Human Resource Management For European Managers

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According to John Bratton and Jeffrey Gold Human Resource Management (HRM) is one of the biggest and difficult areas for European managers. Now-a-days there have been major changes in the functioning of this department. HRM scholars have given more emphasis to the strategic aspect of HRM trying out the new methods and analyzing the results or the HRM model

This model of human resource management stresses on the four most essential components: selection, appraisal, development and rewards. These four components together increase the efficiency of an organization's performance. The weakness of this model is that it ignores different stake holders, situational factors and the notion of management's strategic choice. However, the strength is that it expresses the relation of internal HRM policies and matches them with organization's external business strategy.

There are 2 main approaches in strategic management, the fundamentals are opposite to each other but help each other in some ways:

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- The Industrial Organizational Approach - based on economic theory - deals with issues like competitive rivalry, resource allocation, economic of sale, assumptions - rationality, self discipline behaviour, profit maximization

- The Sociological Approach - deals primarily with human interactions assumptions - bounded rationality, satisfying behaviour, profit sub-optimality.

Strategic management techniques follow a bottom up or top-down approach. Any suggestions put forth by the employees will be filtered by the managers and sent ahead to the higher authorities. They will then check the advantages and disadvantages to the other employees or company and the check the budgeting involved. Finally, this will be discussed in the board meeting with all the departments like human resources, finance, marketing, etc and then will be approved or launched. Top-down approach is a very common strategy used by most of the organizations. In this the CEO of the company designs a particular goal, sets timelines and a complete plan that has to be executed by the employees.

Most of the organizations have several levels of management, Strategic Planning is at the highest of these levels. It gives direction to corporate values, corporate culture, corporate goals, and corporate missions. Under this broad corporate strategy there are typically business-level competitive strategies and functional unit strategies.

Corporate strategy refers to the overarching strategy of the diversified firm. Such a corporate strategy answers the questions of "which businesses should we be in?" and "how does being in these businesses create synergy and/or add to the competitive advantage of the corporation as a whole?"

Business strategy refers to the aggregated strategies of single business firm or a strategic business unit (SBU) in a diversified corporation.

Functional strategies include marketing strategies, new product development strategies, human resource strategies, financial strategies, legal strategies, supply-chain strategies, and information technology management strategies.

The loss of not changing and making your self better is as important as the loss which may involve your plans to grow your business. Corporate strategy is based by configuring, behavior and culture of the company. Whereas corporate strategies are based on two important aspects first one is establishment and the other one is putting in to practice i.e. first formulating your strategies for the advancement of your organisation and then putting those same strategies in to practice.

Going back to the four pillars of human resource management, an organisation has ensured that these pillars are strong for emerging into a strong and successful organisation.

1) Retention strategies.

2) Recruitment strategies.

3) Training, Learning and development strategies.

4) Performance and Reward management strategies.

(Jim Collins) invented some retention strategies which I feel would be beneficial for the HR in Dyne rod services.

Get correct people on the bus - People who have excellent talent and who really give their one hundred percent in their work are the ones who should be selected for to be a part the organisation. In other words, people who love their work should be invited to board the bus.

Communication - It plays a vital role in displaying the openness of an organization. Communicating the new policies, having one-to-ones with the line managers, etc are ways in which an organization communicates with their employees. This gives the employees a feeling of belonging.

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Include employees in decision making - Involve employees while making decisions where it will affect individuals or team. This will have employees sharing creative ideas which management have never thought off.

Allow team members to share their knowledge - By sharing thoughts means a team member should know how valuable he is for the team and for the organisation and he feels motivated.

Shorten feedback loop - This means a supervisor or manager shouldn't wait for the last moment to give feedback to their employees. Instead they should keep motivating them from time to time. If they are doing wonders in their work motivate or appreciate them. Constantly keep looking for opportunities or instances and ways to appreciate them.

Offer a competitive compensation package - This is one of the most important parts of retention as everyone in an organisation works to earn money. Salary offered by an organisation should be competitive with regards to the other competitors in the market. If the employee feels his package is fair with regards to his work responsibilities, he will stay in be retained. An organisation should always keep reviewing the salaries of employees depending on the market fluctuations so that they always are in the same line with the competitors. This reduces attrition and increases efficiency because the employees will be experienced.

