In the present time of globalisation, liberalisation and economical changes, there is a vital need of human resource management in the organisation. Human resource management serves in almost every department of the organisation. It provides a resourceful and strategic approach for the management of workforce in the organisation (Phillips and Gully, 2013). Along with this, it ensures the growth and development of organisation and employees simultaneous. The crucial requirements of organisation related to effective and flexible corporate culture, employees loyalty and engagement plus international standards of management and growth and development of organisation profitability and productivity can also been met by the effective implementation human resource policies and standards.
From a small company to larger company, HR management plays a prominent role in setting up rules, regulation and strategies for the employees to attain organisation goals and objectives firmly (Phillips and Gully, 2013). In this report, concept of human resource management has been explored with strategies, theories and process of its implementation. The significance of human resource management has also been expounded for individual and organisational performance. Moreover, an investigation regarding ethical issues faced by the management while monitoring employees and operations has also been discussed in this report.
In addition to this, human resource management helps various department of organisation such as social in which social benefits, union management relation and legal formalities are looked after by the HR (Vinesh, 2014). In organisational function it maintains and creates planning of peoples work and delegation, relation of management with employees, selection and hiring of correct workforce for a particular job. It also controls training and development programs, appraisal, placement and assessment of the employee’s performance. As a personal objective it furthermore concerns with the compensation of the employees (Vinesh, 2014). In other words, it is responsible for the creation and effectual integration of Training and development program, project management, compliance management, cost and quality control of the workforce in the organisation.
Human resource functions are divided into two parts mainly that is managerial and operational functions. In managerial functions are associated with the planning, organising, directing and controlling of the business operations through managing jobs with the help of right person at the right time (Vinesh, 2014). Moreover, operative functions are again distributed in five parts as procurement, development, compensation, integration and maintenance. Procurement process embraces job analysis, transfer, promotion, placement, recruitment and hiring processes, induction programmes HR planning and separation procedure of employees. In case of development function, training programs, career planning, executive development, performance appraisal are involved. It focuses on the better organisational conditions for employees to make their career by improving aptitude, skill and knowledge for future jobs.
Similarly, compensation entails wage and salary administration, payroll, bonus and incentives and job evaluation regarding organisation’s workforce (Indermun, 2014). In addition to this, integration is pertaining to the grievance rectification, conflict management, employees involvement, job satisfaction, discipline in the organisational culture and collective bargain. Nevertheless, maintenance is also an essential function of HR that addresses social security, personnel research records and audit, welfare schemes and safety of employees. It includes medical facilities, transportation, housing, group insurance and education related aspects for employees and their families (Indermun, 2014). Maintenance function also ensures the monetary benefits after services of the employees like provident funds, pension schemes and gratuity.
Besides this, human resource management has various scopes in business functions of an organisation. It controls auditing, accounting and information system of management as well as employees (Asha and Yadav, 2014). HR management maintains health and safety of the employees in addition to this, social safety, motivation and remuneration related aspects are also concerned with employee’s growth and individual needs. In case of development organisational and career development are build up and executed for the employees. Along with this, internal mobility and training caters various scopes for the employees to develop and excellence in their skills and abilities (Ali, 2013). Human resource management acquires the planning, selections and hiring of the workforce in an organisation.
Personnel management or human resource management is simply a connecting association between employees and organisation (Cania, 2014). It helps in improving the relation of management and employees by delivering individual needs for employees as well as organisational needs to management. Main objective of the human resource management is to accommodate trained and enviable candidate for the correct job to achieve the ultimate goal of organisation successfully. HR continuously helps in improving the organisational performance as well as provides training and development plus favourable culture so that individual needs of employees can also be met (Cania, 2014). It is responsible to motivate and direct employees to attain organisational goals and objectives.
In the same way, human resource management is concerned with the optimum utilisation of resources especially workforce of the organisation. It facilitates effective leadership all in all to the organisation to improve its financial and managerial conditions (Burma, 2014). Self actualisation and job satisfaction of the employees is also entailed in the function of human resource management (Schroeder, 2012). It ensures the quality of life for employees and considers balanced lifestyle aspects for employees to encourage them about life’s other sides like social and personal life. It executes code of conducts and standards for the company to maintain external and internal behavioural aspect of organisation (Cania, 2014). It facilitates maintenance of employees and managements cordial relations. It helps in accomplishment of organisational goals and individual/group goals to bring together.
Apart from this, human resource management enables an organisational development in a consistent pace along with strategic growth in a faster rate (Aslam, et al, 2013). The process comprised in human resource management is of four steps mainly to achieve the individual and organisational goals together. HR management emphasis on the talent acquisition in the organisation by selection and staffing process then focuses on the performance management of employees that aids in employees involvement by motivation. After that it looks after compensation and benefits of the employees which helps in employee’s loyalty retention (Aslam, et al, 2013). Lastly, it facilitates the sustainable development of employees via career development and succession planning.
HR management depends on certain models and theories that help it in directing and managing the organisational needs by fulfilling the employee’s desires (Mwaniki and Gathenya, 2015). One of the theories of HR is Abraham Maslow’s hierarchy of needs that boosts the motivation in employees to achieve organisational goals. In this theory management understands and try to satisfy five needs of employees that is physiological, safety, personal, esteem and self actualisation. Basic physical needs contains in physiological needs such as water, food and shelter (Nor and Mohamed, 2013). Safety needs is safe working environment and health related issues while working for an organisation. Love, affection and belongingness associated with personal needs of the employees by effective organisational culture to maintain relation between employee and management. Esteem need is want of freedom of creativity and ideas, achievement, strength, confidence and adequacy through motivation, recognition, appreciation and attention in the organisation. Lastly, self actualisation is very difficult to achieve involves opportunities and encouragement aspect to surpass skill and ability of the employees (Mwaniki and Gathenya, 2015).
