Human Resource Management and Practice in Organization
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Human Resource Management and Practice
Every business with properly implemented strategies and guided strategic direction require skilled human resources in strategy formulation and implementation. The human resources and its methods should contribute to business goals and help to improve the quality and effectiveness of the company. Human resource should have well-constituted competent workforce that can influence human resource management practices positively and to support high-performance work systems of the company. The human resource management, its methods, functions, and programs should be formed and designed in a way that they fit modern business trends, address human resource competencies, and sensitive to worker safety and satisfaction.
Companies, on the other hand, have to understand the regulations applicable to the business environment they engage in and the human resource, both local and global. Every government, market or industry regulators have policies applicable to each player within their jurisdiction that controls their operations and human resource practices. The approaches of job design and other functions of human resource and the employee/labor relations process should be in line with such regulations and company policies. There are core competencies of an effective human resources management required for workplace diversity, recruitment strategies, staffing, and labor force retention. Such skills are relevant in job analysis for strategic purposes and human resources management.
Effective HRM functions and programs in relation to current industry trends, HR skills, and worker safety and satisfaction contributes to business goals and help to improve the quality and effectiveness of company’s product or services.The focus of the course and the knowledge learned are sufficient for the application to real-world business decision. In this case, two organizations practices will be compared, one of which successfully applied the best practices and the other that has failed to implement best practices.
Overview of Learning Objectives
Firms increasingly involve customers in their functions and processes, which aim at raising margins by increasing revenues and possibly increasing costs (Allameh, Bajgerani, & Shaemi, 2011). In this way, the company requires properly developed strategy that will guide its strategic direction towards achieving goals. The human resource should commit to talent management, as it is currently the key factor for sustainable competitive advantage for every business (Allameh, Bajgerani, & Shaemi, 2011). There should be an open culture where employees can demonstrate their different capabilities towards contributing to the organizational purpose and development.
According to (Labedz & Lee, 2011), human resources mental models play an important role in shaping competitive strategy and their contribution to the formulation of strategy in an organization. Robust and strategic perspective of the human resource and their views of labor relations are most distinctive to strategic focus and formulation. Lack of the robustness is what contributed to Labedz & Lee (2011) disputing the role of human resource managers in contributing to policy formulation. There is a feeling however that human resource strategy should have a significant as human resources are of vital importance. Knowledge, skills, abilities, behaviors, “and interactions of employees have the potential to influence organizational performance” (Dashgarzadeh, Momeni & Taghavi, 2012). Human resource practices are instrumental in developing strategic capability of a firm.
In the 21st Century, collaborative human resource strategy should be used exclusively or blended with the traditional approach to providing current business practice to fit company requirements. The human resource input should be engaged in all levels of business policy so that their functions and operations are of benefit to the company (Dashgarzadeh, Momeni & Taghavi, 2012). The management itself should express characteristics of their role in strategic formulation in an organization. Managers’ attitude and behavior in dispatching their duty are critical in organization’s policy formulation (Analoui, & Samour, 2012).
Human resource is strategically significant to a company in different ways through its contribution to the business goals. Human resource function as a component of organizational capability and acts as a source of innovations hub for the organization through its activities. The HRM activities support corporate entrepreneurship by assuming organizational strategic importance. According to Chadwick and Dabu (2009), human resource can contribute to the strategic importance of an organization than any other method applied. The human resource can identify and suggest ways in which complex structural plan can be implemented.
Human resource personnel’s have a greater role to play and contribution to make towards organizational success. The personnel must be competent in developing systems and policies aligned with organizational values and principles, goals and missions (Caldwell, Truong, Linh, & Tuan, 2011). The human resource performance standards should be raised in order to cope with the current competitive standards of the modern economic environment for the organization. Such will prompt organizations to create increased wealth, achieve its purpose and establish work environments that will attract employees and discourage workforce through provision of flexibility and satisfaction (Caldwell et al. 2011).