Provide opportunities for growth and development - Give chances for employees to apply new techniques and share knowledge useful in relate with the organisation. If employees feel to be bored offer them to train employees in other department where he or she get adjusted.

Balanced work and personal life - When you feel an employee is getting too stressed with work give him a break by giving him 2 tickets to watch a movie or give an extended lunch once a week where he can release his stress and be back fresh this might retain him.

Fair and equitable treatment of all employees - Never should have favouritism amongst employees this would have a very bad atmosphere in the organisation on should treat equal to all and avoid favouritism.

The quality of supervision and mentorship - Supervisor's play a crucial role in the success and progress of its team members. Every employee wishes to have a supervisor who is friendly, co-operative, helpful at times, who doesn't make fake promises and provide space. Failure to this can provide employees to leave the organisation very soon.

Recruitment Strategy

(Mr. Matheson in 2000) said "The process of generating pool of qualified applicants for organisational jobs is known as recruitment". It is basically hiring right candidates by identifying a vacancy by paying in terms of money.

Recruitment can be done in two ways:

Internal Recruitment

External Recruitment

Internal Transfers

Advertisements

Promotions

Educational Institutes

Demotion

Placement/Agencies

Retrenched Employees

Labor Contracts

The HR of an organisation hired new employees with the following process:

First they identified the area in which they have a vacancy. Then they evaluate whether the situation can be controlled with overtime but that will put burden on others.

Analyze and evaluate the job and described the position also analyze ones interest such as managers and supervisors.

They explain the requirement from HR about that position i.e. duties or responsibilities of the role and reason for hire.

They then displayed the vacancy on internet externally and within the organisation and required specified fields experts while hiring which matches with the post.

Shortlist candidates & choose the right employee who deserves position.

Interviewing them personally.(one on one ,group interviews, explaining self, observing their confidence)

Compare their answers with others, judge them, mentioned the qualifying conditions and then hire them.

Having induction on the first day. Meeting with internal employees, essential procedures, safety provisions, discussions and queries, departmental knowledge etc.

Recruitment can be done internally or externally it has the following advantages:

Internal recruitment

It save money on advertisement

Gives more opportunity for internal staff

Retain old employees.

Saves time.

There is not much training cost.

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External recruitment

Outside people bring new creative ideas.

Huge variety of new people to choose the right one

People have wider range of experience

Training, Learning and Development Strategy

It's a permanent process of an organisation. At every level people learn things to keep themselves updated, they do trainings or attend workshops to develop their professional and personal skills.

(Chris Argyris) defined learning as "detection and correction of errors"

To be a successful organisation one should have a learning process because this may give birth to new and innovative ideas. Sometimes this may not be a successful method but then again you learn from your mistakes and make a new strategy rectify and then apply it again the in-between process is your learning process. Now days organisations keep changing themselves which is also know as learning. according to (Peter Senge,1990: 3) "organisations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continuously learning to see the whole together" is a learning organisation. Learning should not be done by individuals it should be done as a team by taking feedbacks from the team members and then apply the right one this may avoid resistance and this have a proper learning process.

HR plays an important role in this learning process as they should analyze evaluate and identify where exactly the requirement of change is and then give relevant trainings to the employees. For example if they find the employees are lacking in providing the right quality of service on phone or if the soft skills are not up to the mark or if they have difficulties dealing with difficult customer. A training related to all these topics will be conducted. An extensive training that covers various examples of soft skill statements, mock calls, call listening exercise, etc will be arranged. In return they will get excellent results on the calls taken, the percentage of customer satisfaction will increase improving the image of the company and making experiences happy for customers. They should be made aware with the situation give them a future lay out after training what they will learn and so they need to develop themselves in view for the betterment of the organisation. One should share their thoughts and views to have learning organisation. Team learning would be useful as employees will understand things quicker as everything will be shared which would give a clear idea and employees will be more comfortable in adapting that change.

Training, Learning and Development is an ongoing and never ending process. Everyday will bring something new to learn from someone new and just enhance our knowledge and skills. Learning new things and getting trained on them will just develop us.

Performance & Rewards Management Strategies

It's very important in an organisation as employees in an organisation work very hard for the growth of the organisation they expect the same from their superiors sometimes an appreciation is enough to motivate them but sometime it requires rewards based on their performance. Rewards can be monetary or in any kind.

