Describe about the Labor Relations and Human Resources Management for Code of Good Practice ?
In modern era, several business organisations have highly relied on ‘Human Resource Management’ (HRM) as well as ‘Human Resource Information System’ (HRIS), with an intention of enhancing the business competencies among the global players. In relation to this, it can be stated that most of the organisations are emphasising towards HRM related aspects for enrich as well as accomplish business success through the assistance man power (Kavanagh & Johnson, 2012). Moreover, most of the global organisations are identified to balance available resources with an aim of achieving its desired results in terms of profitability and sustainability. Subsequently, organizations are recognized to use capital, manpower and technologies as a resource to perform their operations effectively in the market segments, which may lead an organisation towards better sustainability as well as profitability for the long-term period. Thus, it can be stated that HRIS principles usually helps an organisation to develop employee skills, organizational cultures, administration processes and systems among others (Kumar, 2012).
In this assignment, the objective is to critical analysis the significance of HRM functions on employee effectiveness. In this context, it can be mentioned that recruitment and selection is the most crucial constituents for an organisation, through which an organisation can attract appropriate candidates for ensuring the specific responsibility within the organisation. At the same time, it can be stated that through emphasising towards the training and development related aspects an organisation also may enhance its operational efficiency by enhancing overall skills and knowledge of the existing as well as newly recruited workforce. Simultaneously, through emphasising towards HRM functions and principles an organisation may ensure the practice of good human resource management policies in terms of legal as well as regulatory framework (Shaikh, 2012).
In this particular assignment, the objective is to critically analyse the HRM functions. At the same time, this particular assignment will also emphasise towards the HRM practices related factors which may ensure the significance of employee effectiveness. Moreover, the study will also critically analyse the advantages and disadvantages of HRM practices. Additionally the study will also highlight the HRIS functions, which may lead an organisation towards better success.
With the effect of globalisation, during the last three decades, it has been identified that the role of HRM has been extended from management of employees towards becoming more strategic one. Anne (2011), argued globalisation has increased the level of competition in the entire global market, which has influenced organisations to improve their performance level more effectively. In this regards, Silva (2014) claimed that most of the business organisations in the recent time have started emphasising the industrial relationship by motivating the capability and enhancing the loyalty levels of their employees. In this regards, Shaikh (2012), mentioned that the traditional role of HRM is executing strategic plans of the organisation in order to establish a strong industrial relationship. Deakin (2009) also describes a field, where a relationship is established between an employer and a worker under a written agreement of employment. Contextually, this type of relation is also referred as an employment relationship. In case of an industrial relationship or employment relationship, organisations are liable to discharge certain performances towards the welfare of its workforce such as ensuring health and safety workforce and providing them with hygienic workplace environment.
During the early 21st century, it has been observed that organisations are faced with several challenges in terms of their workforce. Thus, most of the countries have conducted major amendments in their federal industrial legislation in order to develop the industrial relations during the last couple of decades. In this regards, Mitchell et. al. (2010) argued that in case of industrial relationship, role of labour laws have been observed to be extremely prominent with respect to safeguarding the rights of labours. The differences in the labour laws across the countries have raised several questions in the globalized era (Armstrong, 2009). Unlike other countries in the world, the UK has been identified to witness significant policy reversals with respect to labour union laws and frameworks. As result dramatic fall was experienced in terms of number of labour union in the country. It has been argued that variations in labour laws have been acting as exogenous cause leading towards increased unemployment as well as declining growth. The impact of variations in labour law is reckoned to be positive as well as negative and hence predicating its impact is claimed to be quite difficult (Mitchell & et. al., 2010).
According to Dale (2012), the term HRM can be used in both ways. First, HRM denotes a generic term to describe the form of management activities, which conventionally portrays personnel management. On the other hand, HRM is considered as a typical approach to recommend a specific philosophy towards carrying out people-oriented organisational activities. During the last couple of decades, it has been observed that most of the industries have faced several challenges in terms of their workforce. In accordance with viewpoint of Prieto and Perez-Santana (2013), the differences between the organisations its workforce has deteriorated the workplace environment in many large and small organisations. Apart from this, long working duration, lack of security and poor environment has influenced the working forces of the organisations in a negative manner. Simultaneously, the impact of high level immigrants has been also affected the business environment and economy in a massive manner (Beard well and Claydon, 2010).
In this regards, Jiang et. al. (2012) claimed that during the early 21st century, most of the organisations have focussed on introducing several strategies aligned with the HRM in order to develop the knowledge, skills and abilities of the employees. Simultaneously, organisations are applying HRM strategies with the aim of ensuring high productivity through motivating its workforce. Moreover, organisations are also availing several opportunities in order to boost employee empowerment and responsibility level more significantly (Dessler, 2011).
