How the Human Resource function varies between organizations in different sectors
Question 1
Give examples of the main organisational objectives that the HR function is responsible for delivering, and briefly explain how these have evolved or are evolving in contemporary organisations. In your answer, provide a brief justification for managing HR in a professional, ethical and just manner (1.1 + 1.3)
Question 2
Give a summary of two different ways HR objectives can be delivered in organizations (2.1)
Analyze how the HR function varies between organizations in different sectors and of different sizes (2.2)
Question 3
Your CEO has asked for a report on the contribution of the HR function to the business. In preparation for the report, give a summary of the criteria and methods you would use to evaluate the HR function’s contribution, e.g. the balanced scorecard, effective HR metrics, survey tools, line managers, and employee perspectives (3.1)
Question 4
You will be given an article by your tutor or trainer that identifies and evaluates research evidence linking HR practices with positive organisational outcomes. Your task is to:
Briefly summarise the findings
State how convincing you find these to be
Explain how high-performance working and investment in people can impact organizational
performance. (4.1 & 4.2)
In addition to the above, in a short paragraph, briefly describe how you will transfer the new knowledge and skills gained during this assignment into working practices. You may also use this reflection for your CPD.
Answers
Question 1
Human resource managers are crucial players in any organization since they are responsible for workforce performance (Taylor & Woodhams, 2013). It means that the core function of HR is to staff the firm with the appropriate personnel to help in the achievement of set objectives. Apart from recruitment, this department is responsible for processing payrolls. The traditional view of HR is dominated by these transactional activities that gained increasing popularity early in the 20th century (Schroeder, 2012). Globalization, technological advancement, company consolidation, competition, increased research, and other factors have led to a certain degree of evolution in this field.
The traditional roles are no longer sufficient in the current business environment. The HR department is now a strategic part of the organizational objectives. The increased competition is prevalent in all factors of production, including labor. Companies are struggling to retain their skilled workforce due to talent poaching. The HR department is hence focused on talent management and in-house training to develop and maintain the core staff members. Employee relations are emerging issues that have dominated most contemporary organizations. Issues like ethical consideration, inclusivity, and diversity have come under increasing scrutiny from the public, and firms have had to take them in stride.
The role of HR is now more complicated than the traditional idea of personnel management alone (Schroeder, 2012). The increasingly complex business environment implies that only the organizations that adapt to the change will become successful. Emerging issues like honesty, ethics, and professionalism will impart a positive image to the firm in question. If the HR department is managed ethically and professionally, the staff will become motivated (Hamid et al., 2017). The consumer public is also keen on ethical issues today. Unethical practices taint the reputation of a business, and this has seen firms suffer as customers dissociate themselves.
Question 2
2.1
One of the core objectives of HR in most organizations is staff development. Recruitment is not enough to ensure the longevity of an employee on a specific team. In service firms, it is essential to have a competitive staff since they are in direct contact with the customers. The employees engage the customers in face-to-face conversations, and this provides an excellent opportunity to gather as much information from the latter as possible. The company must ensure that all the staff members are capable of engaging the clients satisfactorily. It calls for training employees on how to approach customers. The organization can set up classes and manuals for all recruits to study and get acclimatized to the correct way of doing things. The recruits essentially receive a template to follow when dealing with customers, thus ensuring uniformity in service delivery. Constant appraisal keeps the workers updated at all times, which benefits the company in the long run.
HR objectives like employee relations can be delivered by implementing the appropriate labor policies while interpreting all the laws relating to matters of employment (Russ-Eft, 2014). Issues like ethics are very sensitive in today’s environment, and hence the department must focus on their proper implementation. An ethical code of conduct will ensure that the HR department performs its functions.
2.2
The HR function is unique to a specific organization in most aspects. It consists of overarching similarities, such as improvement of the workforce, but salient differences also exist. Studies of organizational contingency variables and management practices have shown that every company has a unique functional structure in the staffing role (Taylor & Woodhams, 2013). Some firms will combine the roles and responsibilities of employees, primarily as a way of reducing the wage bill. Other organizations will create departments that are unique to their production or service delivery programs. As HR has evolved into a more strategic contributor to organizational success than before, firms are customizing this function to suit their needs. Companies in the retail sector will differ from those in manufacturing since the former involves a high level of interaction with customers. In the case of production, the product and not the employees speak on behalf of the company.
