees of the organisation. If the employees are efficient, they will make the best use of the other resources of the organisation. On the other hand, if the employees are inefficient, they will waste other resources, thereby inefficiency will effect the operations of the business. So, it can be said that the recruitment and selection at GE is more likely to help in achievement of its organisational objectives.
The training and development of the employees is also very important in the achievement of the organisational objectives. A business organisation can achieve the business objectives only with proper planning and manpower. The employees of the business organisation like GE are provided training with a view to develop the employees, so that they can significantly contribute in the achievement of the organisational objectives.
Conclusion: Recruitment and selection is one of the important functions of Human Resource Management. It is usually performed after Human resource planning. Once the human resource planning is completed, the next step which the manager needs to follow is to appoint the right kind of people in the right place and also in right number. In an organisation like GE, the recruitment and selection process consists of various stages. Usually, the company aims to attract the best available talent in an industry, and to attract the best people in the industry, it advertises its vacancies with leading newspapers, on its websites, etc.
Training basically aims at enhancing the present working skills and behaviour whereas development seeks to improve the overall skills of the manager through a mix of ongoing management education and rotations of managers through a number of jobs within the firm to give them different experience. The training and development of the employees is also very important in the achievement of the organisational objectives along with the recruitment and selection of right people.
Batt, R. (2002) 'Managing Customer Services: Human Resource Practices, Quit Rates and Sales Growth', Academy of Management Journal, 45(3): 587-97.
Brewster and Larsen (1992), Human resource management in Europe: evidence from ten countries; The International Journal of Human Resource Management 3:3 December 1992
Stella M. Nkomo, Myron D. Fottler, R. Bruce McAfee (2007), Human Resource Management Applications: Cases, Exercises, Incidents, and Skill Builders; Publisher: South-Western College Pub; 6 edition (February 20, 2007).
Randall S. Schuler, Dennis R. Briscoe, Lisbeth Claus (2008), International Human Resource Management; Published by: Routledge.
Task three - Word Count: 750 words
A business organisation depends on large number of people to carryout the operations. The human resource management plays a key role in managing the people of the organisation. If the human resources are not managed properly, then there may arise various issues between the employer and employee. The issues between the employer and employee may result in adverse impact on the operations of the business. So, it is very important to manage the human resources of the organisation. An effective human resource management can be helpful in reducing the conflicts between the employer and employee, or the human resource professionals can handle these issues effectively, thereby saving the organisation from landing in trouble due to court cases.
An organisation has to deal with people and there may be a possibility of conflicts arising with regards to recruitment of employees, flexible working, equality and diversity, discipline and grievance, and termination of employment, etc. The human resource professionals can handle these issues effectively. The case example that is chosen to discuss the importance of Human Resource Management in relation to the court judgement on the case, McCarthy v Bradford & Bingley Plc -  All ER (D) 46 (May) .
In this case, the problem aroused due to the dismissal of the employee. The employee filed a petition in the court stating that the dismissal was unfair. The employer, Bradford & Bingley Plc merged two positions into one, and thereby resulting in the removal of one position in the organisation. Due to the loss of one of the positions in the organisation, the employer had to dismiss one of the employees. In this case, both the employees were equally competent for the new post and the employer decided that McCarthy should be dismissed. After the hearing the tribunal found that the employee was dismissed in a manner which was not acceptable, and thus held the dismissal of McCarthy as unfair.
The employer could have handled this issue in a better way, as both the employees could have been selected through a selection process, which mighty have given equal chance to both the employees, instead of dismissing McCarthy without any selection process. Thus, the court held that the dismissal of McCarthy was unfair, and the employer was held guilty.
It is clear from the above case that the human resources weren't managed properly at Bradford & Bingley plc. This issue could have been handled in an appropriate manner by human resource professionals. The final judgement of the court was based on the fact that there was no standard procedure to dismiss McCarthy, and if the human resource professionals could have acted in an appropriate manner, this issue could have been handled properly. The employee would not have filed a petition in the court citing unfair dismissal. Moreover, the image and reputation of Bradford & Bingley plc may have been affected, and issues like these could also affect the other employees of Bradford & Bingley plc. So, this also proves that the human resource management plays a significant role in the successful running of the business organisation and its operations without any issues with the workforce.
The legal reasoning for the final judgement in favour of the petitioner was that the employer hasn't followed a specific procedure to select one of the two employees, and the dismissal of one of the employees was unfair. The fair dismissal would have been, only if the employer had adopted an approach which could have given equal opportunity to both the employees to win the vacant position. The employer had to prove that the dismissal was fair by providing relevant evidence. But from the available facts, it was clear that the dismissal was unfair and employer i.e. Bradford & Bingley plc was held responsible for the unfair dismissal, and therefore Bradford & Bingley plc had to pay damages as claimed by McCarthy. Moreover, McCarthy was also able to claim the legal expenses incurred to file this case of employment law pertaining to unfair dismissal against Bradford & Bingley Plc.
Finally, it can be concluded by stating that this case could have been handled effectively, if proper Human resource management policies were adopted. The employee could have either been placed at a new position within the organisation or the employee could have been given some compensation for removing him at short notice. Instead, the act of Bradford & Bingley plc was against the general human resource management policies, which resulted in the unfair dismissal of McCarthy, which in turn led to the employee filing a petition against Bradford & Bingley plc. The decision of the court also went in favour of the employee, which proves that there weren't any effective HR policies followed at Bradford & Bingley.