Development of a Human Resource Department - Assignment Example

HRM Strategic Plan Table of Contents Human Resource Department 3 Analysis of HRM Strategies 4 New HRM Strategy 5 Talent Management 5 References 10 Human Resource Department In any organization Human Resource Department is essential and plays an indispensible role (Graffer, 2011, p.41-43). It also plays a major role in the operational strategy of the organization. HRD sometimes directly impacts in the performance of the organization by making evident differences between the organization’s long term and short term goals. Therefore the human resource department of an organization must be efficient enough to forecast, design and implement the strategies. HRM strategies are defined as the organization’s plan for the purpose of managing the human resource, structure, culture, training and development, and also to determine how an individual fits into the organization. The basic functions of HRD are attracting best candidates, reducing employee turnover, and to enhance the productivity of the employees (Taylor, 2005, p.1). It is a critical factor that contributes highly towards gaining a competitive advantage in the marketplace. One of the most important aspects of an HRM strategy is to determine the type of candidate required in the organization carry out organizational tasks. Also organizations arrange various kinds of programs for the purpose of satisfying their employees, and the responsibility for arranging it also falls in the shoulders of the human resource department. HRM strategy also plays a crucial role in the overall organizational culture. Furthermore training and development is also one of the most important functions of the Human resource department. In the context of the project a property management company has been chosen where the new HR strategy will be developed. The HR strategy will focus on the different aspects of managing the human resource of the organization. It will also emphasize on the recruitment strategies of some other organizations in order to formulate a competitive strategy. Analysis of HRM Strategies In order formulate a sound HRM strategy of the organization and to add more value to it, the HRM strategy of 3 other companies have been analyzed. However the names of the companies have not been disclosed due to some privacy policies. In order to get insights about the strategies of the chosen companies an interview session was held. The sample questions that were asked to the HR managers of those companies are follows:- 1. On what basis does the company pays to its workforce? 2. How many leaves can be availed by an employee in a calendar year? 3. What benefits do you offer to the employees? 4. What are your strategies for reducing the unionization in the company? 5. What special programs do you undertake for the purpose of ensure strong employee relations. The findings from the analysis are presented below. On asking about the pay packages HR managers of company A and company B stated that they pay on an hourly basis. However Company C pays a fixed salary to their employees along with incentives. Regarding leave policy there are a small differences among the chosen companies. Company A allows 28 leaves in a calendar year, company B allows 25 leaves while Company C allows 30 leaves in a calendar year. Also these companies allow special leave on medical grounds. Apart from the leaves the companies also allows various other benefits. For example company A and B offers free insurance to the employees, while company C provides life time pension to its employees. Also there are a number of other benefits that are offered by these companies. All the companies that are selected for the purpose of gaining insights about the HRM strategy faces issues pertaining to unionization. However the extent to which the companies are unionized varies. For example in Company C there are unions, but there are hardly any issues from them, while company A has huge problems with their unions. Often the unions call strike due to some demand, the demands are basically for pay hike, increased leave and various other issues related the betterment of employees. The HR manager of company A also cited that recently there has been a huge opposition from the unions for resisting a new technology implementation. Now in order to reduce their effect, most of the companies use open communication method. New HRM Strategy In the HRM strategy the areas that will be covered includes talent management policies and procedures that include performance, retention, and labor relations, compensation, and also other benefits to the employees. Talent Management Talent management can be defined as the process, by which an organization develops and integrates new employees, retain the present work force, and also attract skilled employees to work for them (Armstrong, 2008, p.168). The process of attracting and keeping the skilled workers within the system of the organizations is getting extremely difficult. For the purpose of ensuring management of talent within the organization the company should consider the following. Planning the required workforce for the organization. Recruitment Retention of the best employee of the organization Performance management of the organization Training and development of the employee Ensuring Healthy culture in the