The Role And Importance Of Human Resources Commerce Essay

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In Human Resource Management (HRM) Recruitment, selection and motivation process is one of the most important factors that facilitates the growth and success of an organization. Recruitment and selection of the wrong people for an organisation can lead to increased labour costs, increased labour turnover, and moreover it could lower the morale of the existing employees of the company. On the other hand motivation can increase the longevity of staff into organization and increase the productivity of the organization. For that reason HR need to appoint those people who are eager to work with their best and give them training and motivation for success of business. To do this organization need a successful HR role and strategy that they can provide adequate assistance, motivation and training to staff.

The purpose of this study is to develop a model defining the role and importance of Human Resource Strategies of an organization in keeping its staff motivated. To fulfil this, it is necessary to discuss the history of HRM, change from personnel management to human resource management and how this HR department can keep the staff motivated into the organization. This chapter defines the nature & scope of research, background and importance, structure of the project or study and the purpose of research.

This research have also been discussed the backgrounds of personnel management and human resource management, existing business organization, structure of organization, change from personal management to human resource management. The aim is to determine what changes need to be done to the existing human resource management and define the role of human resource management within the organization.

Nature & Scope of Research:

The research will determine the different period changes of HRM, its role and various challenge into an organization. The implementation of the program that directed by this challenge will be discussed in this report. This case study based research will also gather coherent data from different secondary source. Different stage of HRM into an organization will be discussed.

Research Background:

The aim of this research is to analysis the historical change of Human Resource Management format in different period, to analyse the role and importance of HR strategies in keeping staff motivated. The research have been discussed the very beginning format of HRM which was the Industrial welfare and stated as an act in 1883. In nineteenth century HRM, how it was working in the organization and what were their activities in organization. As well the 20th century's modernization histories have been discussed in this research report. Due to the successful of modern science, people started to use latest technology in the organization for achieving their goal. Where the HRM made important role and strategy for use this technology to success. The latest concept of HRM is Human Capital Management (HCM). It is not mean that the people as an economic unit, rather it is the way of valuing the benefit of people bring into the organization. It is the way of using the talent of the people into business for getting more benefits.

During conducting this research most of the data have been collected from secondary sources. The sources have been used are different website, books, online, library, class note and journal. As an example of HRM procedure, researcher has collected some primary data by a short interview of a member of staff of HSBC bank plc from 40-24-10 branch. All the information sources mentioned in the reference list as detailed.

Purpose of the research:

The purpose of this study is to develop a model defining the role of Human Resource Management of an Organization which is keeping its staff motivated.

This research has been emphasised on the function of recruitment, training, motivation and development.

The main purposes of this research are:

To find out how the HRM of an organization motivate the staff to increase productivity.

To find out the impact of un-motivated staff into the organization.

To analysis the effective strategic contribution of HRM of an organization.

Analysing the total human resource activities into an organization.

Importance of the Research:

The importance of this research is to gather knowledge on HRM past form and how it converted to present situation. To find out the present strategies of HR into the organization, that how it working? What are the strategy this department following for success of the business? What are the motivation procedure follow by the company for its success? Impacts of unmotivated staff into the organization have been discussed.

Structure of the Project / study:

This research report has been conducted on the basis of secondary data and some primary data. Structures of the project are as follows:

Chapter 1 has been discussed the basic concept about HRM, background, importance and purpose of research

Chapter 2 has been discussed the HRM and its new paradigm, organizational concepts and structure, employment cycle, human capital and knowledge management.

Chapter 3 has been analysis the methodology of this research

Chapter 4 has been discussed on result of the research and

Chapter 5 has been discussed on findings and recommendation.

Chapter- 2

Literature review

2.1 Introduction:

In this digital information age the organizational focus has changed from physical to intellectual. The key points for success of organization are knowledge, skills and technology. Organization need to use this valuable asset in technically. For success of organization in this modern time it is very important to concentrate on intellectual assets, means human. Because, within limited financial assets, if the organization can use intellectual asset then they can quickly reach their goal.

