To learn new things is beneficial at any age, and any kind of learning can benefit other aspects of your life. For instance, taking music lessons can increase your language skills. If you’re interested in a topic, study it. If you’d like a new skill, practice it. Your life is ever-changing and infinitely complex, and your ability to experience it depends on your willingness the learn. The more you learned, the more you live.
Embrace failure and confusion. When you are learning a new thing, you are entering into unknown territory. Allow yourself to experience the confusion of unanswered questions and unfamiliar parameters. When you study a new topic, don’t look up answers to your questions right away. Instead, spend some time trying to figure the answers out on your own. This kind of trying (and failing) helps you better understand what you are learning.
Learn and Understand, Role of the Management Information System (MIS)!
The role of the MIS in an organization can be compared to the role of the heart in the body. The information is the blood and MIS is the heart. In the body, the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart works faster and supplies more blood when needed. It regulates and controls the incoming impure blood, processes it and sends it to the destination in the quantity needed. Also learned, What is MIS? Role of the Management Information System (MIS)!
It fulfills the needs of blood supply to the human body in the normal course and also in crisis. The MIS plays exactly the same role in the organization. The system ensures that an appropriate data is collected from the various sources, processed, and sent further to all the needy destinations. The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries: the managers and the top management.
The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modelling Systems and Decision Support Systems the MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing.
The MIS helps the clerical personnel in the transaction processing and answers their queries on the data pertaining to the transaction, the status of a particular record and references on a variety of documents. The MIS helps the junior management personnel by providing the operational data for planning, scheduling, and control, and helps them further in decision making at the operations level to correct an out of control situation.
If the gathered information is irrelevant than decision will also incorrect and Organization may face big loss & lots of Difficulties in Surviving as well.
Helps in Decision making:
Management Information System (MIS) plays a significant Role in Decision making Process of any Organization. Because in Any organization decision is made on the basis of relevant Information and relevant information can only be Retrieving from the MSI.
Helps in Coordination among the Department:
Management Information System also helps in establishing a sound Relationship among every person of the department to the department through proper exchanging of Informations.
Helps in Finding out Problems:
As we know that MIS provides relevant information about every aspect of activities. Hence, If any mistake is made by the management then Management Information Systems (MIS) Information helps in Finding out the Solution of that Problem.
Helps in Comparison of Business Performance:
MIS store all Past Data and information in its Database. That why management information system is very useful to compare Business organization Performance. With the help of Management information system (MIS) Organization can analyze his Performance means whatever they do last year or Previous Years and whatever business performance in this year and also measures organization Development and Growth.
The MIS helps the middle management, in short, them planning, target setting and controlling the business functions. It is supported by the use of the management tools of planning and control. The MIS helps the top management in goal setting, strategic planning and evolving the business plans and their implementation.
The MIS plays the role of information generation, communication, problem identification and helps in the process of decision making. The MIS, therefore, plays a vital role in the management, administration, and operations of an organization.
Learn and Study, What is the Importance of Directing Functions?
Directing is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Importance of Directing Functions with studying Definition of Directing! Directing is said to be the heart of management process. Planning, organizing, staffing have got no importance if direction function does not take place. Directing initiates action and it is from here actual work starts. The direction is said to be consisting of human factors. Also learned, Principles of Directing, What is the Importance of Directing Functions?
In simple words, it can be described as providing guidance to workers is doing work. In the field of management, the direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. According to Human, “Directing consists of process or technique by which instruction can be issued and operations can be carried out as originally planned” Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people towards the accomplishment of organizational goals.
Directing means giving instructions, guiding, counseling, motivating and leading the staff in an organization in doing work to achieve Organisational goals. Directing is a key managerial function to be performed by the manager along with planning, organizing, staffing and controlling. From top executive to supervisor performs the function of directing and it takes place accordingly wherever superior-subordinate relations exist. Directing is a continuous process initiated at the top level and flows to the bottom through organizational hierarchy.
It is that part of the managerial function which actuates the organizational methods to work efficiently for the achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing, and staffing are the mere preparations for doing the work. The direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating subordinate for the achievement of organizational goals.
Definitions:
“Directing concerns the total manner in which a manager influences the action of subordinates. It is the final action of manager in getting others to act after all preparations have been completed.” Massie
“Directing is the interpersonal aspect of managing by which subordinates are led to understand and contribute effectively and efficiently to the attainment of enterprise’s objectives.” Koontz and O’Donnel
“Directing is the guidance, the inspiration, the leadership of those men and women that constitute the real core of the responsibilities of management.”
Urwick and Breach “Telling people what to do and seeing that they do it to the best of their ability. It includes making the assignment, explaining procedures, seeing that mistakes are corrected, providing on the job instruction, and of course, issuing order.” Earnest Dale
“The heart of administration is the directing function which involves determining the course, giving order and instructions, providing the dynamic leadership.”
Marshall E. Dimock “Directing consists of the process and techniques utilizing in issuing instructions and making certain that operations are carried out as originally planned.”
Haimann remarks from the above definitions, we can conclude that the directing function of management is the heart of management process as it is concerned with initiating action. It consists of all those activities which are concerned with influencing, guiding or supervising the subordinates in their job.
The direction has following elements:
• Supervision
• Motivation
• Leadership
• Communication
(i) Supervision– implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers.
(ii) Motivation– means inspiring, stimulating or encouraging the subordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.
(iii) Leadership– may be defined as a process by which manager guides and influences the work of subordinates in the desired direction.
(iv) Communications– is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.
Importance of Directing Function:
Directing or Direction function is said to be the heart of management process and therefore, is the central point around which accomplishment of goals take place. A few philosophers call Direction as “Life spark of an enterprise”. It is also called as on actuating the function of management because it is through direction that the operation of an enterprise actually starts. Being the central character of enterprise, it provides many benefits to a concern which are as follows:-
It Initiates Actions – Directions is the function which is the starting point of the work performance of subordinates. It is from this function the action takes place, subordinates understand their jobs and do according to the instructions laid. Whatever are plans laid, can be implemented only once the actual work starts? It is there that direction becomes beneficial.
