Learning task 2
Implications of HRM in Effective Management Practices
Achieving effective management practices in an organization is enabled by sound human resource management skills. HRM entails managing the pool of human resources and making sure that the resources are utilized to fulfill organizational goals (Tiwari & Saxena, 2012). The area of human resource management is influenced by both internal and external factors and has a direct or indirect effect on other key variables such as employee-employer relations, employee’s attitude, employee productivity etc, which all ultimately contribute to the overall corporate performance.
Researches (Desler, 2010; Barney et al., 2001) have established that the HRM task of managing people is more challenging compared to other resources such as technology and capital. HRM is thus a unique approach to employment management that strives to gain competitive advantage through delegation of a highly skilled and committed workforce using a multiplicity of techniques (Kandula, 2004). HRM skills enable an organization to attain effective management practices by boosting organizational behavior in such crucial areas as staff commitment, flexibility and competency.
The HRM department facilitates effective management through careful recruitment and selection, extensive remuneration systems, flexible job design and team working, training and learning, employee involvement, and consistent performance appraisals linked to contingent reward systems, among others. In this regard, an organization requires administrators with great HRM knowledge, skills and abilities so as to realize effective management that would result in achievement of organizational objectives (Tiwari & Saxena, 2012). The prerequisite knowledge, skills and ability help in managing the specific functions of HRM: planning, organizing, staffing, directing and controlling. The HRM department must thus posses three vital management skills: human skills, technical skills, and conceptual skills . Human skills are necessary to enable people to give their level best as individuals and to work with others; technical skills enable a firm to turn out the actual product or services; and conceptual skills help an organization relate part of the organization’s activity to the whole (Kandula, 2004).
In the effort to attain effective management practices, an organization would rely on effective HRM to positively affect a number of variables. These include:
Competitive Advantage: HRM plays a big role in enabling an organization to attain competitive advantage. The HRM skills are needed to create and sustain competitive advantage in a manner that is unique and difficult for competitors to duplicate (Huselid, 1995).. Sustained competitive advantage stems from effective workforce management. HRM practices are thus able to provide an organization with the much needed competitive advantage in local, national, and international environment. This way an organization is able to reinforce its market positioning and image (Kandula, 2004).
Employee-Employer Relationship: Effective human resource management practices have great bearing on employees’ trust in their managers. This is determined by HRM’s positive significant influence of organizational communication, empowerment, and procedural justice. The HRM is significant in enabling the organization to boost mutual understanding between the employer and the employees. HRM practices are therefore regarded as a communication channel between employees and employer, as well as contract-shaping events (Tiwari & Saxena, 2012).
Employee Trust: The employee perceptions of fairness and functioning of HRM practices serve to inform their trust or distrust of the leadership and the organization as a whole. Effective HRM practices help in building impersonal dimension of organization trust.
Effective utilization of workforce: In many organizations, human resources are often underutilized where employees frequently perform below their potential (Huselid, 1995). HRM practices can impact employee skills through acquisition and development of organization’s human resource. Recruitment of workers from a large pool of qualified applicants, coupled with reliable and valid selection regimen have significant impact on the quality and kind of skills the new recruits will possess. HRM facilitates employee development through provision of both formal and informal training such as on-the-job experience, basic skills training, mentoring, coaching, and management development (Kandula, 2004). HRM also influences employee motivation through performance appraisals linked to incentive compensation systems, internal promotions focusing on employee merits, and incentives targeted at aligning employee and stakeholder interests. Furthermore, HRM can influence firm performance by providing organizational structures designed to encourage full participation of employees and freedom to improve the way things are done. Therefore, effective use of HR practices have greater effect on organizational management beyond the traditional existence of HR practices (Tiwari & Saxena, 2012). It is the firm’s ability to use its organization capabilities, to assemble, to incorporate and manage human resources that matter considering that human resources are not inherently productive.
References:
Huselid, A. M. (1995). The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance. Retrieved from: http://chrs.rutgers.edu/pub_documents/Huselid_12.pdf
Kandula, R. S. (2004). Human Resource Management in Practice: With 300 Models, Techniques and Tools. New Delhi: PHI Learning Pvt. Ltd.
Tiwari, P. & Saxena, K. (2012). Human Resource Management Practices: A Comprehensive Review. Retrieved from: http://www.iobm.edu.pk/PBR/PBR_1201/120103_HRM%20Practices%20Tiwari%2037.pdf