According to Beer et al., 1984, "All management decision and action that affect the nature of relationship between the organization and employees - it is human resource".

According to Lipiec 2001,

"Human Resource professionals basically deal with such areas as employee recruitment and selection, performance evaluation, compensation and benefits, professional development, safety and health, forecasting, and labour relations as well as management of diversity, job analysis and job design".

So HRM is the process of labour cycle and a relationship with management for taking the decision to recruit people, performance evaluation, benefits and compensation and the diversity of management with different issue.

2.2 Background:

Due to change in economic and social activities of an organization, Human Resource Management changes its format in different time. Industrial welfare was the first concept of HRM. In 1833 there was an act stared that the factory supervisor must be a male staff. In 1878 another act was passed that child and female work hour would be 60 hours per week. Beginning of 20th century industrial welfare workers formed an association by the name 'Chartered Institute of Personnel and Development'. During 2nd world war all the organization focus was on recruitment, selection and training, improving motivation, discipline, health and safety and wages policies. On that time this Personnel Management concept formed. During 1990 modern organization people stared uses this Personnel Management concept as a Human Resource Management. Beginning of 21st century, e-commerce and m-commerce brought another concept of HRM which is Human Capital Management (HCM). This concept is that the organization will use the human skills and talent by providing modern technological training, motivation to achieve their goal dramatically. The successful activities of HCM will increase the productivity of an organization. []

2.3 Personnel Management and Human Recourse Management

Human are the main assets of an organization. To do the business transaction, communicating with the customer and media, managing accounts etc. could not be possible without people. Now a day's organizations are continuously changing. This change impacts not only to the organization but also to the employees. In order to maximise the effectiveness of the organization HRM must have to ensure that the employee are capable to meet the goal of the organization.

According to Gunnigle et al., (1997), 'people are the lifeblood of an organization'. It is very difficult to manage human of an organization: it means dealing with the people who is differ physically or psychologically. However, there are two labels of people management we can see, one is Personnel Management and second is Human Resource Management.

According to Gunnigle et al., (1997) the main activities of personnel management are as follows:

Strategy and Organization

Employee resourcing

Employee development

Reward management

Employee relation and

Employment and personnel administration.

Personnel management in Britain has its roots in industrialization of the latter half of the 19th century, when the welfare workers were employed to meet the concerns of paternalistic employer for their worker. The term 'Personnel Management' came into use during the Second World War. The objectives of the Personnel Management was the maintenance of those relationships on a basis which by considering the well being of the individual which include, methods of recruitment, selection, training and education, terms of payment and working condition.

According to Armstrong (2003), Personnel Management is "to obtaining, Developing and Motivating employees and making best use of their skills".

Some scholar says that 'Human resource Management' is just a grander term for mundane function, representing 'old wine in new bottles'. Others argue that HRM reflects the fundamental shift in employment relations, made necessary by change in organizational environment. Many organizations view is that employees are their most important asset.HRM appears to represent a distinctive approach to managing that asset. [2]

Late nineties, due to increase the competitive pressure into the business, increase the globalisation and generally harsher business environment, HRM dramatically changes its function which increases the business activities and productivity smoothly.

HRM can be defined as a part of management concerned with:

All the factors, decisions, principals, strategies, operation, functions, activities and any kind of methods related to the management of people as an employee in any kind of organization.

Every activities related to people in their employment relationship, and

Adding value to delivery of service and to the quality of work life for employees. [].

HRM is the strategic and coherent structure to the management into an organization. It is most important asset. The people who working there individually or collectively contribute the achievement of objectives of the organization. The term HRM and HR have widely replaced the term of 'personnel management' as a description of the process involved in managing people in organization. So finally we can say HRM means to recruit the people, improve their capacity providing proper training, utilize their talent giving time to time instruction, Motivate them following different way, maintain their service in tune with the requirement of the organization.

By comparing with Human Resource Management and Personal Management, we can see that HRM is the achievement of organization which gives the strategic solution. On the other hand Personnel Management gives the short term solution of the organization.