It Ingrates Efforts – Through direction, the superiors are able to guide, inspire and instruct the subordinates to work. For this, efforts of every individual towards the accomplishment of goals are required. It is through direction the efforts of every department can be related and integrated with others. This can be done through persuasive leadership and effective communication. Integration of efforts brings effectiveness and stability in a concern.
Means of Motivation – Direction function helps in achievement of goals. A manager makes use of the element of motivation here to improve the performances of subordinates. This can be done by providing incentives or compensation, whether monetary or non – monetary, which serves as a “Morale booster” to the subordinates Motivation is also helpful for the subordinates to give the best of their abilities which ultimately helps in growth.
It Provides Stability – Stability and balance in concern become very important for long-term sun survival in the market. This can be brought upon by the managers with the help of four tools or elements of direction function – judicious blend of persuasive leadership, effective communication, strict supervision and efficient motivation. Stability is very important since that is an index of growth of an enterprise. Therefore a manager can use all the four traits in him so that performance standards can be maintained.
Coping up with the changes – It is a human behavior that human beings show resistance to change. Adaptability to changing environment helps in sustaining planned growth and becoming a market leader. It is directing function which is of use to meet with changes in the environment, both internal as external. Effective communication helps in coming up with the changes. It is the role of manager here to communicate the nature and contents of changes very clearly to the subordinates. This helps in clarifications, easy adaptions and smooth running of an enterprise. For example, if a concern shifts from handlooms to power looms, an important change in technique of production takes place. The resulting factors are less of manpower and more of machinery. This can be resisted by the subordinates. The manager here can explain that the change was for the benefit of the subordinates. Through more mechanization, production increases and thereby the profits. Indirectly, the subordinates are benefited out of that in form of higher remuneration.
Efficient Utilization of Resources – Direction finance helps in clarifying the role of every subordinate towards his work. The resources can be utilized properly only when less of wastages, duplication of efforts, overlapping of performances, etc. doesn’t take place. Through direction, the role of subordinates become clear as manager makes use of his supervisory, the guidance, the instructions and motivation skill to inspire the subordinates. This helps in the maximum possible utilization of resources of men, machine, materials and money which helps in reducing costs and increasing profits.
From the above discussion, one can justify that direction, surely, is the heart of management process. Heart plays an important role in a human body as it serves the function of pumping blood to all parts of the body which makes the parts function. In a similar manner, direction helps the subordinates to perform in best of their abilities and that too in a healthy environment. The manager makes use of the four elements of direction here so that work can be accomplished in a proper and right manner. According to Earnest Dale, “Directing is what has to be done and in what manner through dictating the procedures and policies for accomplishing performance standards”. Therefore, it is rightly said that direction is the essence of the management process.
Learn and Study, the Strategic Human Resource Management Model!
There are several components that makeup SHRM. Each of these blocks has underlying values and assumptions that, in principle, have already been described. What is the Strategic Human Resource Management Model? PDF, PDF Reader, and Free Download. However, there are also contentious debates on whether there is any well-grounded model on strategic human resource management based on a specific discipline. The major differences are areas of emphasis between business strategies as determinants of human resource strategies and hence aiming at ‘strategic fit’ on one side or a universal approach to making human resource functions responsive to strategic business requirements. Also learned, Guide to Theories in HRM! The Strategic Human Resource Management Model!
The ‘universal approach’ or people as the resource for gaining a competitive advantage are based on the ‘resource-based theory’. This lack of clarity has led to a model that tries to capture important attributes of strategic human resource management model as depicted in Figure 1. The figure displays ten main tenets of strategic human resource management which characterize the philosophical nature of strategic people management and what managers and employees ought to put in place and do in order to excel in a competitive business environment. The description for each tenet is provided below.
Figure 1 Strategic human resource management model:
#Making strategic value choices:
Although the model suggests ten strategic variables of human resource management that have to be embodied in systems, practices, and competencies in order to guide employees as individuals and teams to higher level performance, managers have to focus on the most valuable aspects, depending on the organizational strategy. For example, an organization that emphasizes creativity and innovation will choose and reward employee behavior that demonstrates risk-taking initiatives. That is to say, each of the nine constituents of the model will have different aspects to deal with but managers will have to make decisions and choose systems, processes, programmes or activities with the most strategic value for the individuals, teams, and the organization.
#Strategic integration:
Since HRM is related to other organizational strategies, integration is not only desirable but also necessary to ensure that human resource management decisions are not made for their own sake. HRM policies and procedures need to be linked with an organization‘s strategy, its objectives, and its activities so that performance can be judged in terms of the degree of strategic fit between business strategies and human resource strategies. Also Free Download PDF File: The Strategic Human Resource Management Model!
#Employees as most valuable:
No organization can excel without having the right human resources. Experience suggests that human resources are a key factor in attaining a competitive advantage. It needs to be developed through nurturing, coaching, training, respect and love, care, and encouragement, which are key components of motivation packages. The degree to which the emphasis on staff development of both current and future performance requirements is taken into account depends on the position of the organization in its life cycle.
The premise that human resources are the most valuable of all resources also presupposes that human resource functions cannot be left to personnel departments alone. There is need to place this function to all functional departments with the human resource manager remaining a team leader. Optimal utilization of this asset requires that there should be a deployment of right numbers and skills at the right place at the right time. The old tradition where departmental managers struggled to build their own empires by recruiting and retaining staff no longer holds sway in strategic human resource management.
#Emphasis on management of support staff:
Along the same logic of valuing human resources, managers are challenged to support staff through various techniques so that the latter can have a sense of belonging, enjoyment from the job, gain confidence in the management, identify with the organization and feel that they own it. Informal interactions, open door policy, coaching and mentoring, attractive employee welfare schemes are some of the techniques used to support staff and make them feel proud of their work and the organization.
#Strengthening management and employee’s commitment:
Commitment at all levels of the organizational structure depends on the perceptions and attitudes of both the management and employees towards each other. Negative perceptions and attitudes are the sources of low morale and lack of interest in both the job and the organization. For example, if employees feel that management ignores them when the former attempts to exercise their rights, the level of commitment would be low. Similarly, if the management feels that the workers are lazy and too demanding, they are likely to lose commitment in supporting such staff. However, since in principle, strategic human resource management should be the responsibility of top management, any sign of low employee commitment is the result of poor handling of human resource management issues at the top management level.
