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1. Investigate how HRM contributes to the achievement of organizational objectives?
A. Running a business of any size is the most challenging aspect to identify the best strategy for the organization to achieve the desired objectives. We usually prefer objectives such as increase in sales make money, start up with offers. All these need clarity in organizations intensions. The success of organization depends on clarity of vision, measurable targets, specificity, achievable, and challenging, executable, growth oriented and consistency.
Human Resource Management plays a major role in the organization to perform maximum capability in a highly fulfilling manner. Human Resource Management is the main approach for the organizations. The people working individually and collectively together contribute for the achievement of the objectives in the business. It is also termed as personnel management as the process is involved in managing people. Human Resource Management employee's people, develop their resources, utilize, maintain, and compensate their services in relation to the organizational requirements. Organizational objectives are typical and require multiple years not less than 3-5 years to achieve the outcome based on annual operations that coincide similarly with a calendar year and organizations operating cycle. Operations objective run under business units, departments, functional areas, teams and individuals etc. Often a combination of financial and non–financial measures. When the objectives define goals and sub – goals, targets will be the larger objectives. Before an organization is setup it needs to examine all the aspects of business equation to reach organizational objectives. The link between organization system and structure is necessary to understand the impacts, effectiveness and efficiency. By setting al the objectives to all the levels of the organization it is possible to get maximum returns on resources and operations. The opportunities presented must be clear, measurable, specific and consistent.
The features of Human Resource Management include:
1. Organizational management
2. Personal administration
3. Manpower management
4. Industrial management / Employee Relations.
The positive view of the employees virtually contributes to the enterprise productively for the achievement of organizational goals. Human Resource Management is more innovative at work place than the traditional approach. It's unique to express the goals with specificity and provide the resources needed to accomplish the task. Activities take priority in setting the communication of objectives and targets wherein the guidelines and boundaries play a important role. The constraint of an organization requires tradeoffs and evaluation options to determine the capabilities to achieve the specified outcomes. Objectives of an organization depend on core competencies and competitive advantages, current and projected influence on the industry in different environments, Current and future constraints on resource and operations, possibilities, capabilities, probabilities, negativity in opportunities, opportunities that work, needs of an organization, financial position relationship with the clients. To develop an organization, the objectives are to be supported by clear understanding of capabilities of the organization, growth of the organization, focus on processes, people, infrastructure, change in environment, completion and other economic factors.
Human Resource Management techniques properly practices, can reach the goals and operating process in an organization. It plays a key role in risk reduction within organizations and comprises several processes which can be performed in an HRD when effectively integrated they provide significant economic benefit to the organization.
Workforce planning, recruitment, induction, and orientation, skills management, training and development, personal administration, wages, time management, payroll, employee benefits, cost planning, performance appraisal, financial control, client management, should be performed well in advance so that the Human Resource Management contributes its performance towards the objectives for a successful organization.
The Human Resource Management should function in every activity and should play a key role in deciding the organizational objectives to fulfill the basic needs ensuring they are on high performance. Dealing with performance issues, independent contractors, hiring employees, are also a part of the above. The activities also include approach to the employee benefits and compensation, employee records and personnel policies. It should always ensure, aware of personnel policies which confirm current regulations in the form of HR manuals. Characteristics are observed in Human Resource Management while developing policies which relate to objectives, functions, physical factors and company matters. Policies should be easily defined, positive, clear and understandable. The different modules in Human Resource Management refer to the system and process at an intersection between Human Resource Management and information technology. The functions of HRM are generally administrative and common in all organizations. Organizations having formalized selection, evaluation, and payroll process build the company. Efficient and effective management of human capital is a successful way to imperative and complex process. To reduce the manual workload of the administrative activities HRMS – Human Resource Management System is introduced. It enables higher administrative control in an organization. The some of the modules are linked below:
1. The payroll module automates the pay process by gathering all the employee data i.e. time, attendance, deductions, taxes, reports.
