Background of HRM Early studies on human resource management can be traced under the field of the studies of personnel management (Scott, 1915; Asher, 1972; Campbell et al. , 1970). However a shift from personnel management to HRM occurred in the early 1980’s. Some authors (Storey, 1994; Torrington et al. , 2008) argue that human resource management has two meanings. According to one of them, human resource management covers the same activities that personnel management used to before the shift in the 1980’s. Following another meaning however, personnel management and human resource management differ.
Legge (1995) argues that the difference between the two is very thin and is based on the way people are treated, as the main actor for personnel management, or as a resource part of the company’s strategy for human resource management. Definition ? Storey (1994) defines HRM as “a distinctive approach to employee management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques”. Human resource management is the management of an organization’s workforce or human resources. It is responsible for the atrraction, selection, training, assessment and rewarding of employees, while also overseeing organizational leadership and culture and ensuring compliance with employment and labour laws. (Wikipedia) ? Armstrong (2006, p. 4) defined it as a strategic and coherent approach of an organisation’s most valued assets. – the people working there, who individually and collectively contribute to the achievements of the objectives of the business. HRM is the organizational function that deals with issues related to people such as compensation, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. ? HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment.
Practices of Human Resource Management It implies customary way of operations and behavior, translating idea into action and knowledge of how something is usually done. ? Organisational Design ? Involves interactions between people Technology and the tasks to be performed in context with the organisations objectives ? Goals and strategic plan (e. g. job design, team building, restructuring etc. ) ? The processes used to shape the organizational structure ? Staffing ? Recruitment ? Employee orientation ? Selection , promotion and termination processes [pic] ? Performance management including individual assessments ? Improving and measuring work performance. ? Employee and Organisational Development programmes. ? Maintain and improve employee skills (conceptual understanding, skill building, attitude change, team building, problem solving). Types of participants (new employees, first-line supervisors, middle-level managers, top executives). ? Delivery of training programs (e. g. internal vs. external faculty and facilities, use of line managers). Performance Management • Types of standards set for employees or units (e. g. behavior-focused vs. outcome-focused, short-term vs. long-term, explicit vs. implicit, linked to individual vs. strategic performance and plans). • Types of performance review feedback sessions (e. g. frequency, nature of feedback, monitoring of feedback sessions, forms used, formal reporting systems in existence, managerial accountability). Processes used to ensure that feedback occurs continually (e. g. quarterly reviews).
• Sources of data for measurement and criterion development (e. g. clients, customers, peers, subordinates). Reward Systems, Benefits ; Compliance • Types of financial incentives existing (e. g. short-term vs. long-term, base vs. incentive pay, pay for performance vs. seniority). • The extents to which reward systems are linked to strategic plans and encourage employees to work toward accomplishing business needs and meeting customer requirements. • The extent to which rewards are based on individual vs. roup or corporate performance. ? Structure of non-financial rewards (e. g. recognition programs, titles, informal status symbols). Communications and Public Relations • Types of information presented to employees, manner of presentation (e. g. confidential vs. public) • Types of communication channels; dissemination of information inside and outside the organization; opinion of surveys; open door policies. • Design of communication programs (e. g. public meetings, management forums for discussion, videos, written communications, bulletins). ? Motivation The term Motivation is divide form word ‘MOTIVES’.
Motives are those fore within an individual that compel him to act or not to act in certain ways. So MOTIVATION way be defined as a process of stimulating sub- ordinate to work hard with confidence towards the attainment of organizational goals. In order to motivate a person it is necessary to satisfy his needs, needs may be classified as follows: [pic] ? Maintenance: It means arranging for the necessary facilities for the employees. It is an important function which includes providing healthy working conditions, solving their problems and conflicts and giving the hygienic atmosphere for the work.
If maintenance factors are not present, they may lead to dissatisfaction among employees. [pic] Each and every of these functions influences simultaneously organisational performance. The main functions are to employ people, to develop their resources and to utilises maintain and compensate their services for the organisation and is concerned with maintaining and ideally maximising organisational performance and profit. This is done by managing the human resources with a focus on expanding customer base that gives profit to the company.