Employee commitment can be secured through various techniques. Some are ritualized including organizational songs, slogans, attire or informal gatherings such as cocktail parties etc. Employee involvement in the affairs of the organization through the contribution of ideas, motivation through encouragement, recognition of the individual as well as group efforts in accomplishing tasks by rewarding appropriately make a difference in inducing commitment from staff.
#Effective communication:
Effective communication occurs when a message is received and understood in the same way as the sender intended it. It involves the careful organization of ideas, assessment of the right mode of transmission and the nature of the receiver. Studies have shown that most problems experienced in people management are due to poor communication. Strategic human resource management appreciates the role of communication as a critical tool in day-to-day human resource management. Open channels of communication that build trust and mutual understanding, helping employees to internalize the organization’s vision, mission statement, core values, policies, objectives, and activities are essential.
Frequent meetings with the top management, departmental and team meetings present the best opportunities for effective communication. Other channels include close interaction between staff and supervisors, billboards, brochures and instruction manuals. Informal communication is very useful in disseminating information if the danger of rumors and gossip is to be contained.
#Decentralisation for empowerment:
Strategic human resource management calls for a decentralization of decision making and problem-solving at the lowest levels possible in the organizational hierarchy. That is, allow decisions to be made at the very source of activity. Operational staff and teams are the public faces of the organization. Therefore they need power, authority, and motivation to take the right decisions at that level. Organisations with a human resource management culture cannot afford to embarrass themselves in front of a valued customer by failing to conclude business deals simply because a particular manager has to make a minor, unnecessary routine decision.
#Flexibility and adaptation:
The nature of today’s business’ success lies in the ability to promptly respond to the unpredictable and fast-changing environment. Flexible but robust rules and regulations, flatter organization structures, preference for a multi-skilled workforce, and use of convertible production technologies are some of the strategies used to improve an organization’s ability to cope with environmental pressure.
#Creativity and innovation:
SHRM calls for the management and employees to work together and come up with new ideas that can be put into practice so that new business opportunities can be created. With regards to employees’ management, creativity and innovation are required in areas such as pay schemes that are internally fair and externally competitive, job enrichment, enlargement, leadership, team building, retraining, and better employment arrangements.
#Obsession with quality:
In the language of total quality management, the customer is always right and quality is seen in the eyes of customers. In order to produce the best quality goods and provide the best quality services as perceived by the customer when compared to other producers or suppliers, the organization need staff orientated towards, and a motivation for excellence in quality products and services. Careful recruitment and selection of staff, appropriate training and development programmes, use of quality circles, and performance management systems that reward employees according to contribution are some of the strategies used to build and sustain a culture of quality.
The oval-shaped pictorial view of the model and the interaction between variables emphasize the fluidity, complexity and dynamic nature of the SHRM model. For example, effective communication will have a symbiotic multiplier effect on decentralization, employee commitment, creativity, integration etc. To use the language of cybernetics, the ‘whole’ is greater than the ‘sum’ of the variables. At the center of the model, we have organizational ability to implement each of the requisite strategies. This puts emphasis on the ‘doing’ rather than the ‘talking’ and therefore, it might be better to have a strategy of limited quality which is well implemented as opposed to having an excellent one which is almost impossible to implement.
Learn and Study, How to Integrating Business Strategy with Human Resource Strategy?
Strategy – is a plan or pattern that integrates an organization‘s major goals, policies, and action into a cohesive whole. Integrating Business Strategy with HR Strategy! PDF, PDF Reader, and Free Download. By drawing from strategic management literature, Bhatia (2007) looks at strategy in terms of a statement of the direction in which an organization wants to go and what it wants to become. Also Learned, Why Change to HRM? How to Integrating Business Strategy with Human Resource Strategy?
However, human resources must shape this direction. Therefore, as organizations become strategic, the same strategic decisions on managing people become necessary. Strategic decisions are decisions that determine the overall direction of the organization. Fombrun et al. (1984) regard strategy as a process through which the basic mission and objectives of the organization are set, and the process through which the organization uses its resources to achieve its objectives. Other scholars relate the strategy to a competitive advantage.
For example, Miller (1989) defines strategy as encompassing those decisions and actions that concern the management of employees at all levels in the business and that are directed towards creating and sustaining a competitive advantage. Human strategies like production, financial, marketing and others should be integrated with business strategy in order to establish operational linkages. Although strategic integration between business strategy and human resource strategy is desirable, it has not been an easy task.
Indeed, American and British firms have experienced disjointed and at many times side-lined human resource strategies in the overall organizational management process. In assessing the utility of strategic fit to the performance of the organisation and the overall improvement of human resource management functions, Green et al. (2006) concludes that the organisations that vertically aligns and horizontally integrates human resource functions and practices, perform better and produce more committed and satisfied staff that is the case with the organisations which do the opposite. Vertical alignment refers to the alignment of human resource practices to the organizational context in order to support specific organizational objectives.
Characteristics of vertical alignment include:
The top management incorporating human resource plans, requirements and activities during the establishment of the organization’s direction,
Top level managers being trained to integrate all levels of the organization’s management hierarchy and functional departments into the organizational decision-making process and
The human resource department is fully integrated into the strategic planning process.
Horizontal integration is the degree to which specific human resource practices are orchestrated in a coherent and consistent manner to support one another in the best way possible and to integrate with other departments.
The following are the characteristics of horizontal integration.
The human resource department works hard to maintain the corporate partnership with individual managers,
The human resource department regularly checks with other departments to identify organizational training needs and
The human resource department supports departmental managers in carrying out critical human resource management functions as part of their core functions and activities.
Therefore, the corporate strategy should set the agenda for human resource strategy in the following key areas:
#Mission:
This concerns setting the future of the organization. What will the organization be like, serving which purposes and to what extent? This will provide some indicators on the quantity and quality of staff that will be required to effectively transform the functioning of the organization to that level. This will form the basis of the human resource mission.
