Human Resource Management & Growth

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Table of Contents

Introduction
Role for HRP within Business Strategy
Problem that may face organization in moving in the next level of growth
List of References

Introduction

Business expansion is a strategy in which growth is obtained by increasing the numbers of stores and workforce to manage the expansion. Expansion strategy may results in management challenges proper course of action is taken to coordinate the work force.

Skills in personnel management are of great significance to maintain efficiency and effectiveness in such organization (Ahmad & Schroeder 2003, p.29). Personnel management includes planning, organization, compensation, integration, training, and maintenance of people for the purpose of contributing to organizational, individual, and societal goals.

Personnel management is different from human resource management in that personnel management is regarded as administrative and reactive in nature while human resource is proactive and involves management of work force that contribute to organizational success(Lawler 1999, p.4;).

Discussion

Tods luxury shoes company for example will have to consider increasing its work force as a result of expansion. It is very critical that a business hire qualified and component personnel available for positions in the company. It is however difficult and time consuming to pick the right person for position. The first major steps in personnel management is the process of hiring people for the job (Armstrong 2006, p.26).

The executive of the shoes company will have to decide how big the company needs to expand. For example, he will have to decide the number of stores and other establishment needed for his expansion (Ulrich 1997, p. 26).

This will enable him to know the key job position needed and their job description. After this, recruitment process may then take place to get the most qualified persons for the position. Recruitment process will involves application by the candidate, selection, and then decision to take the most qualified personnel for the job (Andersen & Knudsen 2006, p.6).

Organizing

The manager at Tods luxury shoes company needs to identify all activities that need to be performed. For example, inventory control, sales, marketing, quality control, preparation of accounts and other activities.

The manager should then group related activities into similar department. Relationships are established among various groups to enable smooth interaction toward the achievement of the companys goal (Womack & Jones 1996, p. 77).

Training

Training and induction of new work force is very essential for performance in SME (small and medium sized enterprises) such as Tods luxury shoes company. Study by Carol yeh-yun-lin of National Chengchi University, department of business administration, found that training programs were essentials for SMEs to keep pace with larger firms in terms of sustainable competiveness (Tyson & Fell 1986, p. 14).

Employees training program should be developed to make a smooth induction for the new employees to understand the processes involved in their job description. Orientation should also be done to familiarize new employees with their working environment (Legge 2004, p. 87).

Compensation

A good compensation package is important to motivate the employees to increase the organizational productivity. The manager of Tods luxury shoes company, need to develop a system for motivating employees.

The reward systems should be determined if it is to be monitory, non-monitory or both. Salary is apart of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose (Miles, Snow, Meyer & Coleman 1978, p. 46).

Coordinating and Controlling

Coordinating will involve synchronization of individual efforts and departments to achieve organizational goal. Communication channels and feedback mechanism should be well established to provide smooth running of activities. Coordination increase efficiency and decrease wastage of time and resources. Coordinating makes, an organization act as one and this enables it to achieve its goals (Miles 2003, p.87).

Control is achieved by setting standard and providing methods of measurement and taking corrective action in case of deviation (Timberman 2005, p. 6). Control is essential for achievement of goal with minimum wastage of resources especially when dealing with new employees.

Human resource management in small and medium sized enterprise such as Tods Luxury Company is comparatively recent phenomenon and SMEs practioneers and managers have largely ignored personnel and HR issues such as training and development, performance management.

SMEs have to relate to human resources particularly staffing issues, and the retention of key employees. Application of Human resource management principles is essential for the growth of a firm (Samuel 1979, p. 58).

Role for HRP within Business Strategy

HRP (human resource planning) plays a core role in both large and small business entities. It enables the business to strategize ever-dynamic business environment. To SMEs, it prepares the organization for future expansion in terms of human resource and facilities needed (Tuner 2009, p. 35).

Problem that may face organization in moving in the next level of growth

Problems that may face organization in moving to the next stage in the growth cycle may include both financial and managerial in nature. Hiring more workforce will require finance and other resources to conduct recruitment and training. Managerial challenges of coordinating and organizing the new workforce to fit into the culture of the organization may be difficult to achieve (Vlachos 2009, p. 30).

List of References

Ahmad, S & Schroeder, R G 2003, The impact of human resource management practices on operational performance: recognizing country and industry differences, Journal of Operations Management, vol. 21,pp. 19-43.

Armstrong, M 2006, A Handbook of human resource management practice, Kogan Page Publishers, London.

Andersen, TJ & Knudsen, T 2006, Organizational structure, and strategy processes: Effective strategy formation under uncertainty. Web.

Lawler, E 1999, Linking business strategy, and human resources management. Web.

Legge, K 2004, Human resource management: rhetorics and realities, Palgrave Macmillan, Basingstoke.

Miles, R 2003, Organizational strategy, structure, and process, Stanford University Press, Stanford.

Miles, RE, Snow, CC, Meyer AD & Coleman, HJ 1978, Organizational strategy, structure, and process, Stanford University Press, Stanford.

Samuel, E1979, Management control, Harvard Business School Press, Boston.

Timberman, T 2005, The executive human resources business partner. Web.

Tuner, R 2009, The handbook of project-based management: leading strategic change, Prentice Hall, New York.

Tyson, S & Fell, A 1986, Evaluating the personnel function, Hutchinson Education.

Ulrich, D 1997, Human resource champions: the next agenda for adding value and delivering results, Harvard Business School Press, Boston.

Vlachos, I 2009, The effects of human resource practices on firm growth, Int. Journal of Business Science and Applied Management, vol.4, no.2, pp.1-19.

Womack, JP & Jones, DT 1996, Lean thinking: Banish waste and create wealth in your corporation, Simon & Schuster, New York.

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