2. Work time gathers standardized time and work related efforts. This is the most advanced module flexibly provided in data collection methods, cost analysis and efficiency metrics.
3. Benefits and administration modules provides a system for organization to administer and track benefit programs like insurance, compensation, profit sharing and retirement.
4. Human Resource Management module covers many other HR aspects. It addresses Data, Selection, training and development, capabilities, compensation and other related activities.
Human Resource Management function involves business based information system. The significant cost incurred in maintaining an organized recruitment effort, cross posting within and cross general competitive exposure developed in a dedicated module called – ATS, Applicant Tracking System. Many Organizations develop HRMIS - Human Resource Management information system which support recruitment, section, training, job placement, performance appraisal, employee benefit analysis, health safety and security, leadership style, task structure all the factors should be favorable under extreme situations.
The aim of Human Resource Management process are typically concerned in managing people which will assist in the achievement of organizational objectives within the strategy formation process. The senior management believes the policies which contribute to the organizational performances. In particular to the HR strategies the outcome of emergent plays a sensible role along with the perceptual understanding of organizational members. Organizational objectives and aims may be interrupted to gain a competitive advantage for an organization by which managerial actions can be combined to peruse important organizational aims. Human R resource Management started with an idea that specific organizational objectives demand appropriate HR strategy responses. Effective Human Resource Management is important for organizational performance and for the experience of employees by means of special line managers and the contribution of Human Resource Management to organization performance.
Human Resource Management in large organizations grows larger and technology becomes more advanced in an enterprise. So, a sophisticated procedure has to be implemented. Human Resource Management is a process which provides the knowledge of the key HR levels which are important to key business success, compassions with better performance. Ways of using information to improve HR processes. Organizations are regarded as people management system. They range from hierarchies to complex networks depending on Human Resource Management to adopt strategies which effects both cost effectiveness and employee commitments. Networks and networking have a different number of distinct meanings in Human Resource Management. Organizational Human Resource Management doesn't necessarily have any physical or permanence presence. They can be firmed and reformed to meet the new projects from a HR perspective in a company.
Organizational Human Resource Management flexibility includes regular employees in relatively low skill, routine work, low pay who can be trained and utilized their skills for the development. Human Resource Management contributes each of its objectives to every department in the organization for the success.
2. HR Planning and development methods:
A. HR planning is about the pattern of planned activities and intends to enable the organization to achieve its goals. It's a vital function that looks at strategy and then deploys the necessary human capital in the organization. It falls into wider area of employee resourcing, planning for acquiring and allocating employees for the organization.
Organizations to be more efficient, productive and profitable must promote their goals. It means that the organization must undergo change in the design of the work to be performed in the organization, selection, management and training of the employees to work. Human Resource strategy is the activity focused on the frame work for the change process which will be line of success. Human resource planning process is a stage that has to be established and implemented which is dynamic, iterative and serves to integrate all plans and the component of change process. HR Planning and tracking is constantly updated, analyzed and reports are prepared to support the process of selection, training, development and motivation.
Human resource planning details about the strategy needs of the organization assessing the supply of the relevant employee to fulfill the staffing needs. The strategic objectives needs to be clearly distinguished followed and processed in realistic and congruent way in order to achieve targets. The strategic planning process should be in chain reaction from objectives, analysis, strategy formulation, implementation, control. For large corporations, strategy is related to the portfolio of business. Organizations are effected by labor demand; therefore formulating a strategy should be enhanced for the strengths and weakness of the workforce. Strategic plans can be implemented if the organization is staffed with number and a type of HR's to provide necessary skills, knowledge, abilities etc. Human resource planning is involved in implementation as the major risk will be on reallocating the employees.