#Organisational culture:
Organisational culture could mean different things to different people because it depends on individual interpretation. We do not see the world around us in the same way and hence our interpretations of reality are different. An organization’s culture develops itself over a long time. Handy (1993) describes an organization culture as deep-seated beliefs, values, norms, attitudes about the way work should be organized, the authority exercised, people be managed, the degree of informalisation, obedience by subordinates, punctuality, adherence to rules and regulations etc. This framework is useful guidance in the process of developing human resource policies, regulations, and procedures in order to avoid possible contradictions between the established organizational culture and people management at lower levels.
#Human resourcing:
The process of human resource acquisition will depend on business strategy. For example, if new production lines are to be installed in three years’ time, there is no doubt that new skills will be required. Plans have to be made including training and recruitment so that there is the qualified staff of the right size to manage the new production line. The same will apply to service provision whether in the private or public sector organizations.
#Commitment:
As we noted in the first chapter, commitment to the organization cannot start at the bottom of the ladder. Employees have to see, feel, and believe that the top management is committed to making the organization the best place for them to work. Business strategies have to indicate that top management commitment in order to create enabling environment for human resource management strategies. Also Free Download PDF File: How to Integrating Business Strategy with Human Resource Strategy?
#Productivity:
Productivity is an indicator of how best resources are utilized in the organization. Business strategy has to set out performance targets, standards, and measurements. This will form the basis for developing strategies for acquiring the right skills, numbers and performance management as well as reward systems.
#Employee relations:
The relationship between the employee and the management as well as the relationships between employees themselves also depends on business strategy. For example, if a business’s future is not promising, it will certainly affect working relationships. Strategies have to be developed in order to avoid grievance and disputes that could become very costly to the organization. Such strategies could include work-sharing arrangements, introducing work shifts, voluntary retirement, part-time job arrangements and similar action.
Learn and Study, the Rationale of Strategic Human Resource Management (SHRM)!
The literature on the development of traditional human resource management for the past thirty years and more has been on the emphasis for a complete shift from traditional human resource management to strategic human resource management. The Rationale of Strategic SHRM! The arguments fit into a widely accepted reason for accepting strategic human resource management as a way forward for corporate excellence. The main contributions come from debates developed during the molding of British and American models of human resource management. Also learned, How to Sharing HRM Functions? The Rationale of Strategic Human Resource Management (SHRM)!
Therefore, according to these debates, the rationale for SHRM is summarised as follows:
#It is an integral part of the business strategy:
Business strategy is a plan that indicates the direction of the organization. It brings the organizational vision, mission, policies, goals, and objectives together. It can be at the level of the organization, department or business unit. It is developed based on the knowledge of the organizational environment including strengths, weaknesses, opportunities, and threats. Since the organization will have different strategies including, technological, capital, energy, marketing, finance etc, human resource strategy is one among many strategies but is more important than others because of its human nature.
#The link between business strategy and HRM:
Any business strategy will have human resource implications which include number, qualifications, working hours, training, pay, conditions of work etc. If, for example, one of the business strategies is to change the line of business after 5 years, then the necessary changes have to be planned as part of human resource strategies including training, layoffs in time, sub-contracting some jobs etc. as the need arises.
#Formally declaration of intentions in managing HR:
Securing the commitment of employees requires the building of trust on the part of the management. Employees have to be assured of their future in the organization through some kind of documentation. Human resource strategy is one such useful document; it gives a rough picture of how the management values employees and the reasons as to why employees should be committed to the future of the organization.
#Generating a competitive edge:
A competitive edge is generated from the quality and number of staff the organization has. Quality is measured in terms of the level of competence while the staff numbers depend on the required employee – job ratio and the number of working hours. Human resource strategy is a tool used for assisting the organisational process of gaining a competitive edge by recruiting the best people, using the best labour in the most effective way and putting the incentives in place that can retain the best people and develop them so that they, through their knowledge, stand at the forefront of management and labour utilisation.
#The partnership between the management and workers:
Under SHRM, the director of human resources represents employees as a partner in the business. Employees are partners in business in the sense that they have a stake in the organization that requires the full cooperation of all parties so that, organizational objectives, team objectives as well as individual objectives are realized. An SHRM document is useful in identifying the role of each partner in strategic business performance. Millmore et al. (2007) have dealt in detail with the roles of human resource strategy and which are well summarised by Bhatia (2007).
These include shaping the mindset of the management and staff, facilitating the process of decision-making and action to be taken, working on human resource implications of specific strategic decisions and establishing strategies for cost reduction, defining opportunities for better capacity utilization, and creating future managers by nurturing talent.
Learn and Study, the Strategy and Strategic Human Resource Management (HRM)!
Strategic human resource management (SHRM) has attracted the attention of many scholars in human resource management, particularly those who shaped the development of the human resource management concept. The Strategy and Strategic of HRM! PDF, PDF Reader, and Free Download. Several definitions have been developed but they are not independent of ideas of general strategic management. Also learned, Critiques of HRM! The Strategy and Strategic of Human Resource Management (HRM)!
For the purpose of raising and comparing issues covered in the areas of strategic human resource management, three definitions are offered below.
The first is from Harrison (1993: 36) who defines strategic human resource management as:
“An overall and coherent long-term planning and shorter-term management, control and monitoring of an organization‘s human resources so as to gain from them the maximum added value and best position them to achieve the organization’s corporate goals and mission.”
This definition is about decision making and the process involved in terms of putting decisions into action. The main focus here is on planning for human resources, putting management systems in place so that staffing functions maximize the use of people as required by the organization. In other words, strategic human resource management exists only if the future of the organization is set and human resource strategies are developed and used to realize the future through the present.
An aspect of short-term management control and monitoring is necessary for the realization of the mission and goals. Chaturvedi, in Karadjova-Stoer & Mujtaba (2009) considers strategic human resource management as ‘linking human resource with strategic goals and objectives in order to improve business performance and develop an organizational culture that fosters innovation and flexibility’.
This definition is derived from both resource dependency and strategic management theories within the environment where the success of the organization is based on the ability to develop the most robust business strategy, coupled with having the right people to pursue it. However, it is important to note here that the word ‘business’ also covers transactions for profit.
