The success of multinational businesses’ competitiveness in the global economy is conditional on the potation capability to develop and acclimatize their resources tactically to the gradation of the widening global playing ground.
Business practices that firms adopt to maintain competitiveness need to be developed in concurrence with their human resource departments (Ferner 2007: 98). The human resource strategies should be congruent with the firm’s strategic plan so as to enhance successful implementation of their business strategies
Given that it is individuals within the business who sell and market, develop and make products, make decisions and implement programs, human resource management is essential to the success of any business. To be strategic human resource strategies should maximize workers’ effectiveness according to their firm’s visions, aims and goals.
However, in a multi-cultural world and global economy, cultural misunderstandings persistently threaten an organization’s ability to function in an efficient and cooperative manner. Thus, for effective management of a multi-cultural company, it is essential that the management should be familiar with its staff culture and traditions (Poole, 1999: 78, Bell, 2007: 69).
International human resource departments have a difficult role: they have to come up with strategies that will sustain correspondence with the entire strategic plan of their particular multi-national companies, while matching with the economic, social, political and legal constraints of the numerous host nations.
Global management practices in multi-national corporations will differ significantly. The strategies, practices, systems and structures developed to implement those strategies will as well differ. Developing global practices can be challenging, given the conflicting demands on the multinationals placed by the global environment.
These conflicting demands frequently crop up as multinationals try to maximize their capabilities to handle the demands of the host nations (local responsiveness), while trying to uphold their controlled corporate structure globally (global integration). Mostly, the more autonomy foreign subsidiaries have to operate autonomously and address local issues, the less integrated the global company gets – and vice versa (Beret, Mendez, Paraponaris & Richez 2003: 450).
Numerous staffing strategies (such as recruitment, selection and placement) are conditional on the multinationals worldwide management strategy. The human resource management structures that multinationals adopt for their foreign operations and the socialization strategies applied for host national staff are examples of strategies that may differ in accordance to the adopted policy.
For instance, when staffing a foreign subsidiary, many multinationals employ expatriate workers to fill a variety of key positions abroad. If positions in foreign subsidiaries are not staffed by expatriates, they are staffed by either third country citizens or host citizens.
There are benefits accruing with host nationals staffing multinationals operations, since host citizens are versant with their own nation’s cultures, traditions, legislations and resources, thus easing the work of running the operations. Furthermore, unlike expatriates, there are no relocation expenses in connection with host citizens.
To handle multi-cultural issues, the human resource management can; enable cultural self awareness, create cultural consciousness, have multi-cultural negotiations, or adopt a global mindset or “global thinking” (Williamson 2002: 1380, Caligiuri 2000: 70).
References
Bell, M. P. 2007. Diversity in organizations. Mason, OH: Thomson South-Western.
Beret, P. Mendez, A. Paraponaris, C. & Richez-Battesti, N. 2003. R&D personnel and human resource management in multinational companies: between homogenization and differentiation. The international Journal of Human Resource Management, Vol. 14, No. 3, pp. 449-468.
Caligiuri, P. M. 2000. Selecting expatriates for personality characteristics: A moderating effect of personality on the relationship between host national contact and crosscultural adjustment. Management International Review, 40(1): 61-80.
Ferner, A. 2007. Multinational Companies and Human Resource Management: an Overview of Research Issues. Human Resource Management Journal, Vol. 4, No. 3, pp. 79-102.
Poole, M. 1999. Human Resource Management: Critical Perspectives on Business and Management, Volume 1. London: Routledge.
Williamson, D. 2002. Forward from a critique of Hofstede’s model of national culture. Human Relations, 55 (11): 1373-1395.
An effective performance evaluation system that can benefit an organization fully has to start with supervision. At supervisory level, evaluation mainly depends on the way leaders give out instructions like the leaders of teams and supervisors.
The manner of interaction between them and their juniors, how they encourage and counsel them and the manner in which they correct bad behavior and performance matters in evaluation. According to Gordon (1991), supervisors of an organization need to be given extensive training on important issues of the company.
For effective evaluation, supervisors have to give their subjects targets that are reasonable and clear and ensure that they follow them up to make sure they are well understood. Feedback on behavior of employees and their performance should be regularly taken to ensure that they work according to the expectations of the organization. Evaluation should be based on job specification of the employees and all information pertaining evaluation should be disclosed to the employees.
Another aspect that is critical to effective evaluation in an organization is documentation. In case there are disciplinary actions to be taken, termination of employment or any issues arising, documentation is important to protect the decisions and integrity of the company.
Documentation should be done in time and should mainly focus on performance and behavior of the employees. An evaluation system that has the support of top management of an organization and is viewed by all the stakeholders in the organization as fair and productive is the one suitable for effective evaluation.
Assessment of individuals within an organization has to be on the basis of performance agreement which is essential in the performance of the organization. I would recommend an organization to use the following tools for evaluation purposes; an evaluation matrix which will assist in close monitoring of evaluation procedures of the organization, an evaluation planner which will give guidelines on how to conduct planning and evaluation processes, and an outcomes planner to help identify the main targets of evaluation.
I would agree to Management by objectives (MBO) because it brings together the management and the employees to agree on objectives that are agreeable by all stakeholders which is an important aspect for effective evaluation (Gordon, 1991).
Human resource management practices are very important to an organization. It is a legal identity that links the employees and the organization as well as guides the organization on employment procedures and laws that may be different from the government laws.
Stigler (1950), argued that, for any organization to be successful, there is need for skilled personnel, a work force that is dynamic and committed to the organization, a management that is innovative and flexible, the ability to reward and nurture its experienced employees and a link between labor unions and management. In order for the management to realize these goals, a company needs to have a reliable human resource practices.
Besides hiring new staff, human resource management is responsible for making sure that employees are committed and loyal to the organization by setting up systems and procedures that make employees to be committed to their work. The human resource department updates employees of the company requirements and setting up conditions for job security and conditions of work. It is in this regard that I agree with the fact that human resource practices add value to an organization.
Marginal utility is based on the assumption that utility can be measured by assigning numerical numbers which implies that utility can be quantified. In this regard, a person’s work can be expressed in terms of quantitative terms by allocating numbers that signify a given level of performance.
It is also based on the assumption that you can come up with an hypothesis of a person by observation. Marginal utility analysis has a weakness since it comes up with solutions that are not specific, but using an analysis that is based on cost and curves, human resource activities can be made to have definite decisions (Stigler, 1950).
References
Gordon, S. (1991). “The Scottish Enlightenment of the eighteenth century”. History and Philosophy of Social Science. Edinburgh: Routledge.
Stigler, G. (1950) “The Development of Utility Theory”, I and II, Journal of Political Economy, issues 3 and 4.
The department and profession that plays one of the most important roles in any organization is the Human Resource Department because it deals with workers, their motivation, appraisal and strategic focus that determine the overall productivity and profitability of any institution.
Human resources departments are very crucial in linking an organization with its visions because it is indeed the workers and employees who define the application of respective organization policies. This paper explores human resources management in terms of its roles in job design, tasks involved, job redesign, training and development.
Methods of job design
Job enrichment
According to Kaiser and Fordinal (2010), job enrichment is a critical factor that increase work output and enhances performance. Of utmost importance in job enrichment is the provision of a few motivation factors which play a crucial role of making a job interesting, challenging and rewarding.
At individual and group levels, Kaiser and Fordinal argue that employees easily get motivated when they realize that their input is valuable to their organizations. Indeed, high performance becomes fun as decisions easily flow in a bottom-upward trend.
Through repetitive operation of their different activities, they gather critical experiences that assist them in making correct decisions at team level. This can be attained by maintaining a highly consultative model of operation where employees propose solutions and ideas to different issues.
Though the ideas and propositions often undergo critical adjustments and enrichments, Kazemi and Maral (2010) argue that employees have strong attachment to the ultimate decision that strongly reduces their resistance to them. A company should emphasize that its employees are indeed invaluable since this will further invoke a sense of identity with the company.
Job rotation
Job rotation has become an important component of job design since it plays a significant role of transferring a worker from a particular job to another with an aim of ensuring that the worker learns what other jobs involve.
This is a task which most companies carry out to determine and track the level of skills in a worker. This is a process whose result ends in establishing a particular posting for a worker.
Factors that limit job design
Maintaining a competitive edge at workplace is cited to be a major challenge for human resource managers because of related complexities. Kazemi and Maral. (2010) argue that employees are always subjected to external forces that draw away their commitment and reduce their productivity.
A good example is when labour unions in other areas of professions start asking for payment increases. Besides, current workplace requires employees to be carefully motivated to ensure that they are able to assume an upward mobility in the Maslow’s human needs hierarchy.
However, López-Sáez et al (2010) reflect that to make employees achieve this ascent is very difficult because a balance has to be reached between profitability and methods employed for motivation.
Most HR managers are generally hands tied on the extent they can go in motivating their employees because salaries and remunerations are largely determined by other parties. This threatens them greatly because share holders are always demanding greater returns while employees equally require adequate remunerations.
Job characteristics model of job redesign
Job redesign is an important tool of redesigning and re-engineering methods, contents and work of a staff. It seeks to re-identify tasks, processes and methods that can be used to improve employee quality.
Some of the components which job redesign employs include developing a flexible job design like work at home, compressed work week, job sharing, flexible working hours, increased employee responsibility and autonomy, job enlargement and job rotation.
Strategic framework for implementation of job design or redesign
One of the most important frameworks for implementation of job design or redesign is adhering to the PERSTICLE which focuses on political factors, economical issues, relationship matters in a workplace, social factors, and others like technology, infrastructure, education, legal issues and culture.
Another framework is the environmental framework which deals with distillation, attitude, knowledge, cooperation and vision.
Formal orientation system and informal orientation system
A systemic approach to effective orientation is a process conducted by a human resource manager and which has the elements of attention to information, behaviours and attitudes of new workers.
Formal orientation requires that proper preparations be conducted so as to provide new employees with orientation information, evaluation and follow up. On the other hand, while many managers prefer an informal orientation, Sally (2005) argues is normally conducted in a haphazard way. Its elements include a means-end shema and impartiality.
