Human Resources Management of RetailCo - Essay Example

The human resource management planning in a particular organization are amicably an integral part of the organization’s activities to contribute to the overall success as it can be said that an organization’s human resources planning group are perhaps its most valuable and essential asset involved in the process of achieving its desired success and is applicable much in business companies that are equipped with good human resource strategic plans accordingly. This study will examine the Human resources management of RetailCo. Table of Contents Contents Pages I. Introduction 4 II. Employing Part Time Staff 4-8 Recruitment Selection Performance Appraisal III. Employee Development 10-12 IV. HR Strategy of RetailCo. 12-15 V. References 16-17 VI. Appendices 18 Introduction Human-resource planning is the first step in effective human-resource management as it involves forecasting the human-resource needs of the organization and planning certain useful and important steps that the organization must take in order to meet those human resource needs that will contribute a high percentage for its overall success as human-resource planning should be connected to the organization’s strategic objectives and mission. (Butensky and Harari, 1983) It can be said that human-resource planning is a challenge because the needs of the organization are constantly changing and sometimes do not converge and such challenge can be greater if the recruitment pool is limited or if the people in charge of human-resource management have not been trained to forecast the organization’s needs to maintain and achieve success in all areas of concern. (Butensky and Harari, 1983) In determining a certain range of importance in regaining factual information regarding as to what extent does human resource planning contributes to the overall success of the organization then, it is important to take in consideration some of its planning issues that may affect positively and or negatively to the success of such organization thus, it is crucial to identify and determine these planning issues as it enumerated below. (Craft, 1980) Employing Part Time Staff RetailCo, implements the employment of part time staff and this has provided them some benefits. There is some evidence from a number of sources to indicate a much broader potential for part-time work than its current reputation suggests. Employer benefits complement the increased work flexibility that such programs provide for the suppliers of labor. First, part-time work need not be limited to jobs in the low-pay sales and service sectors where they tend to cluster. Individual examples of New Concept reduced-hour jobs, often among professional librarians, teachers, editors, nurses and others, function well. Some public-sector employing agencies have institutionalized their job search in a way that bypasses the full-time/part-time issue. They identify the goals and tasks of the job and evaluate candidates in terms of their skill, experience, and other qualifications relating to job exigencies. Eligibility is not dependent on being available for a specified amount of time ( Burack, 1986). Recent innovators include a utilities company that established 50 pairs of job sharing positions, and a childrens hospital that has developed a number of flexible work arrangements including job sharing and a relief pool for nurses interested in working reduced hours. In both cases, part-time work was introduced in an attempt to retain valued employees (Sims, 2002). An aerospace company has established a "casual employment" category to retain skilled employees for part-time work, while protecting their pension benefits. Recruitment. According to Daniel and Metcalf (2001), recruiting is part of the over-all management function of staffing that serves a major role player in ensuring that company strategies will be implemented. Spencer (2004) also emphasized that staffing requires both the process of attracting and selecting prospective personnel’s capabilities and competencies with the company position. It is perhaps the most important function because it is the starting point in the whole HR process. Its importance is noted by Drucker (1992) as he said that “every organization is in competition for its most essential resource: qualified, knowledgeable people” (Drucker 1992). Recruitment is defined as the process of discovering, developing, seeking and attracting individuals to fill actual and/or anticipated job vacancies (Sims 2002). It has three general purposes: to fulfill job vacancies; to acquire new skills; and to allow organizational growth. There are several factors which influence recruiting efforts namely: organizational reputation, attractiveness of the job, cost of recruiting, recruiting goals and recruiting philosophy (Sims 2002). RetailCo. projects an image to the community and it determines the attractiveness of the company to qualified employees. It may either be a potential barrier or a significant advantage depending on the ability of the HR team to effectively advertise its job vacancies. The second factor is attractiveness of the job which refers to the job description (Mullins, 2005). Any job that is considered as interesting, dangerous, stressful, low-status, low-paying or lacking in promotion potential will have a hard time attracting the right people. Cost is also an important factor for RetailCo. because recruitment is expensive to the organization. Thus, every company needs to assess the costs involved in each proposed methods of recruitment. The fourth issue is recruitment goals of the program which have to