According to Armstrong, (2003) defined HRM as "a strategic approach to the acquisition, motivation, development, and management of organization's human resource".

However, HRM is found on the idea that an organization includes it with the top level corporate strategy in long term view.

2.3.1 Transformation of personnel management to Human Resource Management:

According to Gopinathan Thachappilly (2009):

"Personnel Management was focused on employment contracts, disciplinary issues and compensation. Human Resource Management sees employees as high-value business resources".

As the above definition we can say that Personnel Management area was very limited in work place. This department used to do the service contract, follow the organizational rule for discipline and compensation. Modern technology thought they will use this human as an asset of the organization by using their knowledge strategically in different sector. HRM is the strategic approach to the management of an organization. It is the largely replacement of personnel management. Traditionally personnel management viewed organizational culture and leadership as issues concerned with organizational development, whether Human resource Management highlights the responsibility for managing organization culture and leadership issue. Personnel Management initiatives is a piecemeal and HRM is integrated.

Comparison diagram between PM to HR.


2.3.2 Human Capital Management:

Human Capital Management is the modern version of Human Resource Management. Strategically people need to be use in the organization for achieving the better outcome of the business. Now a day's human resource are dramatically shift to the globe. The influence of technology effectively caused industry leaders to change their focus from less skilled worker to highly skilled worker throughout the globe. This is the tactic for them who manage the Human. It is necessary to nurture the people by educating and developing their technological skills instead of gathering up huge workers and sending them off the field or industry.

Human Capital Management is the idea that emphasize to people is the most fundamental assts to a company and is focused on the right kind of people to get done the job. The idea behind HCM is first and foremost the transformation of a worker into a resource that is competitive. For success of business HCM needs to focus their modern technology and HR software for introduce the right talent in right time into right place. [5]

2.3.3 The Organization and its structure:

Organization is two or more people get together and agreed to co-ordinate their activities to achieve their goals. Every business has some problem when they start business at the first time. The main problem of the organization is structure. This is deferring company to company. All institutes in the world keep on changing their activities as well as structure of the organization in support of modernization.

The following definition developed in 1969 at the time when the organization was considered to be much like a stable machine comprised of interlocking parts.

"Organization development is an effort planned, organization - wide, and managed from top, to increase organizations effectiveness and health through planned interventions in the organization process- using behavioural- science knowledge".

(Beckhard, "Organizational development: Strategies and model", Addison wesly- 1969 p 9)

As per Cummings and Worley, "organization development and change" sixth edition, south western publishing, 1997, p2.

"Organization development is a system wide application of behavioural science and knowledge to the knowledge to the planned development and reinforcement of the organizational strategy, structure, and process for improving an organization's effectiveness". [7]

Structure, it is the formal system of task to achieve the goal of organization. Organizational structure is necessary to encourage the staff for hard work, to develop the work attitude, allow the staff to co-operate and work effectively.

Organizational structure affects:

Staff behaviour

Staff motivation

Performance of the employee

Increase the team work and their co-operations

When the management of an organization take decision about their employee to behave, what attitude needs to encourage, it can design its structure to encourage the development of the culture values to obtained desired goals. Organizations structure and culture determine by the Environment, Technology and strategy.

We can classify the organization structure into three which are as follows:

Functional structure

Divisional structure and

Matrix structure.

1. Functional Structure: A group of people work together to perform similar set tasks. Perhaps it is the most common model in the organization.

Advantage of Functional Structure:

Easy communication among the specialists

Quick decision making

Learning system from superior

Performance evaluation for supervisor

Creates teamwork

Create a career ladder.

Disadvantage of Functional Structure:

Service needs of all products


Service needs for all regions.

Diagram of functional structure:


2. Divisional Structure: Divisional structure that overlays functional groupings allow an organization to coordinate intergroup relationships more effectively than functional structure.