Difference between training and development
Training and development of human resources remain one of the most critical facets in any organizations management because they facilitate assimilation of new ideologies, trends and models that invoke greater creativity, innovation and ultimate sustainability.
Training is a term used to refer to the use of teachings to aid an individual or a group to acquire competencies, skills, and knowledge. Its aim in an organization is to assist workers to enhance their performance, capacity and capability.
On the other hand, development refers to growth of an organization, a business or an individual. The main difference is that development encompasses a wide range of elements both at personal and organizational level. Some of them include: personal development, product development, career development, business development and fundraising.
Training is specific to learning of individuals in an organization or a business in order to develop. Through continued training, employees remain highly creative and innovative in handling different clients and making crucial decisions when on duty
How to decreasing the blockage of training and increasing the transfer of training
Driving the need for continued improvement
Since organizations started moving away from the classic model of management, Sally (2005) argues that change and change management has become the only permanent thing.
Human resource managers point that every achievement, be it negative or positive, has some room for improvement. However, application of these changes is equally very difficult because it is largely seen to disapprove the previous systems. As a result, most changes often get massive resistances and changes objectives are rarely achieved.
Create a learning environment
One of the most emphasized aspects in any organization is the resulting implications of transfer of training and ensuring that more workers are trained. Sally (2005) brings out an advanced understanding of the role that organizational training and development play in knowledge management in an organization.
While seeking to establish the importance of training in an organization and the need to sustain the practice, Sally argues that creating a learning environment will facilitate assimilation and application of skills to improve profitability.
Enhance training and development
To concur with Sally’s (2005) view, training and development is perhaps the greatest way of sustaining learning and transfer of skills because it enables an organisation to develop particular skills in its staff. Training and development therefore acts like a link between a company’s current status and its target by empowering other workers with additional skills.
Through continued training, employees remain highly creative and innovative in handling different clients and making crucial decisions when on duty. As a result, continued skills development and training acquaints employees with skills that allow them to perfect services to consumers.
References
Kaiser, A. & Fordinal, B. (2010). Creating a ba for generating self-transcending knowledge. Journal of Knowledge Management, 14(6): 928-942.
Kazemi, M. & Maral, Z.A. (2010). Defining a knowledge management conceptual model by using MADM. Journal of Knowledge Management, 14 (6): 872-890.
López-Sáez, P., Navas-López, J.E., Martín-de-Castro, G. & Cruz-González, J. (2010). External knowledge acquisition processes in knowledge-intensive clusters. Journal of Knowledge Management 14(5): 690-707.
Sally, C. S. (2005). Human resource management in American counties (2002). Public Personnel Management, 34(1), 59-84.
Ingvar Kamprad founded IKEA in 1943 when he was just 17 years old (Aaker, 1992). During its early days, the company was dealing with fledging company fish and the sale of charismas cards. The founder of the company conducted these small operations at his small farm in a remote village in Sweden. To maintain his customers and earn new ones, Ingvar ensured that he delivered the goods to the homes of his customers. This strategy was successful, and later on developed to be the tradition of IKEA (Bian and Moutinho, 2009).
In the process of development, IKEA faced a lot of challenges. This included competition from rivals, sourcing for raw materials and manufacturing firms, entry into new markets and maintenance of high quality of its products and selling them at low prices.
Through hard work, strategic planning and determination, the company was able to overcome these difficulties and now it is one of the leading furniture selling companies in the world. At the present moment, the company is operational in over 35 different countries, has over 285 stores and a workforce of 127,800 individuals (Kotler, 1997).
The vision of IKEA is to create a better everyday life for many people (McGinnis, 2008). To achieve this vision, the company has developed and applied a number of strategies, goals and objectives. Some of these have had short-term effects while others have had long-term effects.
The firm has also a strong corporate structure that has enabled its operations to be smooth. This structure is divided into operations and franchising. Operations mainly deal with the running and management of the stores while franchising deals with marketing and expansion of the firm (Miner, 2007).
To ensure that the operations of the company are effective and efficient, the company has maintained a stable organization structure and culture. The managerial strategy of IKEA is formal, non-hierarchical, and based on a teamwork (Peter et al, 2009). This ensures that all the employees have a duty of care and respect for one another. As a result, employees at IKEA do not have titles or get special privileges.
There is also effective communication among the employees. This ensures that the correct information is passed from one employee or department to another. As a result, the efficiency of operations within the organization is maintained (Gofman and Mets, 2010). IKEA also believes in recruiting young employees who are creative and innovative (Egan, 2000).
This not only reduces expenditure on salaries but also ensures that the company remains the best in terms of creativity and innovation (Jugger, 2009). The future goal of the company is to expand its operations into many more countries. It is projected that IKEA will be opening 20-25 stores annually in the near future (Schein, 2005). This will guarantee the sustainability of the company in the long run.
Human Resource Management Strategies
The vision of IKEA has been to provide a better everyday life to many people. To achieve this goal, IKEA has come up with several strategies aimed at improving the effectiveness and efficiency of its operations. Having an effective human resource has been one of the key goals of the organization.
This is due to the fact that an effective human resource will ensure that the workforce of the organization is effective and performs its duties as per the expectation of the company. As a result therefore, the employees are able to meet the goals and objectives that have been set by the company hence they are able to satisfy the needs and desires of the consumers through their services.
For the human resource of IKEA to achieve this, its goals and objectives have been designed in a way to be in line with the overall goals and objectives of the organization. Offering a strong leadership, embracing teamwork and building a strong organizational culture have been the main goals of the human resource management of IKEA (Nicolini, 2000).
These form part of the main goals and objectives that the organization wants to achieve in order to realize its vision. Therefore, IKEA greatly depends on its human resource department to achieve its short-term and long-term goals and objectives (Stone, 2008).
Human Resource Objectives and their effectiveness
The first objective of the human resource management of IKEA is to develop a strong organizational culture. Organizational structure is a framework that an organization uses to run its operations (Wether and Chandler, 2006). It entails the ways and means through which an organization arranges its authority lines, communication, roles, duties and responsibilities of individuals and departments, and how all these components are incorporated into a single unit.
To achieve this, the organization has adopted and applied a decentralized leadership model through its human resource department. With this model, the employees at all levels of the organization are involved in the daily running of the firm. They are always asked to offer their opinions and their views are always respected. In addition, they are also involved in the decision making process. This not only motivates them, but it also enables them to work in an effective and efficient manner (Hannagnan, 2007).
The second objective of the human resource department is to develop the spirit of teamwork with all the employees of the organization. An organisation in which the members of staff work together as a team has a higher chance to succeed as compared to that which mainly relies on individual efforts (Thomas, 2002).
Through teamwork, these different groups work together to ensure that the goals and objectives which have been set up by the organization are achieved. This gives different teams an opportunity to make decisions concerning their operations increasing their loyalty to the firm and at the same time, it fosters ownership. IKEA is made of a network of teams that work together to ensure that the entire consumer needs are met.
These teams work hand in hand with each other. The individuals who are in these teams are skilled in their respective fields of expertise. The company also allows for the rotation of individuals from one department to the other, thus workers develop even new skills while they work at the firm (Belbin, 2010). Information Technology is widely used in the operations of the company and has especially improved the communications between various departments in the organization.
The company through its policy allows its workers to further their education and skills to improve the excellence of their work. The company is normally involved in a serious of projects in their stores that are located in most parts of the world. A specific team conducts each project. On its completion, the team is disbanded and rearranged in preparation of a new project. IKEA therefore encourages teams and team working, a factor that has been contributing greatly to the success of the company over the years (Das and Teng, 2009).
The third objective of the human resource department of IKEA is to develop a strong organizational culture. Organization culture is the attitude, beliefs, psychology and behaviour that an organization believes is best suited to follow to accomplish its goals (Schein, 2005). It is through this culture that IKEA has developed the means through which it deals with its members of the staff, stakeholders and other interested parties in general (Black, 2003).
Through its organization culture, IKEA is able to differentiate itself from other organizations that deal with furniture manufacture and retail. The organization seeks to satisfy the needs of its customers first.
There is also trust and respect from the employees to its customers, stakeholders and other individuals who visit its stores. The employees also have trust and respect to each other. This ensures that they more effectively and efficiently hence they are able to meet their personal as well as the organizational goals and objectives (Mullins, 2010).
Issues in Employment Relations and HRM in the Company
Over the years, IKEA has had a strong human resource department. It is through this department that the organization has been able to meet most of its short-term and long-term goals and objectives. However, there has always been a constant issue between the department and the employees. For several years now, most of the employees have felt that the department needs to modify the manner it recruits, promotes and pay its employees (Gitman, 2008).
It has been the tradition of the organization to recruit and train employees from the system rather than employing qualified personnel. Although the HR department views this as a strategy to reduce operating costs, other employees view this move as degenerating since not all the employees are competent enough to hold the position that they are trained for. In addition, this system does not create room for competition among employees that not only improves the operations of the organization, but increases the skills and knowledge of the employees themselves.
In addition, employees have always complained on the low payment rates that they received. It has been the tradition of IKEA to keep employees who have passion to work for the organization rather than making a lot of money. In the process, IKEA has lost some of its best employees to rival companies who have offered them better payment packages (Fontaine, 2007).
Areas of Improvement
With regards to the above problems, the HR department of IKEA needs to improve the manner in which it recruits and trains its staff. For the organization to continue to be effective and efficient, the HR department needs to recruit qualified personnel and, at the same time, maintain internal recruitment and training.
This will ensure that the employees of the organization have the vigour and intensity that is required to keep up with the competition from rival companies. The HR department also needs to improve the methods with which it motivates its employees. At the present moment, the main method that the department uses to motivate its employees is through the provision of a conducive working environment.
To improve on this, the department may increase the payment for its employees, offer job promotions, bonuses and rewards to hard working employees. This will make them work even harder. This strategy will also ensure that there is minimal staff turnover as a result of employees being stolen by other rival companies.
