High Level Human Resource Management is Essential for Success
From small businesses to large groups, whatever the size of your business, Human Resource Management is an essential function in the success and development of your organization. It represents a driving force in implementing and managing its overall strategy to remain efficient and achieve its objectives.
1- Who are HR Theorists?
2- Differences Between Strategic Human Resource and Human Resource Management
3- Compare Two Differences Between Human Resource Management And Personnel Management
4- How HRM Manager Performs Key Functions To Improve Organizational Culture
5- How Improvement In Team Engagement Enhances Organizational Performance
6- HRM Plan – Marketing Manager
7- HRM System
What exactly does human resource management cover? What is its role, and what fields of action characterize it? This article sheds light on this pivotal function in the company’s success and reviews the main activities of an HR department.
Definition of Human Resource Management
Human resources management (HRM) corresponds to all the systems put in place to organize, use wisely and develop human resources, that is to say, the individuals who work within an organization.
While the administrative management of personnel only focuses on purely administrative aspects, HRM is more global. It is committed to managing and administering everything related to the company’s personnel, all trades and statuses combined.
This personnel management also includes the dimensions of listening, support, and advice essential for managing women and men.
Today, faced with the growing number of tasks incumbent on HR, their processes require more and more automation. This is why human resources managers are increasingly turning to specialized software.
Human Resource Management | HR Theorists
Elton Mayo
Elton Mayo transformed the management theory and offered a base for modern human relations management methods. He is known for the famous Hawthorne experiments he conducted, in which he observed the productivity levels of employees under various different environmental conditions. Elton Mayo’s findings suggested that humans or employees are motivated more by relational factors such as camaraderie and attention instead of mere monetary rewards or environmental factors of humidity, lighting, etc. (Wood & Wood, 2004)
Abraham Maslow
Abraham Maslow presented his HR theory in 1943. By presenting the hierarchy of needs in which he stated that humans are motivated by 5 basic needs that he tiered in the form of a pyramid. The pyramid’s base was the fundamental physiological needs (Food, clothing, shelter, etc.), followed by safety needs (employment, property, etc.). The following motivational need was love and belonging (friendship, family, etc.), followed by self-esteem (sense of achievement, respect by others, etc.), and finally self-actualization (creativity, morality, serving mankind in different ways). According to Abraham Maslow, the first need will be the most basic, completion of which will lead to the next need until the last need of self-actualization is reached (McGuire, 2012).
2- Differences Between Strategic Human Resource and Human Resource Management
Workplace Culture
1- Reactive Versus Proactive
Regarding workplace culture, Strategic Human Resources and Human Resource Management differ based on their action approach. While human resource management activities are often considered reactive, strategic human resource management activities are proactive.
Human resource management takes actions only when they are required or necessary. However, in comparison, strategic human resources beforehand work towards handling any potential HR-related issues that may arise in the future.
2- Organization Versus Individual
Human resource management activities concern individual employees. They focus on an individual employee’s development, considering the employee’s growth at a time (Mello, 2010).
Strategic human resource management focuses on the organization. They consider decisions that impact an organization’s entire workforce, creating a conducive workplace environment that collectively enhances employee performance (Mello, 2010).
3- Compare Two Differences Between Human Resource Management And Personnel Management
Workplace Culture
1- Treating Humans As Tools Versus Assets
In personnel management, an organization’s workplace culture treats humans as mere tools to be utilized for the better of an organization. Personnel management manipulates employee behavior according to the organization’s core competencies. Personnel management is concerned with the benefits that can be derived from an employee, and an employee himself is of no value. Human Resource Management considers employees as assets of an organization. HRM deals with employees in a manner that promotes goals mutually enhancing both an employee’s economic performance and human resource development (Koster, 2007).
2- Evaluating Employees On Job Versus Performance
Personnel management evaluates employees based on their job description. It considers how well an employee contributes based on the job description without considering the individual performance and merits of an employee. Owing to this limited focus on personnel management, the results of such evaluation are limited to determining wage policy only (Koster, 2007).
Human resource management considers the personal performance of an employee, considering an employee’s comparative merits. This allows the HR department to make further decisions related to promotion and transfers, offering a broader scope to employ the workforce efficiently in an organization (Koster, 2007).