Advantage of Divisional Structure: Advantages of this model are as follows:

Quality product

Better customer service

Facilitates communication

Customized management and problem solving

Good team work

Facilitates decision making

Clear connection between performance and reward

Customized service

Identification with division

Disadvantage of Divisional structure:

Operating and managing cost is high

Less communication between the division

Conflicts among the division.

Divisional Structure of organization


3. Matrix Structure: This is the very complex form of an organization which is use to control their activities results in the matrix structure. In practise, the employees who are the members of the product teams in a matrix structure have two bosses, one is functional and another is product boss.

Advantage of Matrix structure:

Continuous development into production

Communication and co-operation increase between the team members

Creativity and innovation

Face to face problem solving

Easily manage the change of members in product team

Disadvantage of Matrix structure:

Conflicts increase between the department

Work stress is too high

Few opportunities in promotion

Model of Matrix structure are as follows:


General opinion on organization and its structure: All the organization and its activities run by the people. Depending upon the activities the management fixed its structure to achieve goals. To facilitate its activities all large organization creates HR division, which hold responsibility for support in different division by providing manpower. As far structure HR division manage people by recruitment. To get benefit HRM use their skills by providing proper training. When organization expect more benefits from employee then they try to motivate them in different way like, promotion , incentive, holiday, best environment at work, transport facility etc. only Human Resource Management role of an organization can motivate employee to increase its productivity.

2.3.4 HR Policy and Strategy into Organization:

HR policies are to ensure that Human resource management dealt consistently in line with the values of the organization on how people should be treated, and that that legal requirements are met. The overall HR policies are how the organization fulfils its social responsibilities for its employees.

According to Selznick (1957), enterprise

"The formation of an institution is marked by the making of value commitments, that is, choices which fix the assumptions of policy makers as to the nature of the enterprise, its distinctive aims, methods and roles."

The values expressed in an overall statement of HR policies may explicitly or implicitly refer to the following requirements:

Consideration for decision making


Improve quality of working life

Organizational learning for promote

Performance through people

Respect as human being

Safe working condition.

In different way or same way values are supported by many organizations. These values are practised when making 'business-led' decision.

The specific HR policies are as follows:

Age and employment terms condition deal which include limit of age, limitation at work, responsibility, payment, promotion, punishment, etc.

Deal with hygiene and safety insurance policy of staff

To make sure that bullying will not be tolerated by the organization and those who persist in bulling their staff will be subject to disciplinary action.

Disciplinary policy should state and follow that the employees have the right to know what is expected from them and what could happen if they violate the organization rules.

Diversity management policy.

Acknowledge cultural and individual difference in the workplace

Emphasize the needs to eliminate bias in such areas as selection, promotion, performance assessment, pay and learning opportunities.

The employee's development policy could express the organizations commitment to the staff.

Employee's relation policy set out.

Employee's voice policy spells out.

Employment policies which are promotion, redundancy, reward, sexual harassment, substance abuse etc.

Equal opportunity policy

Health and safety policy fixed

2.4 Employment cycle:

HR department of an organization is responsible for proper use of employee. It depends on their capability that how the department use these peoples to reach their target. It is very realistic and we understand that when an organiser or owner decided to start operation of a business he/they must needs the people to achieve the goal. For success in their goal they need to use this human strategically. Human Resource Management performs this job properly.

Employment cycle is the systems of an organization controlled by the HR division to recruit the people, give them proper training to get done the job, as far their skill and expertness promote them, for fulfil the target of organization staff need to work amiably and for that they need motivation. Motivation is the most important and major part of the organization to success the business, which have discussed below in this research. Termination or retirement is the last step of employment cycle. All steps are discussed below:

2.4.1 Recruitment Strategy:

To fulfil the organization target they need people as employee. For that reason most of the large organizations follow some specific criteria to appoint the people in organization.

According to korsten 2003, and Jones et al 2006,

"The recruitment process could be internal or external or could also be online and involves the stage of recruitment policies, advertising, job description, job application process, interviews, assessment, decision making, legislation, selection and training".