Conclusion
IKEA is the worlds leading retailer of household furniture and fittings. Through its effective strategies and management, the company has been successful for over 8 decades now. Despite this, IKEA has faced a lot of challenges especially in its HR department. To curb this problem, IKEA needs to modify the strategies that it has been employing in its HR department in order to meet the new market challenges and demands. This will ensure that the company’s profitability and sustainability are maintained in the long run.
References
Aaker, D.A., 2002. ‘The Value of Brand Equity’. Journal of Business Strategy, 13 (4), 27-32.
Bian, X. and Moutinho, L., 2009. ‘The Role of Brand Image, Product Involvement, and Knowledge in Explaining Consumer Purchase Behavior of Counterfeits Direct and Indirect Effects’. European Journal of Marketing, 45 (1), pp. 191-216
Belbin, R.M., 2010. Management Teams: Why They Succeed or Fail. London: Elsevier
Black, R. 2003. Organizational Culture: Creating the Influence Needed for Strategic Success. London: Penguin Books
Das, T.K. and Teng B.S., 2009. ‘Cognitive Biases and Strategic Decision Processes’. Journal of Management Studies, 36 (6), pp. 757-778.
McGinnis, S., 2008. ‘Organization Behavior and Management Thinking’, in Key Topics in Organizational Behavior. New Jersey: Jones and Bartlett Publishers.
Miner, J. 2007. Organization Behavior: From Theory to Practice. Kinston: M.E Sharpe
Analysis of the difference between current practice and best practice as identified in the literature appropriate for the industry location of the organization. Additionally, there is my recommended practice for the organization given current constraints:
Introduction
The major strategy to be used in tackling this question is the location of Baiada Poultry Pty Ltd as compared to the best location of such businesses in the industry. This is because it is important to analyze the costs associated with the strategic location and logistical procedures of the business outlets. It is also necessary to know the importance of the organization’s cultural perspective to Baiada’s performance.
Currently, Baiada Poultry Pty Ltd headquarters are situated at Pendle Hill, 30km west of Sydney. The other operating centers are in major Australian cities and towns such as Victoria and Brisbane (Welcome to Baiada 2007). This location can pose a challenge to the logistical operations of Baiada Poultry.
This is because there are other major companies that engage in poultry farming as well. These have more supply joints as compared to Baiada and they can therefore pose a challenge to the company’s profits (IBISWorld 2010).
Since these competitors such as Inghams Enterprises are strategically located within 50 km of the market, they can be in a position to reduce operating costs associated with transport. As a result, they can achieve a competitive advantage over Baiada Poultry by selling their products at cheaper prices (Organisations: Connected with poultry 2011).
On the other side, it is important to note that the best location for poultry products is near the consumers. The current location of Baiada Poultry Pty Ltd may therefore not benefit it logistically.
This is because it might take long to deliver the desired goods on time. This is given the fact that Baiada’s poultry outlets are further from the markets while the major poultry producing firms are located within the market centers (Location of Farms and Processing 2011).
Delivery time is essential in ensuring that product quality is maintained. If the products take too long to reach the end consumer, then quality is compromised. Eventually, consumers will opt for the competitor’s products. This can have long term negative effects on the profits of Baiada Poultry Pty.
It is necessary to consider that Baiada’s human resource re-strategized its workforce. It therefore trained and promoted employees from within therefore creating a friendly culture among the employees and their seniors. This way, the poultry business has flourished because the employees are well coordinated and promotion activities boost their morale.
Since they feel fairly treated, their production levels have improved. Consequently, Baiada Poultry Pty Ltd has been able to achieve a competitive advantage over its competitors (Marchington, M 2005, p. 74).
As a result of the good relations at the place of work, the overall level of production as well as performance of the company has increased with time. Note that with increased consumption of poultry products in Australia, it is necessary to improve the quality by constant training of the workforce (Adams 2010).
Recommendations
The location of any business and in this case poultry business is essential in order to save transport costs of either raw materials or finished goods. Baiada Poultry Pty Ltd should therefore aim at establishing businesses near major consumer joints such as hotels. Additionally, its suppliers or source of poultry should be conveniently located in order to save time and money. This way, it is possible to save costs.
It is recommendable that Baiada Poultry Pty Ltd should increase the number of its outlets. This way, it will be able to reach many consumers and therefore be able to beat competition from the top players in the market. Logistically, it should improve the supply chain by contracting raw materials from suppliers who are near its production facilities.
Additionally, the company can reduce costs by establishing its outlets near the consumers. This way, less delivery costs will be incurred. Baiada Poultry can also practice economies of scale whereby it can sell in bulks in order to save transport costs. As a result, this can create a competitive advantage over the competitors.
The company’s human resource department should yearn to improve the level of management to a standard that is up to date. It can do this by conducting seminars in order to train its staff about the managerial as well as supervisory roles.
This way, production procedures can be smoothened and problems associated with industrial strikes can be prevented. Baiada Poultry Property should also be keen to ensure that promotion is transparent at all times. This way, issues of mistrust among the employees may be avoided and quality can be maintained always.
Challenges
There are various challenges that were encountered during research on this topic. For instance, some of the information available is very inadequate. This is to say that Baiada Poultry Property Ltd has not posted sufficient information about its operations on the internet. Therefore, there is need to constantly update poultry business information in order to form a reference for prospective clients.
There are two major resources that can ensure the success of any business venture in the modern world of economics. The first is the material resource which includes both natural and capital resources. The second and which is the most strategic is the human resource.
Human resource is the most crucial since man has the ability to manipulate the former (Ferris, Buckley, & Fedor, 2002, p.23). Man, with his ingenuity and diligence can manage to overcome the unpredictable and sometimes unreliable forces of nature.
This fact, therefore, calls for the appropriate management of this special and crucial resource. Human resource management can be defined as the sum total of activities undertaken by any business firm with an aim of attracting, developing, motivating, and retaining its employees (Ferris, et al., 2002, p.3).
It comprises of aspects such as human resource planning, staffing, evaluating, rewarding, and training. It involves the positioning of people in their most productive categories suited for their respective potentials.
A number of other contextual factors such as social and political systems, legislation, the influence of labour unions, and trade associations have played a role in shaping the management of human resource (Leung & White, 2004, p.475).
This essay attempts to compare and contrast the contextual environment of human resource management practices in two Asian states; Hong Kong and Singapore.
Singapore has asserted itself as one of the leading economies in the greater Asian continent in the recent past. This has been facilitated by her determination and renewed vigour in the management of the resources at her disposal coupled with its strategic geographical positioning.
The management of human resource in Singapore has evolved with the dynamic and competitive market environment especially since the mid 1990s to present time (Wan, 2003, p.129). The 1997 Asian Financial Crisis played a central role in the development of human resource in Singapore (Budhwar, 2004, p.5).
National HRM policies and strategies were formulated with an aim of maximizing human capital in order to facilitate meaningful transformation. The Singaporean government has for a long time embraced the centralized system of managing its human resource and has seen the continued influence by foreign investment.
Currently, there are key issues and challenges facing the Singaporean employee relations. These include; continued dependency on foreign man power, the ageing labour-force, the privatization of government-linked corporations, and the relocation of industries demanding more human resource to foreign countries (Wan, 2003, p.135).
The reason behind the employment of foreigners is the imposition of levy and quota system in Singapore. The extension of retirement age by the Singaporean government has seen an increase in the retention of older workforce. This has created a conflict with the employers who regard them as less productive yet expensive and hence they demand the review of wages.
On the case of industry relocation, less skilled workers are the usual victims. Proposals have been made for the retraining of the less skilled workers to counter this major problem but it is yet to be fully embraced by the government (Ho, 2005, p.36).
On an overall analysis of economic performance, Singapore’s economic growth has not been greater compared with that displayed by Hong Kong. This reflects, to some degree, the impact of their differences as far as HRM is concerned.
In fact, the centralized management by the government has seen industries grow at a very high rate at the expense of proper management of human resource (Wan, 2003, p.143). This context has impacted negatively on the HRM system in Singapore over the recent past.
On the contrary, Hong Kong has her peculiar ways of managing the human resource especially after the new environment that followed her reunion with the People’s Republic of China. Hong Kong has principal systems of employment which characterizes the HRM practices.
It was during Hong Kong’s industrialisation period from the 1950s to the 1970s when various human resource management practices were institutionalised (Law, Wong, & Wang, 2004, p.642).
Within this context, there was an open economy, less involvement by the government in the affairs of businesses and the labour market in general. The trade union movement was also very weak during the time.
However, there were notable changes in the HRM systems in Hong Kong following the economic, political, and labour market transformations from the early years of 1970s through the mid-1990s (Chiu & Levin, 2003, p.32).
Most employers were forced to review their human resource management practices in order to catch up with the overwhelming restructuring process. Talking of transformation, Hong Kong has seen its economy change to a service-based right from a manufacturing-based economy hence resulting in increased demand for manual labour.
This has opened up opportunities for many people including myself since there is rigorous recruitment of manpower at the company that I work with. The then existing human resource had to be retrained in order that they would be readmitted in the labour market.
Hong Kong has established the Employee Retraining Board (ERB) which ensures the continued training, assessment, course evaluation, and general monitoring of employee performance.
In 1997, the onset of the infamous Asian Financial Crisis had significant impact on the HRM practices both in the public and private sectors in Hong Kong (Chiu & Levin, 2003, p.33). Furthermore, human resource management practices were affected by the change of sovereignty over Hong Kong in the same year.
These crises impacted on key aspects of human resource management which include; job security, training, compensation techniques, promotion, and employment relations. According to Chiu and Siu (2001, p.845), small and medium-sized enterprises in Hong Kong had diverse human resource management practices at given stages of acquiring the right sizes.
Moreover, Hong Kong is characterised by the localization of her human resources especially in China-owned enterprises and transnational corporations (Law, Wong, & Wang, 2004, p.634). This move to localize human resource has resulted significant success in many corporations especially as far as expatriate positions are concerned.
In the recent past, however, restructuring in the public sector has seen the systematic elimination of rigid human resource management practices. Their employment approaches are most likely to resemble those used in the private sector (Chiu & Levin, 2003, p.43).
