Introduction
In most companies today, the HR function provides vital services to such stakeholders as job applicants, workers, supervisors, middle managers, and executives. Yet, the HR function tends to be located at the end of the business chain, on the reactive side, and too frequently centers on carrying out actions rather than achieving outcomes. The role of the HR function is frequently one of providing people, training, and secluded HR efforts after others have formulated organizational strategy and have initiated operational accomplishment. Cost centered management of worker benefits programs such as health insurance, workers' compensation, and pension plans have also figure outstandingly in an effort to control out of control operating costs (Dunn, 2006).
Discussion
The HRM department at our company does not really play a strategic role in the organization. Presently they spend the majority of their time doing the day to day things like hiring people, training, and other HR efforts that allow the business to function everyday. In order for business to achieve success in the every changing business world it is important for HR departments to become more strategically aligned with the overall goals and efforts of companies.
There are three key reasons why businesses are changing their methods. The first is reducing costs. HR departments should no longer want to be seen as just a support function and cost center, they need to show their value. Secondly, it is the competitiveness of business today and the fight to employ and retain people that will help drive the business. Finally, HR departments are now expected to have an understanding of how other departments function in order to make a valuable contribution to the whole of the business (Brockway, 2007).
The HR professional who will succeed in guiding their organizations into the future will be those who understand and use business strategy; understand corporate culture, plans and policies; recognize future problems and work solutions; can deal with all types of people; can communicate well verbally and in writing; and can recognize, recruit and train future executives. As organizations continue to move towards collective systems and combined financial resources for managing their human capital, we are likely to see more organizational structures combining both HR and Organizational Development (OD). The time has come to quit debating OD's involvement in HR systems and seek the present opportunities of showcasing the skills of OD in building organizational capacity and having a measurable impact on workforce productivity.
... to disadvantage workers, a new emphasis was put on 'human resources'. At the present time H.R has a vital place in companies and businesses all over the world, the human resources department is mostly in charge of employee wellbeing, they exist for reasons such as: getting workers fair wages, helping workers along their career path and overseeing the treatment and responsibilities of workers. Joan E. Pynes discusses this in her educational book 'Human Resources Management for Public and Non-profit Organizations', she defines human resource management as "The design of formal systems in an organization to ensure the effective use of employees' knowledge, skills, abilities to accomplish organizational goals" (Pynes, Joan E. 2013). A system such as this is put in place for worker empowerment, employees know that they have someone fighting for them and this results in
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).
“Hr is shifting from focusing on the organisation of the business to focusing on the business of the organisation” (Zulmohd 2011). David Ulrich points out four distinctive roles of HR which makes the organisation most effective and produce competitive advantage. He planned to change the structure of HR function and build HR around roles. The four key HR roles identified by Ulrich, one HR business partner/strategic partner – aligning HR and business strategy which plays an important role in setting strategic direction. It builds strategic relationship with clients and strategically manages the development of the workforce. The second key role is administrative expert which creates and must deliver effective HR processes made to tailor business needs. It also involves managing people and HR related costs. To continue to the third key role, change agent which understands the organisations culture, and takes the responsibility to communicate those changes internally and gain its employees trust. The final key role identified by Ulrich is employee advocate which is a core in HR role represents employees and helps to improve their experience, protect employees’ interests and confirm strategic initiatives are well balanced. Employee advocates must also “ensure fair, ethical and equitable people processes and practices.” “David Ulrich’s HR Model is about defining the HR roles and
Hailey, V. H., Farndale, E. & Truss, C. (2005) ‘The HR department’s role in organizational performance’, Human Resource Management Journal, 15(3), 49-66.
Human resource management can be viewed as the spider web that entangles a company’s workforce. HR departments are involved in employee’s work lives from the recruitment and selection process, to the training and development, performance reviews, and the compensation
" This global London-based mining and mineral company was severely impacted by the global recession in 2008. Such an impact forced unprecedented workforce reductions worldwide and decentralized HR management had to be brought in under a single umbrella to ensure an orderly and efficient system that would support the organization’s future productivity."( Case Study OneRedesigning HR HRMG 5000 - Student Simple). Human resources have a strategic significance if managed efficiently and productively. The company revamped and managed its HR functions in a manner so as to achieve the strategic goals of the
...an approach of partnership is critical for organizations that want to gain competitive advantages. Butler, Ferris & Napier (1991) state this as, “the more management believes that HRM contributes to corporate success, the more its role will be integrated into the firm’s strategic planning process.” (as cited by Rose & Kumar, 2006, pg. 3). Additionally, organizations that apply energy and resources to HRD benefit from an increase in human capital. López-Cabrales, Real & Valle (2011) state the benefits of building human capital as, “If the company adopts appropriate procedures of personnel management, human capital can be orientated to the achievement of sustainable competitive advantages” (pg. 5).