Recruitment is the most important part of the management. Improper recruitment can create difficulties for any organization even can create adverse impact on profitability. Inadequate recruitment can lead shortage of staff, create problems to taking management decision. []

During the time of this research some data have been collected from HSBC bank at Henley-on-Thames branch (40-24-10), regarding their recruitment. The different steps of recruitment of HSBC bank are discussed below:

Step 01: Applicant need to apply online by completing some questionnaire: This system allow them (HSBC) to see the candidate personality, skills and aptitudes will fit well into their chosen program.

Step 02: Online numerical and verbal reasoning tests: These are the standard ability test to see how the candidates use their numerical and verbal reasoning skills.

Step 03: Telephonic interview: The concern authority will ask some question to the candidate that how he / she will handle a variety of challenging situations.

Step 04: Mini assessment centre: A series exercise designed to discover how you work with others and resolves the problems.

Step 05: Graduate assessment centre (half day): At the end of candidate internship or placement they may invite the candidate to complete the graduate assessment centre, give him chance to secure a place on the candidate chosen program before their final year.

After analysis the HSBC recruitment policy it was noticed that the company followed the Fraser five - point plan. He said that before specification a person as a staff, company need to justify the candidate's qualifications, brains and abilities, motivation, adjustment and impact on others.

Roger's seven point plan for person specification for job is physical makeup, attainments, general intelligence, special aptitudes, interest, disposition and circumstances.

HSBC recruitment policy was that they follow Fraser policy and Roger's policy. [12]

2.4.2 Training Systems into Organization:

Training is the planned and systematic modification of behaviour through learning events, programs and instruction which enable individuals to achieve the level of knowledge, skills and competence to carry out their work effectively. Training mean the development of the staff in working area, training means to achieve more knowledge, trainings means increase the expertness, skill and increase the activity power in the respective area. It is the limited time or period for a certain level.

HSBC, in different countries in the world there are different training centre or there are regional training centre. In different country HSBC have their own training team who conduct training by the instruction of country director or regional in charge. As an example in Thailand they conduct training by their dedicated training team as well as trainers from there learning and development centre in Singapore and Hong Kong. In the United Kingdom employees also take opportunity to share the best practices among their colleagues during training held in their many overseas centres in the world.

HSBC training processes are as follows:

Classroom training

On-Line training

E- Library

Business education program

Monitor programme

International Assignment etc. []

2.4.3 Motivation system into Organization:

According to Dr. Wolfgang Seidl (executive director- validium Group) 'Happy employees are more productive, friendly and successful at work. This is not just positive psychology, 'it is scientific fact.'

As recognition of better performance at work, staffs needs motivation for speed up their job. This recognition could be a promotion, incentive, increase salary, transport facility, medical allowance, paid holiday, increase power at work and responsibility.

According Frederick Winslow Taylor (1856-1017), "workers are motivated mainly by pay". His theory of Scientific Management argued that workers do not naturally enjoy work. They need close supervision and control. So manager should breakdown their task. Then manager should give them training and tools, so they can work efficiently as possible on one set of task. So workers should pay as time piece rate. As a result workers are encouraged to work hard and maximise the organizations productivity.

Advantage of Taylor theory:

Increase the productivity

Lower production cost per unit

More control on staff

Easily fulfil the target

Timely finished the job

Supply as possible as market demand

Era of mass production.

Disadvantage of Taylor theory:

Autocratic management style, because decision comes only from top level.

There is no value of workers opinion.

Limited time frame.

Workers are being treated as machine.

Researcher criticisms on Taylor's motivation theory are that it's only given the workers stress, boring, same work all the time. Due to autocratic systems into management the organization lay off the workers when its productivity gone high. Workers lay off create the dissatisfaction into the existing employee and that creates the impact on future activities of the companies.

According to Elton Mayo (1880-1949), "workers are not just concern with money but could be better motivated by having their social needs met whilst at work". Mayo's thought was that manager taking more focus on workers interest, treating them as human beings who have useful opinions and realising that workers enjoy interacting together. Mayo also said that workers are best motivated by:

Better communication

Grater manager involvement

Working in group or team

Advantage of Mayo's theory:

Fulfil the social requirements

Focus on workers interest

Treating worker as a part of organization

Taking workers opinions

Group work

Friendly behaviour from manger

Very close to the management level.