Despite the clear contextual differences depicted in the above discussion of HRM practices in Hong Kong and Singapore, they share some similarities in their systems. Both were greatly affected by the Asian Financial Crisis of 1997.
Furthermore, Singapore and Hong Kong have consistently been ranked at the top of the Index Economic Freedom implying that their respective HRM systems have been a success.
This essay has broadly discussed the human resource management practices in Singapore and Hong Kong and how they have been and continue to be contextually influenced in one way or another.
The HRM systems have been shaped mainly by the historical events, social relations, government policies in relation to employers, employee training, and other key transformational experiences in the respective countries and in the greater Asian continent.
Hong Kong and Singapore share some human resource management practices following their shared historical events and transformations.
Reference List
Budhwar, P. S. 2004. Managing human resources in Asia-Pacific. 3rd ed. Routledge, Pp. 3-56.
Chiu, S. K. & Levin, D. A. 2003. HRM in Hong Kong since 1997. Asian Pacific Business Review. 9 (4), pp. 32-54.
Chu, P. and Siu, W. S. 2001. Managing the Asian economic crisis. International Journal of Human Resource Management.12 (5), p. 846.
Ferris, G. R., Buckley, M. R., & Fedor, D. B. eds. 2002. Management of Human resources: viewpoints, contexts, and functions. Upper Saddle River, N.J.:Prentice-Hall. Pp. 3, 23-78.
Ho, G. C. 2005. Embracing the value of people: themes and perspectives of HR management in Singapore. Singapore: Singapore Human Resources Institute; Pp. 34-76.
Law, K S. Wong, C. S. and Wang, K. D. 2004. An experimental test of the model on managing the placement of human resources in Hong Kong. International Journal of Human Resource Management. 15 (5), pp. 634-643.
Leung, K. & White, S. 2004. Human Resource Management in Asia: Understanding differences in Human Resource Practices. Springer, 474-505.
Wan, D. 2003. HRM in Singapore: change and continuity. Asian Pacific Business Reviews. 9 (4) pp. 128-145.
Human resource is one of the most important factors in an organisation’s attempt to develop and maintain sufficient competitive advantage. Human resource plays an important role in the operation of business enterprises.1
It also enhances an organisation’s ability to attain its goals and objectives. Findings of previous studies reveal that effective formulation and implementation of HR practices, systems, and policies contribute towards improvement in a firm’s operational and financial success.
Additionally, the alignment of a firm’s business strategy and with its HR systems increases the probability of attaining sustainability.
Sustainability refers to a firm’s ability to attain its goals in addition to maximising its shareholders’ long-term value. One of the known ways of achieving sustainability is by integrating various social, environmental, and economic aspects within a firm’s business strategy.2
Managers are currently listing sustainability as one of the core components in a firm’s operations. Integration of optimal HR practices by organisations in different economic sectors promotes their ability to attain greater sustainability.
In a bid to achieve, sustainability and hence competitive advantage, firms in different economic sectors should adopt effective in managing their employees. Firms can choose from two main HR approaches, viz. the ‘soft’ and ‘hard’ HR.
This paper evaluates the role of HR towards attainment of sustainability, and undertakes an analysis of the Australian tourism hospitality industry to illustrate the relationship between HR and sustainability.
Outlook of the tourism hospitality industry in Australia
The tourism hospitality industry is an important component of the Australian economy. The industry’s earnings account for more than15 percent of the country’s Gross Domestic Product. It also provides direct employment to more than 500,000 citizens in addition to earning more than 10 per cent of the country’s total export earnings.
The industry ranks as the largest service export industry in Australia. Earnings from the tourism industry go to funding other vital economic infrastructure such as hotels, road networks, and airports.
The Australian tourism industry is characterised by a high-level diversity. A study conducted by Tourism Australia reveals that about 280,000 enterprises promote the industry’s operations. The enterprises range from travel agents, casinos, transport companies, cafes, and accommodation.
The industry’s success also arises from the fact that Australia has an efficient supply chain that generates high economic multipliers.
The Australian tourism industry is broad in nature, actually, people know it as the “visitor economy”, which is composed of international and domestic travels, work and study and visiting friends and family.3
The Australian tourism industry has a high competitive advantage compared to other countries. Its competitive advantage arises from its unique landscapes, indigenous heritage and culture, culturally diverse population, and nature-based tourism offering.
The tourism industry faces two major challenges, which include appreciation of the Australian dollar and increase in the intensity of competition. Despite these challenges, the industry has a high potential for growth due to its rich cultural, natural, and artificial attractions.
Approximately, substantial improvement within the industry will result in increment in its contribution to the country’s GDP to 50 per cent.4
The industry’s future growth will rely on the high rate of economic growth being experienced in emerging economies such as Asia and China. The high rate of technological innovation will promote growth by making it possible for tour operators to interact with their customers.
Approaches that organisations can take in managing employees
Human resource management is a unique approach, which aims at enabling organisations attain competitive advantage by strategically ensuring a motivated workforce.5 There are two main perspectives to Human resource management, viz. hard and soft HRM.
Soft HRM
This approach deals with nurturing an organisational environment that is employee-centred. Employees are important contributors in a firm’s effort to achieve its goals. This approach asserts that employees are more productive if their level of commitment to the organisation is high.
The soft approach to HR management assumes that employees contribute to the creation of value thus leading to a firm attaining sustainable competitive advantage. For a firm to qualify as an employee centred unit, this approach emphasises on a number of aspects.
Some of these aspects relate to job satisfaction, employee motivation, developing employee knowledge and trust to improve employees’ engagement.
This approach also integrates management aspects aimed at promoting employee autonomy in addition to giving them an opportunity to participate in decision-making processes.
Soft approach to HR management postulates that management teams should allow employees to make decisions on their own regarding certain organisational issues rather than being controlled.
Additionally, the approach assumes that employees are most committed if they have a comprehensive understating of the organisation’s mission and operational strategies.6
In an effort to help organisations attain competitive advantage, soft approach to HRM supports various human resource practices and policies that recognise employees as valuable elements in the success of organisations.
In summary, the soft approach to HR management holds that an organisation can attain sustainable competitive advantage by ensuring effective and efficient employee involvement.
Other aspects that should be nurtured include high-trust, high employee commitment and developing an effective organisational culture.
Hard approach
This approach to HR is more instrumental and economically rational.7 The approach perceives employees as other organisational resources.8 Therefore, employees are managed in a similar manner like other resources with the objective of maximising returns.
People management strategies, which organisations incorporate in their operations, emphasise on maximising organisational control and attaining minimum labour cost.
This aspect paints the hard approach as a quantitative and calculative approach. Additionally, in this approach, labour is an important resource.
The hard approach to HR takes into account a number of approaches. Firstly, employees are considered as important resources in the operation of an organisation, and thus firms’ management teams have to use this resource effectively and efficiently to gain a high level of competitive advantage.
Secondly, line managers are assigned the responsibility of controlling employees in their effort to implement competitive and corporate strategies. This move shows that the hard approach is hierarchical and autocratic.
In summary, the hard approach to HR is business-oriented and emphasises more on increasing employee productivity and improving efficiency in the deployment of human resources.
Soft approach to enabling a sustainable competitive advantage for service industries
Hospitality industries such as tourism industries are more inclined to adopting soft approach in their effort to develop sustainable competitive advantage. Sustainable competitive advantage refers to unique sources of competitiveness, which competitors cannot imitate.9
Organisations that integrate soft HRM stand a high probability of attaining a high competitive advantage in the market. The soft approach to HRM maintains that employees are unique organisational resources for value can be added to them thus generate sustainable competitive advantage.
One of the factors that promote increased inclination towards soft approach within the service industry is the need for capable, reliable, and service-oriented employees.
The success of firms within the service industry hinges on the quality of service delivered. Managers of service companies cannot measure the performance of employees like in the case of dealing with products. Therefore, they have to trust their employees to offer efficient services.
Considering the competitive nature of the Australian service industry such as the tourism industry, it has become critical for firms in the industry to become service oriented with the objective of ensuring that their customers attain the highest level of satisfaction.
The management of these firms can only achieve this goal by ensuring that employees are highly committed towards service delivery. Additionally, HRM in the service industry incorporates soft approach in an effort to align HR strategies, business strategies, and plans.
Initiatives and enablers that the hospitality industry can take
Management teams of firms within the hospitality industry can adopt a number of human resource initiatives to develop sustainable competitive advantage. These initiatives will contribute towards development of a sustainable enterprise and they include:-
Change management
The tourism industry in Australia is characterised by intense competition and to counter the negative effects of competition, firms in the industry should formulate optimal operational strategies. One of the ways to achieve this objective is by adjusting some of the operational strategies.
In most cases, organisational management teams experience resistance from employees during the process of incorporating change and thus to ensure successful change implementation, firm’s management teams should adopt effective change strategies, which can be attained by educating the employees regarding the intended change.10
Additionally, change management will also lead to development of competencies in addition to supporting workforce engagement.
Change management will also enhance a firm’s ability in managing talent thus increasing the firm’s capacity to attain sustainable competitive advantage. One of the change initiatives that a firm should consider relates to coaching its employees in a bid to develop strong core competencies.
Developing and inculcating effective values
Firms’ management teams should develop sustainable values. Sustainable values form the basis of a firm attaining competitive advantage. Inculcating values amongst employees culminates in the creation of a sustainable mindset amongst the employees.
Nurturing good values amongst employees will increase the probability of the organisation attaining its business goals, for the firm’s management team will manage to incorporate effective leadership style, thus leading to a total transformation of the organisation.11
Facilitate holistic integration and collaboration
The success of an organisation is greatly dependent on the effectiveness with which lower level employees collaborate with the top management. Consequently, tourism firms should nurture a high level of collaboration and teamwork amongst its employees to succeed in the dynamic nature of the tourism industry.
Through collaboration, it will be possible for a firm’s management team to deal with diversity within its workforce and other business associates.
Incorporation of teamwork and collaboration initiatives will improve the effectiveness with which management teams develop strong relationships within and without their organisations.
Challenges that organisations experience by taking into account soft approach
Despite the benefits that firms within the hotel industry can achieve by incorporating soft HR, a number of challenges come with the adoption of such challenges. Soft HR considers employees as an important resource in the success of the organisation.
