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Importance of human resources department
Importance of human resources department
Importance of human resources department
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PART 1 ‘Ensure the success of your business through effective human resource strategies’ Strategic Human Resource Management provides an all-inclusive framework for which all the people management practises is applied in order to achieve the organisational objectives. Strategic Human Resource Management takes into account the organisational goals in the intended general direction so as to be able to achieve its objectives. The fact that intellectual capital is a key source of competition for organisations, and the fact that it is people that implement the organisational strategic plans. Foot and Hook (2005) defines strategic HRM as the process by which Human Resource function is linked with the organisational strategic objectives in order to improve organisational performance. For example, if a multinational organisation is to function successfully, then all the strategies at all levels must interrelate. Strategic HRM therefore is tasked with broader issues within an organisation that are related to organisational structure, culture, effectiveness and its performance by matching resources to organisational needs, developing unique competencies and knowledge, and managing organisational changes. Strategic HRM is also concerned with both management and development of human capital requirements. Often there is confusion between HRM and HR strategies, but as Armstrong and Redmond (2011) notes, there is a clear distinction between the two. HR focuses on what must be done, what must be changed and how the changes are to be achieved. Groschl (2011) suggests that HR strategy has two major elements; strategic objectives and strategic plans. The Harvard vs. Warwick Model of Strategic HRM The Harvard Model of HRM consists of six components... ... middle of paper ... ...nding of employee’s abilities by recognising achievement, evaluating job progress, and then designing appropriate training programme to fulfil employee needs. Appraisal is based on job results obtained by the employee. Performance appraisal helps to identify areas that an employee needs to enhance in order to grow professionally. There needs to be open communication channels to improve working relationships. • Promote, demote or transfer regarding to performances After each employee performance has been evaluated by their supervisor, the most recent job description on file will be reviewed and updated accordingly, both by the supervisor and the employee. Employee salaries are then reviewed appropriately, with the amount of increase or decrease recommended by the administration within the organization and approved by the board of trustees (Schuler and Luo, 2004).
Ramlall, S., Welch, T., Walter, J., & Tomlinson, D. (2009). Strategic HRM at the Mayo Clinic: A case study. Journal of Human Resources Education, 3(3), 13-35. Retrieved from http://business.troy.edu/jhre/Articles/PDF/3-3/31.pdf
There is an array of key components and factors involved in making an organization a successful business. One of those elements consists on evaluating employee’s performance; this sole component is critical in determining how effective is the organization’s productivity and which are the necessary steps to ensure proper functioning. “The performance appraisal may be one of the few times during the year where an employee and the reviewer, typically the employee's supervisor, can sit down and have a lengthy face-to-face discussion about all aspects of the job” (Joseph, 2016). Employees’ performance assessment serves as an instrument to gather important information as to which areas of the job description are being performed according to standards
Performance Management Within the Workplace The basis of the mainstream of performance appraisals within the modern workplace is one person (a manager or executive) rating one more, an intrinsically individual process. There are distinction such as 360 degree appraisals that include the judgment of others such as clientele and peers/colleagues in the process but it is the action of one person transitory judgment upon another that is subjective in nature and the root cause of many of the problems encountered in the research associated with performance appraisals. Performance appraisals are of importance to the organisation, as they often provide the only measure of an individual's contribution and as such the means for identifying either over or under achievement. This information identifies strengths and weaknesses among employees, locating areas for necessary training and development and helps employers implement appropriate reward policies designed to improve the performance of the employees and (as a consequence) the employer (Burns 1996, p.166).
In the fields of management and business, Strategic Human Resource Management (SHRM) has been a powerful and influential tool in order to motivate employees to perform productively. (Ejim, Esther, 2013). According to Armstrong (2011), SHRM refers to the way that the company use to approach their strategic goals through people with a combination of human resource policy and practices. The purpose of SHRM is to produce strategic capability that the organisation must ensure such that employees are skilled, committed, and well-motivated in order to achieve a sustainable competitive advantage, (Armstrong, 2011). Particularly, the organisation must be able to carefully plan strategic human resource ideas, aimed to increase the productivity.
Appraisal of performance help in correcting deficiencies and reinforce good performance of employers. There are 3 steps of performance appraisal process:
Changing Roles. Traditionally, HR has been an administrative position-processing paperwork, benefits, hiring and firing, and compensation. However, recently HRM has moved from a traditional to a strategic role, the emphasis is on catering to the needs of consumers and workers. Before, HR was seen as the enemy and employees believed that HR’s main purpose was to protect management. Now, the position requires HRM to be more people oriented and protect their human capitol, the staff. In addition, human resource management has to be business savvy and think of themselves as strategic partners in the 21st century.
Every employee receives performance appraisal as part of his duty. It is the responsibility of the manager to see that such appraisal does not affect the morale of the employee and leave him discouraged or disgruntled.
HRM in any company is a weighty issue that needs much attention where business performance is linked to a HR strategy (Caldwell 2008; Ulrich et al. 2008). In the recent past, competition has become stiff, such that organizations need to come up with other means to compete in the extremely dynamic market world. Thus, companies have shifted their emphasis to Strategic Human Resource Management (SHRM) where they enhance and empower their personnel in order to increase the productivity and the services offered into the market (Mello 2006). This goes against the traditional ways of increasing the means of competition where organizations place emphasis on tangible resources. In the past, organizations competed in terms of machinery and acquisitions. This has changed greatly due to the changing customer tastes and the diversity of the market in the present (Delery & Doty 1996; Lengnick-Hall et al. 2009).
Human resource management (HRM) encompasses the activities of acquiring, maintaining, and developing the organization's employees (human resources). "The traditional view of these activities focuses on planning for staffing needs, recruiting and selecting of employees, orienting and training staff, appraising their performance, providing compensations and benefits, and making their career movement and development." HRM involves two aspects:...
Performance management requires the willingness and commitment to focus on improving performance at the level of the individual or team every day/ “Cascio, 2015, p. 354). Performance appraisals plays a key role in performance management as it is a judgment and feedback process. Cascio, 2015 states that appraisal serve two purposes which are:
Performance appraisal is perceived by most as a tool to reward or penalize employees for their good or bad work respectively by the end of a year. This notion is a challenge in itself to deal with. The whole exercise becomes dull for both supervisors and their subordinates and they tend to look at it as an additional responsibility which they have to finish. In the end, there is little or no value addition for either the employee or the organization. There are, however, better ways of looking at and conducting performance appraisals. It can give much needed feedback to both performers and laggards to improve upon and if done properly can even boost their motivation. More importantly, they provide a chance to employees to have a say in their goal setting and thus aligning it with the departmental and organizational goals. Also, the process itself has a value in team making.
Understanding the strategic potential of HRM is a relatively recent phenomenon. Strategic HRM attempts to bring HRM to the boardroom. It requires personnel policies and practices to be integrated so that they make a coherent whole, and also that this whole is integrated with the business or organisational strategy.
Through performance appraisal, the personnel need for training and courses are identified and the need for his/her
Human resource management is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. (1)
...organizational annual pay and grading reviews, Performance appraisals generally review each individual's performance against objectives and standards for the trading year, agreed at the previous appraisal meeting. Performance appraisals are also essential for career and succession planning - for individuals, crucial jobs, and for the organization as a whole. Performance appraisals are important for staff motivation, attitude and behavior development, communicating and aligning individual and organizational aims, and fostering positive relationships between management and staff. Performance appraisals provide a formal, recorded, regular review of an individual's performance, and a plan for future development.