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Importance of HR in the effectiveness of organisation
Impact of HR on organization
Impact of HR on organization
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Human Resource Management (HRM) is the administration and control of employees. Its purpose is to ensure that the workers and the employer cultivate a valuable relationship. As a result, the company will record an exceptional performance particularly with regard to employee productivity (Paauwe, 2004). Further, the workers will benefit in terms of job satisfaction and self-development (Paauwe, 2004). Some of the activities involved in managing workers include selection and recruitment, training, development, motivation, and appraisal (Sharma, 2009). This paper aims to analyse the role of human resource management in organisations and its linkage to the wider organizational strategy using Tesco and Harrods as illustrations.
Methods and Approaches to Engaging Employees in Decision Making
Engaging workers in decision-making processes is an important part of HRM. This is because it provides the management and staff with an opportunity to collaborate for the advancement of the company and its stakeholders. Further, it gives the management an opportunity to make use of vital information that workers obtain as the actual persons on the ground (Business case studies, 2016c).
One of the ways that companies can involve workers is through consultation
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Tesco’s management recognizes this and applies it in accordance with the situation at hand. The concern’s leadership takes the authoritarian stance when it comes to emergencies in order to elicit immediate responses to resolve problems before they escalate (Business case studies, 2016a). The experience of the said employee(s) is also an important consideration. When it comes to delegating a decision-making responsibility, managers refrain from allocating this responsibility to new workers (Business case studies, 2016a). This is because they may not have the requisite experience to make important decisions for the
Store information provided by Tesco: Text Box: Tesco Superstore, our most frequent layout, with groceries and non-food [IMAGE] - Coffee Shop/Cafe [IMAGE] - Pharmacy [IMAGE] - Deli Counter [IMAGE] - Fish Counter [IMAGE] - Petrol Station [IMAGE] - Pay at pump Task 1 This organisation chart for Tesco Plc shows that even though the Chief Executive is in charge of Tesco Plc most decisions are still made by the Board of Directors: * [IMAGE]Tim Mason - Marketing & E-commerence Director * Davis Potts - Retail Director * Andrew Higginson - Finance Director * John Gildersleeve - Commercial and Trading Director * Terry Leahy - Chief Executive * David Reid CA - Deputy Chairman * Rowley Ager - Company Secretary * Philip Clarke - IT & logistics Director Each individual store is divided Text Box: into this organisation chart. [IMAGE] The store manager has span of control over all the deputies who have span of control of their section. When some thing needs to be done the store manager would ask his deputise who would divide the work between other workers following the chain of command. Task 2 Aims are what businesses set out to do.
Tesco must also follow their statutory duty which ensures that their employees have adequate welfare facilities. Employees also have specific duties they got to follow by law which includes them to take reasonable care for health and safety for them and the people around them, they must also co-operate with the employer or any other person to enable the employer or other person to perform or comply with any legal requirements.
“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
As owners we are in charge of the management responsibilities, we think that it’s important to acknowledge the concerns of the employees and look at the situation from their point of view. We have noticed that thei...
Therefore it can be argued that it is important for individuals at this level to be able to react and make relevant and appropriate decisions efficiently in relation to the information they have available to them. They must be able to draw on their knowledge of the organisation and their HR knowledge and experience to provide the best advice/decision possible to ensure that the business needs are met in line with best practice where
Terms of reference: This report is being produced to fulfil the criteria required for Unit four of the Advance Vocational Certificate of Education (AVCE) course in Business Studies. It will give a comprehensive overview of the way's in which the human resources function(s)', within businesses are organised and managed and how they operate, and an analytical insight into the human resource management team, of the business that I' am focusing on, which is HSBC Group Plc. The report will specifically focus on the possible conflicts of interest between employees or individuals, the way's which human resources planning procedures take place, the recruitment and selection process, training and development programmes and performance management at HSBC Group Plc, in view of the current economic climate for retailing/banking. An Introduction to the Report: In this assignment, I have been asked to structure an analytical approach, about human resources and its effects, on one business, and to file all of my information in one simple, but sophisticatedly structured report.
In the 1980’s, the birth of a new concept called ‘Human Resource Management’ was born. This trend comes after an intense period of Taylorisation, Fordism and now, McDonaldisation. HRM came to counter balance these trends and to consider the concept of the Man as a Man and not as a machine. For the last several decades, the interests of companies in "strategic management" have increased in a noteworthy way. This interest in strategic management has resulted in various organizational functions becoming more concerned with their role in the strategic management process. The Human Resource Management (HRM) field has sought to become integrated into the strategic management process through the development of a new discipline referred to as Strategic Resource Management (SHRM). In current literature, the difference between SHRM and HRM is often unclear because of the interconnections linking SHRM to HRM. However, the concepts are slightly different. Thus, we can ask, what is strategic human resource management? What are the main theories and how do they work? What do they take into account and how are they integrated? What are the links between SHRM and organization strategy? In order to answer to these questions, we will precisely define strategic human resource management, followed by a look at the different approaches built by theorists, and finally, we will see the limits between the models and their applications depending on the company’s environment. Discussion Strategic Human Resource Management: definition Strategic human resource management involves the military word ‘strategy’ which is defined by Child in 1972 as "a set of fundamental or critical choices about the ends and means of a business". To be simpler, a strategy is "a statement of what the organization wants to become, where it wants to go and, broadly, how it means to get there." Strategy involves three major key factors: competitive advantages (Porter, 1985; Barney, 1991), distinctive capabilities (Kay, 1999) and the strategic fit (Hofer & Schendel 1986). Strategies must be developed with a relevant purpose to sustain the organizational goals and aims. SHRM is one of the components of the organizational strategies used to sustain the business long-term. SHRM defined as: “all those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of the business. (Schuler, 1992)” or as “the pattern of planned human resource deployments and activities intended to enable the firm to achieve its goals.
Ulrich (1997) defines strategic HRM&D is an outcome: ‘as organisational systems designed to achieve sustainable competitive advantage through people’. The responsibility for the HRM&D strategy implementation lies with the line managers of an organisation since they have to execute the HRM&D practices on the work floor. Indeed, Schuler and Jackson (1987) argued ‘HRM should ensure that HRM practices are accepted and used by line managers and employees as part of their everyday
Today workers have more discretionary power and are allowed to make independent decisions during the course of their work. This is essential part of meeting clients’ expectations and ensuring quality of the service. Understandably, the requirement of assuming greater responsibility through making key decisions is an additional source of pressure upon the workers. One thing all successful employees have to share is what we call adaptability to the changes. It is very important that today’s employees can make quick decisions on spot, address the needs of the clients, solve any possible tensions and ease frustrations, and then continue performing work-related responsibilities. However, Mallak (1998) notes that the majority of workers is unable to performs these functions on practice, as he believes many lack adequate training and/or preparation.
Schuler, R., & Jackson, s. (2007). Strategic human resource management (2nd ed.). united kingdom: Blackwell Publishing
Nevertheless, there are several points, which would further develop the topic of the article. Firstly, the author describes the scope of the personnel’s participation in management and decision-making as “maximum possible”. It is necessary to admit that this level is different for the different collectives. The highly qualified personnel of a law or accounting firm deserves a possibility to shape company’s future on the equal basis with its managers, while the unskilled workers (of course, being equally respected) have to delegate more decisional capacity to the management bodies.
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).
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.
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.
...within the organization, HR is able to provide decision-makers with valuable information and direction relating to managing human assets. HR can develop, communicate and implement strategy, evaluate data and create success. Done properly, HR has the potential to create a fulfilling environment for employees and provide valuable direction and data for decision-making so the organization’s objectives are met.