Soft HR requires firms’ management teams to formulate and implement an employee-training program to improve employee job satisfaction.
In addition, an organisation might be required to implement a number of programs in an effort to motivate employees. Implementation of such programs may be expensive to the organisation thus leading to financial constrains.
Soft approach to HR also postulates that firms’ management teams should give employees an opportunity to participate in decision-making processes. This element might limit the effectiveness and efficiency with which hospitality firms respond to changes in the business environment.
Employee participation may cause the decision making process to take a long duration and thus the organisation may not manage to exploit the opportunities present in the market.
Ways in which HR influences senior management to develop sustainable competitive advantage through soft HR.
Human resource management influences top management teams to develop their human capital in a number of ways, and thus increases the probability of organisations attaining sustainable competitive advantage.
Some of these ways relate to adoption of best HR practices such as leadership and development, incorporation of change management, talent management, ensuring workforce engagement, and promoting ethics and governance.
HR also influences senior management by promoting a high level of cohesiveness in the organisation through adoption of various collaboration and teamwork initiatives.
Discussion
The analysis of soft and hard approaches to human resource management shows that soft approach to HR is more effective in the hospitality industry when compared to hard HR.
The appropriateness of soft HR to tourism hospitality industry is increased by the fact that the industry is service oriented. Hospitality firms are required to become effective and efficient in their service delivery in a bid to ensure a high level of satisfaction.
Adoption of the soft HR approach also contributes towards a firm developing a strong reputation as an employer. Soft HR enhances an organisation’s ability to incorporate knowledge management in addition to nurturing a more creative workforce.
Conclusion
The tourism hospitality industry is an important component of the Australian economy. However, firms in the industry are facing a number of challenges currently. One of these challenges is the ever-rising competition and appreciation in the value of the Australian dollar.
Therefore, in a bid to counter the intense competition in the market, firms in the industry should consider developing sustainable competitive advantage. One of the ways through which firms can achieve this goal is by incorporating optimal HR management practices.
Given that tourism hospitality is service oriented, firms in the industry should adopt soft HR practices for such a move will contribute towards development of sustainable competitive advantage.
Bibliography
Armstrong, M, Strategic human resource management: a guide to action, Kogan Page, London, 2008.
Hitchcock, DA & MA Willard, The business guide to sustainability: practical strategies and tools for organisation, Earthscan, London, 2009.
Lamb, CW, JF Hair & CD McDaniel, Essentials of marketing, Cengage Learning, Ohio, 2009.
Nickson, D, Human resource management for the hospitality and tourism industries, Butterworth-Heinemann, Amsterdam, 2007.
O’Fallon, MJ & DG Rutherford, Hotel management operations, John Wiley, New York, 2009.
Page, SN & JC Connell, Tourism: a modern synthesis, Thomson, London, 2007.
Organizations’ management teams are increasingly appreciating the importance of human capital in an effort to improve their organizations’ competitive advantage (Kok 2003). This has led to an increment in the number of studies being conducted with regard to best practices of managing human resources.
There has also been increased recognition of the purpose of small and medium enterprises (SMEs) in the modern economies. This realization illustrates that, there is a point of convergence between human resource management and small medium enterprises. Human resource management [HRM] deals with management of a firm’s workforce (Kok 2003). It is composed of a set of different but interrelated processes, activities, and functions that are aimed at attracting, developing, and retaining an organization’s workforce.
Some of the activities undertaken in HRM include employee recruitment, selection and formulation of effective appraisal and compensation scheme. Through HRM, organizations can develop and retain talented and energetic workforces that can contribute towards attainment of the formulated organizational strategies, missions, goals and objectives (Transky & Heneman 2006).
Additionally, integration of HRM practices and policies can significantly contribute towards a firm improving its performance. However, integration of HRM in SMEs is relatively low (Cooper & Burke 2011).
Previous studies reveal that, most SMEs do not make optimal use of HRM practices in their operations (Bacon, & Hoque 2005). Some of these studies assert that, most SMEs tend to operate in a more flexible and informal manner compared to large enterprises. For example, Kok (2003) is of the opinion that, a firm’s size is directly related with its incidence towards HRM practices such as training and planning.
However, small firms are less likely to invest in training for their employees, performance appraisal, and recruitment practices probably due to limited capital and revenues. HRM in SMEs is mostly characterized by administrative tasks whereas the more strategic matters are not perceived with the weight that they deserve.
A study conducted by Hendry and others in 1991 reveals that, SMEs perceive investing in HRM as an additional undertaking beyond the level that is necessary to sustain their operations; a luxury that can only be afforded if the firm makes substantial profits (Kok 2003). However, considering the environmental uncertainty facing firms today, it is paramount for SMEs to evaluate their operational practices in order to remain competitive and HRM optimization is slowly becoming indispensable.
In addition to being characterized as being informal, management teams of SMEs are also considered to be less specialized compared to large enterprises. Employees of SMEs tend to perform different tasks compared to large enterprises, which means that the level of specialization is relatively low.
This aspect is well illustrated by a qualitative study conducted by Berkley and Heneman in 1999. The study took into account a random test on 117 SMEs whose human resource base was less than 100 employees. Findings of the study showed that, 15 of the SMEs considered had a human resource management department (Kok 2003).
There is growing evidence that HRM practices tend to be sophisticated especially for SMEs. On the basis of the above analysis, it is evident that there is a significant level of deficiency with regard to HRM in SMEs. This paper is aimed at critically evaluating whether it is worthwhile for SMEs invest in HRM.
Analysis of the trend of HRM
Previous studies conducted have shown that, development of an effective workforce and organizational culture is one of the ways through which organizations can develop their competitive advantage. Firm and employee culture are considered to be some of the most fundamental aspects in the success of SMES.
An example of such culture includes operating in a social responsible manner (Mankelow 2008). As a result, it is quite unprofessional for SMEs to continue underutilizing their human capital (Cooper & Burke 2011). HRM has over the past decade become one of the most crucial aspects that both small and large organizations have to consider. There are a number of reasons that have contributed to this shift. Some of these reasons are explained in the paper.
Currently, the business environment is increasingly becoming knowledge based. This means that firms are considering knowledge as an important source of competitive advantage. This has arisen from the high rate of globalization that is being experienced today (Knowles, Diamantis & El-Mourhabi 2004).
As a result of globalization, most economies are eliminating trade barriers thus presenting a challenge to firms through increased competition (Tsui & Lai 2009). Therefore, it is paramount for organizational management teams to consider ways of enhancing their organization’s performances (Cooper & Burke 2011).
With the development of the education sector in different economies, the workforce is becoming more and more educated. There has also been considerable growth with regard to employees’ expectations on working environment and quality work. Additionally, staff shortages have made firms experience intense competition for human capital. As a result, SMEs are reconsidering on the best practices that they can retain their talented workforce (Cooper & Burke 2011).
The importance of HRM in both large and SMEs is also being enhanced by the demographic changes occurring within the labour market. One of the demographic changes being witnessed arises from the fact that the workforce is becoming aged. As a result, it has become essential for SMEs to consider incorporating performance incentives and training and development initiatives in order to maximize on their employees’ working capacity.
Organizations are also experiencing a significant transformation with regard to clients and customer expectations. As a result of customers and clients becoming more knowledgeable, they are demanding effective, efficient and high quality services and products (Cooper & Burke 2011). Analysis of the changes occurring within the business environment reveals that, it is critical for businesses to consider ways of improving their competitive advantage through integration of HRM practices in their management practices.
Theoretical frameworks formulated to explain the importance of HRM in SMEs
A number of theories have been advanced to explicate the relevance of SMEs investing in HRM. One of the theoretical explanations is universalistic in nature. The theory is based on HRM best practices (Cooper & Burke 2011). Through integration of HRM best practices, SMEs can attain considerable improvement in their performance. One of the ways through which this can be attained is by incorporating the concept of employee training and development (Jolly 2003).
Findings of a study conducted in 2002 on the perspective of employee development in SMEs revealed that, training and development is an indispensable component in a firm’s effort to attain the desired growth. This arises from the fact that training and development contributes towards increased productivity within an organization’s workforce. Increase in productivity arises from the fact that employees perceive a higher opportunity for growth within such an organization.
Training and development also enhances the employees’ level of motivation. Despite the benefits associated with training and development, some parties are of the view that training and development can result into increased employee turnover as a result of poaching (Jolly 2003). However, for training to be successful in SMEs, management teams should ensure that it is well imbedded within the firm’s workplace, informal and flexible.
The theory also asserts that incorporation of HRM by SMEs would result in adoption of performance based pay. According to Longenecker (2006), it is paramount for SMEs to acknowledge the importance of formulating a compensation plan that will contribute towards attraction and retention of well-qualified personnel.
One of the ways through which SMEs can achieve this goal is through incorporation of HRM best practices. Some of the elements that they should consider when formulating the compensation plan include competitive salary and wage levels, and financial incentives that will improve employee productivity. One of the financial incentives that are most effective in SMEs includes sharing profits. This arises from the fact that it is possible for SMEs to assess individual performance (Longenecker 2006).
The second theoretical framework is behavioural in nature. The theory asserts that human resource management practices and policies have a significant influence on employees’ behaviour, for example, through organizational commitment, employee creativity and work engagement. These aspects consequently affect productivity, profitability and performance (Cooper & Burke 2011).
The third theoretical framework is economic in nature. This arises from the fact that significant cost is incurred in the process of adopting formal HR practices. According to Phillips (2005), acquisition and maintenance of a strong workforce is quite expensive.
There are numerous cost categories that are involved in the development of a strong workforce. Some of these are related to recruitment, selection, indoctrination, initial training, formulation of competitive compensation and reward systems, socialization and exit costs. This can be a challenge especially to SMEs compared to large enterprises.
How HRM is worthwhile investing by SMEs
There are a number of reasons that illustrate why it is worthwhile for SMEs to invest in HRM. For example, through incorporation of effective training programs, SMES can be able to derive more value from their workforces. This arises from the fact that the business will be able to effectively address the most pertinent issues facing its operation.
Investing in HRM can also improve the employees’ attitude towards work. One of the ways through which this change of attitude is attained is by integrating effective leadership measures (Cooper & Burke 2011). Findings of a study conducted in the US on leadership training revealed that revenues of firms that incorporate leadership training grow with a margin of more than 25% compared to their training cost (Cooper & Burke 2011). This well illustrates the fact that training can result in improvement of SMEs financial performance.
Additionally, investing in HRM can significantly improve the performance of SMEs through improved employee engagement. There are a number of ways through which organizations can achieve this; some of these include ensuring that the employees have a comprehensive understanding of their performance expectations. Additionally, SMEs should ensure that employees have sufficient resources to support successful completion of tasks.
By investing in HRM, SMEs can be able to contribute towards staff development, improve on employee input, in addition to compelling the employees to be focused towards attainment of organizational goals and mission. Integration of HRM in SMEs can also contribute towards development of a strong workplace culture.
Work within the modern economy is becoming more and more demanding (Ulrich 1997). For example, organizations are demanding more from their employees with few resources.
There has also been a decline in employment security, which is making the employees to reconsider their commitment and contribution to their employers (Ulrich 1997). However, incorporation of HRM by SMEs can significantly improve their performance in a number of ways. For example, HRM contributes towards development of an enabling environment for employees to work in.
One of the reasons why organizations are experiencing a challenge with regard to employee turnover relates to the current global economic changes. Employees are constantly faced with the challenge of ensuring that they provide for their families. To achieve this, employees are considering improving their competitive edge within the labour market. To achieve this, employees are considering going back to school.
The employees work demands coupled with their desire to enhance their competitiveness in the labour market are leading to increased stress levels amongst the employees. This arises from the fact that the employees are not able to balance between work and life. Occurrence of such a phenomenon would have adverse effects on the employees productivity and hence the organization’s performance and competitive advantage (Williamson, Lewis & Massey 2011).
Some of the HR practices that organization management teams should consider in order to deal with this challenge include incorporation of work-life balance and stress management policies (Williamson, Lewis & Massey 2011). Effective formulation and implementation of work-life balance can be beneficial to SMEs through achievement of a healthier and happier life for the employees.
One of the ways through which management teams of SMEs can achieve this formulation is by integrating effective HR policies; for example, flexible career options and working hours (Cooper & Burke 2011). Integration of such strategies can significantly improve the employees level of satisfaction and hence their productivity.
Considering the competitive nature of the labour market, it is paramount for SMEs to ensure that they acquire a strong workforce (Michalski 2011). This can only be attained by ensuring an effective employee recruitment process. However, most SMEs do not consider investing their time and money towards developing their human capital. As a result, they do not have a formal employee recruitment process.
Recruitment of a strong workforce in SMEs is also hindered by the fact that they are not well connected in the labour market (Cooper & Burke 2011). Additionally, most SMEs tend to suffer image problem amongst job seekers. To improve on their ability of recruiting a strong work workforce, it is paramount for SMEs to be concerned on becoming more legitimate. To deal with this challenge, it is crucial for SMEs to consider investing in a comprehensive recruitment process.
Through recruitment, an organization can attract a wide range of workforce to select from. SMEs should consider several issues in order to attract high-quality job applicants. For example, they should invest in initiatives aimed at making their organizations recognizable amongst job applicants (Hartman & Spiro 2005).
SMEs should also invest in developing human resource policies such as those used by large enterprises. This can be attained by outsourcing HR consultants to aid in the formulation and implementation of the policies. Such investment in HRM would have significant influence in SMEs’ operational efficiency.
The recruitment process is followed by selection of the most qualified staff which is a relatively complex process (Harney & Dundon 2006). Due to time and financial constraints, most SMEs conduct reactive selection and recruitment process. Additionally, a substantial proportion of SMEs do not have sufficient understanding on the requirements of a position intended to be filled. However, to ensure that they develop a strong workforce, it is critical for SMEs to invest in HRM practices such as employee selection and recruitment.
Upon acquiring a strong workforce, it is paramount for management teams of SMEs to consider on the most effective ways of motivating and retaining employees. This arises from the fact that underperforming employees can be a threat to the success of SMEs. HRM provides a solution on the best practices of employee motivation. These strategies range from monetary to non-monetary benefits. Some of the non-monetary benefits include recognition of employee performance and promotions.
To deal with underperforming employees, SME managers should ensure that they maintain constant communication with such employees in order to indicate what the firm expects of them.
Currently, SMEs can achieve this more effectively and efficiently considering the growth in information communication technology; for example, by using emerging social communication networks such as Twitter and video conferencing. This means that SMEs should invest in the current technology. Maintaining communication within an organization can significantly contribute towards development of a strong bond between employees and the management team (Cooper & Burke 2011).
SMEs, which have incorporated HRM in their operation, are able to deal with changes occurring in the business environment. This capacity to handle change easily is made possible by the fact that HRM enables organizations to undertake comprehensive human resource planning. As a result, they are able to evaluate and anticipate their current and future human resource needs. Therefore, investing in HRM can enable SMEs to be proactive in dealing with environment changes rather than being reactive.
Conclusion
The above analysis makes it evident that, SMEs do not pay much emphasis on HRM compared to large organizations. For example, studies conducted reveal that only a few SMEs have a functional human resource department. This means that, human resource activities are conducted more informally.
There are a number of reasons that explain this trend. Some of the reasons range from lack of knowledge on HRM by management teams of SMEs to the high cost involved in implementing HRM. However, changes occurring within the business environment such as globalization have increasingly made SMEs to reconsider the role of HRM in an effort to survive in the challenging business environment.
Despite this, the above analysis underscores the importance of HRM in SMEs. For example, despite investing in HRM policies and practices being costly to SMEs with regard to financial and time requirements compared to large organizations, there are numerous benefits that SMEs can achieve. Incorporation of HRM practices can contribute towards improvement of SMEs’ competitive advantage in a number of ways.
For example, by investing in training and development, SMEs can improve the employees working efficiency and effectiveness. Additionally, organizations that invest in training and development are more efficient with improving employee satisfaction. This arises from the fact that the employees develop a perception that the organization has an interest in their heart.
This will consequently culminate in improvement of their productivity and hence their performance. Considering the dynamic nature of the business environment, it has become necessary for SMEs to shift their operations towards becoming knowledge-based to be competitive. This can only be achieved if SMEs undertake sufficient training and development.
By investing in employee recruitment and selection, there is a high probability of SMEs developing a strong human resource base. The resultant effect is that the firm’s competitiveness will be enhanced. Additionally, if effectively formulated and implemented, investing in HRM practices and policies can result in the creation of an enabling working environment.
This argument holds because HRM advocates for firms to incorporate strategies, which will contribute towards a high level of employee satisfaction. Some of these strategies relate to ensuring that the employees are well remunerated and their performance recognized by conducting sufficient performance appraisals.
Investing in HRM increases the probability of SMEs to achieve their goals and objectives. One of the ways through which this scenario is made possible arises from the fact that HRM advocates for effective management of employees; for example, by integrating the concept of teamwork.
Effective organizational leadership also plays a critical role with regard to enhancing cohesiveness in an organization. Considering the contribution of HRM towards organizational success, it is vital for SMEs to incorporate the best HRM policies and practices, because as explicated in this paper, HRM is a worthwhile investment for SMEs.
Reference List
Bacon, N & Hoque, K 2005, ‘HRM in the SME sector: valuable employees and coercive networks’, International Journal of Human Resource Management, vol. 16 no. 11, pp. 1976-1999.
Cooper, C & Burke, R 2011, Human resource management in small business: Achieving peak performance, Edward Elgar, Cheltenham.
Harney, B & Dundon, T 2006, ‘Capturing complexity: Developing an integrated approach to analyzing HRM in SMEs’, Human Resource Management Journal, vol. 16 no.1, pp. 48 – 73.
Hartman, K & Spiro, R 2005, Recapturing store image in customer-based store equity: A construct conceptualization, Indiana University, Indiana.
Jolly, A 2003, Skills and Training Directory: A Complete Sourcebook of Best Practice and Training Providers, Kogan Page, London.
Knowles, T, Diamantis, D & El-Mourhabi, J 2004, The globalization of tourism and hospitality, Thomson, London.
Kok, J 2003, Human resource management within small and medium-sized enterprises, Rozenberg Publishers, Amsterdam.
Longenecker, J 2006, Small business management: An entrepreneurial emphasis, Thomson, Ohio.
Mankelow, G 2008, ‘Social responsibility paradox of small business human resource management,’ International Journal of Human Resource Management, vol. 19 no. 12, pp. 2171-2181.
Michalski, A 2011, Human resource controlling in small and medium enterprises: Components and possible approaches, Berlin, GRIN Verlag.
Phillips, J 2005, Investing in your company’s human capital: Strategies to avoid spending too little or too much, AMACOM, New York.
Transky, J & Heneman, R 2006, Human resource strategies for the high growth entrepreneurial firm, Information Age Publishing, Greenwich.
Tsui, A & Lai, K 2009, Professional practices of human resource management in Hong Kong: Linking HRM to organizational success, Hong Kong University, Hong Kong.
Ulrich, D 1997, Human resource champions: The next agenda for adding value and delivering results, Harvard Business School, Boston.
Williamson, A, Lewis, K & Massey, C 2011, Work-life balance in small business: The impact of firm and family milestone, Wellington, New Zealand Centre for SME Research.
Human resource management is an organization function that entails all aspects that are associated with the human resource or work force in a particular organization, company or institution. It entails aspects like recruitment, coordination, and control of the people working in an organization.
Some of the issues linked with human resource management include hiring, compensation and benefits, safety and welfare, communication and motivation, employees’ performance management and administration, training among others.
Human resource management is a very essential function in every organization as it enhances overall efficiency and effectiveness of the organization through smooth running of all the activities and operations that are carried out in the organization. It falls under one of the major components of the management function (that is staffing); the other ones being planning, organizing, coordination, and controlling.
