MOD003187 Management Practice : Labour Process Theory

The purpose of this assignment is to enable you to develop and demonstrate a critical understanding of the concepts, principles and practice of human resource management. a critical evaluation of the importance of management of people in organisations. appropriate approaches to the management of human resources.

Rationale

In today’s and tomorrow’s world, sustainable competitive advantage can only come from the skills, experience, creativity and intellect of the people who comprise the

organisation. In the modern economy it is relatively easy to raise capital, purchase technology and physical facilities, but managing the human resources of an organisation to ensure growth, survival and sustainable competitive advantage is more difficult. The management of human resources makes a significant contribution to the success of the organisation and consequently form a major part of management. Successfully managing human resources presents is the most important management challenge of the 21^st Century.   

Task

Critically discuss the importance of human resource management to organisational success.  

Answer:

Introduction: 

In the present business scenario, contemporary business organizations have to maintain various complex affairs to compete in the immensely competitive global market. They have to maintain different aspects of their internal and external environments in achieving their organizational objectives. One of the key aspects to be maintained by the organizations is human resource management. Human resource management refers to the management of the employees of the organization by implementing various measures in engaging the employees in their workplace (Armstrong and Taylor 2014). It helps in increasing the level of satisfaction and motivation of the employees which eventually enable them to raise the productivity. Thus, organizations get benefited from the execution of the human resource management (Lazaroiu 2015).

This report will analyze the scope and doctrine of human resource management in the achieving of the organizational objectives. Along with it, different approaches in implementing human resource management will also be discussed. Conclusion will be given based on the findings and with recommended steps for effective implementation.

Scope of human resource management

Personnel management

The prime motive of human resource management is to effectively manage the existing human resource in the organization. It is being done by having proper method of recruiting, selecting, training and skill development of the employees (Beardwell and Thompson 2014). Effective management of personnel also includes performance review, appraisal and layoffs. It helps in motivating and directing the employees according to the organizational structure and practices. Employees will be more committed to their work due to effective implementation of these measures and thus the organizations will gain from it. The gross output of the organizations will get increased and the average cost of production will get reduced.

Employee welfare

It is been seen that healthy and sound working environment helps in enhancing the productivity of the employees. Thus, it is another prime policy of human resource management to provide the employees a good working environment (Gunaseelan and Ollukkaran 2012). Various employee enrichment tools such as, counseling, medical benefits, security, retirement benefits and convenience benefits are being implemented to initiate the employee welfare in the organization. It will help the employees to feel more motivated and engaged in their job which will increase their job satisfaction. The more employees will be satisfied with their job, the more will be their output.

Industrial relations 

Effective implementation of human resource management enables the organizations in suitable management of employee issues. The above discussed measures in the managing the employees help in reducing and preventing the issues associated with the employees. Thus, it enables the organizations in achieving the status of sustainable employer (Knights and Willmott 2016). It helps in gaining goodwill and reputation among the market and the employees. Employees will feel more engaged and make extra efforts in achieving the organizational goals and objectives. Problems associated with the employee unions can be reduced with the help of effective implementation of human resource management.

In the present business scenario, scope of human resource management is huge and more diversified. However, it is dependent on the situation of the respective organizations. One key aspect that should be taken in to consideration during implementation of HRM is the extent to which HRM policies are adhering with the organizational objectives. According to me, implementing effective and efficient HRM policies in the organization will not fetch the desired result until it will meet the organizational goals. In that case, it may happen that extra costs are being incurred by the organization in driving employee welfare schemes without having any desired result.

Importance of human resource management

Collaboration 

Implementation of HRM helps in promoting cooperation and collaboration among the employees. Higher management is also get benefited from it. Human resource management invovles the managerial levels work together in developing the skills of the employees. It helps to promote a free and flexible working environment where all the employees will collaborate with one another and also with the higher management (Abbas and Raja 2015). Thus, generation of more innovative ideas can be promoted which will help the organization in staying ahead in the competition.

Employee engagement 

Employee engagement helps the organization to initiate an effective working environment and to increase the output of the organization. Human resource management helps in increasing the commitment of the employees towards their organizations by having the above discussed measures (Anitha 2014). It helps in selecting the right employees for the right job which will increase the level of engagement of the employees. Thus, it will act as the competitive advantage for the organization.

Employer branding 

Employer branding is important in attracting the right and most effective talent. The more effective will be the human resource management in the organization, the more will be the positive word of mouth among the existing employees. It helps in attracting new talents which will help the organization to have the perfect human resource in facing new organizational challenges in the future (App, Merk and Buttgen 2012).

It is of no question regarding the importance of HRM in the success of the business organization. However, it should also be noted that HRM facilities such as, employee engagement may also pose a challenge if not effectively implemented. We know that HRM is about the welfare and empowerment of the employees. However, it should also be looked after that due to HRM policies, employees should not take their job roles as granted. It may happen that, with having and receiving various benefits, employees may start to enjoy their work place more as leisure. It will further reduce their productivity. Thus, the key motive of the HRM will not be fulfilled.