HRIS is an emerging concept in the sphere of ‘Human Resource Management’ for conducting HR related operations effectively. HRIS functions in four different areas such as operational, tactical, strategic and computerized (Kumar, 2012). The types of HRIS are illustrated and defined here under.
Operational human resource information system helps an organization to make decisions by providing support of reviewing HR data and human resource services. Operational-level information system collects data, which is relating to human resources and include information about an organization’s positions, its workforce and governmental regulations among others (Kumar, 2012). Moreover, it has been also identified that few system, which is a part of operational systems are as follows:
Employee Information Systems
The human resource information system analyses information of an organization’s employees in order to make various HR decisions. Employees’ information comprises name of an employee, address, sex, education qualification, experience, salary among others (Kumar, 2012).
Performance Appraisal Information Systems
The system denotes performances and productivity of employees. The data is used as a witness in order to evaluate employees according to their performance and commitment level. The system helps an organization to determine the appraisal system in the areas of promotion, transfer and termination (Kumar, 2012).
The tactical information system usually helps an organization to make decisions relating to allocation of resources. Several essential decisions such as recruitment, training as well as development, job analysis and designing, and employee compensation planning decisions are conducted through the help of tactical HRIS (Kumar, 2012).
Strategic HRIS assists an organization to implement strategic human resource management practices. Organizations use the system in order to make long term planning for the workforce during entrance in a new market or in case of introducing new product in existing marketplaces. Consequently, the system also helps in case of labor negotiation for an organization by evaluating the current performance with respect to the expected outcomes (Kumar, 2012).
Organizations have produced several integrated software, which have helped organizations to maintain the HRIS in a computerized manner. Moreover, the software helped to develop integrated database and report of business related essential files. Apart from this, the integrated software and computerization has helped the organizations to enhance their efficiency effectively (Kumar, 2012).
A picture is depicted below for better understanding the types of human resources information systems
Figure 1: Types of Human Resource Information System
(Source: Kumar, 2012)
Subsequently, it can be recognized that operational human resource information system is an effective HR managing technique based on which HR functions and operations can be managed successfully. In this respect, Castle’s Family Restaurant is required to adopt operational human resource information system in order to make appropriate HR decisions. Thus, it can be asserted that operational human resource information system should assist in reviewing information and performance of the employees more effectively through the help of this model (Kumar, 2012).
HRIS vendors provide different HR solution services to corporate for managing HR effectively. HRIS vendors including People-Trak (https://www.people-trak.com/services/) and HRMS Solutions (https://www.hrmssolutions.com/hris-solutions/) are few of the renowned HRIS vendors providing HR solution services (People-Trak, 2014). Both the HRIS vendors are economical in terms of service cost. Whereas, the HRMS Solutions is identified to be comparatively better than People-Trak vendor because of several extra features relating to reviewing the performance of employees in terms of training and development, time and attendance, salary planning and payroll among others (HRMS Solutions, 2014).
In order to ensure effective HR functions an organisation should practice effective HRM principles, which usually ensure the policies and principles of ‘Good Practices’. In this case it can be stated that this particular approach may assist an organisation to attract as well as choose a different set of people, who has the skills, temperament as well as capabilities to ensure the organisational requirements (Torrington et al., 2008). In this context, it can be also argued that through incorporating ‘Good Practices’ related HRM principles an organisation may identify/ select/ choose the right person for the right profile/ work environment. In accordance with Aid (2003), effective human resource strategy is recognised as “Good Practice”. In this regard, the primary objective of an organisation is to ensure the efficiency as well as effectiveness of recruitment process through adhering discipline. At the same time, by adopting ‘Good Practice’ related HRM principles an organisation may also ensure the quality of the training and development related procedure, which actually help an organisation to establish responsibilities on its newly hired workforce (Aid, 2003).
According to the report of Victorian Public Sector Commission (2010), through incorporating good practice related HRM principles, an organisation may enhance the efficiency and effectiveness of the recruitment as well as selection process. The flowing steps will highlight the ‘Good Practice’ related HRM principles:
Stage 1)
Planning is one of the most crucial aspects for an organisation i.e. recruitment and selection process. In this regard, it can be stated that through emphasising towards planning related aspects an organisation may ensure the specific timeframe and selection technique of the recruitment and selection process. Apart from this, planning may also help an organisation to identify the actual selection criteria, which can be also determined by considering certain factors such as knowledge, skills, attribute and experience of the potential workforce (Victorian Public Sector Commission, 2010).
