Human Resources Contributing To Success Of A Business Commerce Essay

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Research methodology is a master plan identifying the techniques and actions for collecting and analyzing the data. It is a strategy or blueprint that plans the action for carrying through the research project data. A research design involves a series of rational decision-making choices depending upon the various options available to the researchers. Broadly it is composed of different elements like: the purpose of the study, the unit of analysis, time dimension, mode of observation, sampling design, observation tools, data processing, and data analysis.

Research is an endless effort for truth. It certainly bring to light new knowledge or corrects previous errors and misconceptions and adds to the existing body of knowledge in an orderly manner. The research was aimed at highlighting the significance Human Resources for an organization and the extent of contribution in the success of business.

The designs like exploratory, descriptive, or causal can be utilized in accordance with the nature of the study and the environment in which study is being conducted. In this research exploratory design is utilized and Likert Scale is being applied. The responses can be put on a scale indicating from high satisfaction to least satisfaction.

3.2 Data Collection

In research studies, the source of data is two-fold. Data comes from the inner world of libraries as well as from the outer world of human being. It is either the shelved data or it is the data acquired live from the people involved in the study. This research being in the management, and the prime subject of the study were the human resources and management of organization, the researcher collected data mainly from the respondents.

After considering the various methods of data collection such as ethnographic style, survey, experimental style, and narrative enquiry, a questionnaire survey was chosen as it allows the collection of highest opinions within the time span of the project as well as the fact that the results could be accurately mapped and correlated to provide quantative information. The purpose of questionnaire survey was to determine and gain insightful of management and the effects of the HR in an organization.

3.3 Population and Sampling

The population consisted of the high level management, middle level management and the employees of various organizations. The management were selected as they remain intact right from the process of planning, recruitment, and subsequently the development of the Human Resources in an organization. Additionally, the opinions of the employees were deemed necessary in order to generate relation in both the opinions. The population size was 50 and was limited to the setup of management and employees opinions. The non-probability sample, "a sampling technique in which units of the sample are selected on the basis of personal judgement or convenience" (Zikmund, 2003, p. 380). A disadvantage of using non-probability sample was that there were no appropriate statistical techniques for measuring random sampling error. For reason of convenience, use of specific convenience sampling technique was deemed most appropriate. Neville (2005) describes a convenience sampling as the sampling procedure where access is convenient and available.

3.7 Data Analysis Process

The process involves the researched applying reasoning in order to understand and interpret the data collected. "In simple descriptive research, analysis may involve determining consistent patterns and summarizing the appropriate details revealed in the investigation" (Zikmund, 2003, P. 73).

3.7 Research Assumption

As initially mentioned in the literature review, a firm moves beyond the start-up phase, as they move into the success stage. At that stage the owner/manager has two options, firstly: use the company as a platform for growth or as a means of support for the owners as they completely or partially disengage fro the company" (Churchill and Lewis, 1983, P.34). Therefore moving beyond the start-up phase is not a question of time but rather an issue of growth.

Scott and Bruce (1987) noted that not all businesses that survive, grown into large businesses. This may be as a result of the nature of the industry or as a result of the personal ambitions and desires of the owner/manager. As a result many business do not move beyond the survival or success stage.

Chapter 4: Findings and Analysis

4.1 Introduction

This part of research will highlight the features and aspects revealed with the analysis of data collected both from primary and secondary resources. The brief description of the findings will be discussed in the preceding paragraphs.

A group of people becomes an organization when they cooperate with each other to achieve common goals. Communication among them is therefore important. But people have individual motivations, which often differ, from the corporate goals. An effective organization is one which succeeds in getting people to accept that cooperating to achieve organizational goals also helps them to achieve their own goals provided they are adequately rewarded through extrinsic and intrinsic rewards. This is achieved primarily through leadership and motivation. Employers therefore increasingly view human resource management from a strategic perspective, and as an appropriate means through which the chasm between organizational and individual goals can be narrowed.

The effective utilization of human resources enhances the significance and magnitude of these resources and consequently acquires a shape of competitive advantage for the organizations. Some of the main features that evolves the process of effective utilization of human resources and enables organizations to achieve high productivity and efficiency are discussed beneath.

4.2 Significance of Human Resources Management

A basic concept of management states that manager works in organizations. Organization has three basic components, People, Purpose, and Structure. HRM is the study of activates regarding people working in an organization. It is a managerial function that tries to match an organization's needs to the skills and abilities of its employees. Let's see what is meant by the three key terms… human, resource, and management.

