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Human Resource Management has always played an essential role for organizational growth and serves for innovation and flexibility. For an organization to improve its business performance and develop organization culture, need to have a better alignment of strategies and policies. Ignorance in the matter of well structured business strategies and planning will increase in poor performance and instability. It has been proved that Human Resource is the critical factor in a business organization for its development and performance. It can bring culminating success or cause threat to the organization's goal. To achieve firm's target it is the responsibility of an organization to have well planned and organized strategies for Human Resource Management which will not only help improve its stability, performance and development but also enhance its flexibility and innovation which will help in improvement of organizational culture and fulfillment of strategic goals of the organization. In the present competitive business market a firm has to have competitive human resource (staff and employees) to achieve the competitive edge over others. They have to look for the safety, stability, development and continuity of their human resources.
One of the factors for implementation of sustainable development also points the importance of Human Resource management. The growth of organization and its strategic goals can be improved by better workforce. The major Human Resource Management stages like recruitment, training, selection, orientation, development, performance appraisal and human resource planning can be a mode of entente between organization and workforce. This will enrich both workforce development and organization benefits.
The function of Human Resource Management enacts the major barrier for achieving goals and objectives of an organization. The organization culture also has been a major factor for uplift or downfall of the business process so a well planned strategy with keeping view of human resources and organization culture will entitle better performance and development and will give beneficial innovations and flexibility in workforce. In the past human resources has been referred as a capital or use of technology but in present trend is identified as source of gaining the competitive advantage in the business market. Boxall and Steeneveld (1999) argued that there is no need to prove any relationship between organization performances and its human resources since it is self-evident that human resource management has a firm influence on the organization performance. The various Human resource management functions enable the organization to keep a clear view of developing an organization culture to fulfil its business strategies goals along with employee benefits with maximum involvement of the employees in organization processes which will encourage the employees for innovation and improve flexibility in the workplace.
Human Resource Management functions and its benefits to organization as a whole
The strategic implementation of human resource management will not only enables in development and maintenance of human resource but also gives a wide area of benefits to the organisation in achieving its strategic goals and develop a strong organization culture .The human resource management functions will enable a brighter side of innovations and flexibility in the business process and its management in an organization.
3.1. Work design in diverse workplace
The organization must design proper workforce management strategies to achieve its business goals according to the existing diverse workplace. The organization gets the federal base by interacting and relating with the community which can yield a competitive advantage over acquiring competitive and skilled workers. "When aligned with organization culture, diversity plays an important barrier between organization and employees for achieving the competitive edge" says Dr. Edward E. Hubbard (1997). The organization by designing the workforce requirement and their availability and proper planned way of its recruitment and utilisation can make more profits and efficient performance in its business strategies.
For example: The requirement of recruiting staff in Galway Bay hotel in the last few years had become a major concern for the organization because of the diverse workplace, but expansion of European union and maintaining proper relationship with various overseas colleges has given a way to Galway bay hotels to hire a group of fresh talent and skilled workers which has been delivering a profitable boost to the organization development. The company now has skilled and competent employees from 12 different nationalities. By providing proper training and equal opportunity for growth to the employees has not only given a unique recognition to the organization but also has solved its struggle for skilled staff shortage. The innovation and flexibility can easily be determined by the approach of this organization with their staff development techniques. They originally recruited staff for non-frontline positions because of the lack of fluency in English language but after counselling and training the staff, they have given the opportunity for them to develop their individual skills and capabilities which now enables them to move to higher position in the organization with higher wages and improved personal skills. This has made the organization to enrich their staff dedication along with fulfilment of the organization requirement. The company also is benefited of learning different business strategies with the help of diverse workforce who has different experience from different countries which is pivotal for better and effective utilisation of their workforce to fulfil the needs of their customers. In the hotel management where customers are of different origins and different places who has got different traditions and needs has been given effective service with the knowledge and skills of their diverse workforce.
