Human Resource Management Practices - Essay Example

HUMAN RESOURCE MANAGEMENT PRACTICES By Location Human Resource Management Practices Introduction Towards the completion of the 20th century, human resource management received increased attention from scholars and some organizations. Human resource management denotes all the organizational activities related to; recruitment and selection of employees, description of job responsibilities for the employees, training and developing programs, appraising and rewarding systems, as well as offer direction, motivation and exerting a measure of control over the workers. Human resource management precisely refers to the existing frameworks that define the practices, policies, procedures, and philosophies that govern the relationship between employers and workers. Human resource management has registered immense development in the last three decades. Initially, human resource management was viewed from a narrower perspective of personnel management. The last three decades have seen the emergence of a distinctive discipline, which represents an area of management that determines the level of organizational viability and can present an organization with a competitive advantage. This paper will focus on describing human resource management as a distinctive discipline and describing the relationship between human resource management and a company’s performance. The British Airways and the Virgin Airline will be the two organizations used to illustrate the application of human resource practices in businesses today. Human Resource Management is a Distinctive Management Discipline Human resource management qualifies to be a distinctive management discipline with its unique characteristics and functions. Human resource management has five broad functions. One of the functions is people resourcing, which seeks to ensure that an organization as sufficient staff that can contribute to the completion of current and future tasks. Therefore, people resourcing as a function of human resource management involve planning, recruitment, selection of candidates, and induction. In addition, people resourcing involves the procedures used in talent management, succession planning, as well as initiation and termination of employment relationships. Other aspects such as retirement and redundancy are also under people resourcing. The second function of human resource management is managing performance. Organizations need to ensure that they have goals and objectives in place and that individuals and teams have such goals in focus. Therefore, human resource management undertakes the management of performance by carrying out performance appraisals of individuals and teams (Farnham, Farnham, & Chartered Institute of Personnel and Development 2010, p. 37). The human resource management team plays a critical role in the goal-setting process. The third function involves the management of rewards. Since employees need to be motivated using different strategies, designing reward schemes is one of the strategies applied by human resource management teams. After the successful designing of the reward systems, the team implements the reward schemes that may involve both financial and none financial rewards. Management of rewards also includes implementing benefits schemes and pension systems. The fourth function of human resource management is human resource development. The human resource management team carries out analysis and identifies individuals and teams that present different learning needs. After identifying the needs, the human resource management team embarks on designing training programs that can impart the required skills to both individuals and teams. It is the role of the human resource management team to implement the training programs and evaluate the success of such programs. Human resource seeks to empower employees and help them gain new competencies. The fifth role involves the management of employment relations. Employment relations need proper management in accordance with the existing laws and regulations. Therefore, human resource management ensures that there is proper communication and employee involvement within the organization and in decision-making processes (Farnham, Farnham, & Chartered Institute of Personnel and Development 2010, p. 57). Human resource management also ensures that there is proper bargaining over the conditions of employment as well as the management of employee welfare. Human resource management has four critical goals. One of these goals is the promotion of integration within the organization. Integration occurs when an organization can implement its strategic plans effectively. The strategic plans should consider the existing policies that govern human resource issues. Human resource management ensures that employees have an attachment to an organization. In addition, the integration brought forth by human resource management ensures that all the managers recognize the significance of human resources and treat employees appropriately. Human resource management also promotes employee commitment. Since employees have a form of attachment to the organization, they are more willing to participate in the achievement of the organizational goals (Chin-Ju, Edwards, & Sengupta 2010, p. 1). Human resource management also promotes flexibility and adaptability. The management of human resources ensures that an organization has in place effective organizational structures. Finally, human resource management promotes quality within the organization by ensuring that employees register remarkable performance and comply with the existing standards. Human resource management has specific functions and goals, revealing that it is a distinctive management discipline. It has unique features that define human resource management policies. One of the features of human resource management is the recognition that employees define the organization’s social capital and which can be developed effectively. In addition, human resource management ensures that there is power equalization as well as effective collaboration in an organization (Farnham, Farnham, & Chartered Institute of Personnel and Development 2010, p. 89). Human Resource Management Practices can Improve and Organizations Performance Most importantly, human resource management establishes a “fit” that links human resource management with the core strategic planning procedures of the organization, as well as organizational culture. Human resource management also ensures the existence of open channels of communication and a high level of commitment, factors that translate into high levels of performance. Evidently, there are existing controversies in the definition of human resource management. Many of the definitions have been described as competing. However, the most appropriate definition of human resource management should recognize it as a distinctive management discipline. Therefore, the high-commitment human resource management is the most appropriate approach to describing human resource management. The high-commitment approach to human resource management exhibits a direct relationship between human resource management and organizational performance (Chin-Ju, Edwards, & Sengupta 2010, p. 2). The high-commitment approach is defined as an approach that relies on the philosophy that people management should recognize that human resources are significantly important to the success of any business. The philosophy that governs the high-commitment human resource management highlights that this kind of human resource management has the potential to give an organization competitive advantage if it utilizes the competencies of the employees effectively. Therefore, high-commitment human resource management focuses on hiring individuals with outstanding capabilities, competencies, and who can commit themselves to the organization. When such employees are managed and rewarded effectively, then they can register high levels of performance. The high-commitment human resource management system contrasts with the traditional approach of personnel management used in some organizations (Chin-Ju, Edwards, & Sengupta 2010, p. 3). The high-commitment management approach conforms to high-performance work practices. Other authors describe the high-commitment management or flexible production systems. All these definitions point to the fact that human resource management practices can register improved performance of organizations by increasing the competencies and abilities of employees. In addition, high-involvement management ensures that employees have positive attitudes and are highly motivated. Therefore, they can register increased productivity. The high-commitment and high-involvement management allows employees to have a diverse range of responsibilities. Such responsibilities give employees an opportunity to utilize all their competencies and skills (Farnham, Farnham, & Chartered Institute of Personnel and Development 2010, p. 118). Therefore, the organization registers increased performance. Human resource management practices have the potential to increase and influence the competencies of employees in various ways. For example, through effective human resource management practices, organizations can rely on valid selection methods in the identification of intelligent and competent employees. In addition, human resource management practices allow organizations to design training and empowerment programs that can impact employees with new competencies. Research highlights that human resource management practices can promote increased organizational performance. Usually, this happens in four different areas, namely business strategy, research and development investment, continued emphasis on quality and the reliance on advanced manufacturing technologies (British Airways global learning initiative takes flight 2004, p. 3). Findings from the different researchers have highlighted that human resource management practices affect organizational performance substantially. In order to increase an organization’s performance, human resource management specialists play a critical role in initiating organizational change. They define policies that promote innovation. Different human resource management practices also ensure that an organization can mobilize if the existing talent in an effort to register improved operational efficiency, culture, and promote a positive reputation (Chin-Ju, Edwards, & Sengupta 2010, p. 4). It is the role of human resource management specialists to carry out a critical assessment of the organization’s outstanding needs, as well as challenges in its business. Human resource management specialists can then determine how the competencies within the organization can conform to the existing needs. In the case, an organization lacks the required competencies, human resource management specialists design programs of building employee competencies so that the organization can address its needs and challenges effectively. Notably, organizations can rely on human resource management in an effort to gain competitive advantage over competitors. The modern business front is highly competitive. Some organizations have learned to appreciate the value of human resources. Therefore, they invest immensely in ensuring that employees are highly empowered so that they can register outstanding skills and motivation (Farnham, Farnham, & Chartered Institute of Personnel and Development 2010, p. 65). In addition, human resource management practices also ensure that employees can meet organizational goals. Investing in human resource management can place an organization in a better position in the market. Human resource management specialists should merge the human resources and corporate strategies by establishing a proper “fit”. Notably, an organization can gain competitive advantage using the resource-based model. According to this model, an organization should ensure that its resources add value to the customers, are rare, and cannot be easily imitated by competitors. In addition, such resources should prove to be none substitutable. Therefore, human resource management specialists can help an organization develop human resources that give the organization a competitive advantage (Chin-Ju, Edwards, & Sengupta 2010, p. 5). All Managers Require Human Resource Expertise As highlighted above, human resource management requires proper management of people and empowerment of employees as well as inspiring them to register increased productivity. Managers in any organization lead a team of employees. Such managers have a responsibility for ensuring that all the team members can register increased productivity. In order to achieve such results; managers should develop human resource expertise. It is impossible for managers to manage groups and team members without the required knowledge and competency in human resource expertise. It is of critical importance for all managers to develop human resource management skills. The human resource specialists can help all managers understand some of the basic aspects involved in people management and development. Unless managers develop such skills, it will be impossible for them to empower and motivate employees within their team to register remarkable performance (Chin-Ju, Edwards, & Sengupta 2010, p. 7). The Example of British Airways and Its Outstanding Human Resource Management Practices British Airways is a reputable airline with its headquarters in the United Kingdom, London. The airline currently flies to more