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Organizations today are under increasing pressure to find ways to operate more efficiently while retaining the ability to respond quickly to the changing needs and demands of the business environment. In the quest for innovative responses, there is a growing awareness of the importance of human resources (HR) and strategic human resource management (SHR).
Strategic human resource management is designed to help companies best meet the needs of their employees while promoting company goals. Human resource management deals with any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, and administration. Human resource may also provide work incentives, safety procedure information, and sick or vacation days. Strategic human resource management is the proactive management of people. It requires thinking ahead, and planning ways for a company to better meet the needs of its employees, and for the employees to better meet the needs of the company. This can affect the way things are done at a business site, improving everything from hiring practices and employee training programs to assessment techniques and discipline.
Companies who work hard to meet the needs of their employees can cultivate a work atmosphere conducive to productivity. Human resource management is the best way to achieve this. Being able to plan for the needs of employees by thinking ahead can help to improve the rate of skilled employees who chose to remain working for a company improving the employee retention rate can reduce the money companies spend on finding and training new employees.
When creating a human resources plan, it is important to consider employees may want or need and what the company can reasonably supply. A larger company can usually afford training and benefit programs that smaller companies cannot afford to offer. This does not mean that a smaller company should not engage in strategic human resource management. Providing specialized on-site training, even if provided by senior members of the company, and offering one-on-one assessment and coaching sessions, can help employees reach peak performance rates.
An important aspect of strategic human resource management is employee development. This process begins when a company is recruiting and interviewing prospective employees. Improved interviewing techniques can help to weed out applicants that may not be a good match for the company.
After being hired on, a strong training and mentoring program can help a new member of the staff get up to speed on company policies and any current or ongoing projects they will be working on. To help employees perform at their best, a company can follow up with continual training programs, coaching, and regular assessment. Investing in the development of its employees can allow a company to turn out more consistent products.
Purpose of Study
The Purpose of this report is to learn more about the Strategic Human Resource Management and describes the basic concepts and processes that guide organization to achieve success through people.
Objectives of study
To understand the important of human resource strategy.
To find out the features for human resource strategy management.
The report also investigates the relationships between human resources strategy and Organizational Performances.
· Organizational management
· Personnel administration
· Manpower management
· Industrial management
Strategic human resource management is essential in both large and small companies. In small companies, this may be as simple as the owner or manager taking a little time every day to observe, assist, and assess employees, and provide regular reviews. Larger companies may have a whole department in charge of human resources and development. By meeting the needs of the employees in a way that also benefits the company, it is possible to improve the quality of staff members. Taking the effort to provide employees with the tools they need to thrive is worth the investment.
The employment strategy in BK, known as BKS, emphasized achieving. results in terms
of meeting customer needs. It was implemented for employees at supervisor level and
above. This strategy was partly based on the assumption that organizational performance
could be improved by satisfying individual needs, promoting team effort and motivating
employees. It sought to do this by using a management by objectives approach, which
integrated a number of employee management policies and specifically related them to
business plans, and by providing financial incentives, such as bonus payments and share
option plans. The performance appraisal process was the central source of information
on which decisions about promotion, training, merit pay, career planning and counselling
were based. This process was intended to involve the employee in the determination of
objectives and the activities essential for the achievement of these objectives, and to provide
for their involvement in commenting on performance outcomes, ratings and career and
During the 1980s attention was paid to the development of employment strategies
and policies which served to promote the achievement of organizational objectives.
During the last ten years the important contribution of employees to improved organizational
and labour market performance has been explicitly acknowledged by trade unions, employers,
industrial tribunals and governments. Recent decisions of the Industrial Relations Commission
which provide for the re-evaluation of career paths, training and job classifications through
the Structural Efficiency Principle provide for the implementation of policies seeking to
improve the efficiency of employees and reduce turnover. Initiatives taken by the federal
government such as the enactment of the Training Guarantee Act also seek to increase
productivity of employees and employer commitment to employee development and training.
Employers have also unilaterally taken initiatives to improve employee performance and
reduce employee turnover. One method for doing this has been the adoption of a strategic
human resource management approach to employee management.
The strategic human resource management approach has a number of key dimensions.
It requires that human resource management be integrated with corporate strategic issues.
This integration has implications for the involvement of different parties in shaping the
framework in which human resource management policies are developed. As Miller (1991:25)
points out, decisions made at the most senior levels of the organization shape the corporate
and human resource management strategies and policies of lower levels of the organization.