Disadvantage of Mayo's theory:

Less tendency to work

Some time conflict in group work

No freedom at work

No responsibility at work.

Researcher criticism on Mayo's theory, which due to the closeness of manager to the worker some lazy staff could try to take unfair benefits. He also said to work in group which creates conflict to implements the personal agenda. Except those criticisms his theory is most closely fits with paternalistic style of management.

According to Abraham Maslow (1908-1970), "there are five levels of human needs which employees needs to have fulfilled at work." All of the needs are structured into a hierarchy. His five level structure of motivation are:

Physical needs


Love / Belongings

Esteem and


A. Maslow's hierarchy:

[14.Source: book, motivation and personality by Maslow.]

This hierarchy theory is that people are motivated to fulfil the basic needs before moving on to other needs. Maslow's theory open displayed as a pyramid. The lowest level of pyramid are made up of the most basic needs of human which are food, breathing, water, sex, sleep homeostasis, excretion. Once people met this needs they move to safety and security. As a progress of pyramid people moved on to love or social needs level. When they fulfil their needs in this level as a further move people need for personal esteem and feelings. Maslow emphasised on self-actualization. This is the process of achieving individual potential. [15]

Researcher opinion on this theory is that Maslow actually talked on deficiency needs of people, which is unlimited. Most the people work to fulfil their basic needs. As an exchange they got money, by this money people meet up their basic needs. As long the people will able to earn more money or healthy money, automatically they will able to meet their other needs. He talked about safety, love, esteem and self-actualization. Yes all can motivate people at work. But how many people have got the same problem? There seems to be various exceptions that frequently occur. All people needs are individual. So, if the people got standard pay and job security as far their performance, the other three they can manage themselves.

According to Herzberg (1923), there were certain factors in business which could introduce directly to motivated employee to work harder. However he was talking about Hygiene factors which are surrounded the job. As an example, a worker will only turn up to work if the business has provided a reasonable level of pay and safety working conditions but this factor will not make him work harder. As Herzberg said hygiene factor is most important for work harder. He believes that business should motivate employee by adopting a democratic approach to management. He also mentioned some methods of motivation which are: [16]

1. Job enlargement

2. Job enrichment and

3. Empowerment.

Discussion on the above theories: Motivation means any idea or emotions or anything complementary that's increase a person's working activities. It is one kind of stimulation that can automatically encourage the staff of company to work more or sincerely. This can increase the company's productivity. From the above theory and study it is observed that motivation is the unavoidable mater for any company to success their mission. There are too many way that the organization management can motivate their employee. Which are pay, incentive, bonus, insurance, medical allowance, holyday, holyday allowance, house rent, transport facilities, well decorated environment, hygiene, stimulate project (like staff picnic).

As primary data, researcher has been collected some primary on HSBC bank plc from Henley-on-Thames branch (40-24-10) which mentioned earlier. As staff motivations HSBC bank follow some rules centrally, which are applicable for all the branches in the same country. HSBC's motivations are included, pensionable salary, every month fixed time for direct debit, every years reviews salary and change their basic salary which are awarded as company's sole discretion, discretionary bonus award in every February month, overtime facility of clerical staff who work more than 35 hours a week, management level staff are getting remuneration, public holiday allowance, private health insurance, cars and beneficial rate loans, leave allowance, time off for medical appointment, sick pay, maternity leave. After analysis of HSBC's motivation systems it is observed that the management are giving emphasize on Taylors motivation theories. Because, in exchange of every situation they are getting financial facilities.

2.4.4 Impact of unmotivated staff in organization:

If the HRM do not motivate their staff as recognition of good job or work then staff will unmotivated. The unmotivated staff impacts on the organization are as follows:

Less concentration to work and then the product will be quality less.