than 300 destinations and covers over 80 countries. The British Airways is the most renowned airlines in Europe and America. The company was founded in 1974 and has faced certain challenges on its journey to its current success. In 2010, the company had around 238 aircrafts operating and registering about 32 million passengers. In 1987, the British Airways Company undertook a move to adopt a new human resource management strategy. The company defined a new mission of becoming the “best and most successful company in the airline industry”. In 1997, the company also defined a new mission of addressing four critical issues, namely global economic climate, customer’s needs, employees’ needs, and competition (Chin-Ju, Edwards, & Sengupta 2010, p. 11). The company focused on several human resource management activities such as training and development, assessment of employee performance, improved payment, and rewarding employees. These critical activities sought to create a new image for the organization. In addition, British Airways sought to increase the competency and talent among its employees. The company conducted effective research before implementing the three activities. The company established that customer satisfaction depended on the attitudes and behaviours of employees (British Airways global learning initiative takes flight 2004, p. 3). Therefore, the employees needed proper training on how to “put people first”. In addition, the company indulged in implementing a performance appraisal scheme in order to create a link between reward and performance. The performance appraisal scheme involved performance assessment, feedback, and recommendations on how the performance can be improved (Chin-Ju, Edwards, & Sengupta 2010, p. 12). Notably, the company needed to gain competitive advantage over other companies in the industry. Therefore, the company focused on improving levels of motivation and employee commitment as well as promoting diversity within the organization. British Airways exhibited its capacity to implement the resource-based model of human resource management. According to the implemented human resource management activities, it became evident that the company gave priority to human values. Most importantly, the company ensured that its resources could sustain profitability by adding value to the customers and being unique. Therefore, competitors could not replicate the company’s strategies (British Airways global learning initiative takes flight 2004, p. 3). Currently, British Airways intends to become a global leader in the Airline industry. In order to achieve this, the company has identified strategic objectives and linked each of the objectives with a human resource strategy. The company seeks to establish the “fit” model, which appreciates the contribution of human resources to achieving business objectives. Evidently, the human resource management strategies of the company reveal that human resource management practices can have a positive impact on a company’s performance. Through the implementation of the human resource management practices described above, the company has proven to be a market leader in the industry (Chin-Ju, Edwards, & Sengupta 2010, p. 14). The Example of Virgil Airlines and Its Human Resource Management Practices Virgin Atlantic is one of the subsidiaries of Virgin Airlines. Virgin Atlantic has flights operating between London and New York. The Virgin Airlines sought to achieve success in the airline industry. In 2007, the company expanded its business by launching an additional upper-class wing. The company realized that the expansion required the company to develop new competencies among its employees. Since the expansion would bring forth new responsibilities and processes, there was a salient need for the company to adopt human resource management practices that would increase employee competencies. Virgin Atlantic learned about the success of Richard Lowe, who is the managing director of HR & Training Solutions. Lowe had developed a human resource management package titled “Best Year Yet”. The Best Year Yet approach allowed Virgin Atlantic to increase its performance in the industry (Chin-Ju, Edwards, & Sengupta 2010, p. 17). The approach opened up new avenues for the company to register increased accountability. The introduction of the program to Virgin Atlantic offered the company an opportunity to determine new goals for the organization. In addition, Richard Lowe helped the company to recognize how the available human resources would be used in achieving the defined goals. The Best Year Yet program involved regular assessment and performance appraisals in order to determine whether employees were making progress toward the achievements of the goals. Most importantly, the program offered the relevant training to the employees so that they could learn how to run the new processes. The human resource management practices implemented by Virgin Atlantic sought to create a fit between the human resources available as well as the corporate strategies. Through the guidance of an HR specialist, the company was able to focus on human resource development in an effort to achieve its business objectives. Therefore, the company registered remarkable growth by implementing human resource management practices (Chin-Ju, Edwards, & Sengupta 2010, p. 20). Conclusion Evidently, human resource management has the potential to mobilize talent within the organization in an effort to promote operational efficiency. Human resource management experts need to analyse the situations of a company highlighting the company’s need and challenges. After understanding a company’s needs and challenges, human resource experts can develop a strategy that can help the organization integrate human resources with organizational business strategies. As highlighted in the case of British Airways and Virgin Atlantic, adopting human resource management practices can help a company register increased performance. It is the responsibility of all the managers in an organization to recognize the value of HR expertise in order to ensure that they manage their teams effectively. Bibliography British Airways global learning initiative takes flight 2004, E.Learning Age, p. 3, Business Source Complete, EBSCOhost, viewed 20 February 2015. Chin-Ju, T, Edwards, P, & Sengupta, S 2010, The associations between organisational performance, employee attitudes and human resource management practices, Journal of General Management, 36, 1, pp. 1-20, Business Source Complete, EBSCOhost, viewed 20 February 2015. Farnham, D., Farnham, D., & Chartered Institute of Personnel and Development 2010, Human resource management in context: Strategy, insights and solutions, London: Chartered Institute of Personnel and Development. Read More