(Michael Armstrong) says "performance management is a means of getting better results from the organisation, teams and individuals by understanding and managing performance within an agreed framework of planned goals, objectives and standards".

Similarly (Rosmary Lucos) defines "performance appraisal as the process of evaluating how well employees perform their jobs when compared to a set of standards, and then communicating that information."

Performance management is based on a long term as the performance is reviewed base on the performance and then new targets are been applied. It's been done for the growth of department and individuals it's been kept in line with organisation strategies and objectives. The most widely used method of performance management is 360 degrees appraisal. It is an overall test of an employee with regards to their performance and behaviour. Feedback is provided by supervisors, peers, managers, self assessment and at times even external sources such as customers, suppliers and other interested stake holders.

Rewards can be done by creating new things which can be in different ways such as HR can have a meeting every month where employees get together and have a small party where they can rewards their employees give them gifts managers can motivate the staff by appreciating them in front of everyone this may give confidence and an individual feels he is been monitored by his superiors' can have individual employee meetings and thank employees for their efforts, appreciate them and give them monetary rewards or increase their salary this should be done once every year so that the employees can put their full efforts for the betterment of the organisation.

Corporate strategy refers to the overarching strategy of the diversified firm. Such a corporate strategy answers the questions of "which businesses should we be in?" and "how does being in these businesses create synergy and/or add to the competitive advantage of the corporation as a whole?"

HR Strategies used to people skill and its implementation

Human Resource strategies used in right direction create a positive impact on employee's contribution towards organization targets. Recently advancements have been made by HRM experts to develop a link between HR strategies and performance of organization. This research has led to growing number of studies which critically analyze the potential contribution that a good human resource strategy can make to exhilarate organizational performance, so much so that 'the impact of human resource management on performance has become dominant research issue in the field' (Guest, 1997, p263).

Let us now take a closer look how Human Resource strategy affects Dyno Rod performance. Any organization in our scenario Dyno Rod heavily relies on their employee's motivation and right attitude towards company goal and targets. Top managers make sure the organisation has a clear purpose and vision supported by a strategy for improving its performance. In Dyno rod HR policies are directly implemented on employees through their respective managers lets take an overview of the policies.

Increasing Employees skill and ability

Promoting positive attitude and increasing motivation

Providing employees with expanded responsibilities

Increasing Employees skill and ability

Employee's skills and ability can be increase by conducting and regulating training and development programs. Training and dеvеlоpmеnt program will help thеѕе new еmplоyееѕ to еnhаncе the attitude, skills and knowledge required for еmplоyееѕ to lеаrn how to perform their jobs, improve their pеrfоrmаncе. Training and dеvеlоpmеnt program аlѕо can help existing еmplоyееѕ to improve their working skills and make them rеаlizе their cаrееr gоаlѕ.

In dyno group management make arrangements for all employees to take part in training program which not only increase their work knowledge as well as keep them up to date with industry standards. There are two types of broad training program conduct by top management in dyno rod first one is related to work skills. This program is again classified in two groups, one for engineers which is related to technical side of work. Other is for staff working in different departments inside includes call centre, finance and IT these programs are directly run under line managers supervision. The second range of training program dealt with interpersonal skills it's more directed toward employee's personal growth.

Promoting positive attitude and increasing motivation

Motivation is аnоthеr gооd method HR mаnаgеrѕ can uѕе higher wаgеѕ, better benefit and improve working condition to attract еmplоyееѕ who with gооd ѕkillѕ and make them have better work pеrfоrmаncе. Through thеѕе motivated аctivitiеѕ, the оrgаnizаtiоn will be more productive and competitive. However, HR mаnаgеrѕ should be cautious thеѕе method would incrеаѕе the lаbоur cоѕtѕ (Davis, 1999). 

In dyno group HR uses different tools for motivation which include promotions, increments and reward schemes. There are few new strategies which are used by management apart from conventional methods which include PRP (Performance Related Pay) this is given quarterly and directly proportional to employee performance. PRP is good way to keep employee focus towards there target and keep them motivated. Second strategy which is quiet common practice is rewarding employees with vouchers which is directly presented to them from line manager with a thank you card.

HR Strategy aligned with the business strategy

The HR Strategy aligned with the business strategy is about the expainsion of the business, increasing the performance of the employees and keeping the costs under a control. The HR Strategy aligned with the business strategy is not much about the employee satisfaction and benefits provided to the population as they are not the strategic goals, but they are techniques to reach the goals important for the whole organization.