organization. Employee Retention: - Despite of the changes in the economy, issues with employee retention is still important. In order to avoid shortage of labor during the period of economic boom, companies use various employee retention programs. In this context the company should undertake the following employee retention program, to retain the best employees of the organization. Employee Recognition: - The Company should highly value its employees. Employees are valuable can be portrayed by encouraging and inviting them in the decision making process. Rewarding the Employee: - In order to retain the employee the company can reward the employees on a yearly basis based on the performance of the employees. Work Environment & Culture: - Development of a healthy working environment and ensuring superior culture in the organization will hugely reduce the attrition rate of the company. Labor Relation: - Labor relation is the process by which an organization manages the unionized employees. On the basis of labor relationships, the affiliations between the employee and employer undergo significant changes (Cheminais, Fox, Van Der Waldt & Bayat, 1998, p.261). A better labor relation always reduces the chances of conflict. Now for ensuring better labor relation the company should carry out the following activities:- The company can make use of newsletters within the organization which will help the employees to remain updated about the happenings. If the employees are continuously communicated, the loyalty will increase. The company should allow all employees to communicate with the management more flexibly. It includes suggestion boxes, job courses, bulletin boards, as well as direct interaction. Compensation: - Compensation to the employees is the most important factor. Therefore it is very much important to offer a competitive compensation to the employees. The company should pay a fixed salary to the employees, rather than paying them on the basis of working time. The remuneration will be based on the prior experience of the candidates and for the fresher a specific package should be set. The exact package that is to be offered to the employees needs to be in accordance with the competitors. The compensation package however will also differ departmentally. According to the position of the employees the salary will differ. The company must also set specific standards for the promotion and pay hike of the employees. The hike should be in the done on the basis of performance. A yearly appraisal of the employees will be carried out and based on the outcomes and grading the employees will be promoted as well as their pay packages will be hiked. Nevertheless 10% hike after every year is mandatory for every employee. Employee Benefits: - Providing benefits to the employee is essential for ensuring employee satisfaction. It is in turn raises the chances of employee retention. The strategies to be adopted for this purpose includes:- Pension Scheme: - The Company should provide pension to all the employees after the retirement of their services. However the employees having continuously served the company for 20 years are eligible. Holidays: - The Company rather than offering leaves annually can offer it on a quarterly basis. An employee is entitled to take a total of 7 leaves in a quarter. Among the 7 leaves 4 can be also carried to the next quarter. Medical facilities & Insurance: The Company should also offer other benefits such as health insurance and free quarterly health checkup. Performance management: - One of the fundamental tasks of the talent management department is to look after the performance of employees. During the process of employee appraisal it plays an important role. Furthermore it ensures effective and efficient performance from the employees. Some of the modern techniques include feedbacks from the supervisors and subordinates, setting benchmarks and comparing with that, 360 degree appraisal method etc. In this context 360 degree method is suggested for the purpose of performance management of the employees. 360 degree Appraisal: In this method the feedback from the employees are kept secret from the colleagues. This will help to develop factors such as team work, leadership effectiveness and character among others. Training and development: - Training and development of the employees are important for the purpose of enhancing skills and knowledge of the employees. It also ensures effective and higher productivity. Therefore in this context the company should organizes specialized training programs for developing the standard of the employees. Therefore, comparing the proposed HRM strategy and the HRM strategies of company A, B, C, it has been found that the proposed strategy is highly competitive and hence can be easily implemented in the organization. References Armstrong, M. (2008). Strategic Human Resource Management: A Guide to Action (4th ed.). London: Kogan Page Publishers. Cheminais, J., Fox, W., Van Der Waldt, D., & Bayat, M. S. (1998). The Fundamentals of Public Personnel Management. Cape Town: Juta and Company Ltd. Graffer, J. (2011). Corporate Volunteering as Tool for Human Resource Development: An innovative Corporate Citizenship approach on the example of Erste Group. Munich: GRIN Verlag. Taylor, S. (2005). People Resourcing (3rd ed.). London: CIPD Publishing. Read More