3.2. Attracting and retaining talent
An organization in the present business market has to have skilled workforce to get the competitive edge. For this purpose they have to attract and also have to retain talent. The present risk of falling behind in the competitive market due to human resources has given a clear intention to the organization to hire the best talent and skilled employees. The organisations have now realized the importance of hiring better and skilled workforce who are more capable of maintaining and achieving the objectives of the organization. The organisation has to attract and recruit the best out of best employees in their business cycle in order to achieve the best possible results. The organizations in present trend are spending more on research, time effort and money to get the top-notch workforce since to achieve fully strategic plan towards the business goals. They want to have enthusiastic, dedicated and skilled workforce to execute their plan in reality. To execute a plan in reality the organization has to retain their workforce. They need motivation and dedication in their workforce. Today's workforce is more demanding and they want their fare share for the job they are hired for. They know how worth they are and they know where they can get their share of compensation apart from this they need job security. They are not just looking for job or pay check but are more demanding
In terms of meaningful work, challenges, expectations, work appraisal and ongoing training and development for achieving more skills and improve work experience. The organization are becoming more concern about becoming choice employers by adapting different human resource strategies like organization culture development, fair pay for the job(equity), strong corporate image, high health and security benefits etc. these are the ways adapted to attract the applicants for the organisational growth and development. The organization has make the employees feel proud to what they do and for whom they do these tends to achieve dedication and loyalty in the corporate world of business which increases the efficiency for acquiring strategic goals and organizational development.
The steps to be considered in order to attract and retaining talent to achieve the strategic goals and organization culture for efficient business performance
Positioning and gaining benefits as choice employer.
Developing organization culture where the employees are willing to work, develop and give their best. In general complete job satisfaction and motivation.
Lower the turnover rate and maximizing the utilization of work force.
Proper approach to the employees need and benefits in order to find the best talent and keep them remain with the organization.
Example: Most of the Indian companies are giving more stress on attracting, developing and retaining talented employees. These companies give large scope of retaining procedures that include employee stock option plans (ESOPs) one of the companies is Templeton Asset Management (India) which introduced such programme which enabled the organization to overcome depreciation problem among employee recruitment. They introduced these to attain retention of best talents by making employees feel the ownership at the time of employee's depreciation.
3.3. Selection, Training and Development
In the competitive business market most of high level organization are taking important measures and have advance techniques in their Selection, Training and Development process. To get the competitive advantage over others the company really needs to focus the employee's selection and to get best out of them they need to imply most of the modern and advanced techniques of development and training processes this will ensure proper functioning and increase the organization performance capacity. The organization has to be keen on the selection process so as to maintain its reputation and dignity which will enable its future aspects of development and proper functioning. They have to select the right person for right on the grounds where there should be equality and no gender bias and have select on basis of right person for right job .They have to reduce the conflicts and chaos on the selection processes. Many of the organizations are following various selection methods to ensure they choose the best an appropriate human resources according to job requirements which will not only bring the organization to good standard and reputation will ensure the right track for achieving its strategic goals and improve its business performance. The selection process are of two types (1) Internal selection and (2) External selection. In internal selection you can select the existing staff on the basis of job description and requirements which will help recognition of employee skills can also make a regard or performance appraisal methods.
The selection process ensures
Minimize the discrimination.
Right person for right job.
Test the candidate skills and knowledge.
Training and development process will entitle a bridge of consequent correlation between organization management and employees it always ensures that both keep intact with each other for any business to develop and fulfil its goals there should be mutual coordination between the management and their workforce. The coordination gives a boost to career development, innovations and stability. Employee training can be (1) Internal training and (2) External training. Training and development can more powerful if done with the feedbacks from the group of employees as trainees and from trainers who can be internal staff of can be hired from other agencies for training and development processes.
The employees training and development enables
Improving the knowledge and technical abilities and capabilities.
Example: Cisco systems one of largest company in making of internet services has taken a firm decision in investing $750m in its global research and development branches in India where it has around eight different branches and around 1400 people working in its organization but according to Cisco India is a country where low-cost English speaking workforce is readily available and if the company works on its staffing, training and development will enable overall growth of 30% in its annual revenues in India over the next three years.