The human resource in an organization is a valuable asset that determines the success or failure of the organization through their efforts towards utilizing other assets in the company. It is however, only through their proper management that maximum efficiency, effectiveness, and profitability can be achieved (Mathis and Jackson 2008).
This paper discusses various aspects associated with human resource management with much emphasis being given to the human resource manager and his or her importance in an organization, in this case, the MechCon Company that serves as the case study.
The value that an HR manager could add to MechCon Company and the complexities involved in managing HR
A human resource manager is a crucial element in any organization as he or she helps in streamlining the activities and performance of the other employees.
The MechCon company which is a multi-task engineering company offering a wide range of services from mechanical engineering to construction services is lacking a very essential personnel, the human resource manager, who coordinates all the other employees to make sure that they perform well and that their needs are well catered for hence motivating them to do better day by day, which results to the overall success of the organization.
The employment of a human resource manager in MechCon Company is of essence as it will add value to the company through the following ways, the overall value being making things happen.
The human resource manager will add value in MechCon Company through foreseeing and facilitating aspects like recruitment and training which entails ensuring that the appropriate and efficient plans and strategies of hiring employees are strictly adhered to, carrying out performance appraisals through encouragement of hard work and maximum output, creating and maintaining a conducive working environment that promotes excellent performance of the employees and job satisfaction, handling and solving disputes that arise among the employees or even between the employees and the management, attracting and retaining talents and capabilities, and establishment of good public relations within the organization that fosters smooth running of the organization’s activities hence overall success (Anonymous 2011).
Although there is a lot of values attached to human resource management, it is an aspect that is faced with numerous complexities especially due to the changes that are taking place in the competitive market that necessitates indulgence in more strategic activities to ensure success of the organization through securing of a place in the competitive world.
Most of the challenges involved in the management of human resource touch on the aspect of workplace diversity which encompass things like education background, religious affiliations, age, gender, ethnicity and race, work knowledge and experience, physical and intellectual abilities among other characteristics that could be exhibited by various employees in an organization.
The human resource manager in the MechCon Company should, for example, be able to overcome the challenge of workplace diversity by turning the problem into opportunity and pooling together the talents exhibited by the diverse talents, views, ideas and perspectives and maximizing or capitalizing on the positive sides of everyone while ignoring the negative or weak points of an individual.
Other general challenges faced by human resource managers in their day to day practices and activities include; the health and welfare of the employees, retirement issues, selection and application of human resource technology, outsourcing, leadership development, among other aspects associated with the human resource body (Chan 2002).
The Role That an HR Manager Should Play Within the Executive Group
The human resource manager in any organization should play various roles and responsibilities within the executive group and in the organization as a whole.
Some of the roles that the human resource manager should be linked with in the executive body of the MechCon Company include; balancing the needs of the staff and those of the company, he or she should also be able to act as a strategic partner in the organization and facilitate the development and accomplishment of the company’s strategic goals and objectives which could be achieved through the design and implementation of effective work systems that allows for maximum contribution and success, and being a good advocate for the employees by creating a working condition that ensures that the employees are always motivated and happy and hence can put total efforts in their work leading to good performance.
The human resource manager should also act as a tool through which change in the organization can be perpetrated. This could be achieved through the execution of appropriate strategies that are aimed towards bringing positive changes to the organization. The change should, however, be introduced in an appropriate manner that will avoid resistance by the employees (Heathfield: What Does a Human Resources Manager, Generalist, or Director Do? 2011).
Specific Objectives and Recommendations to Guide a New HR Manager in the Way Forward
The human resource manager needs to have some objectives that should act as a guide towards carrying out their duties. Some of the objectives that may help the human resource manager to be focused in his or her undertakings include; the organizational objectives that should always remind the human resource manager that all the efforts of the human resource body should be aimed at facilitating the efficiency, effectiveness and economy of the organization.
The organizational objectives also ensure that the employees do their best to help the organization meet its goals and objectives. Functional objectives are also essential in the practices of a human resource manager as it helps him or her to keep a good pace in contributing to the fulfillment of the organization’s needs hence avoiding any chances that may lead to either non-satisfaction of the organization’s needs or wastage of its resources.
The society objectives should also be put into consideration by the human resource manager since the society is part and parcel of the company as the members contribute in one way or the other to its success or progress.
The organization should always be responsible in terms of fulfilling the societal needs, for instance, through corporate social responsibility to make sure that the society supports it fully as opposed to where the society could be dissatisfied by the organization’s hence gang up against it making its processes fail in some way. The most crucial objective, however, remain to be the personal objectives.
These are the objectives that aim at promoting the achievement of the personal goals of the employees hence contributing to the overall achievement of the company through the combination of the individuals’ efforts.
The act of establishing and maintaining appropriate personal objectives in an organization ensures that the employees are not only maintained and retained but also motivated, which is a very positive aspect that keeps the organization growing due to job satisfaction among the employees.
The objectives of human resource management should under all cost enhance the productivity of the organization, ensure that the employees work in a conducive atmosphere that fosters growth and prosperity and also that the organization comply fully with the legal requirements and societal expectations (Dundas 2011)
Some of the recommendations that the human resource manager in MechCon Company should adhere to in his or her work include workforce planning processes, HRIS solutions and the development of recruitment processes and strategies for the employees. Workforce planning is a crucial process in any organization and should be carried out in a continuous manner.
This will ensure that the needs and priorities of MechCon Company match with those of the employees and that all the organizational and legal requirements are met at all time without any obstacles. Workforce planning will also ensure that there is the development of appropriate strategies in MechCon Company in regard to the employees.
It also allows for maximum identification, capturing and utilization of a wide range of talents and capabilities in human capital that are useful to the organization at present time and also in the future.
Some of the benefits associated with workforce planning include; there is always the existence of qualified and appropriate employees that could be readily picked and recruited incase of any vacancy, allows for maximization of the available human resource by avoiding either underutilization or over utilization of the employees.
It is also a process that is very helpful in budgetary allocations as it provides for useful projections that could justify the allocation. Workforce planning is also a strategy that could be applied by the human resource manager in an effort to manage a diversified workforce. It generally helps in efficient management of the organization’s employees (U. S. Department of Transportation 1999).
Human resource management information system (HRIS) is a useful tool in the management of the employees and the human resource manager in the MechCon Company should embrace its application as it allows for smooth running of the workforce. It assists in processes like data entry and tracking, the information needs of the various employees of the organizations among others.
The human resource management information system should, however, be chosen carefully in a manner that will solve the problems of the particular organization based on the demands of the company that should be matched with the capabilities of the human resource management information system (Heathfield: Human Resources Information System (HRIS) 2011).
The development of recruitment processes and strategies for the employees is also a positive step that should be embraced by the human resource manager in the MechCon Company as it helps in the smooth coordination of the employees. The recruitment processes and strategies help in the selection of qualified human resource that in return contributes positively to the company through the talents and capabilities they possess.
The processes and strategies also ensure that the needs of the employees are adequately catered for to give them a good working atmosphere that facilitates maximum performance and coordination as everybody feels appreciated and needed in the organization.
There is need to identify the time frames for these objectives and recommendations so as to be able to meet the specific goals of the organization. The objectives and recommendations, for instance, should be classified in terms of the time by which they are expected to be met or fulfilled, for example, short term, medium-term, and long term objectives.
Short term objectives are those expected to be met within a short period of time, for instance, a financial year. Medium-term objectives, on the other hand, are much broader than the short term objectives and the time frame may range from one and a half years to three or five years depending on an individual organization.
The long term objectives and recommendations in an organization are expected to be met after a relatively long period of time, like five years and more. The objectives should always be reviewed and amendments made (where necessary) to make sure that they always remain appropriate and relevant to the organization and the society at large.
The objectives and recommendations should always be realistic, timely, specific, measurable and achievable irrespective of whether they are short term, medium-term and long term. These characteristics make the objectives meaningful and keep the organization moving at least with some expected results (Derbyshire, Wicks and Hardy 2007).
A Procedure for Recruiting and Selecting MechCon Employees Once an HR Manager Has Been Appointed
The process of employees’ recruitment should be procedural to ensure that all considerations are reflected on. Once a human resource manager has been appointed in the MechCon Company, he or she should follow a strategic recruitment and selection process whenever there is need for a new workforce in the company.
The recruitment and selection processes should always be compatible or match with the company’s goals and objectives. The purpose of the recruitment and selection should also be kept in mind to enhance focus in the processes.
Some of the aims of a recruitment and selection procedure include; ensuring that there is equal employment opportunities for all the applicants, evaluating the effectiveness of the various techniques and tools applied in the recruitment process, reducing the chances of losing the employees after they have successfully been recruited and selected, minimizing the failure rate in the selection process that could be brought about by various factors, for instance, the existence of numerous inappropriate job applicants who could either be under qualified or overqualified, reduction of the cost incurred in the recruitment and selection process and most importantly assessing of the organization’s present and future needs in regard to workforce planning and job analysis and description (Roberts 1997).
There are various procedures that could be employed in the recruitment and selection of employees in an organization depending on suitability and the decision of the human resource manager and other members of the management.
One of the procedures that the human resource manager in MechCon Company and his or her team members could consider applying is as follows; the first step involves assessing the relevance of the recruitment by identifying whether there is need for recruitment or the job could be done by the existing employees.
Job analysis is then done where the requirements of the post holder, for instance, in terms of qualification and experience is determined. Based on the job analysis, a job description and individual specifications are drawn giving clear details on the purpose of the job, the responsibilities involved and the conditions of the job plus the abilities and qualities expected.
The next step entails making a decision on the best methods to be applied in the selection process. Here, a curriculum vitae or an application form could be used as a tool for recruitment and selection with combination of other techniques like interviews or selection examinations.
Attracting candidates is also essential and ways of advertising the vacancy should be decided upon, which is then followed by the practical marketing of the job. The other step entails shortlisting the applications to reduce their number and hence ease the selection process by avoiding the consideration of either too little or too many applicants that could either limit the choice or lead to time wastage respectively.
The selection is then done for instance through interviews after which a decision is made and the successful candidates given the offer. References are also considered after the offer is made. Training is an important part in the recruitment and selection process as it ensures that the new employees are acquainted with the relevant skills and knowledge that will enhance their performance in the organization.