The HR Professionals must also work hard to add value to the organization's competencies to expand and prosper internationally by building global HR networks (Saeed, 2004). This is in addition to their traditional responsibility to resource, manage, and develop employees. The companies continuously face declining revenues, shrinking market share, increasing costs, and depleting shareholder value; therefore; the HR processionals should works to deliver sustainable value to the
The field of human resources (HR) plays a critical role in the performance and success of organizations. As organizations have become increasingly more complex, the effective management of HR has become even more important. The traditional perception of HR as only an administrative office is no longer valid. Instead, contemporary HR is directly involved with the internal organizational structure, business operations, and variety of functions carried out by employees on a daily basis (Reed & Bogardus, 2012). HR functions impact the organization’s strategic planning, improvement processes, and goal achievement. Six core bodies of knowledge provide the foundation for all of these HR functions. These areas are: strategic management; workforce planning and employment; human resource development; total rewards; employee and labor relations; and risk management (Reed & Bogardus, 2012).
HR has to develop strong relationships with other departments and have a cohesive plan running to have any company do better down to the bottom line figures. For the most successful business, there needs to be cooperation between all parts of a company, HR most likely should facilitate this, and when it does, companies thrive. “By utilizing basic HR tools like business process redesign, organizational redesign, job redesign and competency model development, we were able to more effectively align our selling and support processes” (Hults, 2011). Basically, HR being involved in strategic planning efforts is a smart move. HR brings the business perspective while other departments (management, finance) are looking directly at numbers. HR knows people and how to enhance human capital and make the right personnel investments. When properly used, HR can have significant changes and positive results on and with a company due to its knowledge and existing capabilities. In order for HR to make significant contributions, as aforementioned, they need to be allowed to and be worked with by management to achieve common goals (Hults,
Presently, businesses need to face the changing circumstances in the world like the advancement of technological innovation and manufacturing technology, globalization, intensification of customer expectations, and competitive business environments. Hence, it needs a business strategy to sustain changes by incorporating them into business processes (Panwar et al., 2016). Basically, the strategy itself is plans of how your business achieves its objectives and maintains its position in the industry. As stated by Durai, P. (2010), effective alignment of human resource (HR) strategies with business strategies is an essential for an organisation’s success. It is believed that HR strategy improves organisational performance, but there is little or no convincing evidence for this proposition (Huselid, 1995).
According to our textbook Human Resource Management (HRM) is the policies, practices, and systems that influence employees’ behavior, attitudes, and performance. “The human resources management process involves planning for, attracting, developing, and retaining employees as the HRM planning provides the rights kinds of people, in the right quantity, with the right skills, at the right time (Lussier, 2012, p. 240).” According to our textbook the typical responsibilities of the Human Resources department fall into three categories, and they are administrative services and transaction, which handle hiring employees. The second involves business partner services that focus on attracting, evolving, retaining employees by having a clear understanding
Data illustrated from Teo (2002) from the interviews conducted towards the HR department suggested that the corporate HR department of the specific organization interview was becoming a key source in the strategic management process. Evidence has continually suggested that HR departments in commercialized entities develop a greater role in the strategic aspects of people management. For example, performance based pay, combining performance management with corporate strategy and corporate bargaining activities will develop a greater role for the HR department as one of the strategic gain of an organization (Teo,
It seems that HRM is so crucial to the organization, for what it does has nearly covered all aspects of the business – from strategic planning to the training and development, but unfortunately, its importance has not been accepted by everyone. As proposed by Morton, C, Newall, A. & Sparkes, J. (2001) there are three different views of HR function within the...
Indeed HR contribution to the business is out of question and has surpassed the discussion about its relevance. The tier of reflection has moved the profession to another stance on defining and proving how effective the contribution is, and this is main reason for a consistent HR