4- How HRM Manager Performs Key Functions To Improve Organizational Culture
Recruitment
Organizational culture is of immense importance for any organization that should be reflected through every function carried out in an organization. Managers enhance workplace culture by focusing on how well a new candidate can adjust to the organizational culture instead of focusing on the individual’s background. Through placing an efficient recruiting system, the ability of a new candidate to fit into the organization easily. It helps in the long run. It is also important to know that any employee that does not fit in the right with the organizational culture is hard to retain, resulting in turnovers (Simplicant, 2018).
Technology-based company managers, at times, focus more on individuals that carry a combination of skills required for the job and the ability to adjust to the organization’s culture. Managers believe skills can be taught and polished; however, an individual that fails to fit into the organizational culture will ultimately cost more to the organization in the form of turnovers (Simplicant, 2018). An individual who is skilled but unable to adjust in the organization ultimately quits the job.
Training & Development
HR managers, in order to enhance organizational culture, introduce different ways of training. It enhances employee skills and ensures that, based on individual needs, every employee has what he or she requires in terms of development. It also promotes a sense of teamwork, with every individual contributing in their own unique ways. In a technology-based company, when an employee completes his training properly for a job, he or she requires lesser supervision. It proves to be more efficient, less errors and has new potential. Which contributes to the positive culture of an organization (Koslowski & Salas, 2009)
Employee Relations
Poor relations with employees or subordinates are the biggest disrupter of organizational culture.
Any organization works as a family, where every person contributes in their own unique way. However, relationship building is essential in any firm in technology-based companies, where innovation takes place in the form of teamwork. Managers require building sound relations with employees based on empathy and understanding, as the more satisfied an employee is with a manager, the better the workplace environment and the organizational culture and, ultimately the performance of the firm (Belasan, 2007).
Compensation
Compensation attracts, retains, and motivates employees. Thus, in order to attract employees that embrace the culture of a particular organization, it needs that the compensation and benefits offered to employees are in compliance with the values the organizational culture offsets. This will include the work-life balance that is in practice in an organization. For example, suppose a manager wants to promote a culture where he wants to empower employees. In that case, he or she will introduce flexible timing, flexible work arrangement, or time off jobs for employees with respective compensation packages that will lend out the culture of the organization by offering freedom and empowerment of its employees (Flannery, Hofrichter, & Platten, 2002).
5- How Improvement In Team Engagement Enhances Organizational Performance
It is indisputable that a high level of employee or team engagement results in high business performance in the form of increased productivity, profitability, customer metrics, employee retention, and levels of safety as well. Team engagement is the collective amalgamation of company performance and employee potential (Imperatori, 2017).
Considering the case of a technology-based company, where often team-based project management and team engagement offers the most significant benefits. Here, communicating the clear goals of the project or organization and stating the expectations with employees helps strengthen team engagement, which ultimately results in enhanced productivity and motivated employees.
Team engagement offers excellence in performance which results in the end product. Resulting in satisfaction and loyalty of customers, operational efficiency enhanced productivity and profitability, and low turnover of employees (Imperatori, 2017).
6- HRM Plan – Marketing Manager
Training and Development Plan
1- Assessing basic or compliance needs and job-specific needs. Assessing the performance of employees based on the required skill set for the job and personal development, assessing the performance of employees based on organizational culture, and employee competency. This includes checking on the ability to develop strategies, use successful marketing campaigns and their implementation, level of creativity and experimentation, ability to produce valuable marketing content, ability to handle strategic relationships with partners and key strategic players, leadership quality, ability to measure and report market results, etc.
2- Assessing general development of employee needs. Considering aspects where employee shows room for improvement.
3- Assessing management and leadership needs.
4- Deciding on the best mode of training for the employee, including a decision on whether to impart onsite or offsite training and deciding on the right time and manner to impart training (SSA Training, 2018).
Remuneration Plan
1- Considering employees’ skill sets and talent based on factors such as education, skills, experience, etc.Considering soft skills such as communication, team maintenance, leadership, etc. Considering employees’ output and efficiency level (HR Council.ca, 2018).
2- Based on the above considerations decision on remuneration packages and retirement plans are available keeping in mind standard market remuneration as well (HR Council.ca, 2018).