• Human (Homo-sapiens - Social Animal)

• Resources (Human, Physical, Financial, Technical, Informational etc)

• Management (Function of Planning, Organizing, Leading & Controlling of organizational resources to accomplish goals efficiently and effectively)

As it has been aptly observed: "Part of the problem is that we have split off human resource management from the general management problem, as if there were some other kind of management other than human resource management. As long as organizations are based upon the coordinated action of two or more people, management is by definition human resource management. Despite the proliferation of writings and studies on HRM, there is a wide gap between the rhetoric and the reality, though the gap has been narrowing in the 1990s. There is as yet inadequate research to ascertain the extent to which practice matches corporate policy statements, and the impact of HRM policies and practices on employee behavior and morale. To have a major impact on enterprises, HRM has to be diffused across an economy, rather than remain islands of excellence. Nevertheless, promoting excellent models of HRM stimulates interest in better people management. HRM has three basic goals, which contribute to achieving management objectives. The first is integration of HRM in two senses: integrating HRM into an organization's corporate strategy, and ensuring an HRM view in the decisions and actions of line managers. Integration in the first sense involves selecting the HRM options consistent with (and which promote) the particular corporate strategy. The option is determined by the type of employee behavior expected (e.g. innovation) needed to further the corporate strategy. For instance, the HRM policies in relation to recruitment, appraisal, compensation, training, etc. differ according to whether the business strategy is one of innovation, quality enhancement or cost reduction. A strategy of innovation may require a pay system less influenced by market rates but which rewards creativity, and the pay rates would even be low so long as there are ways of making up the earnings package. A cost reduction strategy may lead to pay rates being strongly influenced by market levels. Similarly, training and development would receive less emphasis in a cost reduction strategy than in one where the objective is innovation or quality. But such integration is difficult without securing the inclusion of a HRM view in the decisions and practices of line managers. This requires that HRM should not be a centralized function. A second goal of HRM is securing commitment through building strong cultures. This involves promoting organizational goals by uniting employees through a shared set of values (quality, service, innovation, etc.) based on a convergence of employee and enterprise interests, which the larger Japanese enterprises have been particularly adept at. A third goal of HRM is to achieve flexibility and adaptability to manage change and innovation in response to rapid changes consequent upon globalization. Relevant to HRM policies in this regard are training and multi-skilling, re-organization of work and removal of narrow job classifications. Appropriate HRM policies are designed, for instance, to recruit, develop and retain quality staff, to formulate and implement agreed performance goals and measures, and to build a unified organizational culture.

4.2.1 Functions of Human Resources Management

Basic functions that all managers perform: planning, organizing, staffing, leading, and controlling. HR management involves the policies and practices needed to carry out the staffing (or people) function of management. HRM department regardless of the organization's size must perform following human resource management functions:

Staffing (HR planning, recruitment and selection)

Human resource development

Compensation and benefits

Safety and health

Employee and labor relations

Records maintaining, etc.

HR research (providing a HR information base, designing and implementing employee communication system).

Interrelationship of HR functions.

4.2.2 Shifting from Personnel Management to HRM

The increasingly important role of HRM is reflected in the transformation of the personnel management function from one of concentrating on employee welfare to one of managing people in a way, which matches organizational and individual goals and providing employees with intrinsic and extrinsic rewards. Therefore, today Human Resource Management (HRM), historically known as personal management, deals with formal system for the management of the people within the organization. Many well-known companies report that they are trying to transform their workforce into a source of completive advantage.

In enterprises that tend to have corporate philosophies or missions, and where there are underlying values that shape their corporate culture, HRM becomes a part of the strategy to achieve their objectives. In some types of enterprises such as ones in which continuous technological change takes place, the goal of successfully managing change at short intervals often requires employee cooperation through emphasis on communication and involvement. As this type of unit grows, "If there is strategic thinking in human resource management these units are likely to wish to develop employee-relations policies based on high individualism paying above market rates to recruit and retain the best labor, careful selection and recruitment systems to ensure high quality and skill potential, emphasis on internal training schemes to develop potential for further growth, payment system designed to reward individual performance and cooperation, performance and appraisal reviews, and strong emphasis on team work and communication ... In short, technical and capital investment is matched by human resource investments, at times reaching near the ideals of human resource management.

4.2.3 The Context and Need for Human Resources Development

Today, there is practically no government or international agency that does not see the importance of human resource development. The World Bank; the United Nations and its constituent bodies include UNDP, UNIDO, WHO, ILO, UNICEF, UNESCO, UNFPA, UNESCAP; regional bodies like ASEAN and SAARC; the South Commission; the Commonwealth Secretariat; international non-government organizations(NGO's); and bilateral aid agencies, all recognize the need for , and the importance of, human resource development. The components and dimensions of human resource development which they perceive as being of strategic importance at a given point of time, for a given country or a group of countries, may vary, but the focus is uniform. The context for the renewed emphasis on human resource development is significant. The structural adjustments programmers adopted in a number of countries have brought home the vulnerability of human development variables. The linkages between investments in human development programmes and economic development have become sharper. There have been major international developments-such as the opening of global markets, the increased market orientation of economies and the restructuring in socialist countries-which have given rise to an increased competition, forcing developing countries to produce and market quality products at competitive prices. At the same time a range of concerns, including environmental issues, the changing role of women, the new information culture and demands for liberalization and democracy, are influencing policy and practice. The knowledge base surrounding human resource development is increasing rapidly, within government and agencies. It is an area where there are many pressing demands. These demands have to be balanced. Resources have to be found, frontiers agreed upon and strategies formulated. These are issues with which policy makers, planners, decision makers, sectoral planners and government managers have to contend.