Example: Hotel chain Red Carnation reduced which has its unique recognition for training and development processes has reduced its labour costs by 50% by providing proper training schemes which ultimately saved 0.5 millions of pounds which would be spent in various recruitment processes. Liz McGivern of hotel chain red carnation introduced 'Ambassadors in Management' AIM for training and development for the managers, supervisors and various heads of the departments to ensure reduction in labour turnover and retaining its star status level.
Example: Novotel is one of the Europe's largest hotel chain industries having got twelve internationally renowned hotels owned by Accor. They introduced drama-based-training before opening of their four of their major projects called as 'new generation hotels'. Their major concerns was about giving training to their staff in providing excellent customer service in handling, complaints and their staff professional behaviour appearance and maintenance. The program rally gave the required motivation and skills in their staff which gave Novotel the competitive edge in achieving business goals for its 'new generation hotels'.
3.4. Performance appraisal
This human resource function enables the track record of performance of the employees and organization. It provides the basic knowledge to the organisation and employees of their standard and enables various trends of improvement in their business levels. Performance appraisal enables the employee their reward and benefits and keep them motivated and loyal to the organization. It enables individual and organizational expectations and brings about the strengths and weaknesses of both employee standards and organization standards. Performance appraisal provide employee with job satisfaction. According to Carl Heyer "It is the process of evaluation of the performance and qualification of the employees in terms of the job for which he is employed, for purpose of administration including placements, selection for promotion, providing financial rewards and other action which require differential treatment among the members of a group as distinguished from action affecting all members equally."
Organizational goals due to performance appraisal
Maintenance of performance history for present and future decision making.
Prepare future objectives more clearly and efficiently
To ensure future promotions.
To ensure loyalty among employees.
To improve their brand status and dignity.
Meet the legal requirements.
Example: McDonald's a well-known brand in chain of fast-food restaurants. Its reputation in fast-food restaurants is unique its recognition came from its fast service and customer satisfaction. First opened in October 1974 in UK restaurant chain which has got around McDonald's takes equal responsibility in its Human Resource Management it ensure proper selection, training, development and performance appraisal standards it has got 400,000 employees(2008) and has got net income of $4.31 billion (2008). Most of the top management body of McDonald's are the employees hired on hourly basis pay scheme but after getting matured and nourished in the firm as on performance appraisal standards are promoted and rewarded .it is purely on their ability, skills and experience they have been promoted to the top notch levels as a reward towards their dedication and loyalty. This type of performance appraisal schemes keeps high level of motivation and dedication in the employees which gives the organization to improve and maintain its standards at high and always helps to achieve the business goals more efficiently.
These human resources management functions if handled in proper way can yield good benefits to human resource standards and organization benefits but if handled carelessly can make adverse affects
Adverse effects of mishandling of Human Resource Management functions in real time
If the human resource management strategies are taken with improper decisions or mishandled can raise various threats to the organization functioning. If this decisions are taken as an authority without proper involvement from the employee level and the decisions are taken by few management team members or staff at only higher levels will cause various business level problems which will bring up various levels of dissatisfaction and malfunctioning. Some of the adverse effects within the organization are
Reputation at risk.
Inter departmental conflicts.
Inequality in workforce, problems for diversity concepts.
Oppose to change.
The strategic human resource management is becoming one of the powerful tool in empowering both organization and employees benefits. It makes a better relationship and understanding between organization and employees. It not only strengthens their relationship but will also generate new ways of innovation and flexibility in the organization culture. It removes various concept of old traditions which shows organization benefit and only money making concepts but adds new concept of overall benefit of both organization and employees it gives the organization and the employees a competitive advantage of improvement and betterment. It ensures smooth functioning and better performance of the organization as a whole. As mentioned above most of the developed and big multi-national companies are giving great importance to strategic human resource management in corporate and as well as lower group level of the organization to get the competitive edge and enrich their business goals and improve their organization culture with giving proper importance to human resources management strategies and policies. The strategic human resource management policies such as selection, development, training and rewards has already gained its importance in present era which has developed so vigorously in the corporate world and shows more growth and development in coming years. Which not only ensures human resource safety and integrity along with organization to achieve their strategic goals more efficiently and also improves the organization culture and brings more innovations and flexibility in organization functioning.