Unable to fulfil the business target

Tendency to work minimum

Lazy altitude

Product cost will be increased

Job change tendency will increase

Organization will be treated as non profit institute.

2.4.5 Termination Procedure into Organization:

In Human Resource Management termination is another important function. Employers normally terminate the employee for misconduct, excess staff and poor performance. As example, in HSBC bank plc have follow different rule for termination which is for misconduct the short notice, for any other reason based on longevity of job. For five year service life band 5, 6, 7 and 8 minimum notice time is one month, five to twelve years service life (same brand) is required notice time is one week per completed year, more than 12 years is 12 weeks. For band 4 companies will give 3 month notice and band 3 to up company will give 6 month notice.

2.5 Human capital in organization:

Human capital is the modern version of Human Recourse. It is the economic value of an employee provides to an employer. The assessments of this value include skills, knowledge and experience. Organizations use these skills, knowledge and experience for increase their productivity like as money. Because, for running a business people needs huge money as capital. After investment huge money they need skills and knowledgeable person for business strategy to success. This strategy will increase the profit margin of the organization.

2.6 Conclusion:

This chapter have been discussed on Human Resource Management, Personnel Management, Organization and its different functions, advantage and disadvantage of organization and the role of HRM in organization.

Personnel management played a very good role into organization and changed slowly to Human Resource Management. On this chapter have been mentioned the similarities and difference of these two concepts. It is clear that personnel management forms the basis of Human Resource Management. HRM does not replace of Personnel Management, it is a merely revised version, changing the environment of the organization and its needs emphasizing on motivation of employee. As an example HSBC's recruitment, motivation and training procedure have been discussed.

Chapter-3 Methodologies:

The research design used is the descriptive approach. This type of research presents the nature and status of the situation.

A qualitative approach has been used for collecting the data. This process used to classify the data pertained to the organization and the role of Human Resource Management to motivate the employee. The data was summarised from case study and also used to create a clear concepts of modern HRM. During the time of research most of the data have been collected from secondary sources which are online, different website, books, class note, journal etc. All sources are mentioned the references list.

As a primary data researcher have been collected some information from HSBC bank, Henley-on-Thames branch on their HR policy about recruitment, training and motivation procedure. The interviewer was the branch manager and gave around 1hour 15 minute time. She helps by providing different data and online sources which already been discussed in above particular topics.

The aim of this case study research was to show the change of different periods HRM role and strategy into an organization which keep its staff motivated.

The research type was exploratory and case study based.

Chapter - 4 Discussions:

In this modern age Human Resource Management in any kind of large organization are most important for success. The strategy and role of using the people knowledge into the present competitive business are maintained by HRM of an organization. In any kind of business people are the foremost assets. This assets need to be used properly and timely. For this reason in most of the organization mandatory create HRM division which is responsible for manage people, train people, motivate them, reward them as stimulation, some time terminate them for miss conducting their activities. In modern age this department treated as a Human Capital division. This capital is not consider as a finance, it is consider as a knowledge which is use in business for innovation of technology, product and idea to capture the market.

In an organization people use different resource like raw materials, capital, and machineries. To properly handle this resources organization need some talent people who work as a human resources. To use this human resource into organization management need a sets of systems and procedure in Human Management System. These systems should be in such a way that's each individual contribution acknowledged, recognized, appreciated and motivated.

In this research report, researcher have been discussed the previous form of HRM and modern version of HRM. The strategy and role of HRM of an organization have also been discussed. Emphasize given on HRM activities especially on motivation. During research time it was noticed that nineteenth century this department worked only for established the right and a sets of rules for the worker. Day by day change in business and expand of business was facing problems to use the people. In support of modern business or global business, organization stared use a separate department for human to use them a systematically. In research, it was transparent that for some specific aim, all of organization introduced this department into their institute. The common aim ware as follows:


Training & development



Meeting needs of staff

Termination etc.