4.2.4 Targets of Development

When an individual acquires capabilities, they enable the individual to make things happen. However, societies are much more than individuals. They are required to function as groups and for historic reasons they may also be grouped into collectives - for example, the poor or the landless are a collective of people who are poor and without land; some of them may organize themselves to form action groups. Human resource development also looks at the process of developing such groups and collectives to function better or transform themselves by acquiring new competencies. Although such competencies are acquired by individuals, there are competencies which apply only to a group. For example, the ability of a group to ensure that credit is available to its members from a rural bank and that the individuals repay the loan as per the understanding. Thus HRD focuses not only on the development of individuals but also on the collectives. The target groups for development can be many: doctors, politicians, businessmen, civil servants, fieldworkers, teachers, voluntary workers, rural leaders, farmers, unemployed youth, scientists, engineers, slum-dwellers, children, girls, illiterates, women, labor (skilled and unskilled), primary school goers, university students, etc. the target groups can be classified on the basis of their age, sex, current socio-economic status, past deprivation, profession, occupation, etc. some of these groups have well-developed HRD systems or mechanisms that are already in operation as a part of their respective sectors and/or government intervention. The teachers in most countries, for example, have a good system of preparing themselves for their roles and continuously updating their competencies. So are the other professionals like doctors and managers. Their efficiency and effectiveness could be improved through sectoral interventions, as well-stabilized sectoral institutions, departments and/or ministries exist to ensure their development and bring it in line with the needs of the country.

Some of the groups in a country have a strategic significance due to the multiplier effect their development has on others. Women and girls form one such group which is important because of the multiplier effect they have on the development of others through families. Women and girls have been found to influence the education and the well being of the entire family. Groups which have been deprived for a long time due to external factors are another important group for equity considerations. Similarly, unemployed youth and the poor also are important target groups - the youth, for the role they play in building the future of any nation, and the poor, for the impact they can have on the economy once they develop besides equity consideration. Development of the poor becomes a critical step for ensuring a sound economic development.

In summary, HRD should be treated as an integrated concept. It deals with the development of all people and is not limited to any one section or sector. It is important and equally critical for all sectors wherever people are involved and are required to make things happen. It is needed for all groups, but particularly the underprivileged; it is needed for the unemployed, underemployed, the employed and the self-employed; it is needed by the politicians, bureaucrats and intellectuals to play their roles better and more effectively; it is needed for running the governments effectively, for improving the effectiveness of various agencies and their services; it is needed for NGOs to be effective and play a strategic role; it is needed for mobilizing resources, community participation and involvement; it is needed for ensuring economic, scientific and technological development of nations; it is needed to ensure that people leave a healthy place of living for future generations. As discussed earlier in this hand-out, HRD encompasses two major undertakings; the inculcation of competencies and capabilities in individuals, groups and communities and, creation of conditions through ught, because it prompted managers and researchers to consider the psychological and social factors that influence performance.

4.2.5 The Human Relations Viewpoint

Human relations proponents argued that managers should stress primarily employee welfare, motivation, and communication. They believed social needs had precedence over economic needs. Therefore, management must gain the cooperation of the group and promote job satisfaction and group norms consistent with the goals of the organization. Another noted contributor to the field of human relations was Abraham Maslow. In 1943, Maslow suggested that humans have five levels of needs. The most basic needs are the physical needs for food, water, and shelter; the most advanced need is for self-actualization, or personal fulfillment. Maslow argued that people try to satisfy their lower level needs and then progress upward to the higher-level needs. Managers can facilitate this process and achieve organizational goals by removing obstacles and encouraging behaviors that satisfy people's needs and organizational goals simultaneously. Although the human relations approach generated research into leadership, job attitudes, and group dynamics, it drew heavy criticism. Critics believed the philosophy, while scientific management overemphasized the economic and formal aspects of the workplace; human relations ignored the more rational side of the worker and the important characteristics of the formal organization. However, human relations were a significant step in the development of management thought, because it prompted managers and researchers to consider the psychological and social factors that influence performance.

Chapter 5: Conclusion

5.1 Summary

Among all the resources possessed by the organizations it is only Manpower or the Human resources that create the real difference. Because all organizations can have the same technology, they can possess same type of financial resources, same sort of raw material can be used to produce the goods and services but the organizational source that can really create the difference is work force of the organization. Therefore they are the main sources of innovation creativity in the organizations that can be used as a competitive advantage. In today's competitive environment, these are the people which can create competitive advantages for the organizations. The world around us is changing. No longer can we consider our share of the "good Life" given. If we are to maintain some semblance of that life, we as individual, as organizations, as society will have to fight actively for it an increasingly competitive global environment. If organizations are able to mange its work force efficiently/effectively this will be beneficial for all stakeholders (Organization, Employees and Society). People will be interested to join any organization if it is providing them quality working environment, attractive benefit and opportunities to excel in future. Development is related to provide the opportunities for training and development to match the skills to job in particular areas. It requires careful need assessment for training and selecting effective training methods and tools. After attracting/selecting, Continuous development of workforce of the organization leads towards development of the organization. So that they will start playing their important role in the organization.

5.2 Conclusion

5.3 Recommendations

5.4 Suggestions for Additional Research