Furthermore, Frederick Herzberg’s motivation-hygiene theory is also based on leadership and motivational aspect of the organisation (Nor and Mohamed, 2013). Along with this, Douglas McGregor’s theory X and theory Y and Rensis Likert’s Participative Decision Making Theory is used for the decision making. Thus, HR management is purely based on scientific and natural science theories and models.
Every organisation faces some sort of ethical problems related to HR policies and standards which can be analysed and measured by the management and can be rectified with integration of strategies and HR models. Ethical issues in human resources are mainly concerns with the employee’s responsibility, cash and compensation plans, performance appraisal, privacy issues and discrimination due to diversity and background can b the reason (Mathis, et al., 2016). Apart from this, it can be safety and health related problems, employment conditions and restructuring and layoffs issues which can be difficult for any management to handle. Ethical issues are difficult to analyse and tackled because it is concerned with trust and behaviour of the people. Additionally, it involves emotions and feelings of people that make it more difficult. For this reason, HR management is determined to undertake these issues in a very effective way. HR policies and strategies enable the systematic establishment of organisational environment for any particular situation (Mathis, et al., 2016).
In the present context, The Company ‘Ivandale Ltd.’ Is facing some ethical issues in HR practices such as weak management style, labour turnover is high, ineffective time management, increased medical leaves, constant growing theft activities and dwindling work performance affecting the profits of the organisation. These issues can be solved with the proper analysis and implication of various strategies to deal with this (Sherif, et al., 2014). Hence, quality performance management system can help he management in addressing these issues. It includes various factors example adoptive to change, competitive, increase in knowledge and learning ability, effective and efficient incorporation, flexible and reactive. The quality performance management embroils employment security, selective hiring of new personnel, self managed team and decentralized decision making (Sherif, et al., 2014).
Along with this, comparative high compensation contingent that enables to monitor organisational performance plus development and training programs to enhance skills and ability of employees are also appurtenant to quality performance measurement (Mathis, et al., 2016). In the same manner, obstacles of distinction regarding status of employees are also concerned to create a flexible organisational culture and atmosphere. Communication is a pivotal aspect that gives productive management and critical information related to decision making. It enhances mutual trust of the employees and organisation. Quality management enhances the performance resulting in augmenting productivity and performance and reduces ethical issues faced in term of behaviour as it provides comprehensive relationship between staff and management (Mathis, et al., 2016). Therefore, this strategy of quality performance helps the company to overcome its HR problems related to the ethics.
Conclusion
In the above discussion it can be illustrated that human resource management is a very useful area of any organisation. It affects the principle asset of the organisation that is people who works for the company. Additionally, it can be implicated from the discussion that there are various significance of HR management as it stimulated the employees needs and wants, hence enable company to grow and attain its targeted goals and objectives. It is also defined that human resource management has functions in almost all department in which people are involved. It is responsible to create constructive and supple environment for the employees. Lastly, ethical issues are the problem area of human resource management which can be solved by techniques and strategic tools of HR. In this particular situation quality performance measurement is the strategy to solve majority of the problems. Thus, this study has provided vast acknowledgment of the concept of human resource management and its different features
References
Ali, A. 2013. Significance of Human Resource Management in Organizations: Linking Global Practices with Local Perspective. International Refereed Research Journal 4(1), pp. 78-87.
Asha and Yadav, P. 2014. Human Resource Management – A Better Technique for Achieving Organizational Goal. Global Journal of Finance and Management 6(1), pp. 23-26.
Aslam, H. D., et al. 2013. Importance of Human Resource Management in 21st Century: A Theoretical Perspective. International Journal of Human Resource Studies 3(3), pp. 87-96.
Burma, A. Z. 2014. Human Resource Management and Its Importance for Today’s Organizations. International Journal of Education and Social Science 1(2), pp. 85- 94.
Cania, L. 2014. The Impact of Strategic Human Resource Management on Organizational Performance. Economia. Seria Management 17(2), pp. 374-383.
Indermun, V. 2014. Importance of human resource management practices and the impact companies face in relation to Competitive challenges. Singaporean journal of business economics and management studies 2(11), pp. 125
Mathis, R.L., et al. 2016. Human Resource Management. 15th ed. Cengage Learning.
Mwaniki, R., and Gathenya, J. 2015. Role of Human Resource Management Functions on Organizational Performance with reference to Kenya Power & Lighting Company – Nairobi West Region. International Journal of Academic Research in Business and Social Sciences 5(4), pp. 432-448.
Nor, C. S. M., and Mohamed, M.H. 2013. The Relationship between McGregor’s X-Y Theory Management Style and Fulfilment of Psychological Contract: A Literature Review. International Journal of Academic Research in Business and Social Sciences 3(5), pp 715-720.
Phillips, J. M., and Gully, S. M. 2013. Human Resource Management. 1st ed. Cengage Learning.
Schroeder, H. 2012. The Importance of Human Resource Management in Strategic Sustainability: An Art and Science. Journal of Environmental Sustainability 2(2), pp. 75-82.
Sherif , M. Z. M., et al. 2014. The Role of Motivation in Human Resources Management: The Importance of Motivation Factors among Future Business Professionals in Libya. Journal of Business and Management 16(8), pp. 27-36.
Vinesh. 2014. Role of Training & Development in an Organizational Development. International Journal of Management and International Business Studies 4(2), pp. 213-220.
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