Successful planning in companies can make and implement better strategies. Human resource planning with many HR practices is done by central HR department, line managers who will do a large part of planning for their requirement towards the workforce. A central HR department is involved in the process in varying degree of different levels. The Human resource planning process is comprised of three broad keys:
1. Strength and weakness of current workforce in regard to number and skills of the employees.
2. Get a clear strategic plan.
3. Alterations in the current staff if required.
The Human resource planning process is of four steps:
1. Strategic plans and resultant design of the organization to be decided.
2. Organizations determination towards labor demand in short and long terms.
3. Effective and continuous filling and staffing needs.
4. Staffing plans implementation.
The Objective of Human resource planning is employee needs at every level. The design of the company will determine the production orientation if necessary. Autonomous work teams require multi skilled staffing in hierarchical organizations. Human resource planning framework requires forecasting.
Human resource planning includes forecasting labor demand arising from strategy objectives and its methods, organizational supply capabilities, accessing adequacy of current staff, strategy staffing goals and plans, affirmative action plan which requires designated employees to achieve employment equity, employment affirmative action measures in group teams. The so called man power planning is one of the most important step in Human resource planning.
Forecasting and prospective studies are the recent trends in Human resource planning concerning employment and skills. A comprehensive economic planning process is to achieve a certain balance between the manpower needs. A forecast is a assessment made with certain degree of probability planning consists of desired future and the achievement of goals. Human resource planning is in right number people with right skills at right place at right time to implement organizational strategies in order to achieve organizational objectives. In corporate and business level strategies Human resource planning is a process of analyzing an organizations human resource and developing its plans, policies and system, setting human resource objectives and planning how to meet them is crucial for smooth functioning. HR should ensure the supply of demands to be classified and performed. HR process interfering with strategies planning and scanning process has to be implemented. HR should be examined, Human resource demands should be forecasted and the supply of HR from within the organization in the external labor market also needs to be concluded. Later forecast of demand and supply has to be compared in accordance to actions needed to deal with anticipated shortage of overages. All the above info needs to be stored in the strategic planning process.
Basic Human resource planning model describes below:
Organizational objectives HR Requirements HR Planning Feasibility analysis.
HR objectives are linked to Organizational objectives and planning and designed to ensure consistency between organizations strategic planning process and Human resource planning process. Objective of strategic plans are feasible and require HR goals. Need to ensure that the Human resource planning process are coordinated and allowed to meet its HR requirements in the organization. The major demand to be determined is labor requirements which involves forecasting HR needs based on organizational objectives. It also involves consideration of alternative ways of organizing job designs. The other factors that has to be examined is determination of HR supply i.e. availability. It involves forecasting or predicting effect of various HR programs for employees flowing into the organization. It has to be determined how the existing programs are performed. It needs to know the capability of various programs and its combinations. The determination should also be capable of doing knowledge requirement of the programs that fit together in external environment constraints labor unions, technology skills and internal environment constraints like skill shortages within the organization, financial resources, managerial attitudes, culture, and work environment. The difficulty in quantifying costs and benefits has to be checked while planning and has to be revised as per requirement.
Oversimplification of planning process doesn't normally proceeds till first acceptable plan for the best HR goal. The benefits of planning has value and is usually less rational and may omit or lack knowledge required for forecasting incorrect assumptions about effectiveness of HR programs shouldn't engage in strategic planning. Though the present HR system has changed it should have the capability of change resistance.
Human resource planning should be as a guide and co-ordinate all HR activities to work together and support overall strategy. Human resource planning should be representative to internal and external environment as mentioned in advance.
The process of Human resource planning comprises of HR forecasting which is a process of projecting the organizations future, HR needs and how it meets in ordinance with organizations policies and environmental conditions which it operates. Without forecasting Human resource planning cannot access the difference between supply and demand. The internal supply may be in the form of staffing capabilities, productivity changes, promotions, demotions, transfer and turn over. External supply may be employees, requirements, mobility, entry level openings, recruitments, compensation.
