Question:
How HRM Contributes To Organisational Efficiency And Effectiveness?
Human resource management is often related to employee relation and personnel management by industry experts. Whenever such terms are described, people take it as an image of efficient managers who works for bringing effectiveness in work for organisations. HRM can be defined as a process in which people are managed in organisations to perform work in structured and well built manner (CANIA, 2014). HRM performs tasks in many fields that are related to each other like staffing, payroll setting, retention of employees, performance management and change management (Bianca, 2017). While the work is performed, HR managers take care of company’s activities and objectives. The role of HRM encompasses management of humans from a macro perspective way in organisation and manages people by building relation between employees and managers. Some MNC’s and big companies call HRM as people managers and people enablers who practice people management. The actual role of HR manager’s are not limited to manage people only but to ensure fulfilment of employee and realisation of organisational objectives (Management Study Guide, 2017).
The HRM function is taken as a critical factor in organisations as they support managerial functions and adhere to organisational procedures and policies. For example, HR department in companies perform jobs relating people that combine various elements for enhancing work efficiency. The jobs that are mostly performed by HR professionals are mentoring employees, providing support at the time of appraisals; training, hiring, grading and making pay structures (Human Resource Excellence, 2017). There are people who have misconceptions about HRM who think that HR managers are required only during the time of employee’s complaints or at the time of appraisals. But the actual function of HR managers has emerged as a chief function in which HR professionals are cynical and proactive in nature. That means at the time when the need for crisis management is predicted, HR managers are anticipated to take actions immediately instead of waiting for crisis to take place and resolve only after effect of it is recognised. Therefore by considering issues in impulsive stage, the HRM retains work efficiency in organisations. Earlier factories and workplaces observed lockouts and strikes in their manufacturing and services sectors as not much evolvement of HR practices were given importance in day to day work practices. With the evolvement of HR practices and HR theories, the professionals have become cultured and transformed themselves from thoughtless mode to positive mode. By understanding the grievances and feedback of staffs, the HRM’s focuses on preventing crisis taking place in both internal and external related work function of organisation. This element of HR, which has increased in recent times, shows the increase in amount of effectiveness in work culture among people (Itika, 2011).
Strategic human resource management aligns business strategies with HR practices in order to achieve organisational goals. The objective behind HRM professionals is to confirm that HR strategies meet all the objectives behind its formation and acquire the core objective i.e. bringing work efficiency in employees (CANIA, 2014). In order to retain such quality various theories are been inculcated in HRM so that their work is carried in more systematic manner. One of the most recognised theories in HRM is General systems theory that consists of basic organisation’s function i.e. interacting with internal and external environment. No organisation can stay alive without making interaction as they provide with inputs and outputs at the time of progression. Customers generally gives feedback after using products or services and thus organisations can make corrections on the part where negative feedback is obtained. The general systems theory helps management understanding the components of organisation’s systems and other departments like accounting, marketing, staffing, etc. For any organisation to develop in growth oriented way they have to remain competitive and each department shall support each other. For example, in organisation if recruitment department makes error, it can affect whole company’s performance as wrong people will get accommodated at wrong positions. In the same way if HRM are not contacted at processing stage or is not utilised in effective manner, the quality of production and service decrease which reflects through feedback mechanisms (Ibrahim, 2014).
With growing IT and service sectors, HRM is been recognised as a foundation of competitive advantage in organisations (Human Resource Management as Competetive Advantage). It must be considered in the same manner in which technology and capital is treated. Since HRM contribute towards organisational objectives and promotes basic business functions, it cannot be overseen by firms. As they are specialist in managing people, the organisations depends highly on HRM teams to foster managing feature in their function. If real world examples are taken into account, it can be seen that organisations are dedicating their “people managers” function solely to strategic human resource departments who enables the maximum utilisation of available resources (IGWE, 2014). Contingency theory in HRM was introduced by Evan’s Martin that states that in order to adopt specific strategy for gaining maximum gains, managers has to stipulate their knowledge since organisations has to operate in complex environments and risks. According to Martin no one theory can prove to be the best for managing people in organisation (Anzalone, 2017). The strategies adopted by corporate depends on other environmental factors and policies which are closely studied and undertaken by HR professionals to make ultimate strategies for each function. HR professional on the other hand needs to possess qualities like supportive, directive, participative and goal achieving. This theory helps HR managers to determine their participating style and the amount of components required to fit in each function. To increase effectiveness, HR professionals motivate and boost the morale of employees while suggesting organisations about methods for improving work culture. While the work efficiency is increased, the result can be seen from employee’s satisfaction and then the goal of the company is also seemed to be achieved. The HRM teams are thus selected by organisations so that that could guide the present and recruit desired people for better tomorrow (Karunaratne, 2016).