Consistency should be maintained in the entire recruitment and selection process to avoid any confusion. The process of recruitment and selection should be done by the human resource manager in collaboration with other management team members who include the line managers (Elearn 2009).
Conclusion
Human resource in any organization is very essential as no organization could run in the absence of people. It entails aspects like recruitment, coordination, and control of the people working in an organization. Every organization, regardless of nature and size, moves on and succeeds because of the efforts put forth by the employees through the diversity of talents and capabilities exhibited by them.
The human resource in an organization is a valuable asset that determines the success or failure of the organization through their efforts towards utilizing other assets in the company.
The management of the employees is, however, a crucial element that ensures that everything regarding the employees is in order, for instance, through aspects like motivation and rewards that ensure the employees are on their toes in their efforts to better their performance and the performance of the organization in general.
The presence and performance of a human resource manager in an organization should, therefore never be underemphasized as it leads to the growth, development and prosperity of the organization in one way or the other even though the impact could not be immediate.
Reference List
Anonymous. 2011. Benefits of Human Resource Management. Web.
Strategic management entails the managers, acting on behalf of the owners of the business, to utilize the resources they have so that they better the performance of the organization. In order to utilize the resources of the business effectively, the managers of the business must consider the mission, the objectives of the business and the vision of the business in order to develop the plans and the policies that the business seeks to achieve.
Human Resource Management in the strategic management of an organization
Human resource management in the world today plays a very important function when it comes to strategic management of an organization. To start with, human resource management seeks to achieve the organization’s desirable features: that is the objectives of the organization as well as the goals of the organization.
Among the principles that human resource management focus on is establishment of effectiveness, increasing of productivity, establishment of effective competitive advantage in the organization, as well as establishment of flexibility in the organization. All these principles are aimed at getting the business to gain the objectives of the organization, which is highly highlighted in strategic management.
In the world today, human resource management has been strategized to become what is now known as strategic human resource management. Strategic human resource management entails the organization in focusing on the long term plans of the organization along with the strategies and objectives of the business organization that affects the external environment.
Such is an important consideration that is greatly considered by strategic management of an organization. The external environment is inclusive of global and technological issues, the competitors of the business, and the economic conditions so as to achieve success in the organization. Saudi Arabian Airlines is one of the organizations that the human resource management plays a great role to strategic management.
One of the ways the human resource management department plays a part is achieving the objectives of strategic management in helping out formulation of policies (Nankervis et al., 2005). The human resource management is involved in making policies that aim at benefiting the organization when it is meeting its strategic management policies.
In Saudi Arabian Airlines, human resource management is also involved in the personnel employment and effectives. The personnel and the staff are the main players that usually ensure that the policies that the organization set out to achieve are attained. They are what can be considered as the drive towards achieving the goals and strategies of the organization.
Therefore, human resource management can be considered as a key player in strategic management as it brings in place the personnel, which is needed in achieving the objectives and the goals of the organization. The human resource management acts as a coordination department in strategic management (Nankervis et al., 2005).
Through looking for the best employees who would improve the performance of this organization, the HRM ensures there are able employees with the right experience and education to face any problems that may come their way in achieving the underlined goals and objectives.
Influence of HRM on planning, policy, practices and job design
The Human Resource Management affects the structure and design of an organization through planning, formulating policies and practices, and by effective job design. It does this through influencing the resources assigned to it. In this case, the resources in question are the personnel and the staff that will be involved in reaching the goals of the organization.
Job design entails increasing the quality of work that is in existence in a certain organization. The only way that job design can be achieved is ensuring that the employees of a particular organization are motivated and work in such a way that they are motivated. The work of motivation and enrolling workers is entirely achieved by having good management in the human resource management department.
When it comes to the structure of the organization, the human resource management is also greatly involved (Singh, 2010). For a structure to be fully developed it requires assignment of tasks to various personnel in the organization. Such work is solely dependent on how the human resource is organized to be able to hold together the structure.
The human resource management lays down the guidelines and rules that relate to the work and the procedures that need to be there. The human resource assigns the work and establishes the responsibilities and the authority in the organization. Policies made by the organization are also dependent on the human resource management.
The reasoning behind this is due to the fact that unless the organization knows its capability, it may not be able to know what to produce and in what amount. Capability of production is partly dependent on the human resource available to the organization, which is related to human resource management (Singh, 2010).
Importance of recruitment, training and induction programs
Appropriate recruitment, training and induction programs can help in developing philosophies and structures that are beneficial to the organization. To start with, recruitment programs are important to the organization as they help out in identifying the best candidates for the particular work that the organization is offering.
Other consideration taken to account during the recruiting program is whether the applicants have the right requirement which the specific job needs. On the other hand, training programs are aimed at equipping the selected individual for job with the right skills needed in the job. It is therefore of utmost importance that the training programs be of relevance to the particular job in question.
For success to be achieved in the training program the trainers, the trainees and the training climate need to be good as well as good communication among the various parties. When a training program is being developed, there is need to ensure that the needs of the organization as well as the constrains that are in existence in the organization are dealt with.
The training programs also help out to teach the recruited employees of the organizations concepts and background as the basis of their learning. Induction programs are also of utmost important in the organization. The main purpose of having these programs in the organization is to ensure that the new employs are introduced, integrated and well familiarized with the organized as quickly as possible.
Through these programs, issues like the culture of the organization and expected standards of the organization are discussed (Johnson, 2010). The programs also help the new employees to grow and feel motivated when working in the organization. Other elements of character are also instilling on the new employees in the organization due to presence of induction programs.
Among them are confidence, responsibility and employment philosophy. Having these programs leads to the new comers achieving the initial targets and make an impact to the organization. It is also worth noting that induction programs do not just take for a day or two it should continue until the employees are fully integrated in the workplace (Johnson, 2010).
Collectively, the three programs are important in making the structure of the organization. They develop the guidelines of the responsibilities in the business and assign them to certain individuals. They are also on record or developing the protocol to be followed in the organization due to their ability to offer assignments.
Methods of appraising, evaluating and rewarding performance
There are various ways in which performance of an employee can be appraised and evaluated. One of the ways to evaluate performance is the use of checklist method. The method entails the senior boss being handed a list of question that he is supposed to answer about a junior worker in the organization. In every question there is a check box that contains Y and N where the tick mark is going to be put.
The Y stands for yes while N stands for no. To achieve uniformity, the checklist may be distributed to various employees in the organization. The method is notably one of the simplest methods that can be used for evaluation. The second method that can be used is called the confidential report method.
The method entails the senior boss in the organization writing a report about a certain worker or any other high level employee writing a report about a junior worker. The report contains details about the workers performance and their positive as well as their negative traits. The report also contains the responsibilities that have been assigned to the employee and how he/she has fared in it.
Such a report is important for future recommendation for promotions that may occur in future. Also notable about these reports is the fact that they are limited in access as well as being highly confidential (Nankervis, 2009). The third method is the Critical incident method. The method considers various incidences that the employee has undergone through and how the employee behaved in these incidences.
Also notable about this method is that other positive and negative incidences are noted. The analysis of the person, their abilities and there talent are also notable in this methods and may be used for any promotions that may occur in future. There is also the ranking method. Ranking is specifically due to the performance of the employee in question. Ranking may further be divided into three methods.
The simple ranking method: the method entails ranking the employees in a serial number from the best employee to who may be considered last. Each employee has to be given a rank, for example, if we have ten employees all the ten employees have to be given a rank. Alternative ranking is the second of the ranking methods. The method entails defining the best employee and the worst employee.
The first employee is given rank one and the worst is given the last rank depending on the number of employees. Paired comparison is the last of the three ranking methods. The method focuses in comparing the people in a group or a department with other people in the same group or department.
Certain criteria are chosen to determine the best way to compare the various employees in the organization after which the employees are ranked. Finally there is graphical rating scale method. Like the name suggest appraising, evaluation and rewarding performance is presented using a graph.
The graph contains columns which the appraised qualities that has been accessed. The quality of work is the main determinant to the seniors who put tick marks on the quality alongside the rank (Nankervis, 2009).
Problems encountered by Saudi Arabia Airliners
The organization’s strategic goals in Saudi Arabia Airliners have been hindered by several problems. For one, there is the issue of inequality among the employees working in Saudi Arabia (Nazir, 2009). Just like may organization in Saudi Arabia women are still considered as if they are second-class citizens.
The notion that women are only good in office work is still predominant in the organization. My view is that the country needs to change their laws and social customs as well as changing their [perception when it comes to equal rights of men and women.
The problem of nepotism is also one of the problems encountered in Saudi Arabia. In fact, it is renowned as “Wasta”. Selection of workers by the human resources is at times affected by this problem. Though not a good thing, Nepotism is still practiced in most organizations in Saudi Arabia, with Saudi Arabia Airliners not being an exception (Romero, 2011).
The best solution to this problem would be assigning a code to the applicants in a certain job so that the names do not sell out the individuals’ tribe or identity. It is also notable that diversity offers many benefits to organization that embrace it due to different exposures of the various individuals (Hayajenh, 1994).
Conclusion
In conclusion, Saudi Arabia Airliners is one of the biggest airlines in the world. The fact that it has been privatized into strategic Business Unit should make it become even more competitive due to ability to reach high on the various units. The adventure of the human resource management to use effective ways of selecting qualified employees offers it an edge to have competitive prices against other competitors.
List of references
Hayajenh, A. F. (1994) Research Note: Assessing the Effect of Nepotism on Human Resource Managers. Lousiana, MCB UP Ltd.
Johnson, A. W. (2010) The Importance of Workplace Training Web.
Nankervis, R. C. ( 2009) Effective Recruitement and Selection Practices. Sydney: CCH Australia Limited.
Nankervis, A. R., Compton, R. L., & McCarthy, T. E. (2005) Strategic Human Resource Management. Nelson, Melbourne.
Nazir, S. (2009) Challenging Inequality: Obstacles and Opportunities Towards Women’s Rights in the Middle East and North Africa. Web.