Human resource planning when planned, the following needs to be carefully planned:
Organizational and unit strategy plans
Size of the organization
Staff and managerial support
Organization size ( Large organizations require more complex forecasting syatems and require skill staff)
Complexity ( Diverse career path and skill requirements)
Organizational objectives (greater the difference between current HR system and desired HR system)
Plans and Strategies ( Complex plans the complex forecast system)
Factors creating uncertainty
Factors promoting stability
Lack of expertise
Inadequate HR data
Available objective methods
Human Resource Development is one of the main pillar considering both the scope and position of a company for its professionalism. The companies aspire to create development by training which meets economic requirements of the organization. It is necessary for an organization to develop every sector by means of considerable changes for the projects to end up with profits. Development of Human resources means opportunity never occurring before, at the same time new challenges.
Human Resource Development is a framework which helps employees develop their organizational and personal skills, abilities. Human Resource Management includes opportunities in employee training, career development, planning, employee identification, and organizational development. The main focus is on superior workforce and individual employee to accomplish the task. Healthy organizations conduct trainings for better work environment by means of:
1. OJT – On Job Training, where a employee learns while doing job. It is also called as hands on training. Team lead is responsible for training the employee on knowledge and skills. OJT can be cost effective. The feedback during the training is immediate so that the employee may experience faster growth and carry on the task work.
2. Off the Job Training – The employee location will be outside the business are to learn skills and knowledge. It includes demonstrations, role plays, self study, external courses. The employee is temporarily sent for the training from routine work place.
3. In House Training – It depends on the quality and skills of an employee which improve performance and productivity that business requires.
4. Management Training – It includes workshop training, training on managing skills, guidance on communicating and motivating employees, interview and selecting, retention strategies, employment law issues, performance evaluation.
3. Analyze ways in which performance of HR may be enhanced.
A. Every organization has an operations function, the goal and purpose of most organizations includes production of its output. It has to produce resources, convert them into outputs and distribute in the market for the users. It comprises of all the activities required to create and deliver an organizations clients and customers. Operations are usually a major functional area where people are specifically designated of their responsibilities for managing all or part or all of the organizations management. It plays a crucial role in determining a well organization with satisfactory measures. In private sector companies the operation function is expressed in terms of profits, growth and competitiveness. Its also concerned with design management and improvement of the system that reaches the organizational goals. Finance and HR should be strong enough for a successful organization.
Performance of HR is enhanced by many factors.
Performance Appraisal: It is also called as employee appraisal in which the job performance of an employee is evaluated in terms of equity of work, quantity of work, cost effectiveness, time frame. It is a part of development of career. Performance appraisals are regular reviews done once in 6 months or twice a year or once a year depending on the organizations capability and policies. The aim of performance appraisal is to give feedback on the employee performance, identify employee training needs, organizational rewards, salary increase, promotions, discipline etc., provide opportunity on organizational development, communication between employees and administration, equal employment opportunity requirements.
Performance appraisal is assessed on a numerical or scaling rating system, PMS – performance management system where the managers were asked to fill in the PMS form which shows the roles and responsibilities of an employee with that of its rating. The managers were also asked to score an individual against a number of objectives, roles and responsibilities performed during the given tenure. Employees receive self assessment forms from the managers, peers, subordinates which is know as 360 degree appraisals
The methods that are used in Performance appraisal are:
1. Management by objectives:
Performance appraisal in this method depends on objectives in which the management and employees agree and understand.
2. 360 degree appraisal:
Performance appraisal depends on the feedback provided by superiors, managers and peers.
3. Behavioral observation scale:
Performance appraisal depends on the behavior of an employee versus observation of the supervision and rating given.
Judgment made by senior management and reports made by students are also valuable sources of information in many areas of learning and development. Peer judgment are especially useful in assessing personal – social development and self report methods. The appraisal system consists of:
Student judgment and reports
Self report techniques
Basing on Appraisal system job evaluation is done by three basic methods:
1. Ranking Method: This is the simplest method of job evaluation. Jobs are arranged from highest to lowest merit in the organization. The jobs are examined as a whole rather than basis of important factors in the job. Top level jobs have the highest value bottom level the lowest value. Ranking is done in each department and then organizational ranking is performed. As per ranking method the variation in the salaries of employees is seen depending on variation of the nature of the job performed by the employees. It is best practiced in small organizations and big organizations. It is highly objective in nature and is more scientific and fruitful way.