Approaches for human resource management

Recruitment and skill development

It is one of most crucial functions of human resource management. Survival of the business organizations heavily depends on their human resources. The capability of the employees in facing the challenges is crucial for the organizations. Thus, selection of right employees is quite important for the organization. Another aspect of human resource management is to enhance the skill of the existing employees (Armstrong and Taylor 2014). With the rapid change in the business trend, employees have to be more equipped with newer tactics and techniques which can be enhanced with the help of human resource management (Gallie et al. 2012).

Employee profiling 

Human resource management also involves matching the skills of the employees with the current requirements of the organizations. The requirement in the business scenario is rapidly changing and thus, to keep with the pace, human resource management is being implemented to allot the right employees for the right jobs (Armstrong and Taylor 2014). It helps the organizations in having the suitable human resources in place in the changing scenario.

Downsizing

The most negative aspect of HRM is downsizing. HRM is not only about the welfare of the employees, but also letting go of the employees who are unproductive and are not suitable in the current business state of affairs (Luan, Tien and Chi 2013). It is obvious that human resource management is concerned with the employees; however, the effective accomplishment of the objectives of the organizations is the main criteria for it. Thus, if downsizing is required for the betterment of the organizations, then it should be initiated.

More and more approaches are being initiated with the change in the business scenario. Currently, approaches of HRM are mostly limited to the employee skill development. In this case also, the skill development of the employees should be in the line of the organizational objectives. In addition, downsizing should also have adverse effect on the performance of the existing employees. It is due to the reason that, downsizing will create negative image among the employees. There will be an environment of fear of job loss which will eventually reduce the productivity of the employees. It may act as the negative motivation for the employees.

Recommendations

To implement an effective human resource management, following recommendations should be promoted in the organizations.

• To implement effective human resource management, the policies should be complied with the organizational vision. Without having proper alignment, human resource management cannot succeed in achieving its objectives. Existing and newly appointed employees should be well aware about the strategic vision of the organization which will enable them to perform their jobs accordingly. Human resource executives will also able to train the employees accordingly.
• Communication is one of the key requirements of the human resource management. Welfare schemes and practices being initiated by the higher management should be properly communicated to the employees (Okoro and Washington 2012). It will help the employees to have the updated knowledge about the implemented practices. Moreover, communication enables the employees to convey their suggestion and issues with the higher management.
• As discussed earlier, collaboration and mutual trust in the internal environment is a key objective of human resource management. Thus, knowledge of the employees should be transferred among the internal stakeholders of the organization (Beardwell and Thompson 2014). It will help the employees in having the unique skills of the individual employees which is necessary for effective accomplishment of the organizational objectives. Knowledge transfer should be properly initiated among the employees. It should be in both horizontal and vertical fit. Horizontal fit will help to share the unique ideas of an individual employee among his counterparts. On the other hand, vertical fit refers to the sharing of the knowledge with the higher managerial levels and vice versa.  
• Involvement of the higher management is important in implementing effective human resource management. Human resource management should involve the entire organizational hierarchy levels. This is due to the reason that, employees will get motivated if higher management comes to play the role of engaging the employees. Involvement of the entire management will also help in smooth flow of the decision making process through the vertical channel (Goetsch and Davis 2014). Higher managerial levels will have the idea about the effectiveness of the implemented human resource management and can update or modify it accordingly.

Conclusion: 

Having discussed about the scope, importance and approaches of HRM in the contemporary business state of affairs, it can be concluded that effectual implementation of human resource management helps in increasing the productivity of the organizations. Human resources are being considered as an asset by the contemporary business organizations and their individual skills are the key aspects for the organizations to compete in the current business scenario. Thus human resource management is the most effective strategy to engage the employees in their workplace which will lead them to raise their productivity.  Recommended steps in implementing effective human resource management are also being discussed here in this report. Following the recommended steps will enable the organizations in implementing an ideal and efficient human resource management. It will help them to have motivated and skilled employees to face the business challenges in the future.

Reference: 

Abbas, M. and Raja, U., 2015. Impact of psychological capital on innovative performance and job stress. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 32(2), pp.128-138.

Anitha, J., 2014. Determinants of employee engagement and their impact on employee performance. International journal of productivity and performance management.

App, S., Merk, J. and Büttgen, M., 2012. Employer branding: Sustainable HRM as a competitive advantage in the market for high-quality employees. Management revue, pp.262-278.

Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Beardwell, J. and Thompson, A., 2014. Human resource management: a contemporary approach. Pearson Education.

Gallie, D., Zhou, Y., Felstead, A. and Green, F., 2012. Teamwork, skill development and employee welfare. British Journal of Industrial Relations, 50(1), pp.23-46.

Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper Saddle River, NJ: pearson.

Gunaseelan, R. and Ollukkaran, B.A., 2012. A study on the impact of work environment on employee performance. Namex international journal of management research, 71.

Knights, D. and Willmott, H. eds., 2016. Labour process theory. Springer.

Lazaroiu, G., 2015. Employee Motivation and Job Performance. Linguistic and Philosophical Investigations, 14, p.97.

Luan, C.J., Tien, C. and Chi, Y.C., 2013. Downsizing to the wrong size? A study of the impact of downsizing on firm performance during an economic downturn. The International Journal of Human Resource Management, 24(7), pp.1519-1535.

Okoro, E.A. and Washington, M.C., 2012. Workforce diversity and organizational communication: Analysis of human capital performance and productivity. Journal of Diversity Management (Online), 7(1), p.57.