Various companies will structure their staff according to factors such as size. The size of the firm will determine the roles played in the HR department (Russ-Eft, 2014). Large firms have a hierarchical structure, and there could be an HR manager who oversees other line managers below them. On the other hand, small organizations don’t have many slots to fill or a vast array of personnel. Therefore, the owner could double as the HR manager, recruiter, interviewer, and overall professional. Organizations could also structure themselves according to the sector in which they operate.
Question 3
The HR function has become increasingly tied to the success of any firm. This strategic move is aimed at harnessing the resources of HRM to meet a highly dynamic business environment. The effectiveness of any strategy is only quantifiable when there are observable results. Various methods can be used to estimate the contribution of an HR strategy and determine its success rate.
I would use the reports from line managers to see how employees have been performing. The HR function consists of many activities, and hence it is not possible to always keep an eye on the operations of all staff members. Line managers bridge the gap between employees, and HR, and they have a concise appraisal of the daily workplace proceedings.
Conducting employee surveys is another prudent way of determining the contribution of our HR functions. Such studies will center on assessing matters like business climate, employee engagement, and organizational culture, among others. The responses will determine whether the HR policies have been a success or failure.
Statistics, metrics, and ratios are also essential tools to gauge the contribution of the HR function. Using industry averages allows us to know how the firm performed in comparison to other organizations. Return on investment (ROI) is a commonly used metric in gauging the effectiveness of HR at the bottom line (Taylor & Woodhams, 2013).
A balanced scorecard is another strategy we could use to evaluate HR performance. It considers the four perspectives of the customer: finances, internal structure, and innovation learning. This approach is multi-faceted and centers on the dynamic nature of most businesses today. It focuses on how human capital can be harnessed to ensure continued growth.
Question 4
A functional HR department is an advantage to the organization since it is assured of the continued development of its human capital. The relationship between the performance of a company and high-performance work systems is quite essential (Kroon et al., 2012). Understanding it has become vital to achieving and sustaining a competitive advantage. In the challenging economic climate, organizations are faced with the problem of making more out of limited resources. The avenue left for many companies is to improve the output of their staff to gain a competitive advantage. Every investment made is scrutinized to ensure that it provides the targeted returns on investment.
High-performance working is aimed at stimulating employee involvement to ensure high levels of contribution are always maintained (Kroon et al., 2012). Open lines of communication, transparency, and ethical behavior form the cornerstone of high-performance working. Investing in people makes them more likely to feel like part of the organization, and hence they will be fully engaged. The company will perform better in the long run when everybody is fully committed to the set goals.
Conclusion
This assignment has reinforced the importance of a functional HR department. It is essential for contemporary organizations to consider the emerging trends in HR and incorporate them during strategy formulation. I will transfer the knowledge by utilizing ethics in all my decision-making endeavors. I will also ensure that I train and motivate my staff members sufficiently to provide high-performance working conditions.
References
Hamid, M., Maheen, S., Cheem, A., & Yaseen, R. (2017). Impact of Human Resource Management on Organizational Performance. Journal Of Accounting & Marketing, 06(01). http://dx.doi.org/10.4172/2168-9601.1000213
Kroon, B., Van De Voorde, K., & Timmers, J. (2012). High-performance work practices in small firms: a resource-poverty and strategic decision-making perspective. Small Business Economics, 41(1), 71-91. http://dx.doi.org/10.1007/s11187-012-9425-0
Russ-Eft, D. (2014). Human resource development, evaluation, and sustainability: what are the relationships?. Human Resource Development International, 17(5), 545-559. http://dx.doi.org/10.1080/13678868.2014.954190
Schroeder, H. (2012). The Importance of Human Resource Management in Strategic Sustainability: An Art and Science Perspective. Journal Of Environmental Sustainability, 2(1), 1-9. http://dx.doi.org/10.14448/jes.02.0004
Taylor, S., & Woodhams, C. (2013). Managing people and organizations. London: Chartered Institute of Personnel and Development.
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