It is argued that strategic human resource management is one of the ways organizations
can attempt to achieve strategic fit with their market environment. Miles and Snow (1984)
argue that corporate excellence is the result of organizational characteristics, such as
organizational structure, technology, culture, products and services. A number of writers
(Miles and Snow, 1984; Gospel, 1983; Kochan, Katz & McKersie, 1986) have highlighted
the importance of the relationship between corporate strategy, organizational structure, the
human resource management strategy and the structures providing for the delivery of human
human resource management strategy and the structures providing for the delivery of human
resource policies in creating a ‘tight fit’. Strategic human resource management provides
the means of developing fit by motivating and equipping employees so they are able to
work towards the achievement of the organization’s objectives (Collins, 1988; Guest, 1987).
The most important and valuable asset of an organization is manpower or human resource. Development of human resource is needed by any organization if it wants to succeed in the fast growing and fast changing business environment. An organizations performs and resulting productively and directly proportional to the quality and quantity of the human resource.
The process of human resource planning is one of the most crucial, complex and containing managerial functions. Organizations can proper and progress only through the creative efforts and competencies of their human resources.
So I have to plan a multi step process including various issues, such as…. and more…….
…..and more …to formulate the effective HR Planning, It is important to have mixture and perfective use of the human resource functions. Manpower planning involves identifying staffing needs, analyzing the available personnel and determining what additions and / or replacements are required to maintain a staff of the desired size and quality. It can be defined as “a strategy for the acquisition, utilization, improvement and preservation of an organization’s human resources”. HRP is a process of identifying human resource requirements in terms of quality and quantity.
Today the organizations are more dependent upon people. They are increasingly involved in more complex technologies and are functioning in more complex economic, social and political environments. As a result, the organizations face shortage of the right kind of human resources. HRP enables to get the right type of personnel in the organization….. and more…
….and more…Motivation of Personnel:
HRP is concerned not only with the identification of the personnel in terms of quality and quantity but it is also concerned with the improvement and motivation of the human resources. The organization would make every possible effort to have dedicated and committed personnel at all levels in the organization…..and more…
….. and more ….needs to monitor the requirements of personnel. This is because there is constant need for additional personnel, as some of the existing personnel do leave the organization due to registration, retirement and so on.
After the review of organizational strategies and objectives in the above manner based on the problems and need I’ll easily formulate effective HRP process. ….pls satisfy our terms and conditions to get to full version of reviewed answer
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YANG YANG 02187827 Managing Human Resources: Assignment “The benefits and drawbacks of devolving HRM to line managers” 21/01/03 no more than 2000 wards The development of the topic of human resource management (HRM) is now well documented in literature. Nevertheless, the focus of the debates relating to HRM is ever changing . Presently, an attempt is being made to identify the relevance of HRM to firms’ performance . One of the central features of the recent HRM debate is the importance given to the integration of HRM into the business and corporate strategy and devolvement of HRM to line managers instead of personnel specialists. We want to know the benefit and drawbacks of devolving HRM to line managers. The term “strategic human resources management” was an outcome of such a debate. It highlights the growing proactive nature of the human resource (HR) function, its potential importance to the success of organizations and the
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The major challenges of profitability and increased competition have made the HRM function more important to business success than ever before. Discuss. Respond your finding with examples.Introduction
Human resource management is more important in a changing environment than before. There are some challenges and changes, which have great impacts on organizations respective to human resource (HR) function behaviors. These impacts know as globalization, increasing customer’s expectations, transparent market, and human resource management (HRM) provides possibilities to make organizations more healthy and competitive. Where the firm may focus on cost for employee compensation and make conclusions on share services or outsourcings.We can say that, the function of HR units offers and increases some potential of organizations structure and some of human capital, globalizations, increasing information technology, enhanced customer expectations and the transparency of global markets that know as a main shift in a developing world.