Therefore, the achievement of the desired future for the organization is seen in terms of the ability to manage employees as the only resource that can mobilize and manage other resources. Therefore, failure to make the right decisions about people management leads to failure of the future of the organization.
Walker (1992) is more interested in the means rather than the end of strategic human resource management. The author points to the need for linking such means with the strategic component of the organization, thus strategic human resource management is about the methods of aligning the management of human resource with the strategic content of the business.
The general understanding derived from this definition is that staffing functions (recruitment, selection, placement, appraisal, rewards etc), which are used as a means of managing people should be directly linked to the strategic choice of the organization. Such choice could be growth, survival, merger, closures, diversification etc. Bhatia (2007: xiii) supports the same conceptualization of linking organizational strategy with people management by defining SHRM as:
The overall direction the organization wishes to pursue in order to achieve its goal through people as a strategic resource for the achievement of competitive advantage.
From this perspective, the goal is to generate strategic capability by ensuring that the organization has talented, skilled, committed, and well-motivated staff.
From the above definitions and scope of strategic human resource management, it is tempting to suggest that as much as it is not possible to come up with a comprehensive definition of strategic human resource management that will not be too wordy and confusing, or too short to give a clear picture of the strategic issues involved, human resource management could also be defined as the process of managing the workforce such that the organisation achieves a sustained competitive advantage over others.
Here, market forces are the drivers for strategic decision-making processes and implementation of staffing functions. In this case, strategic human resource management is both a proactive and reactive management process that transcends organizational lifespan.
Learn and Study, The Critiques of Human Resource Management (HRM)!
Human resource management has become so well established that if you talk about personnel management it seems old-fashioned. The Critiques of HRM! PDF, PDF Reader, and Free Download. Yet, there are limitations, which have also triggered questions as to whether the whole debate is not more of an academic pastime rather than utility in practice. Also learned, Philosophies and Objectives, The Critiques of Human Resource Management (HRM)!
Knowledge and skills of linking human resource strategy with business strategy are taken for granted. This task is housed in the human resource department whose staff is not necessarily trained in strategic business management. This casts doubts on the ability to establish that link.
#Human resource managers may not be perceived as business partners:
The doctrine that human resource managers should be seen by fellow managers as partners in business may be wishful thinking rather than what actually happens in practice. According to Schuler (2000), in reality, human resource managers are treated by other managers as a ‘second-class citizen’, whose role is more of a supplier of personnel.
#Conflict of roles:
The assumption that a human resource manager takes the role of a partner in business implies that he/she should be on the side of the management and hence employees should represent themselves. This scenario increases employees’ feeling of isolation and neglect, which can give rise to conflicts and disputes.
#Role ambiguity:
The assumption that the human resource manager should be a generalist and at the same time be able to handle specific human resource functions, leaves much to be desired with regards to the type of training suitable and efficient in human resource functions.
#Subjectivity:
The use of other strategies like teamwork, 360 degrees appraisal, and performance-based pay increase the use of subjective value judgment about individuals which may de-motivate some employees and trigger counter disruptive behaviors including rent-seeking or ‘just please the boss’ attitude.
Eight years earlier, Legge (1992) had gone further in criticising the relevance of human resource management theories to the level of almost throwing the whole philosophy out of the window. To him, human resource management poses ambiguities and contradictions such that it does not offer much which is new to academia and practicing managers. It is regarded as similar to personnel management, or a different way of referring to an advanced form of personnel management, a change of emphasis on key employee management issues and others. Table 1 presents a few of the areas of skepticism, hence making personnel management (PM) seem similar to human resource management (HRM).
Table 1 Similarities personnel management (PM) and human resource management (HRM):
Item
PM
HRM
Integration of PM/HRM policies with organizational goals
Line management involvement in employee management
Employee motivation and commitment
Adding value
Source: Legge (1992).
Legge’s criticisms may contribute to the understanding of where personnel and human resource management meet and therefore help us to understand why some writers in human resource management use the concepts of personnel and human resources management interchangeably. In trying to differentiate personnel management and human resource management, and indeed, based on a critical review of key chapters in Storey’s book and other contributors to the development of human resource management in the 1980s, Armstrong (1995) has summarised the comparison between PM and HRM as shown in Table 2.
Table 2 Differences personnel management (PM) and human resource management (HRM):
Item
Personnel management
Human resource management
Goals and values
Incremental interventions in attracting, retaining, motivating workers
Strategic focus. competitiveness, profitability, survival, competitive advantage and workforce flexibility
Professionalism
Personnel managers are accountable for employees’ matters (for which they are trained)
Line managers are accountable for their staff (they are multi-skilled)
Relations
Limited trust, conflict, and differentiation, control oriented
Harmony, mutuality of interests, active employee involvement
Employee management
Narrow in focus individualized
Broad and team focused
Information and communication
Control information and communication, bureaucratic, secretive
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Learn and Study, How to Sharing human resource management functions?
The traditional personnel management practice housed personnel functions in the department responsible for personnel due to the dominance of functional specialization by the departments. How to Sharing HRM Functions? PDF, PDF Reader, and Free Download. Under functional specialization, managers who were not directly involved in the production line were considered staff managers and their functions were categorized as ‘staff functions’. Today, the distinction between line and staff managers seems to be overtaken by events in modern organizations because the concept was based on the assumption that functional specialization was the best way to manage tasks; this is no longer the emphasis in some organizations today. Also learned, HRM Philosophies and Objectives! How to Sharing Human Resource Management Functions?
However, the concept is still in use in some organizations, perhaps because old habits die hard and there is an inability among organizations to develop and manage a sufficiently multi-skilled workforce. Therefore, the use of the concept of line manager here is consistent with current thinking in our organizations. Human resource philosophies and objectives have also implied that human resource management functions can no longer be centralized in any one department. They have to be decentralized to various functional departments underline managers without avoiding duties and responsibilities at the human resource department level. In this case, some of the roles of line managers include the following.