Stage 2)
Identify an appropriate recruitment strategy is highly essential for an organisation, which is usually assist an organisation to attract the attention of the potential workforce. In this regard, during the advertising of employment related circulation an organisation should highlight the provided opportunities and benefits of its workforce, which may grab the attention of the potential workforce (Victorian Public Sector Commission, 2010).
Stage 3)
Similarly, short-listing applications is one of the key factors, which may enhance the overall efficiency of the recruitment and selection process. In this context, it can be argued that short-listing applications on the basis of fairness is also considered as one of the crucial factors, which may influence the performance/ outcome of an organisation. In relation to this, it can be also mentioned that an organisation should emphasising towards standardised format and selection criteria for determining the suitable candidate for the required profile. Apart from this, during the selection procedure the organisation should evaluate the candidates through interview as well as additional assessment. In this context, candidate rating is highly essential for identifying/ choosing the best alternatives among the varied options (Victorian Public Sector Commission, 2010).
Stage 4)
Additionally, boarding is also considered as most essential mechanisms through which an organisation can establish better skills, knowledge and behaviour amid the newly hired workforce. Thus, this boarding procedure is also can be regarded as a training and development process, which can help an organisation to enhance the overall outcome in a effective manner (Victorian Public Sector Commission, 2010).
In this context, it can be mentioned these above stated stages are considered as good practice related HRM principles, which may assist an organisation to enhance the efficiency of HRM principles during the execution of HRM functions (Victorian Public Sector Commission, 2010).
Human resource management (HRM) is a practice through which an organisation can control and supervise their workforce (Beard well, 2007). In order to define good practice of human resource management, it can be stated that this HRM is embrace by an organisation to attract potential individuals towards the organisation for working purpose. Apart from this, human resource practice helps an organisation during selecting and training new employees. Moreover, the practice of HRM also facilitates in supervising organisational leadership and culture (Mullins, 2007).
On the contrary, personnel management is a method through which organisations eventually maintain people and their workforce in order to establish satisfaction relationship within the organisation. Moreover, through practicing personnel management an organisation can ensure commitment of its people and employees to contribute their participation towards the organisation in order to attain organisational goal (Armstrong, 2006).
In order to evaluate the role and responsibilities of line manager, it can be apparently affirmed several individuals and even a team can be work directly under the line manager. Simultaneously, most of the managers who are controlling few individuals or a team also took order from the supervising authority (Brewster et al., 2007). Thus, it can be evidently asserted that line managers need to maintain their appropriate role along with several responsibilities which is conveyed by the high level management in order to accomplish organisational goal smoothly. According to define the role, it can be stated that the actual role of a line manager is to lead its team sincerely. Consequently, the responsibilities are to convince people according to the requirement and monitor the entire work process with dedication. Apart from this, there are few key roles of a line manager such as managing operational cost, providing technical support, evaluating the quality of the product and/or services and allocating work among subordinates. Moreover, line managers also need to deal with customers or clients in order to raise the business performance. Additionally, measuring operational performance, building operational level strategies and implementing those strategies are the most essential responsibility of a line manager in an organisation (Armstrong, 2006).
According to the observation, it has been witnessed that HRM within an organization are required to perform diverse functions which involves recruitment, selection, training and development of employees. HRM through effective performance of its functions such as recruiting people, providing training and development facility to the employees enables organisation to accomplish its broad objective. Apart from this, HRM concept also helps an organisation to raise its performance level via motivating employees and offering rewards and bonus to the employees (Sisson and Storey, 2000). According to the research, HRM within an organization is influenced by the legal and regulatory framework to a considerable extent. Over the years, it has been observed that organisations are required to comply with several legislations in order to ensure that the recruitment process is fair and in equal for everyone. At the same time, there are several laws being enacted by the government across the globe that restricts discrimination of employees based on sex, religion, gender or any other grounds. Moreover, during remunerating those employees’ organisations must have to maintain certain clauses, which are bound by the legal regulation. Thus, it can be evidently asserted that the impact of the legal and regulatory framework on HRM is highly prominent (Prince, 2007).
According to observation, it has been perceived that in order to terminate an employee an organisation need to follow legal and regulatory framework to make the process smooth indeed. As per the most of the continental legislation, it suggests that during termination process an organisation need to provide respect and dignity to the terminated person. On the other hand, in the circumstance of cessation of employment, organisation needs to be conscious about financial and other issue in order to avoid legal consequences. Similarly, during the cessation of employment an organisation need to express the reasons behind the cessation clearly. Otherwise, it can affect co-workers, which can lead massive problem in terms of achieving the organisational goal (Nyberg et. al., 2014).