Modern HRM practices align organisation’s goals with HR strategies for making sure that there is a direct relation between management objectives and employee policy. It can also be said that HRM departments are nowadays not treated as adjuncts only but instead taken as a vital part for ensuring success in organisation (Sims). With the help of theories and models, HR professionals have evolved from the times when managers were responsible only for setting labour and staff problems along with taking care of pay systems only. Today’s HR’s have learned to deal with disputes such as requirements of regulations those are different from each other across the world depending on their location. Managing dispersed workforce is been the primary concern of HRM and to interface the intersections among localization and globalisation. This means that local or merging modes of involvement and norms and taken considerably by HR teams and processed according to the primary rules of organisation. Thus the role of HRM shall be integrated with the strategic formulation so that effectiveness is seen for long term in organisation. While the people are managed by reinvesting in them through training and nurturing, the overall work efficiency is ensured. If the HRM is designed in a sort out and critical manner, the firms tends to utilise people completely and with it the obstructions behind success is eliminated (Bradley, 2017).
The basic tools required while managing a HR team are staffing, training and maintaining work performance with which managements give shape to function of organisation’s activity and satisfy the necessities of stakeholders. Stakeholders are the ones who satisfy their needs from organisations. Stakeholders related to firm can be in the form of employees, customers, owners, government and masses. While customers demand for good quality service and product, government will demand companies to adhere to regulations and country’s laws. Owners or shareholders will always demand for high returns while employees will always prefer to work under favourable work conditions. Whatever the case may be, the ultimate goal behind building a HR team is bring co ordination between all the fundamentals and get effective results through organisation’s elements (Carthy, 2015). This combining is possible only if professionals follow developed communication process within and with outside people and to bring teamwork in organisation, HRM is always anticipated. The enhanced relationship those are created between people eliminates obstruction between organisational goal and a constructive environment is built in workplace.
In HRM theories, HR managers follow the 5P’s model mostly that enhances their work quality. According to the authors of the model, Milded golden, Chris J. White and Leslie, this model enables five elements in structure of organisation which are the core of any business (Nunes, 2016). The elements described in the model are principal, purpose, people, process and performance. The principle component is taken into consideration for implementing basic guidelines and ethics required to maintain at the workplace as well as with outside people. Purpose determines vision and mission of the company along with stating ultimate target behind formation of the company. People element deals with the employees who work for the company to achieve objectives and goals for it after following procedures and guidelines laid by the management. Process function represents the structure of the management and reveals the processes through which the product or service of the company is formed. After considering other four elements, performance factor is enabled in which the result of 5P’s model implementation is verified. The verification process can be completed by making metrics or graphs which helps the managers to decide upon the areas that require more concentration. The structured process of this model is the reason why it is used most commonly by the HRM of organisations. A proficient HR manager does not summarises the needs of the company only but makes effort in enhancing work efficiency by installing effective procedures and healthy work environment.