Employee resourcing:
Line managers are responsible for developing operational and annual action plans and budgets for their departments. Such plans have human resource management implications in terms of their number and quality of which the line manager should be aware and actively participate in ensuring that the departmental objectives are achieved through people. It is the responsibility of the line manager to make sure that job analysis is effectively done, job descriptions and specifications are clear enough to be able to attract, recruit and select the most appropriate people to fill the available vacancies.
Employee utilization:
Effective employee utilization is critical, not only for the good of the organization but also for the good of individual employees and their teams. Underutilised staff is a lost resource to the organization in terms of opportunity cost because even if the employee has enough work to earn a salary, the added marginal labor value will not be realized. The employee will also not have the advantage of utilizing his/her full potential and get extra rewards. However, overutilization of staff will lead to stress, fatigue, and other health problems or even the risk of loss of life. It is the duty of the line manager to put in place job strategies, objectives and targets, which are challenging enough, but not overstretching the staff ability.
Performance and reward management:
This involves setting performance criteria, assessing performance and rewarding accordingly. Without performance assessment, it will be difficult to know whether the department is achieving its objectives or not and to what extent. It is the responsibility of a line manager to sit with employees and sign a performance agreement, which will be used as the basis of individual performance appraisal. The contract itself can be permanent, temporary, part-time, but in a performance management system, the rewards are based on performance. This can be in the form of salary increment, renewal of contract, bonus, promotion, training etc.
Training and development:
Common wisdom tells us that the owner of the household knows better than the neighbor. Line managers are involved in day-to-day operations of the department. They are expected to know both general and specific knowledge, skills and attitudes required to effectively perform specific tasks by individuals, teams, and the whole department. They are also expected to know the kind of competencies that will be required in the future and help staff develop such competencies through career development programmes.
Handling of other human resource management functions:
Other human resource management functions may be routine or occasional and would be part of the jobs of the head of a department. These would include coordination, building a departmental team spirit and culture of performance, staff promotions, transfer, leave, managing disputes, taking disciplinary measures and layoffs. Download PDF File: How to Sharing Human Resource Management Functions?
The emphasis that line managers should be responsible and accountable for human resource management in their respective departments does not deny the human resource department its central role in ensuring that strategic objectives of the organization are achieved through effective people management. Also acknowledged by Terrington & Hall (2005), in working hand in hand with line managers, human resource managers play other important roles, which are not in conflict with what line managers do; such roles include:
Formulation of human resource strategies:
Human resource managers play a pivotal role in developing human resource strategy and policies that fit the organizational and business strategy. The roles of human resource managers are as explained below.
Provision of guidance to other managers:
The human resource manager as an expert is expected to provide guidance to other managers and staff on the interpretation of personnel strategies and policies in various areas which include human resource implications of organisational and business strategies, human resourcing, staff training and development, disputes and grievance handling, employment legislation, health and safety, layoffs etc.
Facilitation of change management:
Organisations pass through various life cycles, which require change and adaptation. Human resource managers should be well placed to facilitate the required changes in terms of design, interpretation of the implications of change and how best they could be managed. They should also be involved in the process of introducing change, including creating staff awareness and putting conditions for facilitating a change process in place.
Employee empowerment:
The concept of power is not value free. It depends on the individual perception of the source of that power and how it is interpreted and used to influence human resource management functions. The employer has many sources of power including the ability to reward and punish. Similarly, employees can reward or punish employers by deciding how and when to use their knowledge, skills, and attitudes to build or destroy the organization. It is the role of the human resource manager to ensure that there is no abuse of power and employees are empowered to make the right decisions on the shop floor in order to create an enabling environment for creativity and innovation.
Support services to other departments:
A human resource department is a place where professionalism in people management is found, thus it should be well prepared and ready to provide support services to other departments as may be required. Some areas include, the design of different instruments for transacting human resources, designing and putting in place the appropriate organisational structure and jobs for each functional area, recruitment, and selection, performance management system, training needs assessment, training and development, and employees services including pension, leave, transport, retirement, retrenchment and burial.
Human resource management, HRM, or HR Philosophies and Objectives tips, is the strategic approach to the effective management of an organization’s workers; so, that they help the business gain a competitive advantage; it designs to maximize employee performance in the service of an employer’s strategic objectives. Best HRM Philosophies and Objectives PDF, PDF Reader, and Free Download. Also, The responsibilities of a human resource manager fall into three major areas: staffing, employee compensation and benefits, and defining/designing work. Also learn, Guide to Theories in HRM, Human Resource Management Philosophies and Objectives tips.
Learn and Study, How to Human Resource Management HRM Philosophies and Objectives Tips.
As Best Philosophies of human resource management HRM:
The Harvard and British human resource management schools and the two definitions cited from John Storey and Michael Armstrong and others suggest that human resource management is not without philosophy. Also, there are six elements on which human resource management philosophy and practices are based;
First is ownership.
Human resource management is and has to be owned and driven by the top management in the interests of the key stakeholders. Also, The stakeholders include shareholders, the managing board, the workers, clients, and customers. This is unlike the old tradition in which personnel management functions were mostly vested in designated officers under a personnel department. Under human resource management, the philosophy is that the top management owns; and, drives the agenda for effective people management in an organization.
Second is Business:
Business or organizational strategies form the basis for human resource strategies, and there should be a strategic fit. Also, This opposes putting emphasis on routine activities, reactive decision making and limited vision which seemed to characterize traditional personnel management. The implication is that an organization cannot have a strategic approach to managing the workforce without organizational and business strategy. Here, an aspect of flexible human resource planning comes in, and the ability to use the best forecasting techniques is a precondition for human resource acquisition, utilization, development, and retention.
The third is Employees:
Is considering employees as assets rather than liabilities. Under traditional personnel management philosophy, training and development of employees were quite often seen as a cost that should be avoided whenever possible. Also, Now this doctrine has been turned on its head. Investment in people, like any other capital investment, is necessary for better returns in the future.
Fourth is Value:
Is getting additional value from employees. Also, Employees are capable of producing added value. It is the role of the management to obtain such added value through human resource development and performance management systems. The concept of added value borrows from production economics. It stipulates that an employee can utilize to produce marginal output if properly trained, does the right job, and reward accordingly. Work measurement and matching jobs with the right people; as well as, measuring performance against the set targets and standards stand out clearer under the human resource management school of thought.