Consequently, in order to identify the reasons for cessation of employment within an Organisation it can be asserted that it may be due to various reasons such as the poor performance of the employee, breach of organizational established norms and standards and unfavourable economic conditions for the organization like economic crisis. If an employee consistently performing poor then it can hamper the organisational objective (Salaman et al., 2012). During this circumstance, an organisation needs to keep entire performance records of that employee and the organisation needs to advice that employee in order to rectify his/her performance within a reasonable amount time. Instead of that if the employee has failed to make that necessary improvement then the organisation can terminate that employee due to poor performance. Apart from this, organisations have the privilege of terminating an employee due to several occurrences such as theft, dishonesty, making discriminatory conduct towards others and for being intoxicated during workplace (Mikandel, 2010).
Moreover, an organisation can cease employment during restructuring organization or crisis situation. According to the observation, it has been explored that several organisations have taken cost saving measure during the economic downfall and downsizing large number of employees at a time (Sani, 2012). Besides, all of these it has been observed that an employee also have the privilege of leaving an organisation according his own choice. In this case, the employee has to issue a described letter, where he/she must have to mention that according to own interest the he/she willing leaving that organisation. Apart from this, during this kind of circumstances an employee has to serve for a certain period of time as specified in the employment terms and conditions with that particular organisation in order to provide them the opportunity of finding an alternative employee for that position (Nyberg et. al., 2014).
Based on the review of academic literatures, it is identified that HRM functions are considered as one of the most essential aspects for an organisation, which usually assist an organisation to ensure the effectiveness and efficiency of the workforce. In this regard, more specifically it can be stated that through emphasising towards the HRM related laws, policy as well as practices an organisation also may ensure the appropriate outcome within the competitive business environment. In this regard, it can be recommended that through incorporating strategic human resources management and development related approach an organisation may enhance the effectiveness of its workforce (Dale, 2012). At the same time, it may claimed that through incorporating good practice related HRM principles an organisation may motivate its workforce and it also assist the organisation to establish a positive relation with its workforce. Moreover, through adopting good practice related HRM principles, an organisation also may enhance the overall values and standards of its existing workforce (Armstrong-Stassen, 2008)
In this regards, it can be also recommended that through incorporating strategic HRM approach an organisation may mitigate several challenges during the execution of business operations such as ‘political forces’, ‘cultural forces’ and ‘economic forces’ among others. At the same time, adopting strategic HRM principles may also assist an organisation to reduce its workforce related problems, which also may ensure the consistence of an organisation it terms of business performance. Moreover, incorporating strategic HRM principles may help an organisation to provide healthcare and safety related facilities, which may lead the commitment of the workforce towards positive dimension. Additionally, adoption of strategic HRM policy may lead an organisation towards gaining better business competencies in the operating marketplace (Armstrong-Stassen, 2008).
Based on the above discussion, it is quite clearly revealed that HRM functions are recognised as one of the most essential aspects for an organisation, which may lead an organisation to archive better productivity by enhancing the efficiency level of the workforce. At the same time, it can be also stated that adequate HRM functions also may help an organisation to ensure the long-term sustainability in a competitive business environment. In this regard, it is also identified that through incorporating strategic HRM principles an organisation may also enhance the efficiency and effective of its workforce, which may enhance the skills, knowledge and perception towards the work. In this context, it can be stated that through incorporating strategic HRM principles an organisation my also enhance the motivation and commitment of the workforce towards the work responsibility on an organisation. Thus, adequate strategic HRM principles are also recognised as good practice, which is also considered as ethical and legal approach of HRM.
Apart from this, based on the review of literature it is also revealed that adequate HRM practices can enhance performance for an organisation through improving succession planning and aptitude development related aspects, which may also lead an organisation to gaining better competitive advantages within the operating marketplace. Simultaneously, adequate HRM principles can help an organisation to cultivate better industrial relationship with the employees. On the contrary, adequate HRM practices also can bring new talents towards an organisation. Thus, it can be mentioned that adequate HRM principles and functions such as good practice policy of the recruitment and selection process can enhance the efficiency of the workforce within an organisation. Moreover, it also help an organisation to achieve success by hiring potential employees.
At the same time, it can be also stated that strategic HRM principles and practice may also help an organisation to enhance the operational efficiency of the workforce through developing better decision making ability. Simultaneously, it is also identified that through practicing adequate HRM principles, an organisation may utilise its resources efficiently, which also lead better productivity for an organisation. Apart from this, effective strategic HRM principles can help an organisation to perform HR functions effectively such as recruitment and selection, performance appraisal, training, upgrading of skills and career development, along with direct employee participation and communication. At the same time, human resources management may help an organisation to maintain good working cultures through ensuring the support in case of health and safety related aspects.
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