Example: Array of Jobs according to the Ranking Method
Rank Monthly salaries
1. Accountant Rs 3,000
2. Accounts clerk Rs 1,800
3. Purchase assistant Rs 1,700
4. Machine-operator Rs 1,400
5. Typist Rs 900
6. Office boy Rs 600
The variation in payment of salaries depends on the variation of the nature of the job performed by the employees. The ranking method is simple to understand and practice and it is best suited for a small organization. Its simplicity, however, works to its disadvantage in big organizations because rankings are difficult to develop in a large, complex organization. Moreover, this kind of ranking is highly subjective in nature and may offend many employees. Therefore, a more scientific and fruitful way of job evaluation is called for.
2. Job Classification method: A predetermination of job groups is established and jobs are assigned according to the classification. It may include office, clerical, managerial, personnel etc. The below is the description:
Class I: Executives, Office managers, Deputy Office managers, Office, superintendent, department superiors etc.
Class II: Skilled workers
Class III: Semi skilled workers
Class IV: sub semiskilled workers
This method is less subjective and easy to practice. It takes into account all the factors of a job.
The weaknesses of the job classification method are:
Even when the requirements of different jobs differ, they may be combined into a single category, depending on the status a job carries.
It is difficult to write all-inclusive descriptions of a grade.
The method oversimplifies sharp differences between different jobs and different grades.
When individual job descriptions and grade descriptions do not match well, the evaluators have the tendency to classify the job using their subjective judgments.
3. Factor comparison method: It is more systematic and scientific method and is consistent and appreciable. Under this method each job is ranked according to a series of factors which include mental effort, physical effort, skill needed. Supervisory responsibility, working conditions and other relevant factors. Below are the factors:
Job representing wages, salary levels across the organization according to the department.
Job evaluation factors are to be examined.
Selected jobs should be ranked.
Determination of wages.
4. Point Method: This method is currently used and expressed in terms of key factors in order of importance. Jobs with similar point totals are placed in similar pay grades. The factors are below:
Identify the factors such as skill, effort, responsibility.
Divide each major factor as sub factors.
The merits and demerits are:
Merits: Analytical and objective.
Reliable and valid as each job is compared with all other jobs in terms of key factors.
Money values are assigned in a fair way based on an agreed rank order fixed by the job evaluation committee.
Flexible as there is no upper limitation on the rating of a factor.
Demerits: Difficult to understand, explain and operate.
Its use of the same criteria to assess all jobs is questionable as jobs differ across and within organizations.
Time consuming and costly.
Maximum number no points assigned to each job help in finding the relative worth of a job and therefore the total points are expressed which are converted into money value according to wage rates. The point method is widely used in evaluating jobs and it is superior. It looks into all key factors and sub factors of a job. It is systematic and reliable way.
Job evaluation is an internal equity that assesses and rewards the goals of the organization. It is not based on the credentials or contributions made by the employee but systematic process is determined. Job evaluation involves:
Job analysis – collecting and evaluating; Job documentation – Job content is recorded; Job rating – compares job and evaluation methodology; and Job hierarchy – Depends on the ranking list of employees in the organization for each position.
Motivation and job satisfaction are two important factors that affect the work environment of an employee. Motivation is from or within the drive to excel. Job satisfaction is the pleasure desired, appreciated and valuable.
The strategies of addressing underperformance are unlikely that management, in an organization states that these are no subsidiaries, plants, outlets underperformance. The underperformance and length of time that is used before is addressed to determine the share price and future plans. The range of options open are to be understood which involve exiting from market subsidiaries refraining options need to be considered and evaluated to avoid breakdown in communication.
Employee satisfaction is important. It has to be considered so that the employee working for organization is satisfied with the options and opportunities given to them. It is a terminology used to describe whether the employees are happy and fulfilling their desires, needs at work. This is measured by surveys periodically in areas such as management and team work.