Discuss about the Performance Management Systems for Rater Eras Associated.
Thumbay Group is a good example of modern day complex organization consisting of different diversified businesses under one umbrella. It has its headquarters situated in DIFC, Dubai in the United Arab Emirates. The group was founded almost twenty years ago and deals in variety of business operations, including medical services, real estate business, publishing technology, trading and marketing and educational services among others, with an employment network of over 3000 employees.
Thumbay Group just as any other top organization has its set goals through their vision, mission, and their core values. Their vision revolves around the ambition of becoming number one business house on international terms and to exert their global presence. Their set mission is to rise up as undisputed global business group, delivering quality services to all the people in different social spectrum, with integrity, inspiration, satisfaction and hence earning loyalty and trust among its community members.
The Thumbay Group leadership constitutes of the top management comprising mainly of the president, vice president and the board members while another operational management constitutes of the corporate team which is headed by the president, directors and managers of various departments within the organization. However, it is important to note that in their corporate team of managers, the Thumbay Group has both a manager specifically in charge of talent acquisition or simply recruitment, as well as a Human Resources manager. This brings the role of the HR department in to question within the organization, as it is traditionally known that recruitment processes is a task mostly performed by the human resource management department in typically large business entities (Sava?, 2006).
Alignment in the business context refers to the strategic arrangement of people, processes and organizational structures that are important for the firm’s business success (Performance Dimensions Group, 2013). The process of alignment is a strategic process that involves human resource department in the organization. The HR department in the organization is the one responsible for setting policies, strategies and practices that aligns with the organizational culture and main agenda for the best results.
According to (Heneman III & Milanowski, 2007), in most instances in many organizations, strategic human resources management’s role is to identify and select those human resource practices that are in line with the strategic goals of the organization. Thumbay Group focuses on more than one business sector. Under it there are a number of businesses operating in different sectors which means the market structure for their products and services differ according to the type of the business. Furthermore, the difference in business operations necessitated the need to have different human resource departments relevant for every business and its strategies. The need for human resource alignment is relevant in this scenario.
(Heneman III & Milanowski, 2007) further adds that in order to add an aligned human resource system within an organization such as Thumbay Group, the firm must first review the existing human resource alignment in order to get in-depth concept on how well different human resource practices are aligned in order to devise good basis on developing well aligned human resource practices. But all this depends on the organizational priorities and what they want to achieve from their human resource teams.
The clear strategic role of human resource department in Thumbay Group is not quite clear. The diversified nature of many business operations under the group means that there is need for different strategies to suit one another in achieving the heights set by the group. But within the organization, the various businesses have different specific targets they want to achieve, e.g. the business in the real estate industry has a different agenda with the business in tourism and hospitality industry. Therefore, there is need of strategic planning using coordinated human resource practices (Burma, 2014); (Wright & Nishii, 2007).
Thumbay Group performance management team constitutes of two main departments; the HR department and Talent acquisition Department each headed by its own manager. The human resource team majorly deals with the administrative roles relating to employee welfare while the talent acquisition team deals with acquiring the new required workforce. Therefore there is no strategic alignment between two departments supposed to be under one HR department. This explains the fact that some strategic roles of HR are rapidly underutilized even in more complex organizations. According to (Righeimer, 2006), most HR departments are too focused on administrative functions to the point that their strategic roles are terribly overlooked.
There is a widespread belief that in recent days, human resource management has taken more strategic roles that are aligned with the organization’s visions, values and missions (Alnaqbi, 2011). However, Thumbay Group is seemingly utilizing its HR more on talent development and training within the organization. But it is also worth acknowledging the fact that the group’s businesses operating in different industries in Middle East makes it a very uphill task to have successfully aligned HR departments. The successful alignment of HR departments depends with organizational set up and the set goals.
Most competent organizations gain their competitive edge over others through the skilled and motivated workforce who are strategically aligned through HR functions (Teena & Sanjay, 2014). Strategic alignment means that all departments work towards the same course. Alignment is when different human resource functions are coordinated together to realize the organization’s performance competencies and effectiveness.
Human resource can be used as a vibrant strategic tool (Hussain & Ahmad, 2012). If effectively utilized, an organization can greatly benefit from its application. What organizations such as Thumbay Group need to do is utilize their HR departments more strategically than administratively. With a big network of businesses operating in different industries, having one HR department will not be enough to cater for all the strategic needs of every business entity under the group. Therefore, with such a large group of businesses, what the top management needs to do is to establish a human resource department for every single business under the group.
With these several HR departments addressing specific business interests, it becomes much easier when they work in unison under one head HR department strategically to realize the organization’s set goals. Aligning these HR departments will enhance strategic operations between them, hence driving the organization performance and effectiveness forward. In today’s world, most business organizations are defined by the intensified global competition, but only good strategies win this battle of wit. The role of managers has changed over time, which is creating favourable conditions for willing enthusiastic workers (Kumar, 2009), and with these changes, the alignment of performance management systems is also necessary.
Conclusively human resource alignment within organization spreads work coordination across all work levels evenly. Alignment enhances specialization towards the same goal which means workers from different departments operate together with the same vision of pulling together efforts that are driven towards attaining the set goals. Alignment in big and complex firms such as Thumbay Group with different business entities is the only way the organization can achieve its HR strategic goals.
Therefore for the Thumbay Group to realize strategic goals from HR department, the organization should have set up a HR department for every business under the group operating in different industries. With coordination of these HR departments, in various industries such as Tourism and hospitality industry, Medical industry and Education Industry among others; the work flow and sharing of ideas from different industries to the main HR management would act as a brainstorming basis for setting the strategic goals the company wants to achieve.
With one of the company’s goals being expanding its business to global operation status, Thumbay Group can achieve beyond their expectation if they trust their HR department beyond just recruitment of new talent and administrative works within the organization. Limiting the HR to only internal coordination of the organization underutilizes its potential and what it can achieve for the firm. The company also loses on a lot of strategic diversity and the new ideas that HR departments should bring to the Table. Human resource is very crucial part of the organization and when best utilized through alignment, the organization can reap great strategic goals.
References
Alnaqbi, W. (2011). The relationship between human resource practices and employee retention in public organisations : an exploratory study conducted in the United Arab Emirates. . Edith Cowan University .
Burma, Z. A. (2014). Human Resource Management and Its Importance for Today’s Organizations. International Journal of Education and Social Science , 85-94.
Heneman III, H. G., & Milanowski, A. T. (2007). ANALYZING HUMAN RESOURCE PRACTICES ALIGNMENT. Strateic Management of Human Capital , 2-22.
Hussain, M., & Ahmad, M. (2012). Mostly Discussed Research areas in Human Resource Management (HRM) – A Literature Review . International Journal of Economics and Management Sciences , 10-17.
Kumar, A. (2009). The Strategic Role of Human Resources Management. .
Performance Dimensions Group. (2013). Strategic HR Alignment: Ensuring Your Human Resources Functions are Working With Your Organization, Not Against. Available at: pdgroup.net/strategichr/
Righeimer, P. J. (2006). Aligning Human Resources & Strategic Plans. Maverick Energy.
Sava?, A. (2006). Eleman Seçiminde Yetkinlik Bazl? Mülakat Teknikleri . ?stanbul: Anka Matbaac?l?k.
Teena, B., & Sanjay, S. (2014). SHRM: Alignment of HR Function With Business Strategy. Strategic HR Review . Available at: dx.doi.org/10.1108/SHR-03-2014-0023
Wright, P. M., & Nishii, L. H. (2007). Strategic HRM and Organizational Behavior: Integrating Multiple Levels of Analysis . Cornell University ILR School .
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