Labour Relations Plan
1- Setting up a proper mechanism to report any grievances on employment matters, including wages, workplace relationships, etc
2- Setting up an employee welfare program allowing annual holidays and healthcare services.
3- Freedom to union practices as long as they comply with the rules of the organization (Management Study Guide, 2018).
Safety, Health, And Welfare Plan
1- Ensuring the safety of the workplace by carrying out a comprehensive safety program
2- Immediate health facilities are available on-premises, and extended healthcare facilities are available in a majority of hospitals for employees.
3- Responsibility of immediate supervisor and on-board health officer to deal with any emergency health issues.
4- Rent facilities for employees after certain job levels.
5- Office conveyance is available to employees until serving the organization (Management Study Guide, 2018).
7- HRM System | Human Resource Management
HRM system or HRMS is the combination of different processes and systems that attach IT and human resource management in the form of HR software. HRMS is directed toward revolutionizing a corporate workplace.
HRMS automates time-consuming tasks, freeing up organizations’ resources to focus on more strategic aspects such as retention, culture embedding, and other areas that greatly impact the organization.
Advantages and Disadvantages of HRM System
Advantages
1- Time efficient – HRMS highly automates functions that were otherwise being repetitively done. All information related to employees and their tasks can be into the system once and used whenever required.
2- Integration of data – HRM is more integrated as interdepartmental data is available easily to make strategic decisions making reporting and analysis easier than before.
3- Accuracy of data – Errors remain minute.
4- Ability to schedule automatic reminders of processes – performance appraisal, benefits and other cyclic procedures are active automatically (Mukherjee, 2012).
Disadvantages
1- Security – Security is the biggest issue, as unauthorized access can leak sensitive and confidential data.
2- High Cost – Managing HRMS offers a cost factor for the organization as it also carries acquisition costs and other maintenance costs.
3- Staffing – HRMS requires experienced IT specialists to manage the system (Mukherjee, 2012).
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References
Belasan, A. T. (2007). The Theory And Practice Of Corporate Communication: A Competing Values Perspective. Los Angeles (LA):Sage Publications.
Flannery, T. P., Hofrichter, D. A., & Platten, P. E. v(2002) People, Performance, & Pay: Dynamic Compensation For Changing Organizations. New York (NY): The Free Press.
HR Council.ca. (2018). HR Planning. [online] retrieved from http://hrcouncil.ca/hr-toolkit/planning-compensation.cfm
Imperatori, B. (2017). Engagement And Disengagement At Work: Drivers And Organizational Practices To Sustain Employee Passion And Performance. Milan, Italy:Springer.
Koster, M. (2007). Human Resource Management Versus Personnel Management. Norderstedt, Germany: Grin Verlag.
Kozlowski, S. W. J., & Salas, E. (eds). (2009). Learning, Training, And Development In Organizations. New York (NY):Routledge.
Management Study Guide. (2018). What Is Human Resource Planning? [online] Retrieved from https://www.managementstudyguide.com/human-resource-planning.htm
McGuire, K. J. (2012) Maslow’s Hierarchy Of Needs. An Introduction. Seminar Paper. Retrieved from https://books.google.com.pk/books?id=_qw6LvpknKkC&printsec=frontcover&dq=HR+theory+of+Abraham+Maslow&hl=en&sa=X&ved=0ahUKEwiUveyGoJzaAhUEjCwKHQgtCOIQ6AEIKzAB#v=onepage&q=HR%20theory%20of%20Abraham%20Maslow&f=false
Mello, J. A. (2014). Strategic Human Resource Management. (4th Ed). USA: Cengage Learning.
Mukherjee, J. (2012). Designing Human resource Management Systems: A Leader’s Guide. New Delhi:Sage Publications.
Simplicant. (2018) 7 Ways Organizational Culture Affects Hiring. [online] Retrieved from https://www.simplicant.com/best-practices-and-tips/7-ways-organizational-culture-affects-hiring/
SSA Training. (2018) What Really Matters … Training mAterials. [online] Retrieved from http://www.wrmtraining.com/wrm/index.php?option=com_content&view=article&id=82&Itemid=92
Wood, J. C., & Wood, M. C. (eds) (2004). George Elton Mayo: Critical Evaluations In Business And Management. (Volume 1). New York (NY): Routledge.