The process of the alignment of the HR Strategy with the business strategy is about digging deeper and finding the real root causes of the successful human capital management in the organization. The HR Managers have to identify the real targets of the business, the business way how to reach the targets and the real needs of the business from Human Resources. The HR tends to take care of employees, but it is not what the business asks for usually.

The HR Strategy alignment with the business strategy needs many discussions inside Human Resources about the real goals of the organization and how the organization will utilize its human capital to reach the goals. It is not about the employee satisfaction, it is a side effect. Let us take a brief look stepwise at the process how HR strategy is aligned with business strategy in dyno group.

In dyno group, HRM is part of senior management.

HRM makes contribution to the development of

-corporate mission statement

-corporate objectives

-corporate strategy.

TOP management will review and revise [ if necessary ] the

mission statement and corporate objectives

This final corporate mission statement, objectives and strategies

becomes the foundation information for the various departments

to work out their departmental objectives/strategies/plans.

On receiving the approved package from the TOP management,

the departmental managers develop the implementation plan.

HR Dept. discuss with the various other departments like sales/ production/

distribution/accounting/ IT etc about their requirements

-for manpower

-recruitments

-replacements

-training

Once HR their departmental requirements, HRM develops

-recruitment

-training plans

-rewards plans

-development plans

-payroll plans

- performance management plans

-staff/organization communication plans

Which is converted into company HR policies, Procedures, Practices & Plans

.

Conclusion

Over the past few years, dyno group have taken an increasing interest in more closely aligning HR practices and services with the needs of their businesses. However, integrating workforce issues into the total business picture still seems to lag behind in practice. Managing a highly diverse, discerning, mobile, and independent workforce has created new challenges and raised important questions about how people systems fit into overall corporate strategy, questions like:

How can the dyno group measure and manage its growing investment in hiring and retaining key talent?

What payoff should an organization expect from its people investments, i.e., how does an organization calculate its HR return on investment?

Keeping in view following question I would like to recommend following formula.

4 + 2 Formula for Business Success

In a recent groundbreaking five-year study (Joyce, W.; Norhia, N.; Roberson, B.: What Really Works, Harper Collins, Inc., 2003), consultants and business school professors at top universities analyzed following formula. all successful companies simultaneously master eight specific management practices. The eight practices were divided into four primary and four secondary categories that directly correlated with superior corporate performance as measured by total return to shareholders.(www.HR.com)

These practices are as follows:

Primary Practices Secondary Practices

- Strategy - Execution - Talent - Leadership

- Culture - Structure - Innovation - Mergers and Partnerships

Line Managers with the help of HR; keep a constant check on the employee satisfaction in the form of surveys, forums, feedbacks and by placing suggestion boxes around. Applying the above strategies slowly and steadily taking suggestions and agreement of the employees definitely change the culture of the organisation to a happy and supportive one.

HRP must be cооrdinаtеd аcrоѕѕ HRM аctivitiеѕ intеgrаting еаch ѕtrаtеgy within thе context оf itѕ buѕinеѕѕ gоаlѕ. Еаch аctivity iѕ nоt an iѕоlаtеd prоcеѕѕ but iѕ intеrrеlаtеd in а way that it should produce а ѕtrаtеgic prоаctivе ѕyѕtеm аcrоѕѕ thе оrgаniѕаtiоn. Cоnѕеquеntly, this hаѕ led tо thе аlignmеnt оf thе ѕtrаtеgic human rеѕоurcе plan allowing thе integrated dеciѕiоnѕ to be made bеtwееn еаch HR аctivity tо mееt thе nееdѕ оf thе оrgаniѕаtiоn. By striking thе right bаlаncе оf dеciѕiоnѕ, conflict cans be minimiѕеd generating incrеаѕеd pеrfоrmаncе by mеаnѕ оf anticipating lаbоur ѕurpluѕеѕ аnd ѕhоrtаgеѕ. Thе оutcоmе will еncоurаgе optimal uѕе оf human rеѕоurcеѕ thus enhancing thе ѕuccеѕѕ оf thе оrgаniѕаtiоn where ѕtrаtеgic plans are constantly implemented аnd еvаluаtеd.