After industrial revolutions there are most competition came into the business organization. Then management started thinking to use this human as resource of the business. They stared use peoples intellectual knowledge into business for success. On that time the concepts came as a Human Capital Management. This HRM main role into the organization is full support to the top management for achieving their goal. The prime duty of this department is to appoint the capable people for individual post to express their knowledge to get done the target. In support of modern technology, provide them adequate training. For innovation arrange the research materials or tools. For motivation take necessary steps like promotion based on skills and performance, increase remuneration, bonus, holiday package, etc.

Chapter - 5 Conclusion and Recommendations

The strategy of Human Resource Management must parallel with the needs of organization. This strategic plan can make an important participation to the overall plan by confirming that the organizations have the right people with the required skill, and that they are managed productively. Successful organization are more realist and very fast to change their direction to different way. HRM can contribute to overall plan of the organization by involving in the internal and external analysis by bringing concentration to the policy of Human Resource activities to achieve the organization plan. An effective HRM can create a highly productivity of the organization by selecting right people in right place, provide them adequate training and development, as recognition of good work give them motivation. This motivation is the only way to increase the productivity of the organization within the limited recourse. All human resource needs to be link with the strategy of the organization for their success.

Though in different organization's HRM practice are different but there are some common procedure are following in all HRM which are recruitment, training, motivation and retirement. During the time of this research there are some common findings found which are as follows:

Understanding problems with general management and the nature of business

Less understanding between line management and HR management

Some time rigid HRM systems

Autocratic decisions making for implement the personal agenda.

General staffs no access to the performance data

Formal periodic performance review

In some organization HR division are not amalgamate with the strategic tem

There is no similar rule or procedure for people recruitment, training, compensation and motivation.

HR department are most powerful in any kind of organization. For that reason this department people expect the other department people would be controlled by them and then start conflict.

Too much dominate to staff by this department

Though the above mentioned problems are not very critical problems for the organization but it creates problems to conduct the organizations activities. HRM role assist the organization to reach their goal. As per the above findings there are some recommendations are given below:

General management and human resource management in organization should work parallel way. Then both departments can walk together to company mission.

Line manger and HR manager both exchange their idea to get done the job easily.

HRM should be flexible for implement its rule and strategy as per circumstance. Rigid HRM can be replaced by leadership.

Participation in work by offering suggestion and joining in decision is very important to employee. So HR strategy should be democratic for decision making. Means priorities the route level staff opinions.

Human Resource software collects and reserved all staff performance data. Where only boss's are allowed to access. Instead of this restriction it should keep open for general people. Then all people can review their performance and can do change if necessary.

Instead of formal performance review it should be flexible. Like any time review and reward will speed up the company's activities and will increase the productivity.

HRM and company's strategic management should work together. Because strategic management's decision implement by HR division.

At least there are some common policy should be follow. Like in recruitment policy should based on written exam for mid or officer level post.

HRM should not be autocratic. If HR division are more flexible they will able to do more job and the productivity of the company will be increase.

HR division monitoring at work should be done by technically.

This research report seeks to establish the current state of HRM practise in organization. This report took a strategic approach particularly in case study base of research where it was attempted to examine between the Human resource management and strategy of an organization. The result of this research will enable us to better understand the change of previous HRM and present HRM in organization and how it keeps staff motivated for increase productivity, also made a recommendation for batter management of people.

List of References:

Class note.

Human Resource Management Practice by Michael Armstrong, 2010.

Knowledge and innovation: Journal of the kmci volume one, no.three, April 15, 2001© 2001 knowledge management consortium international,inc.

Manager HSBC Bank plc, Henley on Thames branch as on 13th August'10 at 11.30am (75 minute)

Motivation and Personality by A. Maslow.

Mr. Raja Khan information received via e-mail, "[email protected]"

Mr. Sabir Hussain Jafri, Class note and information received via e-mail "[email protected]

Organizational behaviour by Andrzej A. Huczynski and David A. Buchanan, sixth edition, chp. 20.

Role of Motivation theories (people and organization) by John B. Miner- 1994. =7108 /16 .8 .10 /at 3.30pm 12.30am