Fifth is employee commitment.
Organizational success comes from the employees’ total commitment to the organizational mission, goals, objectives, and values. Also, Employees’ understanding of the future of the organization; and, their own future in the organization triggers commitment and hence sustained productivity. It is the task of the management to induce and encourage that commitment.
Sixth is also based on employees’ commitment.
Building a strong organizational culture gives managers an advantage in stimulating employees’ commitment. Effective communication, training, coaching, mentoring and performance management processes are effective tools for building a strong corporate culture.
These philosophies have been accused of being insensitive to the human face of working relationships because they are, in many ways, about tightening the nuts and bolts in every aspect of employment. As a strategy to reduce what seemed too extreme hard-nosed human resource management philosophies and practices (that is employers were becoming too selfish, individualistic, and greedy – trying to maximize whatever possible benefits at the expense of employees); the focus in the 1990s changed somewhat.
The direction changed more towards team working, employee empowerment; organizational learning, and competency-based human resource management. Also, Human resource management debates of the 1990s and 2000s became focused on trying to understand these new concepts, and, how useful they are in improving human resource management functions in modern organizations. Other areas are the internationalization of human resource management; and, the impact of globalization on human resource management, particularly in the developing world.
As Top Objectives of human resource management:
The objectives of human resource management derive from the philosophies; which tie the emergence and development of human resource management together, both as a discipline and profession (Beer & Spector 1985; Cuming 1985; Armstrong; 1995; Dessler 2005).
The First Objective.
The whole aim was on trying to achieve an organizational mission, vision, goals, and objectives using people as valuable resources. Unlike the traditional personnel management theory whereby employees were seen as instruments needed to accomplish work in organizations; human resource management managers recognize and appreciate the need for putting people at the top of the agenda in achieving organizational objectives. As the power of the organization depends on the nature of the workforce; putting employees first in all human resource management functions in the organization; and, making them feel that they are at the top sees as a step further in putting the organization first among competitors.
The second objective concerns the utilization of staff capacity.
Successful organizations are those that can fully utilize the potential of their employees. Also, This manifests itself in different approaches used in job design, recruitment, and placement. This includes redesigning jobs so that related jobs can be done by one person, recruitment of multi-skilled employees, part-time work arrangements, sub-contracting etc.
The third objective.
Involves ensuring that employees commit to their jobs, teams, departments, and the entire organization. Striving for total employee commitment intends to minimize unnecessary conflicts between the employees; and, the management that could result in low morale among the employees, high employee turnover, and ultimately low productivity. Also, Commitment foster by using various strategies including employees being nurtured through coaching, mentoring, and the provision of lucrative rewards.
The fourth objective.
Is to ensure that organizational systems, processes, and activities integrate and synergized through a strong organizational culture. Organizational culture makes up of values, attitudes, norms, myths, and practices that are ‘how things are done around’. Different categories of jobs, professions, and departments see as a ‘whole’ rather than disjointed. Organizational symbols, songs, artifacts, etc. use to foster a culture of uniqueness; which makes employees feel proud of their jobs and the organization.
The fifth objective.
Is optimal utilization of available resources. In the language of economics, resources are always scarce. Organizations cannot succeed if resources (employees, finance, machinery and equipment, energy) overutilize, underutilized, or utilize at the wrong time or in the wrong place. Each of these scenarios would suggest that there is a waste of resources because some will easily deplete, unnecessarily leaving them idle or being uses unwisely. In this case, matching resources with performance is a mechanism for monitoring organizational efficiency. Quite often time/activity/outcome and budget schedules use to match resources with performance. Any observed underutilization or overutilization of resources has implications in terms of how the human resources were used and measures are taken accordingly.
The sixth objective.
The reason for embracing human resource management practices derives from organizational cybernetics and systems theory whereby the underlying principle is that ‘the sum is less than the whole’. From a human resource management perspective, each job, organizational unit, section, department, and all categories of staff see in their totality. Working together instead of as an individual is a method for improving synergy at all levels. Departmental outdoor training programs are some of the initiatives use to improve synergy at the functional level.
The last objective.
But one objective covers the utilities of creativity, innovation, teamwork, and high-quality management as key drivers in organizational excellence. Matching with changing customer needs and expectations requires the presence of an environment for creativity, innovation, team working and an obsession with quality. These ideas largely borrow from Tom Peters and Robert Waterman on an ideal situation for effective organizations in search of excellence, Joseph Schumpeter on the power of creativity and innovation, Joseph Juran, Edwards Deming, and Ishikawa Kaoru on the emphasis of ‘quality in the first time and zero defects’ as part of organizational culture in high-quality management.
These are cited as key explanations for the excelling of Japanese and other East Asian companies. Decentralization of decision making to the lowest levels in the organization structure, adaptation of flatter organizational structures, open office layouts, team-building exercises, encouragement, support, and reward for innovative ideas; and, the use of quality circles in job performance are some of the strategies used to keep the organization at the cutting edge.
The last objective is to enable managers to be flexible; and, adapt to changes required in pursuing excellence in human resource management functions. Fast-tracking a change in an organizational environment requires the ability to take prompt decisions and take the right measures before it is too late. Also, Flexibility and adaptation seek to reduce bureaucracy and inflexible working rules and regulations. Above you may understand about Best Human Resource Management HRM Philosophies and Objectives; What matters most is not ‘how the job is done but what is achieved’.
Human Resource Management HRM Philosophies and Objectives
Learn and Understand, Why Change to Human Resource Management?
From the late 1970s and early 80s, we witnessed many developments and challenges which disturbed the stability of economic, political, technological and academic environment experienced in the 1960s. The Evolution and Development of HRM are Continue, Next, Why Change to HRM? with PDF, PDF Reader, and Free Download. Also learned, MIS, Why Change to Human Resource Management?
These challenges have had enormous impacts on people management in organizations perhaps more than at any time in human history.