serve many different purposes. However, the over-all purpose should be to fulfill the definition mentioned earlier. The last issue to be considered is the recruitment philosophy which depends on the emphasis of recruitment practices, depth of commitment in seeking and hiring a diverse range of employees and the ethical aspect of fairness in the recruitment process (Sims 2002). Selection. Selection is the partner of recruitment in HR planning. It is a critical process for the organization because good selection decisions ensure the company of their financial investments in their employees (Dean & Snell 1993). The wrong selection process can lead to frustration, repetitive training, documentation, low morale and a waste of time and financial resources. Moreover, an effective selection also decreases the risk of lawsuits of either discriminatory or criminal in nature. RetailCo. has a selection system, wherein the applicants are subjected to both the basic criteria of an employee in the organization and the specific criteria for the job description. For selection procedures, interview was the most common technique used by organizations. However, so as to screen the applicants more effectively with fewer errors, multiple selection techniques had also been employed. There are several factors which influence recruiting efforts namely: organisational reputation, attractiveness of the job, cost of recruiting, recruiting goals and recruiting philosophy (Sims, 2002). Organisations project an image to the community and it determines the attractiveness of the company to qualified employees. It may either be a potential barrier or a significant advantage depending on the ability of the HR team to effectively advertise its job vacancies. The second factor is attractiveness of the job which refers to the job description (Fincham, 1999). Any job that is considered as interesting, dangerous, stressful, low-status, low-paying or lacking in promotion potential will have a hard time attracting the right people. Cost is also an important factor because recruitment is expensive to the organisation. Thus, every company needs to assess the costs involved in each proposed methods of recruitment. The fourth issue is recruitment goals of the program which have to serve many different purposes. However, the over-all purpose should be to fulfil the definition mentioned earlier. The last issue to be considered is the recruitment philosophy which depends on the emphasis of recruitment practices, depth of commitment in seeking and hiring a diverse range of employees and the ethical aspect of fairness in the recruitment process (Sims, 2002). (Also check appendices for HRM models). This process is important to be investigated in RetailCo. because it is evident that the company places such high value to its employees. This is manifested through the high level of loyalty shown by its staff and the recruitment of new employees by recommendation of the existing staff members. The recruitment process of the company, though not entirely wrong because it has yielded such good results, can be aligned to better suit its HR practices. Selection is the partner of recruitment in HR planning. It is a critical process for the organisation because good selection decisions ensure the company of their financial investments in their employees (Dean & Snell, 1993). The wrong selection process can lead to frustration, repetitive training, documentation, low morale and a waste of time and financial resources. Moreover, an effective selection also decreases the risk of lawsuits of either discriminatory or criminal in nature. Each organisation has a selection system, wherein the applicants are subjected to both the basic criteria of an employee in the organisation and the specific criteria for the job description. RetailCo. works upon recommendation for the hiring and selection of new employees, as an owner of a retail store, has an established selection process along with criteria to be able to fully and fairly assess its applicants (Torrington and Taylor, 2005). Thus, the recommendation which will be discussed earlier would be in line of an integration of the respected company culture of the Hotel and the streamlined actions of the company. Golhar and Deshpande (1997) concluded that in both large and small firms, employees are selected through one on one interviews. In addition to this technique, some organizations even use panel interviews and written examinations in selecting employees. The reported findings of Hornsby and Kuratko (1990) showed that the growth of organizations also led to the increase of using reference checks and application forms in employee selection. Furthermore, the use of objective qualifications and more selection procedures in developing employment decisions have been more frequent in larger organizations (Treiman, 1984). In selecting the right employees, organizations take note of several factors; however, positive work attitudes and technical skills appear to be the most prioritized qualities needed from employees in general (Rowden, 2002). A. Performance Appraisal This principle is a process of assessing whether organizational objectives are met. It would evaluate how the employee’s performance has fared to satisfy the organization (Debrah, et al., 2003). Evaluation seeks to monitor and improve effectiveness by giving the employee feedback on his/her performance. This process should be carried out at regular intervals and should follow specific protocols to maintain objectivity in the evaluation process. The company should have a clear set of evaluation or assessment tools that will be used in all levels of