The Role of Human Resources Management in an Organisation

| November 26, 2012

 

Introduction-

Human resource is considered as the backbone of any organisation. The concept of the Human resource management (HRM) had been debated in the literature. Initially the concept of HRM developed from U.S.A in the 1960s. It plays vital role in creating organisation. In the recent scenario human resources has added more values in developing country. The Human resource management is very fast growing concept. It has marvellous relevance in the productivity industry. Management of the people and staff practices and policies enable to carry organisation successfully. Human resource management is all about allowing staff to utilise their qualities in order to fulfil their contribution and role of the organisation motive and aim. Good human resource management is very much crucial if organisation want to entice and hold good staff. It also means that an organisation reduces risk to its staff and reputation. Human resources management can also reduce organisation cost. For example, good recruitment processes and policies mean that organisation can recruit more staff that can carry their jobs very efficiently. On the counter part, good system for performance management mean that organisation has to ensure that they are achieving best from their staff. Human resource management included all management practices and decisions which may stimulus the employees. The Human Resources Management (HRM) included all activities like training; recruiting, satisfying employee’s needs and also confirming personnel and management practise. HRM also comprise managing an approach to provide compensation and benefits of employee.

Evolution of the Human Resource function

DIFFERENCES BETWEEN HRM AND PERSONNEL MANAGEMENT-

Although both human resource management (HRM) and personnel management focus on people management, if we examine critically, there are many differences between them. Some are listed

HRM, on the contrary, encourages organizations to look beyond pay for functional duties. Here, the pay is designed to encourage continuous job performance and improvement which is linked to value-added incentives such as gain sharing schemes, group profit sharing and individual incentive plans.

The job design is no more functional based but teamwork and cyclical based. HRM creates a new approach towards job design such as job rotation which is inter and intra-departmental based and job enlargement which encourages one potential and capable individual to take on more tasks to add value to his/her job and in return enjoy added incentives and benefits.

Organisation Structure and HRM strategy-

Air-India is always well know importance of human resources and it HR polices are mainly focusing on best service in the airline industry. With the concentration on the same, Air-India also goes for campus recruitment from the colleges or universities to recruit young students for the company. The following the key factors for HR committee:

  • Employee’s growth strategy
  • Confinement and attraction strategies for worker
  • To motivate learning within the company

Human resource management department responsibilities can be broadly classified by individual, organizational, and career areas. Individual management entails helping employees identify their strengths and weaknesses; correct their shortcomings; and make their best contribution to the enterprise. These duties are carried out through a variety of activities such as performance reviews, training, and testing. Organizational development, meanwhile, focuses on fostering a successful system that maximizes human (and other) resources as part of larger business strategies. This important duty also includes the creation and maintenance of a change program, which allows the organization to respond to evolving outside and internal influences. The third responsibility, career development, entails matching individuals with the most suitable jobs and career paths within the organization. Human resource management functions are ideally positioned near the theoretic centre of the organization, with access to all areas of the business. Since the HRM department or manager is charged with managing the productivity and development of workers at all levels, human resource personnel should have access to and the support of key decision makers. In addition, the HRM department should be situated in such a way that it is able to effectively communicate with all areas of the company. HRM structures vary widely from business to business, shaped by the type, size, and governing philosophies of the organization that they serve. But most organizations organize HRM functions around the clusters of people to be helped they conduct recruiting, administrative, and other duties in a central location. Different employee development groups for each department are necessary to train and develop employees in specialized areas, such as sales, engineering, marketing, or executive education. In contrast, some HRM departments are completely independent and are organized purely by function. The same training department, for example, serves all divisions of the organization.

In recent years, however, observers have cited a decided trend toward fundamental reassessments of human resources structures and positions. “A cascade of changing business conditions, changing organizational structures, and changing leadership has been forcing human resource departments to alter their perspectives on their role and function almost over-night,” wrote John Johnston in Business Quarterly. “Previously, companies structured themselves on a centralized and compartmentalized basishead office, marketing, manufacturing, shipping, etc. They now seek to decentralize and to integrate their operations, developing cross-functional teams. Today, senior management expects HR to move beyond its traditional, compartmentalized ‘bunker’ approach to a more integrated, decentralized support function.” Given this change in expectations, Johnston noted that “an increasingly common trend in human resources is to decentralize the HR function and make it accountable to specific line management. This increases the likelihood that HR is viewed and included as an integral part of the business process, similar to its marketing, finance, and operations counterparts. However, HR will retain a centralized functional relationship in areas where specialized expertise is truly required,” such as compensation and recruitment responsibilities.