To be more profitability in the challenging economy with a large competitors, TIMATCH SDN BHD have globalize their business where they explain that “Globalization is the terms used to describe the increased pace of economic and cultural interconnectedness between different countries.” TIMATCH SDN BHD had increasing the competition
depends on the developments of consumer expectations. Consumers await more performance and their needs are more difficult to handle. Moreover, consumer has more access to information and is more informed than ever before. The result of this changing knowledge is the customers anticipation has become stronger than ever before, where the market participants increased the competition because better product and services for more favorable conditions are offered. They know that HR can influence customers’ satisfaction and the performance of the company, where the HR activities as pay, communication, ensuring fair work conditions and others related activities, those activities have impact on the work behavior of an employee, and the employee conditions will influence the production and service process.A main reason of new transparent market is the information technology. Computer and mainly the internet are the fastest growing technologies in he present and one advantage through the internet for customer is that they can compare various feature of product easier and faster. In a transparent market consumers know that they can usually receive lower cost and higher quality goods and services.TIMATCH SDN BHD knows that to be more profitability, they reduce costs and increase potentials to be profitable and to exist in a fast changing market structure. The functions of HRM may contribute to a ‘healthy’ company development and one component to be profitable is to analyze cost structure and their cost drivers. HRM cost have to be measured, for instance almost 70 per cent of companies’ expenses can be spent on employment issues. Where the cost for recruitments, induction, training, compensation and benefits should be evaluated and compared to alternatives like shared services and outsourcing strategies. If cost is too high, a firm has to think about outsourcing the human
resource function. In that case shared service models help to minimize cost by cutting the costs for bureau accommodations in the organizations.By using the HRM function in staffing area, the issues of workers selection and continuous skill development, work design, equipment maintenance, process improvement, quality control and process reconfiguration are integral to the competitiveness of the water and steel industry. Increasing globalization of this mature industry will heighten competition between regions and countries for new, essentially mini-mill, installations and jobs. If high-paying jobs in steel are to be retained, and new jobs created, enterprises will need a workforce that is flexible and more competitive in terms of quality and quantity. The integration of HR issues into business plans has not been widespread and the sharing of information with workers is a relatively recent phenomenon in the steel industry in a number of countries. Similarly, the incidence of consultation and cooperation on technical change has been insufficient in the eyes of some trade unions. In countries where the unions have been strong and where the HR function has had little strategic importance in decision-making it has proved difficult suddenly to introduce radical workplace change without workers being extremely sceptical of “management gimmicks”. It is not until management demonstrates a genuine desire to involve workers and unions in decision-making that progress has been smoother and quicker, particularly when coupled with workers’ enthusiasm for new work practices that promised potential for greater autonomy and career advancement. But the unions’ response to work reorganization was often slow, at least initially. It was not a key issue for them until
employers began aggressively to pursue it, specifically employee involvement, job reclassification and consolidation, job rotation and teamwork. Many enterprises are developing new HRM policies that are an integral part of business strategy and long-term planning. Changes in technology, modernization and rationalization of manpower mean that each employee is responsible for a wider range of more complex equipment. This makes it vital to recruit people with relevant knowledge, skills, attitude and potential. These are the ones who can benefit from appropriate training. Rather than hiring according to narrow job specifications, employees who fit the strategy and culture of the organization, or have the potential to do so, are being selected. At the same time, performance-planning and appraisal systems, incentive schemes and training and career development programmes are being linked, with increased employee participation and more cooperative labour-management relations, so that the organizational changes required for a competitive industry can be achieved. In the highly capital-intensive and increasingly automated steel industry, the need for continued emphasis on human resource development is becoming as important as any other aspect of running a steel plant. Changes in the job requirements of production and maintenance workers, coupled with the introduction of new technologies and a greater emphasis on quality assurance and particularly in the light of the spread of ISO quality standards, have necessitated much greater emphasis on training, including more formal training of production workers. In the future, additional computerization of production processes and control will lead to increased demand for computer and numeric skills among those recruited to and promoted within the steel industry. Steelworkers in turn will
be more highly trained than hitherto, and be more likely to operate in multi-functional teams, performing a wider range of tasks and carrying greater responsibility for quality assurance. Attitudinal change, the optimal use of existing human resources by redeployment and multi-skill training, preparing employees for modernization projects, enhancing efficiency, safety and pollution control and quality improvement are the major targets of training. A variety of skills and aptitudes will have to be imparted and absorbed if the objectives of training are to be achieved. This variety reflects a combination of technical and systemic elements which point to a change in the function of the operator from the mere carrying out of set tasks towards having the capacity to master a work process in which the worker has to carry out simultaneous and alternate activities combining routine tasks, the assimilation and evaluation of information and unexpected tasks. To do this the worker will have to use this series of skills and aptitudes in a systematic way, having fully assimilated them. The criteria for fulfilling training objectives should not be the amount of training provided, rather they should reflect growth in steel output and labour productivity. But, without evaluation and follow-up, it is not easy to find out whether and to what extent the additional investment of time and other resources had led to new skills or increased performance. New investment, sometimes in conjunction with new ownership, has been the engine of change in many steel plants. Also important are a set of related changes in quality, work organization and skill. Six integrated developments are relevant here: devolution to single business units with related changes in management status and function; total quality