the organization. The process should either be carried out as an individual consultation or a face-to-face evaluation. Lastly, a standard review mechanism conducted by a third party should be commissioned for the reassurance of fair play and objectivity in the evaluation (Spencer, 2004). This concept has its strengths as defined by Caruth & Handlogten, 1997) for it helps the manager to be able to identify individual present performance along with the employee’s future potential. Evaluation also assesses the weaknesses and the accompanying disciplinary actions (Torrington and Taylor, 2005). The third strength is that it can determine which training aspect should be developed for the particular employee. It also increases the communication line between the employer and the employee because of the feedback and evaluation process. According to Spencer (2004), evaluation is also a way for the organization to assess the role of the manager as well for evaluation and supervision are interdependent because evaluation is a tool for measuring supervision. Moreover, another advantage is that evaluation aims to establish trust among the entire organization because objectivity and fair play are called into this task. Lastly, the evaluation process is a good way of providing employee satisfaction and maturation which will improve the performance in the future. Employee Development In order to effectively implement changes, HR managers need to have systematic procedures to get these done. According to Hornsby and Kuratko (2005), training and development activities can help companies acquire a staff with the right combination of skills and motivations which a company needs to be competitive. They further explained that this process includes three different types of activities namely: orienting the new employees; helping employees acquire new skills and helping the employees strengthen existing skills. There are many trends in training which companies employ today. Goldstein and Gilliam have suggested that training has to adapt to four major trends: 1. Changes in the demographic characteristics of the workforce; 2. Increased technology; 3. Shifts from manufacturing to service-oriented jobs and 4. The increased influence of international markets. All the trends exist nowadays as more companies invest in training their staff to be updated with the latest developments in whatever sector they are in. The case in the company is that training happens on the job, as a kind of apprenticeship with a senior employee (Fincham, 1999). There are no formal lectures or orienteering which is understandable because the company is small. However, since the hotel is now a part of a global operation, it has to comply with certain standards which include the policies on training and development. Included in training and development is the aspect of discipline which is becoming more troublesome in the recent years because managers consider it a trial to enforce while the employees consider it unfair and inconsistent in application (Hornsby & Kuratko, 2005). Some disciplinary procedures can result to high turnover, loss of morale, lower performance levels, legal problems and loss of employee respect for managers. Companies have many alternatives in ensuring that a degree of discipline is instilled in the office either by someone whose performance is not up to standards or by someone who exhibited inappropriate behaviour. Although RetailCo. has its own set of code of conduct from which disciplinary measures are outlined, this is not consistently applied. Thus, there is a need to assess this situation to be able to be able to align the operations with a more streamlined base . HR Strategy of RetailCo. It is first important to establish the importance of human resources. Human resources themselves are keys and talents that needed to be tapped in order to ensure the success of RetailCo. The management of these resources determines a company’s triumph. The proper management would undoubtedly lead to a strong workforce that would be one with the company’s goal in accomplishing tasks in a manner that would be enthusiastic and mission-centered (Mullins, 2005). The improper management in the meantime would inevitably lead to a company’s failure as they are unable to motivate the life force of the organization: the employees themselves. This is due to the fact that employees themselves are the wheels of a company so to speak. These wheels need a proper engine that will allow it to move and most importantly, keep it moving. Employees and human resources are a company’s competitive advantage, or disadvantage. It is up to the firm to make use of their resources in a manner that will provide them strength rather weaknesses especially in face of adversities and challenges posed by internal and external factors. “Planning HRM activities expands awareness of possibilities, identifies strengths and weaknesses, reveals opportunities, and points to the need to evaluate the probable impact of internal and external forces.” (Sims, 2002, pp. 27) It is vital to establish this perspective before moving on to emphasize the importance of human resource planning as contributing to the overall success of an organization. HR Strategy and management are already, in their own ways, managerial planning and decision making. To manage an organization’s human resources is to manage the future of the organization itself. The store managers of the RetailCo believes in proper management of an organization will only be performed if managerial planning and decision making are fused with human resources management. This is the only way human resources may be