Organizations must develop steps to address full range of human resource practices towards their workforce through identifying vital adaptations needed towards fundamental human resource processes (Forstenlechner, 2010). Policies and strategies of the organization should be capable of realizations that positively influence the success of its operations and practices. Employees should access with jobs suitable for them and those that are meaningful to increase the returns of their effort and to organizational inputs. The human resource should have their developed system integrated to the organization that aids in the control of different measures of employment composition through the use of advancements beneficial to the firm.
High-performance work systems directly relate to the employee perception and job satisfaction and thus employers should ensure mainstream high-performance work system with employee perception and corporate social performance. The relation between employee knowledge and high-performance systems significantly contributes to employee job satisfaction. High-performance human resource practices, on the other hand, are integral in determining employee job satisfaction. Job characteristics and job satisfaction are aspects dedifferentiated, as there is a difference in the relative implications of job characteristics on job satisfaction significantly (Andreassi, Brockerhoff, Lawter, & Rutigliano, 2014).
International human resource management dimension have impact on the overall organizational performance. Primary goal of human resource management is to improve the performance of an organization through its functions and practices and to integrate into every activity in an organization. Proper employee performance and employee development which falls under human resource is core to any company. It is therefore necessary for an organization to determine which of the human resource dimensions is important to focus on and improve employee performance as well as the company in the international environment as demonstrated in Shah, Aziz, Ejaz, Jaffari, Zaman & Jaffari (2011).
Successful Application of Best Practices
Youth Home is a private non-profit healthcare facility which improved “on merit and cost of living increases for the last four years due to stagnant Medicaid reimbursement rates” (Tara, 2014). It was presented with Human resource best practice award in 2014 for outstanding application of human resource best practices. For the last four years, with stagnant Medicaid reimbursement rates the service kept performance. Its employees worked together as a team to explore ways to cut costs that made the workers acquire a pay increase in 2013 from the company. It is projected that Medicaid reimbursement payment levels will continue to remain stagnant, so they found low-cost Avenue to keep employees engaged.
The Department on their part accepted the challenge and built on existing program by adding more low-cost perks and implementing a special committee to keep them engaged and positive. The employees through their committee decided on an efficient way of spending the budget of $650 allocated monthly. The workers themselves took the initiative and were submitting names of those going above and beyond and presenting gifts and surprises to the employees. Their committee kept the ideas of the employees fresh making sure that job characteristics within that agency as presented to the employees are what they want to do and not management. These efforts have helped the firm achieve positive rates of turnover.
Organization that has failed to Implement Best Practice
Multinational companies operating in Arab countries are failing in the Implementation of human resource practices. Those companies that don’t apply Islamic human resource management principles into their systems fail because the Arab countries are Muslim dominated. Such companies need to explore and understand the nature and context of the Islamic management practices and their consequent implications to such firms. Managerial and management issues related to the company are not explored in such organizations that could contribute to understanding the environment they are operating. The organizations and their managers do not take to the need of understanding Islamic management principles, the core problem in mergers (Branine& Pollard, 2010).
There is an existence determined by previous researchers existing between the theory of Islamic management and the management practices carried out by the global industries in the Arab states. The fact that non-Islamic principles inform the management practices in the Arab countries provides much to such failures that are against Islamic traditions and norms. The mismatch between the global integration and the local responsiveness contributes much to lack of progress in Islamic countries (Branine& Pollard, 2010).
Conclusion
Human resource management is an integral to each organization, both locally and globally. It is, therefore, important that organizations engage human resource in their strategy formulation and goal setting in order to make global competitiveness in the current economic environment. It is important that the human resource functions be conducted in a way that will contribute to organizational performance and the development of the workforce. Workforce characteristics to an extent influence human resource function which then impacts organizational performance. It is important that the organization concentrates on employee satisfaction and development if it is to perform and achieve positive turnover. All the components of an organization are related, and therefore those companies venturing into global expansion should take into consideration the necessary factors to achieve its success.