The shift in global macro policy framework:
The late 1970s and early 80s was an era of neoliberalism in which market forces were a driver of institutional frameworks of nation states and organizations. This was a period when we witnessed strong arguments against direct state involvement in the economy. It is not clear what was the ‘chicken’ or ‘egg’ between politicians and academics or who these people, often referred to as ‘experts’ of the World Bank and the International Monetary Fund are, and what their role in the architecture and birth of neoliberalism and marginalisation of the role of government in economic development is.
However, whatever the case may be, both politicians and consultants were important in the doctrine of neoliberalism. One of the foremost advocates of neoliberalism was the former conservative British Prime Minister Margaret Thatcher and her counterpart conservative president of the United States of America Ronald Reagan whose philosophies were known by their names, that is, Thatcherism and Reaganism respectively.
They brutally blamed earlier liberal governments for causing the economic crisis of the 70s through excessive government control of economies and overprotection of employees. The privatization of state-owned organizations, relaxation of legislation in favor of the private sector and the urge for profit maximization became the new agenda and both the desired and required framework for managing organizations and the workforce. Therefore, costs consciousness and the pressure to justify the role of employees in developing and sustaining organizations in the market became a challenge. Failure to respond to these challenges through proper personnel management strategies was seen as a slippery slope towards the collapse of companies that had long historical roots of the successful business.
Business competition:
The 1980s and early 90s witnessed an uncertain, chaotic and often turbulent business environment. Increased competition from Japan and other international companies with cheaper but high-quality goods was a challenge to American and European organizations. In reaction to the new competition and as a strategy for coping with the crisis, a substantial number of organizations experienced takeovers, mergers, and business closures. These were also accompanied by heavy losses of work, working on part-time, the need for individuals to become multi-skilled, and the contracting out of some work. Partly as a way of addressing these challenges the role of the personnel specialist had to change from reactive to proactive and from routine to strategic approach to the management of personnel functions so as to be able to match the unpredictable environment.
Change in customer needs and expectations:
A change in customer taste, fashion, and quality of goods to reflect their purchase price put more pressure on the organizations to get the best out of their production systems, processes, and employees. This could only be achieved by getting the best people from the labor market, develop, reward, and ensure that they are committed to high-quality service to the organization. In order to achieve these objectives, an enabling environment for employee creativity and innovation became a necessity. This new demand had an impact on recruitment and selection criteria, staff development and reward systems as well as the roles of personnel specialist’s vis-à-vis line managers in personnel management functions. The role of personnel had to change from that of a doer of personnel functions to that of a partner in providing support services to other departments to perform personnel functions. Also learned, Guide to Theories in Human Resource Management!
Technological change:
The competition was also intensified by the organizations that could adopt and adapt flexible specialization technologies to meet customer needs and expectations. The implications were that organizations had fewer, but better-trained people, flexible to cope with rapid technological changes. Continuous learning and adaptation based on teams became a natural area of focus on people management. Information technology destroyed knowledge monopoly. The power of knowledge became how best to use it, rather than who owns it.
Change of philosophy of employee relations:
The power of employees was through legislated trade unions where thousands of employees under the industrial production system held power. Therefore, the power of individual employees in the employment relationship was vested in a collective solidarity. Mass redundancies, less protective role of the state, as well as the declining role of trade unions, made life more individualistic than collective. The change of employee relations from collectivism to individualism was an automatic consequence of the above changes. Employment relations became more based on arrangements and agreements between the employee and employer as opposed to the use of trade unions and labor legislation.
Developments in the academia:
Building on the knowledge accumulated in previous decades and research that was being conducted particularly in the 1980s and early 1990s, it appeared that organizational strategy and strategic approach to managing employees was the best option for responding to challenges facing organizations (Hendry 1995). The Human Resource Management School, advanced by academics from America and Europe, which spearheaded the concept of ‘strategic approach’ to managing people, became the center of debates and development of human resource management as a philosophy distinct from personnel management. The Excellence School propounded by Peters & Waterman and their followers on the role of strong organizational cultures and commitment to excellence also have had a remarkable influence on the development of human resource management (Storey 1989). Some areas of corporate management including the size, structure, strategy, culture, product, and organizational life cycle were now included in human resource management (Schuler 2000).
The major issue was how personnel management functions could make an impact on the functional level, as part of supporting other departments, as well as being part of business strategy. Personnel managers had to become partners in the business. As part of improving employees’ utilization, a more rigorous method of assessing the performance of employees in relation to rewards was also developed. The introduction of performance management systems and reward systems based on performance was an indication of changes in personnel management practices.
Within these changes, personnel management was redefined and the concept of ‘human resource ‘vis-à-vis ‘personnel’ was adopted, although the debate concerning the differences continues (Storey 1989). However, as may appear in the literature, the difference between ‘human resource’ and ‘personnel’ may be clear or unclear (Armstrong 1995). This difference depends on the taste, or on the taste and fashion rather than on what managers do, this is notwithstanding the fact that most academics and managers in organizations use the term human resource management as opposed to personnel management when referring to people management even without making the conscious effort to distinguish between the two.
Perhaps the most popular definitions of human resource management are those suggested by Storey and Armstrong because such definitions are based on thorough reviews of earlier works from both American and European human resource management debates. Storey looks at human resource management as:
… A distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce using an integrated array of cultural, structural and personnel techniques.
It is worth noting here that the focus of human resource management is on employee management techniques that are directed towards gaining competitive advantage depending on the adopted business or organizational strategy. Armstrong also appreciates the role of strategies but goes further by emphasizing the need for robust personnel systems, which will take care of employees (individuals and teams), as valuable assets where investment is crucial. Thus, he defines human resource management:
… As a strategic and coherent approach to the management of organizations’ most valued assets – the people working there who individually and collectively contribute to the achievement of business objectives.
By looking at the various debates in academia and good practices in personnel and human resource management, human resource management may be further defined as a strategic approach and management practice of managing employees so that there is the sustainable achievement of an organizational mission, goals, and objectives. These definitions are conclusively derived from the American and European schools of thought.
The evolution and development of human resource management have relied on two traditions. These are the American, alias Harvard and European under the leadership of British academics, particularly from the University of Lancaster.
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