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The importanceto of human resource Function to success the business
Why human resources is a key source for competitive advantage
Performance management system - strengths and weaknesses
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HUMAN RESOURCES - APPLYING KEYS
Human resources include all employees within an organization. The most important assets of an organization are the employees; however, employees can either make or break the company. When a company implements a lean structure, the employees are considered the key to long-term success. (The A3 Column, n.d.) Therefore, if an organization does not invest in its people they could be overlooking exceptional resources that could possibly make a huge difference for the company. It is upper management’s responsibility to not only improve their skills but also the skills of their subordinates by asking the right questions. (The A3 Column, n.d.) “People are the heart and soul of lean thinking and without their buy-in, engagement, involvement, and understanding of how it ties to purpose and alignment of their work; then our gains will be short-term gains at best.” (The A3 Column, n.d.) When exploring the 20 keys to workplace improvement human resources relates to the following three keys: Key 2: Rationalizing the System - Goal Setting; Key 3: Team Activities – Engage the Workers; Key 14: Empowering Workers to Make Improvements
An example of how all three keys work together would be employee Performance Management Plan (ePMP). This process is used at Huntington-Ingalls shipbuilding Pascagoula, MS operations. This process is known as management by objectives (MBO) and is completed by each employee classified as a professional worker each year. Appendix 1 shows an example of an ePMP of a Huntington Ingalls employee for the year ending 2013. The bottom line is if you do not have, the support from every employee within an organization from top-down to bottom-up there will always be a gap in the total success of the company. Implementing the keys related to human resources will help bridge this gap to ensure an organizations success. Each of the three related keys of human resource will be discussed in the attempt to achieve an enhanced perception of how each of the keys fit together to achieve an organization goals according to the 20 keys concept - faster, better, cheaper.
2.1 RATIONALIZING OPERATIONS – SETTING GOALS
Key 2: Rationalizing the System – setting goals. One goal setting process is management by objectives (MBO). MBO defined by The Glossary of Leadership as “A participative goal-setting process that enables the manager or supervisor to construct and communicate the goals of the department to each subordinate. At the same time, the subordinate is able to formulate personal goals and influence the department's goals.
Envisioning goals: Focus on the right direction to help the group manage the organization in both long term and short term goals.
Lean is best defined as “a systematic approach to identifying and eliminating waste (non-value added activities) through continuous improvement by flowing the product only when the customer needs it (called pull) in pursuit of perfection” (Sarkar, 2008, p. 1). Lean thinking along with Six Sigma have generated interest all industries. This can be seen by the countless studies and quality improvement efforts undertaken by many corporations, with training and building staff as certified Lean Six Sigma experts.
The paper primarily focuses on the adapting Lean Thinking in a company. This paper gives a basic perspective of Lean application. The paper investigates and elucidates Lean by demonstrating how the procedure can be augmented to include incremental worth. The paper exhibits how Lean systems can be adjusted into certifiable circumstances by applying Lean instruments to the genuine organization. In this way, organizations of distinctive administration commercial ventures can likewise learn and adjust the Lean approach all the more adequately.
Once an organization develops a mission statement, the next step in strategic planning is to align the company’s goals. The goals for a business should reflect the vision and mission of an organization, as well as assist in achieving the overall purpose of the company. Establishing organizational goals promotes the business’ mission and specifies the focus in which staff members should implement in day to day operations.
The term "lean manufacturing" or "lean production" was first used by Womack et al. (1990) in their book The Machine that Changed the World.
Establishing goals is a required skill for management. It encompasses the ability to take into consideration systemic
Noe, Raymond A., et al. Human Resource Management: Gaining a Competitive Advantage. 7th ed. New York: McGraw-Hill/Irwin, 2010. Print.
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.
The set goals should also be those that are favourable to the workers, as well as the management team as a whole. This is to ensure that they can be met easily without much difficulties involved.
Noe, Raymond A., John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright. Human Resource Management: Gaining a Competitive Advantage. 7th ed. Boston: McGraw-Hill Irwin, 2010. Print.
The managers must set organizational goals aligned with the company mission. This will provide a strategy for achieving those goals. For example, planning can be seen at every level such as creating goals for sales as well as for the customer experience (Higgins, 1994).
How well a business manages its assets and resources predicates its overall success. Companies that spend financial resources foolishly are apt to find themselves in bankruptcy. Companies that work capital equipment resources beyond the machine’s capabilities or for other than intended purposes are apt to experience downtime and/or lose the equipment to failure. The same premise holds true for a company’s human assets. However, unlike other company assets, which depreciate over time, human assets appreciate over time when managed properly. The article, Importance of Human Resource Investment for Organizations and Economy: A critical Analysis, explains the importance of managing human assets as follows:
An MBO system calls for each level of managers to discover their goals for every area they are accountable for. The long term goals of the organization are outlined in the beginning. After these long term goals are established, management must be concerned with determining precise objectives to be achieved within a given time capsule.
Presently, organizations have become a complex phenomenon, which requires numerous functions and strategies to manage the human resources. In today’s world there is a great need for organizational change and learning from time to time because of increasing globalization and technological advances. Proper plans and policies should be framed for implementing organizational change (Allen & Kilman, 2001). Organization learning and change manage the performance of the employees in the organization.
For Key Performance Indicators (KPI) to be successful, it needs to have the following characteristics: