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How to Manage the Human Resource Asset of the Company
People are our greatest asset. We compete for business through the people we employ. It is for our advantage to ensure that our greatest asset, albeit the most elusive one, the human capital - the human resources, is utilized to its best and highest use (Weatherly, 2003). We acknowledged that the workforce constitutes a vital and valuable organizational asset in our modern human resource management practice (Human Resources in UK, n.d.). Therefore, managing human resources effectively is very important as it is today and will be tomorrow (Clardy, 1996).
Human resources management (HRM) involves the establishment and execution of policies, programs and procedures that influence the performance, capabilities and loyalty of the employees of an organization. Individuals are attracted, retained, motivated and developed to perform the work of the organization through these policies and procedures. (Clardy, 1996)
Similarly, it is through these policies and procedures that the organization seeks to mold and shape the actions of its employees to operate successfully, comply with various public policies, provide satisfactory quality of employment and improve its position in the marketplace through strengthened ability to compete and serve. (Clardy, 1996)
As Beer, Spector, Lawrence, Mills and Walton (1984) noted, HRM is really a series of policy choices about how employees are to be treated, paid and worked (as cited in Kaponya, 1991). These policies will in turn impact and condition the nature of the employment relationship. Different policies lead to different outcomes in employee commitment, competence and congruence with organizational goals. (Kaponya, 1991)
Likewise, each policy choice presents the decision maker with a distinctive cost and benefit alternative. For example, compensation policy choices to pay either at the low, average or high end of the labor market have rather dramatic implications for employee commitment to the organization and for costs to the employer. (Kaponya, 1991)
In today’s service economy of knowledge-based, high-discretion jobs, the commitment and competence of employees can spell the difference between those organizations that win and those that are merely in the race (Clardy, 1996). Establishing policies, programs and practices that produce these results on a cost-effective basis and comply with laws and regulations is a complex undertaking (Clardy, 1996). Therefore, we, in HRM should play a strategic role in the management of our organization.
But, we should first note that given the changes facing organizations today, a human resources function that operates as business as usual will quickly lose its value to the organization. In the same way, change presents both danger and opportunity. And in today’s rapidly changing world, the danger is that the human resources function will shroud itself in rules and procedures. (Clardy, 1996)
For these reasons, it should be expected that we introduce better systems for managing our firm's human resources. The human resources function should continually look for ways to more closely align human resources systems and procedures with the evolving direction of the organization. Additionally, we should design and implement human resources systems that best support the organization's pursuit of excellence and the employees' pursuit of an outstanding quality of work life. (Clardy, 1996)
To do these, we should be able be to identify and implement those policies, programs and procedures that will yield the desired levels of loyalty, skill and direction in the most cost-effective manner possible. This is our fundamental rationale for effective management of human resources. (Kaponya, 1991)
The major procedure through which this expectation can be met will involve human resources planning (Jackson & Schuler, 1990).The fundamental process underlying human resources planning is a comparison between the organization's human resources needs and the supply of qualified personnel. Thus, we will compare our human resources needs with the supply of human resources. Through this process, we can note the future imbalances and appropriate actions to remedy those problems can be prescribed. (as cited in Clardy, 1996)
In our planning, we will undergo into four steps or phases (Schuler, 1992). The first phase is an environmental analysis. This step will involve identifying the significant social, demographic, economic and technological trends taking place in and around our organization. (as cited in Clardy, 1996)
The purpose of this analysis is to anticipate how our organization must or will change to remain competitive and successful. As recommended by Sibson (1992), the scanning and recognition process in our company will be conducted annually. From this environmental sensing process, we will compile the list of potential changes, trends, and events. (as cited in Clardy, 1996)
On one hand, the second phase of our human resources planning will involve two closely related activities such as the preparation of forecasts for the demand and the supply of labor (Deckard & Lessey, 1975). A demand forecast is an estimated projection of the kinds and numbers of talented personnel that our company will need in the coming years. This analysis can be derived from the business plan of our company itself. (as cited in Clardy, 1996)
However, since it is not as easy to project changes in our organization's demand for labor due to significant changes in jobs, technology and organizational structure, we will restructure and reengineer ourselves into new shapes and operating arrangements. Our purpose of such reorganization is to capitalize on improved communications and to have a better responsiveness for competitive advantage. (Clardy, 1996)
The assessment of the supply of talent available to our organization as projected into the future is the companion piece of this second phase of human resources planning. Here, our current employee population will undergo on inventory to determine how well the supply can meet the demand. (Clardy, 1996)
The phase three will involve the comparison and analysis of the demand and supply forecasts. As noted earlier, the primary thrust of this stage is to look for imbalances between our needs in qualified personnel and what will be available through the manpower supply pipeline. (Clardy, 1996)
Finally, in phase four, we will consider what actions, if any, are warranted to address the projected imbalances between our labor demand and supply. In this context, we will call the full repertoire of human resources management policies and programs. In the same way, we will look at the costs and likely benefits of various possible courses of action to help guide the decision-making process. (Clardy, 1996)
Such phases will further define our HRM function, thus providing the right kinds of talent to the company at the right. In this context, the supply of qualified labor in a timely fashion which will be our major performance will be assured. (Clardy, 1996)
Generally, we will look at our human assets with openness and fairness and by offering good pay and benefits, continuous training and development, job opportunities and job security. This will ensure and effectively achieve not only a number of performance related gains, but also including increases in our company’s productivity, profitability and competitive advantage, thus achieving a stronger economic performance. (Human Resources in UK, n.d.)
And lastly, we, in the human resources department will not operate in a vacuum. We will participate in the day-to-day operations of the company and likewise, managed to produce the best possible results. Further, given the sea of changes taking place in the economy, technology and society in general, we will be in a position to change and adapt along the way. (Kaponya, 1991)
We will also consider the role that human resources should play in influencing the tone and tenor of everyday life inside our organization. Certainly, one pervasive way we should make is by trying to ensure fair and consistent applications of rules to employees and by serving as a governor to reactive or ill-considered management actions. (Kaponya, 1991)
People are our greatest asset. We compete for business through the people we employ. It is for our advantage to ensure that our greatest asset, albeit the most elusive one, the human capital - the human resources, is utilized to its best and highest use (Weatherly, 2003). We acknowledged that the workforce constitutes a vital and valuable organizational asset in our modern human resource management practice (Human Resources in UK, n.d.). Therefore, managing human resources effectively is very important as it is today and will be tomorrow (Clardy, 1996).
Human resources management (HRM) involves the establishment and execution of policies, programs and procedures that influence the performance, capabilities and loyalty of the employees of an organization. Individuals are attracted, retained, motivated and developed to perform the work of the organization through these policies and procedures. (Clardy, 1996)
Similarly, it is through these policies and procedures that the organization seeks to mold and shape the actions of its employees to operate successfully, comply with various public policies, provide satisfactory quality of employment and improve its position in the marketplace through strengthened ability to compete and serve. (Clardy, 1996)
As Beer, Spector, Lawrence, Mills and Walton (1984) noted, HRM is really a series of policy choices about how employees are to be treated, paid and worked (as cited in Kaponya, 1991). These policies will in turn impact and condition the nature of the employment relationship. Different policies lead to different outcomes in employee commitment, competence and congruence with organizational goals. (Kaponya, 1991)
Likewise, each policy choice presents the decision maker with a distinctive cost and benefit alternative. For example, compensation policy choices to pay either at the low, average or high end of the labor market have rather dramatic implications for employee commitment to the organization and for costs to the employer. (Kaponya, 1991)
In today’s service economy of knowledge-based, high-discretion jobs, the commitment and competence of employees can spell the difference between those organizations that win and those that are merely in the race (Clardy, 1996). Establishing policies, programs and practices that produce these results on a cost-effective basis and comply with laws and regulations is a complex undertaking (Clardy, 1996). Therefore, we, in HRM should play a strategic role in the management of our organization.
But, we should first note that given the changes facing organizations today, a human resources function that operates as business as usual will quickly lose its value to the organization. In the same way, change presents both danger and opportunity. And in today’s rapidly changing world, the danger is that the human resources function will shroud itself in rules and procedures. (Clardy, 1996)
For these reasons, it should be expected that we introduce better systems for managing our firm's human resources. The human resources function should continually look for ways to more closely align human resources systems and procedures with the evolving direction of the organization. Additionally, we should design and implement human resources systems that best support the organization's pursuit of excellence and the employees' pursuit of an outstanding quality of work life. (Clardy, 1996)
To do these, we should be able be to identify and implement those policies, programs and procedures that will yield the desired levels of loyalty, skill and direction in the most cost-effective manner possible. This is our fundamental rationale for effective management of human resources. (Kaponya, 1991)
The major procedure through which this expectation can be met will involve human resources planning (Jackson & Schuler, 1990).The fundamental process underlying human resources planning is a comparison between the organization's human resources needs and the supply of qualified personnel. Thus, we will compare our human resources needs with the supply of human resources. Through this process, we can note the future imbalances and appropriate actions to remedy those problems can be prescribed. (as cited in Clardy, 1996)
In our planning, we will undergo into four steps or phases (Schuler, 1992). The first phase is an environmental analysis. This step will involve identifying the significant social, demographic, economic and technological trends taking place in and around our organization. (as cited in Clardy, 1996)
The purpose of this analysis is to anticipate how our organization must or will change to remain competitive and successful. As recommended by Sibson (1992), the scanning and recognition process in our company will be conducted annually. From this environmental sensing process, we will compile the list of potential changes, trends, and events. (as cited in Clardy, 1996)
On one hand, the second phase of our human resources planning will involve two closely related activities such as the preparation of forecasts for the demand and the supply of labor (Deckard & Lessey, 1975). A demand forecast is an estimated projection of the kinds and numbers of talented personnel that our company will need in the coming years. This analysis can be derived from the business plan of our company itself. (as cited in Clardy, 1996)
However, since it is not as easy to project changes in our organization's demand for labor due to significant changes in jobs, technology and organizational structure, we will restructure and reengineer ourselves into new shapes and operating arrangements. Our purpose of such reorganization is to capitalize on improved communications and to have a better responsiveness for competitive advantage. (Clardy, 1996)
The assessment of the supply of talent available to our organization as projected into the future is the companion piece of this second phase of human resources planning. Here, our current employee population will undergo on inventory to determine how well the supply can meet the demand. (Clardy, 1996)
The phase three will involve the comparison and analysis of the demand and supply forecasts. As noted earlier, the primary thrust of this stage is to look for imbalances between our needs in qualified personnel and what will be available through the manpower supply pipeline. (Clardy, 1996)
Finally, in phase four, we will consider what actions, if any, are warranted to address the projected imbalances between our labor demand and supply. In this context, we will call the full repertoire of human resources management policies and programs. In the same way, we will look at the costs and likely benefits of various possible courses of action to help guide the decision-making process. (Clardy, 1996)
Such phases will further define our HRM function, thus providing the right kinds of talent to the company at the right. In this context, the supply of qualified labor in a timely fashion which will be our major performance will be assured. (Clardy, 1996)
Generally, we will look at our human assets with openness and fairness and by offering good pay and benefits, continuous training and development, job opportunities and job security. This will ensure and effectively achieve not only a number of performance related gains, but also including increases in our company’s productivity, profitability and competitive advantage, thus achieving a stronger economic performance. (Human Resources in UK, n.d.)
And lastly, we, in the human resources department will not operate in a vacuum. We will participate in the day-to-day operations of the company and likewise, managed to produce the best possible results. Further, given the sea of changes taking place in the economy, technology and society in general, we will be in a position to change and adapt along the way. (Kaponya, 1991)
We will also consider the role that human resources should play in influencing the tone and tenor of everyday life inside our organization. Certainly, one pervasive way we should make is by trying to ensure fair and consistent applications of rules to employees and by serving as a governor to reactive or ill-considered management actions. (Kaponya, 1991)