For an effective operation, organizations need human and physical resources; properly managed organizations have an appropriate number of personnel with experience and expertise (Bandt and Haines, 2002). To ensure that the right number of people is available when required, human resources management should develop effective framework of personnel management. In contemporary business world, business leaders are forging a certain direction for their company to enhance competitiveness.
Human recourses management (HRM) has a role to play in strategic direction of an organization. Effective personnel management is one role of managers; it is concerned with people at work and their relationship with their employer. Well-managed human resources results into an orchestrate team (McGoldrick, Stewart and Watson, 2001). This paper discusses the role played by HRM with the strategic direction of an organization.
Roles of Human resources management
The role played by human resources department involves those that look into the interests of employees, employer, and third parties like the government, labor unions, and employees relatives. When the roles are played well, then an organization can be assured of a motivated work force that yields high returns. Highly motivated employees are a benefit to their organization and also have a chance of career development. The following are the roles of human resources:
Human resources planning
Management should ensure that employees’ need at one particular point is known and measures taken to ensure right number are maintained. Planning involves using past staff needs and predicting the future needs. Employees can be sourced internally or externally: to ensure that there are adequate plan, then management should understand the availability of employees. The main aim of human resources planning is to ensure that there is the right number of employees, at the right time, at the right place, and at the right cost.
HRP helps the organization create and develop employee training and management succession programs. Training programs ensure that the right people are trained at minimum cost. Management succession programs eliminate unfair promotions. This programs therefore reduce both management and employee conflicts. Through HRP, management is compelled to assess critically the strengths and weaknesses of its labor force and personnel policies. Collective actions are therefore taken to correct the weaknesses.
When managing change, consultations with the affected groups and individuals may occur at an early stage in the change process, decisions can be undertaken unhurriedly and by considering all relevant options, rather than being taken in crises. Through human resource planning, an organization is able to adhere to equal employment opportunity (EEO) policy through analysis of the different employees it has. The organization is able to identify areas in which it is biased in employing (Paauwe, 2009).
Hiring
When a particular department establishes area/areas that require more employees, the hiring process starts timely enough that at no point will the organization suffer a deficit. When placing advert/adverts for position/positions, whether internal or external, it is important to define clearly the minimum qualifications required and the responsibilities of the successful candidate. When applications are received, they are sorted, and short listed candidate are contacted.
According to the recruiting organization organizational culture, interviews take different angles. Some organizations have aptitude tests only, others have the panel interview and others have more than one stage of interviews. Whichever the method, the objective of the process is to give the human resources management team an opportunity to learn the strengths and weak points of an applicant, then relate them to the demands of the advertised position. This will assist the when choosing the best candidate.
Labor shortfalls and surpluses are avoided since HRP ensures that there is the right number of employees as the organization may require achieving its goals. Cases of corruption in form of “ghost workers” are rarely reported in organizations whose management undertakes HRP honestly and seriously. Careful consideration of the likely future human resources requirements could lead the firm to discover new and improved ways of managing human resources (Storey, 2007).
Orientation
Successful candidates need to be oriented to their new environment; they need to learn the organizational culture and code of conduct of their new company. Organizations code of ethics defines how an organization responds to internal or external stimulus. In most organizations, they are in blueprints and an internal policy. They form part of organizational training needs. Organizations that uphold high respects for their code of ethics maintain good internal and external relations with their stakeholders.
Training, appraisal and motivation
To enable employees perform their duties effectively, continuous training system and employee’s appraisal is important. It helps management establish areas that needs improvement. Some organizations have employees training as a continuous process to ensure that employees are up-to-date with the changes in the industry.
Motivational measures should be put in place to ensure that employees are loyal to the organization and they work efficiently. This ranges from attractive salaries or/and benefits, to developing a good working environment. This ensures that employees are retained as assets in the organization (Storry, 2005).
Enforcing employment contract and related legal laws
When an employee has been employed in a certain organization, there is the contact that the employee signs with the company, the HRM have the role of ensuring that the contracts need have been complied with accordingly. When this is done, then the company will be at peace with authorities and the employees will have their psychological contracts fulfilled.
