Assignment On Human Resources
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This document discusses strategic human resource management. It begins by defining strategic HRM as how an organization's goals are achieved through people via HR strategies and integrated policies and practices. It identifies the key functional strategy areas in business as human resource management, operations, production, finance, R&D, and marketing. It then explains that strategic HRM ensures people's talents can be valuable, rare, difficult to imitate, and organized to provide competitive advantage. The document outlines the nuts and bolts of HRM, including strategic planning, staffing, development, performance management, compensation, and labor relations. It emphasizes that vertical fit between strategies at different levels is important for organizational success.
Assignment On Human Resources
- 1. Name: Mustapha Abba Kyari Reg. No.: BU/15A/BS/1544 Dept.: Business Management Faculty: Management Sciences Course: Business Policy II Assignment Topic: Discuss all the elements of strategic Human Resource management Why is human resource management vertical in organizational success
- 2. 2 INTRODUCTION Greek word ‘strategos’ – generalship – the actual direction of military force as distinct from the policy governing it’s deployment. Literally therefore, the word strategy means the art of the general, but in business parlance, no definite meaning attached to strategy. Strategic human resource management (strategic HRM) defines how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices. A strategy could be: A plan or course of action or a set of decision rule making pattern or creating a common thread. The pattern or common threat related to the organization activities which are derived from the policies, objectives and goals. FUNCTIONAL STRATEGY AREAS In business organizations, the identified functional strategy areas are: Human Resource Management Operations Production Finance Research and Development Marketing STRATEGIC HUMAN RESOURCE MANAGEMENT Human Resource Management known as personnel management deals with formal systems for managing people at work. For that reason, it is one of the fundamental aspects of organizational and managerial life. Your first formal interaction with an organization you wish to join will likely involve some aspect of its human resource function; and throughout your career as a manager you will be part of, as well as be affected by your organization’s human resource management. Firms can create a competitive advantage when they possess or develop resources that are:
- 3. 3 Valuable Rare Inimitable Organized THE STRATEGIC IMPART OF HUMAN RESOURCES: Create Value People can create value through their efforts to decrease costs or provide something unique to customers or some combination of the two Empowerment programmes total quality initiatives and continuous improvement efforts such as Corning and Xerox are intentionally designed to increase the value that employees bring to the bottom line. Is Rare People are a source of competitive advantage which their skills, knowledge and abilities are not equally available to all competition. Top companies invest a lot to hire and train the best and the brightest employees to gain advantage over their competitors. Dow Chemical went to court to stop General Electric from hiring away its engineers. This case shows that some companies recognize both the value and rareness of certain employees. It Is Difficult To Imitate People are a source of competitive advantage when their capabilities and contribution cannot be copied by others. It Is Organized People are a source of competitive advantage when their talents can be combined and deployed rapidly to work on new assignment on a moments’ notice. Team work and cooperation are two pervasive methods for ensuring an organized workforce. The above four criteria highlight the importance of people and show the closeness of Human Resources Manager to strategic management.
- 4. 4 Competition in intensifying Rising educational standards and access to technology are increasingly available world- wide Innovation – useful new ideas that emerge from the focused creativity of organization members has become ever more critical to gaining and maintaining competitive advantage. Because employee skills, knowledge and ability are among the most distinctive and renewable resources on which a company can draw, their strategic management is more important than ever. Increasingly, organizations are recognizing that success depends on what people know, that is their knowledge and skills. The human capital or more broadly intellectual capital often is used today to describe the strategic value of employee knowledge and abilities. As executives have come to appreciate that employees can be their organization’s most important resources, human resources managers have pledged a greater role in contributing to the organization’s strategic planning, that means that human resources (HR) specialists are challenged to know their organization’s business and line managers are challenged to excel at selecting and motivating the best people. As contributor’s strategy, Human Resource managers also face greater ethical challenges. When they were merely a specialized staff function, they could focus on, say, legal requirements for hiring decisions, but strategy decisions require them to be able to quick decision about staffing, training and other human resource matters to the organization’s business success. For example, as members of the top management team, human resource manager will be faced with the need for drastic downsizing of the workforce while still retaining top executives through salaries or bonuses or they may fail to aggressively in investigate and challenge corrupt practices of colleague. In the long-run, however, organizations are best served when human resource leaders are a strong advocate for at least four set of values: strategic, ethical, legal and financial Managing human capital to sustain a competitive advantage to perhaps the most important part of an organization’s human resource function. But on a day-to-day basis human resource managers also have many other concerns regarding their workers and entire personnel puzzle.
- 5. 5 These concerns include: attracting talent Maintaining a well-trained, highly motivated and loyal workforce Managing diversity Devising effective compensation systems Managing layoffs and; Containing healthcare and pension costs. The Nuts and Bolts of HRM Strategic Human resource management The HR Planning Process Staffing and Organisation Recruitment Selection Workforce reduction Developing the workforce Training and Development Performance Appraisal What do you appraise Who should do the appraisal How do you give employees feedback Designing Reward system Pay decision Incentive systems and variable pay Executive pay and stock options Employee benefits Legal issues in compensation and benefits Health and safety
- 6. 6 Labour Relation Labour laws Unionization Collective bargaining What does the future hold The Human Resource Planning Process occurs in three stages Planning Programming and Evaluation Human Resource Managers need to know the organization’s business plans to ensure that the right member and types of people are available where the company is headed in what business it plan to be, what future growth is expected and so forth: Few actions are more developing to more than having to lay off recently hired college graduates because of inadequate planning for the future needs. The Organization conducts programming of specific human resource activities, such as recommitment, training and layoffs. The Company’s plans are implemented Human Resource activities are evaluated to determine whether they are producing the results needed to contribute to the organization’s business plans. WHY IS HUMAN RESOURCE MANAGEMENT VERTICAL IN ORGANIZATIONAL SUCCESS Human resource management is vertical in organization because Strategies operate at different levels and there has to be congruence and coordination among these strategies and such congruence is the vertical fit.
- 7. 7 Conclusion: Strategic Human Resource Management (SHRM) has been, and remains, one of the most powerful and influential ideas to have emerged in the field of business and management. Policy makers at government and private levels have drawn upon the idea in order to promote ‘high performance workplaces’ and ‘human capital management’. Within business corporations, the idea that the way in which people are managed could be one of, if not the most crucial factor in the whole array of competitiveness inducing variables, has become a widely accepted proposition. Many management consultancy firms – both large and small – have built substantial businesses by translating the concept into frameworks, methodologies and prescriptions. And, not least, academics have analysed, at considerable length, the meaning, significance and the evidence base for the ideas associated with SHRM.
- 8. 8 The central idea – broadly stated – is that while for much of the industrial age, ‘labour’ was treated as an unfortunate ‘cost’, it became possible to view it in an entirely different light; as an ‘asset’. Economists and accountants routinely classified labour as one the main ‘variable costs’. Accordingly, procedures and managerial systems were aligned with this view. Labour was seen as plentiful and dispensable. Little thought was given to its recruitment, little investment was made in its development, and the modes of ‘industrial discipline’ were based on direct command and control mixed occasionally with the strictures of performance related pay. ‘Hire and fire’ was a common term. In these circumstances, conflict was expected and industrial relations officers were employed in order to negotiate ‘temporary truces’ (otherwise known as collective agreements).
- 9. 9 REFERENCE: Dr. B.B.A Verr; 2017: Business Policy II ‘Lecture Note,2017’, Baze University, Abuja.