Conclusion
In the above essay various theories have been discussed those are utilised by HR professional in today’s management systems. The HRM are taken as a vital component in organisation’s rather than treating them as mediators only. Organisations needs to take utmost care while deciding upon their HR managers as all the critical function are performed by them. A sound management system will always reflect and show its effectiveness through company’s improvement and HRM can be accredited for it as they are the ones who help in making formation of strategy for administrations of organisations (Shafer, 1998). Task performed by HR’s are often taken as consultation process and thus they are also considered as organisational consultants and advisories that are approached whenever any new strategy is required or any issue is observed. The placement and payroll setting procedure carried by HR professional’s makes employees depend much on them which is why they consult the HR teams during the times of problem rather than approaching to head of the companies. The role of HR managers enables them to make placements of employees which are done by them in effective manner as they specialise in making judgements about their expertise and knowledge of people (Mote, 2017). Thus companies rely greatly on HRM so that placing right people at right place is enabled and without human intrusion, work efficiency is increased. The process of designating tasks to people are made by HR professionals after considering employees interests and thus employees feel motivated to work competently. It also brings motivation in them to work more in order to surpass others. The effectiveness in administrative centre is observed if the employees or people are satisfied with the organisation’s environment and to confirm satisfaction, HRM is expected to take actions (CANIA, 2014). Therefore is can be rightfully said that HRM contributes completely for bringing efficiency and effectiveness in organisations.
References
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Bianca, A. (2017). The Role of Human Resource Management in Organizations. Retrieved from https://smallbusiness.chron.com/role-human-resource-management-organizations-21077.html
Bradley, J. (2017). The Advantages of the Human Resource Management Strategy. Retrieved from https://smallbusiness.chron.com/advantages-human-resource-management-strategy-66417.html
CANIA, L. (2014). The Impact of Strategic Human Resource Management on Organizational Performance. Retrieved from https://184.168.109.199:8080/jspui/bitstream/123456789/7207/1/SOCIAL.pdf
Carthy, P. M. (2015). The Benefits of Human Resource Management for your Business. Retrieved from https://lincoln.ie/the-benefits-of-human-resource-management-for-your-business/
Human Resource Excellence. (2017). Importance of Human Resource Management. Retrieved from https://www.humanresourceexcellence.com/importance-of-human-resource-management/
Human Resource Management as Competetive Advantage. (n.d.). Retrieved from https://he.kendallhunt.com/sites/default/files/uploadedFiles/Kendall_Hunt/Content/Higher_Education/Uploads/Kleiman_6e_Chapter1.pdf
Ibrahim, M. A. (2014). HRM PRACTICES AND EMPLOYEE COMPETENCE: A GENERAL SYSTEM PERSPECTIVE. Retrieved from https://www.academia.edu/12107986/HRM_PRACTICES_AND_EMPLOYEE_COMPETENCE_A_GENERAL_SYSTEM_PERSPECTIVE
IGWE, J. U. (2014). Effective Human Resource Management As Tool For Organizational Success. Retrieved from https://www.academia.edu/9978194/Effective_Human_Resource_Management_As_Tool_For_Organizational_Success
Itika, J. S. (2011). Fundamentals of human resource management . Retrieved from https://openaccess.leidenuniv.nl/bitstream/handle/1887/22381/ASC-075287668-3030-01.pdf
Karunaratne, V. (2016). The Human Resources Management Practices -Models and Theories. Retrieved from https://www.linkedin.com/pulse/human-resources-management-practices-models-theories-karunaratne
Management Study Guide. (2017). Retrieved from https://managementstudyguide.com/staffing-and-hiring-role-of-the-hr-manager.htm
Mote, D. (2017). HUMAN RESOURCE MANAGEMENT. Retrieved from https://www.referenceforbusiness.com/encyclopedia/Gov-Inc/Human-Resource-Management-HRM.html
Nunes, P. (2016). 5 P’s Model Concepts. Retrieved from https://knoow.net/en/economics-business/management/5-p-model/
Shafer, L. D. (1998). From Human Resource Strategy to Organizational Effectiveness: Lessons from Research on Organizational Agility. Retrieved from https://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1124&context=cahrswp
Sims, R. R. (n.d.). Organisational Strategy and Human Resource Management. Retrieved from https://books.google.co.in/books?id=B7JZ3D7WU80C&pg=PA37&lpg=PA37&dq=HRm+advantages&source=bl&ots=7bXh-cNrX8&sig=jLbU8_djOsDe1Y4jrB5YxNMc-xU&hl=en&sa=X&ved=0ahUKEwjP6szJ6N7WAhUHv48KHfYAAko4FBDoAQg2MAQ#v=onepage&q=HRm%20advantages&f=false
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