Discuss the ways in which Human Resource Management can contribute to an organization’s success.
Human Resource Management ( HRM) is the process of finding, keeping and developing the right people to work at the qualified workforce. It is one of the most difficult and important tasks for all management. It focuses on people dimension in management. Despite every organization is created with people, requiring its services, developing their skills and talents, motivating people to achieve higher level of performance in order to continue to main their commitment to accomplish organizational goals and performance. HRM, therefore, is largely important to practice and essential to main proper personal or human resource planning, recruitment and selection, as well as training and development, employee motivation, performance appraisal, and remuneration will assist the company to achieve its business success (Rudman, 2013).
This essay will first explain the important role of human resource management practice and policies for organization. Then, analyze how HRM lead to improve organizational performance by undertaking the four main functions of HR assessments: Strategic HR planning, recruitment and selection, performance management, and remuneration. Finally I will give an explanation of how HRM real impacts on organizational success.
HR Management Roles
The function of Human Resource Management contributes an important role in assuring employee satisfaction, develop business productivity and performance. It can also provide the organization with a clear vision of competitive advantage and contribute affectively to the organizational success in general.
There are variable ways of HR Management practice and policies allow companies to deal with human resource problems in a strategic way. This enable labor force assist high quality service, unless both internal and external challenges to company. One of the key functions of HR Management is ensure for the new company to interest a new practical, talented workforce, highly motivated and performing well employees when they are adapting organizational change in order to decide to seek how job is going to be performed (Byremo, 2015).
There are many companies, however, consider HR Management is not a main function of management. For example, they consider some employees such as labor force represents undoubtedly the organization’s most essential asset because the employees are largely involved not only in the business operation, they also allow decision-making process to take place. As a result, the companies cost large amount of asset for employees, in which almost 70 percent of a company’s budget is distributed to the workforce (Byremo, 2015).
In addition, employees are the most essential resources and valuable assets to make a business more success and profitable, but it is really important to identify suitable Human Resource policies and practices. The success of the organization can simply be considered how these specific HR policies can contribute business strategies and lead to organization development.
The Concepts of HR Management
Most companies employ HR Management practices and policies in order to sustain regulations for the benefit for the organization. The policies and practices simply focus on strategic human resource planning, recruitment and selection, training and development, and reward.
Strategic Human Resource Planning
Strategic human resource planning involves systematic developing and comprehensive strategy for both two key attributes of understanding current employment needs and predicting future employee needs.
To understand what current employee needs; it is important to seek what today’s staffing pictures looks likes which requires to do first, job analysis and write a job description and job specification. The process of making job description, analysis, and specification can prevent from hiring people who are overqualified or unqualified for a particular job.
Predicting future employee needs require to know the best knowledge about the “staffing the organization might need and the likely sources for that staffing.” The organization might need more staffing because jobs could possibly become vacant because of resignations, retirement. As a result, employer needs to hire the new employees to replace them, but requires to pay the same salaries and same criteria about minority hiring. In order to address this issue, the organization need to change with vision and strategic plan so that the employer can hire the proper people to meet the future ability at work.
There is another way of recruiting employees either from inside or outside organization. Employer need to consider about which employees are motivated, promotable and what training organization need to do for the employees who will get recruit from inside. To recruit form outside, the employer need to consider the availability of talent in the organization such as considering of training people who have graduated from different schools (Kinicki & Williams, 2003).
Recruitment and Selection
Qualified and right applicants for jobs need to be recruited from inside or outside organization. There are various tasks of choosing the right person by reviewing candidates’ application forms, resumes, and references, interviewing, psychological test, and other kinds of employment tests. According to Kinicki and Williams, recruiting define as “the process of locating and attracting qualified applicants for jobs open in the organization.” Recruiting consists two types of processes: internal recruiting and external recruiting. Internal recruiting is the process of creating people already employed by the organization aware of job openings. Because most job vacancies in organizations are filled from internal recruitment. The most popular way of job posting is through placing information about job vacancies in newsletter and notices the qualifications on bulletin boards.
External recruiting is attracting job applicants from outside the organization which involved placing job vacancies through newspapers, employment agencies, executive recruiting firms, and technical training schools. Nowadays, many organizations are advertising job openings on the internet and social media such as Facebook, Linkages and Twitters.
After recruitment process has completed, the next section is selection process by screening of job applicants to hire the right candidate. There are three types of selection methods that practicing in many organizations: background information checking, interviewing and employment tests. Background information includes checking application forms, resumes, and reference checks to provide basic background information about applicants ensure that they got correct work history, certifications, education, and citizenship. Interviewing is also the most commonly uses technique that take place face to face, by videoconferencing or through internet. Interview should be designed, conducted, and evaluated by two or more people. Employment selection test consider any producer used in employment selection decision process. The most common process of employment tests are ability test to measure physical abilities, strength, and mental abilities such as need to be tested for hearing for telephone operator. Personality tests measure personality traits, sociability, and independence. Because such test should be use carefully because it is not easy to measure personality characteristics of making legal defense. Performance test requires performance on actual job tasks for secretarial applicants and middle managers work on a small projects (Kinicki & Williams, 2003).
Performance Management (OR) Performance Appraisal
Performance Management is the process that consists of assessing how well employees are doing their jobs. Most managers and employees don’t the performance appraisal or annual performance reviews that about 70 per cent of employees are disappointed with the performance appraisal process in their organizations, and more than 90 per cent of human resource managers are also frustrated with the performance review system used by their companies.
There are two ways to avoid some of these problems with performance appraisals by accurately measuring job performance and effectively sharing performance feedback with employees. One of the main reasons most managers make mistakes is that they don’t spend enough time reviewing performance data. Objective performance measures the job performance that are quite easily and directly counted. For instance, by using Graphic rating scales are most easy way to construct workers’ performances. The most common graphic rating scale is the behavior observation scale in which requires to rate which workers perform specific behaviors that are essential successful job performance. The job dimension such as customer service and money handling have several specific behavior characteristics. Such behaviors are rated as good behavior or good performance and asked to judge how often the employees engaged with those good behaviors (McWilliams, 2010).