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Strategic HR Practices of the Organization
In the present era, the companies have realized the importance of HRM. Human resource plays an important role in the success of an organization. An efficient and skilled human resource department can guarantee a huge success for the organization. Nowadays, developing quality across the entire firm is an important function of the human resource management (HRM) department, thus, it is essential for the business firms to use strategic HR practices. The best HR practices used by the organization are:
Equal Employment Opportunity Policy and Anti Discrimination Legislations
Management by Objectives Performance Management System
Equal Employment Opportunity Act and Anti Discrimination Legislations: EEO policy aims at equal treatment with all the employees and equal distribution of wages and powers between all the employees (Fisher, Schoenfeldt & Shaw, 2004). Anti discrimination legislation helps in attracting and retaining talented employees. Equal pay and other benefits are given for equal work. It is necessary to satisfy the employees if the company wants to gain success and develop its competencies. According to these policies, there is no discrimination on the basis of color, sex, caste, race, marital status etc. (Mabey, Salaman & Storey, 1998). According to the EEO regulations of the firm follows following practices and acts:
Equal Pay Act of 1963 (EPA): The Equal Pay Act will forbid sex-based wage discrimination. According to this act, men and women must get equal compensation for significantly equal work performed by them.
Age Discrimination in Employment Act of 1967 (ADEA): This act will protect the persons who are 40 years of age or older from employment discrimination b...
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...ating (Mabey, Salaman & Storey, 1998).
Both of these practices can be considered as one of the best strategic HR practices because they develop a feeling of satisfaction and equality among the employees. With the help of this practice the organization manages manpower resources and motivates them to work with zeal and enthusiasm (Fisher, Schoenfeldt & Shaw, 2004). The approach of MBO to manage instills a personal commitment to respond positively to the organization’s major concern as well as to the development of human assets.
Under MBO program, an employee and his supervisor meet together and define, establish and set certain goals or objectives which the employee would attempt to achieve within the prescribed time period (Tyson & York, 2000). These practices also allow the organization to develop it learning behavior and implement change in the organization.
Age discrimination has become more than a minor inconvenience throughout the twentieth century; indeed, the issue has become such a hot potato within the workplace that laws have been forced into existence as a means by which to address the problem. In order to help protect those who stand to be singled out and let go because of the unfairness of ageism, the Age Discrimination in Employment Act (ADEA) was designed with the older employee in mind.
Pi-Yu, T.; Kleiner, B. (2001) Reasonable care of small business to prevent employment discrimination: Equal Opportunities International 20.5-7. Retrieved from http://search.proquest.com.prx-keiser.lirn.net/docview/199531356/141C90F559D461C1D51/1?accountid=35796
Discrimination accusations are best avoided by following the law which requires only that you extend the same employment opportunities and enforce the same policies for each employee.
Age Discrimination in Employment Act (ADEA) of 1967, as amended, protects workers age forty and over in hiring, promotion, and termination decisions. This project is going to analyze the ADEA and its amendment in terms of effectiveness, ineffectiveness, and influence which will be demonstrated by employment cases, research data. The project shows that the ADEA is not as effective as it suppose to be and its purpose of prohibiting age discrimination has not been implemented efficiently in workforce. The ADEA somewhat has enabled Americans work longer, however, it might not be the best
The Equal Pay Act (part of the Fair Labor Standards Act), forbids employers to compensate women differently for jobs that are “substantially equal”, that is, almost identical. Traditionally, women have worked in different occupations than men; these occupations tend to be substantially different, pay less and confer less authority.
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)
Management by Objectives (MBO) systems, objectives are written down for each level of the organization, and individuals are given specific aims and targets. "The principle behind this is to ensure that people know what the organization is trying to achieve, what their part of the organization must do to meet those aims, and how, as individuals, they are expected to help. This presupposes that organization's programs and methods have been fully considered. If they have not, start by constructing team objectives and ask team members to share in the 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.
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).
However you define the activities of management, and whatever the organisational processes are, an essential part of the process of management is that proper attention be given to the Human Resource function. The human element provides a major part in the overall success of the organisation. Therefore there must be an effective human resource function. In the past, most organisations viewed Human Resource Management (HRM) as an element function, that is an activity that is supportive of the task functions and does not normally have any accountability for the performance of a specific end task. Because of the emphasis on analysis and precision there is a tendency for strategists to concentrate on economic data and ignore the way in which human elements and values can influence the implementation of a strategy. 'Economic analysis of strategy fails to recognise the complex role which people play in the evolution of strategy - strategy is also a product of what people want an organisation to do or what they feel the organisation should be like.?(1).
Armstrong ( 2010) defined Strategic Human Resource Management (SHRM) as “an approach to making decisions on the intentions and plans of the organisation in the shape of the policies, programmes and practices concerning the employment relationship, resourcing, learning and development, performance management , rewards and employee relationships,” ( p. 115). There is a paradigm shift from a functional role to a tactical one through the strategic management process. SHRM is very important to the effectiveness of my learning organisation because it ensures that the needs of the learning community are met and provides the opportunity for instructional leaders to “add value to the learning community” (Introduction to Human Resource Management, 2012, p.6) while achieving the goals and objectives of the institution.
In my opinion, HR practices can make positive contributions to organisational performances, because except the unpredictable external environments, human resource management can improve the most factors that affect employees’ performances which finally influence organisational performances in long-term perspectives. This essay is aim to prove human resource practices can positively effect organisational performances based on literature discussion and empirical evidences. The next section briefly brings few negative views about the limitation of HRM related to improving organisational performances. The third section discuss the positive relationship between HR practices and organisational performances are established by applying HRM processes of hiring, selecting, placing employees as well as creating employment relationships within organisations. The final section is going to analyse an example company Mark & Spensers successfully utilised HR practices to improve their organisational performances and created competitive advantages.
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)
Human Resource Management (HRM) is fundamentally another name for personnel management. It is the process of making sure the employees are as creative as they can be. HRM is a way of grouping the range of activities associated with managing people that are variously categorised under employee relations, industrial/labour relations, personnel management and organisational behaviour. Many academic departments where research and teaching in all these areas take place have adopted the title department of human resources management. HRM is a coordinated approach to managing people that seeks to integrate the various personnel activates so that they are compatible with each other. Therefore the key areas of employee resourcing, employee development, employee reward and employee involvement are considered to be interrelated. Policy-making and procedures in one of these areas will have an impact on other areas, therefore human resources management is an approach that takes a holistic view and considers how various areas can be integrated.
Introduction A comprehensive Human Resource Management Strategy plays a vital role in the achievement of an organisation’s overall strategic objectives and visibly illustrates that the human resources function fully understands and supports the direction in which the organisation is moving. A comprehensive HRM Strategy will also support other specific strategic objectives undertaken by the marketing, financial, operational and technology departments. In essence, an HRM strategy’s aim should be to capture the ‘people’ part of an organisation and its medium to long-term projection of what it wants to achieve, ensuring that. It employs the right people, those have the right mix of skills, employees show the correct behaviours and attitudes, and employees have the opportunity to be developed the right way.