control; new technology; the move from seniority to competence-based job structures; broader but more specific job classifications and descriptions; and related skill formation activities. The significance of these developments is only apparent in the context of steel industry traditions of hierarchical management, production driven systems, low automation, seniority-based job structures, narrow skills and skill acquisition through experience. These were the hallmarks of steelworks for generations. Although some changes to managers’ and steelworkers’ jobs started nearly 20 years ago, many did not occur until much later. The late starters have required large step changes in work organization rather than taking an evolutionary path. Changing work practices are the latest in a series of initiatives to increase productivity through work reorganization. Multi-skilling and teamworking have had the greatest effects. After a lifetime of rigid occupational structures based on semi-skilled production workers and skilled maintenance workers, the steel industry has done away with many single-skilled occupations, such as welders, boilermakers and bricklayers. Skills made redundant by computerization are being replaced by a need for computer and diagnostic skills. Greater functional flexibility has been the death of demarcation and skilled workers are now multi-skilled. With the arrival of microelectronic technology, work processes began to change, shaking the foundations of traditional work organization. Historically, on-the job-training had been central to most core production processes in the iron and steel industry. Senior foremen who controlled workforces of several hundred workers, had moved through the traditional hierarchy of classifications which would have been recognizable to a nineteenth century steelworker. The non-trades hierarchy was mirrored by that of the
skilled trades, each with its own set of traditional practices and benefits as workers moved up the ladder. New technology, with its requirement for precision, overturned these traditions. For example, where the temperature of steel or the amount of alloys to be added had previously been gauged by rule of thumb, computer technology offers greater precision but demands different skills. The owners of these new skills are both technically educated and trained on the job. The internal labour market based on seniority and on-the-job skill acquisition gave way to job structures based on competence. Fewer promotion possibilities with a shrinking of classifications and grades means that progress must be marked in another way, such as through obtaining higher levels of skill and acquiring more autonomy. Rapid technological change means that experience is no longer the best criterion for selecting workplace supervisors where training, qualifications and adaptability are often more relevant. Having already made large cuts in the workforce it is necessary for management to look harder for further rationalization. Making fuller use of a worker’s time and having groups of workers become more self-supervised and take more responsibility (e.g. for quality inspection) has led to further savings in employment. An added benefit of having workers more responsible for the quality of their production is the savings arising from not having to re-work material that failed to meet quality standards. Accompanying the focus on customer relations and service is substantial investment to deliver higher quality output. New technology has not only improved quality, it has also eliminated many dirty and arduous tasks, reorganized the way work is done, reduced the number of operators needed and changed the nature of the workforce. An increasing
proportion of workers became responsible for operating costly equipment at the same time the market demanded improved quality. As facilities and equipment becomes more advanced, production becomes more dependent on their condition. Consequently, work teams must be well-versed in process logic, diagnosis and mechanics. The maintenance function of work teams can be critical to their successful operation of complex processes. Along with team work, job rotation, greater employee involvement and responsibility, employment security and broader jobs, work reorganization needs to include good job design and extensive training and retraining opportunities. Workers are seeking more authority, not just extra responsibility; opportunities to learn more skills, not just to perform additional tasks; and more mobility in the workplace, rather than just being moved around. That new work organization has been widely and successfully implemented at many steel plants is often a tribute to the extent of labour-management cooperation from the start of the process. The human dimension is the key to the future. Technical advances are short-lived and new procedures are developed at an increasing rate. Managerial demands for higher quality, commitment and flexibility are often being pursued against a background of job insecurity in the industry. Successful steelmaking in the 21st century will depend more than ever on an enduring but responsive and flexible partnership between the enterprise and its workforce. The loyalty of the workforce to the goals of the enterprise and the competence and determination they show in achieving them must be matched by a commitment from the enterprise to increase the skills, responsibility, authority, job-satisfaction and job security of the workforce. In the long term, management may be best
able to secure increased commitment and flexibility by linking its demands to guarantees, such as no compulsory redundancies within a given period. The introduction of such exchanges could extend the degree of labour-management reciprocity.
As had been show by the TIMATCH SDN BHD using the HRM function to cope with the challenges in being more profitable and increased competition, its show that the HRM function are more important to them, where they using the HRM function to archive and drive them to their goals by planning, organized, staffing, leading and controlling
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