stimulated and exhausted of their talents through the proper strategizing of their strengths and weaknesses. “A closer integration between top management’s goals and HRM practices helps to elicit and reward the types of behavior necessary for achieving an organization’s strategy.” This is according to Ronald Sims (2002, pp. 4). To prove this, he provides one instance: If a company’s strategy is quality products and services, the managers should compose a system that would motivate employees in pushing towards quality which could be accomplished by reward systems. “HR Strategy involves forecasting HRM needs and developing programs to ensure that the right numbers and types of individuals are available at the right time and place” (Sims, 2002, pp. 4) Knowing the human resources determine success, it is vital for an organization to employ the best human resources and candidates possible (in a manner that would be most advantageous to both the employee and the employer) and at the same time integrate and coordinate them to the managerial strategies which they will enact. This is what HR Strategy performs. Bonache and Canberra (1999) provides a more detailed and at the same time concise answer as to how human resource management planning brings success to an organization or an individual. It “increases profitability, lowers turnover, increases product quality, lowers production costs, and increases flexibility and innovation” (pp. 10) This is explainable by how human resources are the people behind the organization’s functioning towards its aims not just by their skills and knowledge but also attitude towards work. Human resources that are well planned are arranged and organized in such a way that they will easily fulfill the goals of an organization while human resources that are not that carefully set up will eventually make it difficult and tasking to work towards the company’s missions. Gratton et al (1999) believes that the performance of human resources (as an effect of the planning prepared onto them) affect managerial behavior (pp. 11). HR Strategy is both beneficial to the organization and the individual because it realizes the capabilities and talents of the employees through a careful analysis of how to maximize and optimize an employee allowing them to be fully efficient. In this manner the organization in question has also a proper control in accomplishing their mission and goals as human resources are the means to reach these. It also can be said then that an organization with sufficient planning has what it takes to deliver quality products and services to consumers or clients (thereby soliciting consistent positive returns and success) rather an organization with a lack of planning. Planning can actually guarantee productivity in this regard. In turn such planning also leads to the individual’s success as much as the organization as it realizes and enhances strengths as they remedy weaknesses. After establishing the perspective of human resources as an organization’s vital assets, the discussion will move on to a more in-depth discussion of what happens in human resource management planning that will concretize how such strategic planning can indeed benefit the organization in mind. In this regard, the human resource management planning in a particular organization is amicably an integral part of the organization’s activities to contribute to the overall success as it can be said that an organization’s HR Strategy group are perhaps its most valuable and essential asset involved in the process of achieving its desired success and is applicable much in business companies that are equipped with good human resource strategic plans accordingly. (Burack, 1986) Furthermore, the managers of RetailCo are responsible for planning, staffing, human resource development and assessments as well as maintaining effective human-resource relations. (Burack, 1986) Human-resource planning is the first step in effective human-resource management as it involves forecasting the human-resource needs of the organization and planning certain useful and important steps that the organization must take in order to meet those human resource needs that will contribute a high percentage for its overall success as human-resource planning should be connected to the organization’s strategic objectives and mission. (Butensky and Harari, 1983) It can be said that human-resource planning is a challenge because the needs of the organization are constantly changing and sometimes do not converge and such challenge can be greater if the recruitment pool is limited or if the people in charge of human-resource management have not been trained to forecast the RetailCo needs to maintain and achieve success in all areas of concern. (Butensky and Harari, 1983) References Burack, E.H. 1986. 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Dean, JW & Snell, SA (1993) ‘Integrated manufacturing and job design: The moderating effect of organizational inertia, Academy of Management Journal, vol. 36, pp. 776-804. Debrah, YA et al., 2003, Managing human resources in Africa, Routledge, New York. Drucker, PF 1992, ‘The new society of organizations’, Harvard Business Review, September-October, pp. 95-104. Sims, RR 2002, Organizational success through effective human resources management, Quorum Books, Westport, CT. Spencer, JD 2004, ‘Fundamentals of staff development’, in Bhindi, N & Davies, C (eds.), PDAS 313: Fundamentals of staff development resource book 1, University of New England, Armindale. Appendices INDEX Human resource planning 4 and 13 HR Strategy 12-15 Recruitment 5 Selection 7-8 Performance Appraisal 9 Read More