Employees sell labor and their intellectualism to their employer; at the end of a certain period, the employer is expected to compensate employees for the work done; the employment contract specifies the rate of pay as well as any benefits thereon. Employment is a legal engagement where the employer engages an employee for a consideration. Wages and remunerations are among the financial gains that an employee’s stand to benefit from his employer (Legge, 2004)
Tangible and non-tangible benefit includes paid leaves, insurances, loan agreement policies and sick leaves. In most organizations, labor cost constitutes a large portion of the organizations budget; when it comes to company’s performance, wages that an organization pays has an effect on the company’s competitiveness directly and indirectly, it supports the strategic plans and actions developed within the organization. In labor-intensive industries, the cost of labor is high than in capital-intensive industries.
There are some internationally recognized labor laws that give minimal direction to the wage rate payable in certain industries; they are developed with agreement with domestic governments after considering the nature of the industry and its benefits to international community.
If a company is in an industry regulated by international labor laws, then its human resource management has the role of enforcing the policies. Different countries after considering their economics standing have set some regulation of wage rates payable; domestic legislations are concerned with minimal wage rate, which all companies operating in the economy are expected to have (John, 2004).
Ensuring fair treatment and legal compliance
Human resources policies are internal, national, and international policies. Adhering to these policies is important to avoid conflicts.
Internal human resources policies
Every company has its own policies defining the relationship between the employees and their employer. I have learnt that this document is not a human resources document but a document for the entire organization’s employees. Having one and understanding what it says is crucial. Internal policies define issues like salaries, promotions, appraisal mechanism, transfers and duties and responsibilities of employees.
National policies
Different countries have different labor laws and legislations. Understanding of these laws is important to ensure that there is no violation. Previously, I thought that it is the HRD only, which should understand these laws, however, I have realized that they are national laws that a company should ensure that their employees understand and if possible make a copy to each employee. These laws define discrimination, sexual harassment, taxation policies among others.
International laws
There are some international labor laws that a company should ensure that they are not violated. They include laws on gender discrimination. Understanding of these laws is important in international diversification of a company (Beardwell and Claydon, 2010).
Summary of reasons why HRM is crucial in strategic management of an organization
The human resources department has the mandate of ensuring that adequate employees are available at all times. It has the mandate of planning, deploying, employing, training, retaining, and dismissal of employees. When the department is undertaking this duty, it looks into quantitative and qualitative aspects.
Qualitative means the right number of employees and qualitative means employees with right skills. Workers engage their mind, time, expertise, and intellectualism in their works; they expect to be compensated through wages, salaries, bonuses, and non-cash benefits. According to employment agreement, an employer and employee are obliged to respect labor law in the country of operation and uphold to employment-contract terms and conditions.
Developing an efficient team is the role of personnel management assisted by top and line managers; it starts with human resources planning to appraisal, motivation, rewards, and ends with termination of employment contract. Terms of employment vary with organizations and so do human resources practices like selection, contracting, and recruitment.
One of the major functions of human resources department is developing a compensation strategy that satisfies all the employees irrespective of their rank, an effective reward strategy should be able to trigger motivation and increase the zeal to work-hard in an organization (Armstrong, 2006)
Conclusion
The human resources department has the mandate of ensuring that adequate employees are available at all times. It has the mandate of planning, deploying, employing, training, retaining, and dismissal of employees.
When the department is undertaking this duty, it looks into quantitative and qualitative aspects; to ensure that the objectives of the department are met, the company uses the assistance of line and top managers in enforcing and reinforcing the policies set. When undertaking its roles, it should ensure that national and international labor laws have been enforced and rights of employees respected.
References
Armstrong, M. ,2006. A Handbook of Human Resource Management Practice. New York: Kogan Page.
Bandt, A. and Haines, S.(2002). Successful Strategic Human Resource Planning. San-Diego: Systems Thinking Press.
Beardwell, J. and Claydon, T. ,2010. Human Resource Management A Contemporary Approach .New Jersey: Prentice Hall.
John, B.P.,2004. Organizational Behavior, from theory to Practice. New York: Wiley.
Legge, K., 2004. Human Resource Management: Rhetorics and Realities (Anniversary ed.). Basingstoke: Palgrave Macmillan.
McGoldrick, J., Stewart J., & Watson, S.,2001. Theorizing Human Resource Development. Human Resource Development International, 4(3), 287-290
Paauwe, J. ,2009. HRM and Performance: Achievement, Methodological Issues and Prospects. Journal of Management Studies, 46 (1), 123
Storey, J.,2007. Human Resource Management: A Critical Text. New York: Thompson.
Storry, A., 2005. How to Find & Keep the Best Talent: Train & Motivate. Franchising World, 37(9), 52-54.
Swanson, R. A.,2002. Human resource development and its underlying theory. Human Resource Development International, 4(3) 287-290.