Under this directive it is obvious that there are many opportunities for HRM to influence organisational performance as HRM plays an important part for the functioning of every single department in an organisation due to the fact that it can take direct influence on the people working there. Importance of Human Resource Management in an organization Human resources are undoubtedly the key resources in an organization, the easiest and the most difficult to manage. Human Resources departments are critical to their organizations ecause they directly effect employee morale and the company’s profitability and overall success by: recruiting and hiring the most qualified and highly skilled job applicants; retaining those employee. To thrive in the chaotic and turbulent business environment, firms need to constantly innovate and be “ahead of the curve” in terms of business practices and strategies. Especially in the service industry, but more generally spoken throughout every industry, the human leverage is the most contributing factor to being competitive and making a difference to customer satisfaction and general organisational performance.
It is from this motivation to be at the top of the pack that HRM becomes a valuable tool for management to ensure success. Other elements effecting HRM and increasing its importance are technological changes, increasing litigations due to changes in legislations worldwide (e. g. EU) and the changing characteristics of the workforce (e. g. diversity). The succesfulness or the unsuccessfulness of an organization depends on the quality of manpower. • The contribution of Human Resource Management Practices on organizational growth: Enhancement of staff’s skills ? Hiring employees through sophisticated selection procedures designed to screen out the best potential employees and hiring highly qualified, educated and/or skilled people, which bring all of the required and desired characteristics with them to enhance organisational performance. ? Improve the quality of current employees through Training and Development activities- ? Investments in training and staff development produce beneficial organisational outcomes. keeps staff up-to-date with new technology changes to beware the competitive edge and may even make the organisation even a leader in terms of new innovations. ? Can influence organisational performance through lower staff turnover. Employee recruitment and selection procedures, compensation and performance management systems, employee involvement, and employee training have a significant impact on employee turnover.
This will have an inevitable impact on the business, both in terms of increased productivity as well as in reduced recruitment costs. ? Influences of staff’s Motivation and Attitude to work. Offering employees bonus in relations to their individual performance increases their motivation and make them more focused and competitive, due to the personal advantage. This increases organizatonal profit. ? Reward systems also affect organisational performance through increasing quality of products and services, as it is proven that in companies with a focus on enhancing human capital the quality of their outcomes is much higher than in organisations without a progressive HRM policy. ? Favourable work climate ? fostering employee’s well being and motivation and this in turn leads to enhanced performance. providing employees with the needed support (back-up), challenges to for fill their needs and stretch their abilities and clarity will increase motivation and loyalty because it is important to know their roles and responsibilities within the overall organisation to be able to work effectively. ? Staffing ? Setting tasks to be performed within the organisation, number of staff required and which vacancy involves which tasks, that is why the staffing level plays an important role for organisational performance and staff’s motivation. ? Important to have the right number of staff, hours they have to work and the professional development (e. . percentage of how many staff members are trained for direct customer services) as, too less staff might lead to an immense workload for the others, leading further to demotivation, poor customer service and poor organisational processes. Too much staff will increase unnecessary costs, might bore staff because it is to less to do for them and might lead to confusion.
Planning this effectively reduces cost to an optimum and ensures that working processes are running smooth, this in return leads to effective organisational performance and less labour turn over. Organisation Structure ? Affects organisational performance to the degree that skilled and motivated employees are directly involved in determining what work is performed and how this work gets accomplished. ? Giving opportunities to employees to improve their position within their organisation, employee participation systems, and work teams improves organisational performance. ? An effective work structure will increase financial performance as indexed by productivity, cash flow and market value as it increases employee’s motivation and thus productivity. Job Security ? Empolyees fearing for their job are unlikely to identify efficiency enhancing changes in the work structure. Progressive and effective HRM practices, including staffing ,compensation, training are definitely positive related to the growth and sustanance of an organisation. The several processes of Human Resource Management together achieve organizational goals. Effective HRM practices provide significance economic benefit to the company and thus enhances its growth [pic][pic]