Key HRM activities of Air-India

  • Organization
  • The employment relationship
  • Resourcing Utilisation

The changing role of the Human resources Management-

Human Resources Management Models-

By using the core concept of the HRM there are mainly five basic models which are used in practise. The assessment is lead in the context of the recently liberalized economic environment. The five models of HRM namely ‘Matching model, Harvard model, Contextual, 5-P model and European model identifies the main research question developing from these that can be used to highlight the HRM practices.

Harvard Framework Model of the Human resources Management-

The model shows and characterizes as a real actor which is capable of making some degree of the same contribution which is related to the corporate objective within the organizational constraints. The framework of Harvard model mainly has five components which are mainly

  • The situational factors which influence the management of HR strategy. This model involves workforce characteristics management philosophy factors.
  • According to Beer et al (1958), In the Human resources management policies, Stakeholders interests are the very important. To satisfy the stakeholder HRM should be responsible and if they failed to do so then they have to face some problems. Air-India had faced some problems in their past. HRM of Air-India had developed a new policy with the government and also they fulfilled the expectation of stakeholders.
  • Policies of HRM select and totally focus upon the management actions and decision in the HR management which can be appreciated on the bases of result from an interaction between choices and constraints. Air-India sees to that polices that are being implemented should be approachable to the employee. Regular feedback should be made in the company through the different mediums.
  • Human resource outcomes are highly employee commitment to organizational goals. Individual performance is the leading to the cost effectiveness of product and the services. As mentioned above paragraph the HRM is in this Air-India organization is participating in six major areas. By Optimizing the success of the Air-India’s Service through effective management and the development of the most valuable employees is responsibility of HRM.
  • The Harvard Framework model helps in maintaining good relations of HRM with the other department of management which includes decision making also. The strength of this model is that the classification of input and outcome of societal level and organizational level creates the basic for an analysis of comparative HRM. The weakness of this model is the absences of coherent theoretical basics for measuring the relationship between HRM performance and outcomes.

Guest Model- David guest (1989) has advanced a more rigid conjectural framework, which reflects set of incorporated HRM practices cab achieve superior individual and organizational performance. The central theory of guest model is that if an integrated set of HRM practices is applied in rational fashion, with a view to achieve the normative goals of high commitment, high quality and task flexibility, then a superior individual performance will result. This model has six of its components: The Guest model (1989) is prescriptive in the sense that it is based on the assumption that HRM it is distinctively different from traditional personnel management (rooted in strategic management, etc.).It is idealistic, implicitly embodying the belief that fundamental elements of the HRM approach such as commitment have a direct relationship with valued business consequences. However, Guest (1989) has acknowledged that the concept of commitment is ‘messy’ and that the relationship between commitment and high performance is difficult to establish. It also employs a ‘flow’ approach, seeing strategy underpinning practice, leading to a variety of desired outcomes. Like its American predecessors, this UK model is unitary (tying employee behaviour and commitment into the goals of strategic management) and lukewarm on the value of trade unions. The employee relationship is viewed as one between the individual and the organization. However it is being argued that the guest model does not identify the key difference between HRM and personnel management namely a shift from a hands on, fire fighting approach to a planning function of a company as being a part of the overall corporate strategy. Air-India continuously monitors its employees and sees that they are satisfied with the policies and their feedback is taken into the account for every policy that changes it makes. Other critics had observed that the guest model may simply be an ideal type towards which western organizations can move.

Human resource management at organisational level- Human resource management consists of many aspects. Few organisations may feel overcome and uncertain about where to start making enhancements. This case is mainly for the organisation that do not have department which is precisely responsible for human resources management. There are many aids in human recourses management of having ownership with staff members. For example, the organisation can be kept informed on legal matters. A synchronized method can be taken with favour with practice and policy. This may help to ensure that the organisation have reasonable and reliable behaviour towards its staff. They have access to assistance on the issues which are related to the staff. Payments are fair and reliable. Good practice and strategy can be put in place. This enables best people to be recruited.

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