Example Of Human Resources Management In Executing Corporate Strategy Report
Human Resource Management (HRM) involves managing people in an organization. Initially, it only performed limited functions and was limited to doing paper works connected with hiring and payment of employees within the organization. In this age and time, companies recognize that the most valuable resource they have is the employees, which added important responsibilities for those working in HRM. Their main focus is dealing with manpower and all other decisions pertaining to it that can have an impact on the employees’ productivity. It also ensures that companies are able to recruit, manage, and provide direction for employees. HRM deals with issues related to employee compensation, employee appointment, performance administration, organization development, security, wellness, benefits, employee stimulus and motivation, communication, administration, and training. In fact, even some functions of the HRM can be performed by line managers. In particular, it is a strategic and inclusive approach to people management and the workplace environment and culture. To be able to determine whether a company’s HRM group is effective, it must demonstrate that employees can contribute productively and effectively to the company’s overall direction. HRM moves away from traditional personnel, administration, and transactional roles typical of previous HRM roles and functions. Instead, it is expected to be able to contribute immensely to the strategic utilization of employees and how employee programs create impact on the business in measurable ways such as providing strategic direction and other HRM metrics and measurements to show the value.
HRM plays a crucial role in the management, control, and development of the workforce. They are often in continuous contact with high-level management and are responsible in ensuring that the business runs smoothly and efficiently. Thus, this paper will focus on the crucial role that human resource management plays in an organization. It will outline how HRM contributes to the creation of organization-specific knowledge and skills when linked to the strategic goals of Unitel. Furthermore, the paper will provide insights and solutions to issues on how the HR function changes with respect to Unitel’s strategic plans. Finally, it will discuss how Unitel may benefit from using human resource management practices to improve organizational performance at Unitel.
Role of Human Resources Management in the Implementation of Unitel’s Strategy
Human Resources is a key strategic force in all organizations. They are mostly involved in business strategy development and implementation of various initiatives of management within the organization.
Recruitment and Training
This is one of the most important roles of the human resource team. They come up with plans and strategies in order to hire the right kind of people fit for the job. They create criteria which is perfectly suited for specific job descriptions and design roles and responsibilities, job description, and scope of tasks assigned to the position. Additionally, they may provide training opportunities for employees depending on the company’s requirements. As a result, employees are provided opportunities to increase their knowledge, sharpen their abilities, or develop new skills which could help them take on new roles within the organization (Exforsys, 2011).
In the case of Unitel, HRM’s role is to provide informational talks and trainings for the employees about Vision 2020 that would put the company back to the forefront of the telco industry, which lagged a bit after privatization. This is highly important considering that not everyone in the company embraces the concept of Vision 2020 although some find it positive as it brought field staff and upper management together. Thus, providing the necessary information to skeptics and the company as a whole will help manage the negative comments about the project.
Preserve an Encouraging and Motivating Work Atmosphere
Another important role of human resources, this aspect influences the performance of the employees within the organization. With the introduction of Vision 2020 at Unitel and considering the varying reactions about the project, HR should ensure that they maintain a cheerful and inspiring work atmosphere despite some quarters having negative response. A good working atmosphere and culture increases employee performance, productivity, and job satisfaction (Barrett, 2014).
Performance Appraisals or Evaluations
Human resources must be able to inspire employees to work beyond their limits and provide suggestions that would help the individual reach his or her highest potential. This is highly plausible since HR is the one that designed the roles and responsibilities of various job positions. As such, Unitel employees must be given an outline of goals and resources that would help them achieve their targets in light of Vision 2020. They must be able to provide a correlation between their previous goals and how these goals affect Vision 2020. Generally, performance appraisals are done on a semi-annual or annual basis in order to motivate employees to work harder (Lawler, 2012).
Develop and Maintain Public Relations
Developing good working relationships and camaraderie is one of HR’s responsibilities. This is to ensure that employees know who they work with and serves as a time for bonding or socials for everyone in the company. Especially during the transition and implementation of the Vision 2020 strategy, HR must aggressively exhaust all means to ensure that all departments and key people grasp the rationale behind the strategy. As such, HR organizes seminars, business meetings, and other official gatherings to build connections with other businesses. They may also be involved in organizing business and marketing plans for the company.
Conflicts are inevitable in any organization set up. These issues may arise among employees, colleagues, and employers. In these cases, Human Resources act as mediator, negotiator, and consultant when it comes to sorting out these issues. Considering that there are people who are not sold to the Vision 2020 strategy, HR’s role is to pacify them, listen to employees’ concerns, and come up with appropriate solutions. They also ensure actions and resolutions are prompt and that the situation remains under control. Their actions are mostly proactive and preemptive rather than reactive (“The HRM Function and Its Role in Organizational Processes”).
Key Issues in the Introduction of the Vision 2020 Strategy
At Unitel, there are different opinions regarding the introduction and implementation of the Vision 2020 strategy. While key management roles appreciate what the new strategy brings, especially in the changes in the cultural make-up of the company, there are still sectors that are against the proposed changes. Some issues include:
Lukewarm Reception to Proposed Strategy
Some members of the organization do not believe that the company will reap any rewards in the implementation of Vision 2020. Some think that it is a big joke for the company.
Skepticism on Management’s Initiatives and Reason for Implementation
Detractors say those who are critical about the strategy or do not share management’s views are being marked and singled out. As a result, either employees leave the organization or remain silent.
Implementation of Rules and Guidelines Some Sectors Find “Unmerited”
Those who do not see the value of Vision 2020 claim that they do not appreciate standardization within the company, which is something they feel is self-limiting. This includes having the same time for coffee breaks,
Resistance to Change
Despite the apparent benefit Unitel will get out of Vision 2020, some employees are not open to changes, which is the reason they have low employee morale. These negative feelings are borne out of their fear of being personally affected by the change, such as fear of losing authority, their jobs, or money. Additionally, it encourages an atmosphere of resentment, which is not a healthy work environment that could lead to employee turnover (Heathfield).
Potential Problem Solutions
Despite obvious problems, there are many ways to resolve these issues and even to prevent them.
Having open communication between management and staff helps mitigate possible problems when Vision 2020 is fully implemented. This is because staff will feel a sense of security knowing that they can voice out their issues and sentiments without fear of reproach. It also encourages employees to be more receptive to the strategy when they know they can ask questions about it or even come up with suggestions.
Having leaders whose thrust is on serving, leading, and shaping a better future for the organization and its employees motivates staff to work harder just like their boss. These types of leaders are aware how much influence they have on their subordinates. They recognize their own emotions and personal strength and inspire others to follow their actions and beliefs (Slocum, Lei, & Buller, 2014, p. 80).
Part of the reason some employees resist change is the fear of losing their jobs. Thus, as a form of reassurance, the company can provide reskilling, upskilling, and multi-skilling trainings to ensure the existing workforce are adept at their jobs and can confidently handle the changes when Vision 2020 is implemented. This way, they gain confidence in themselves and will feel less threatened about the business strategy (NISC, 2008, p. 10).
Foster a Supportive Work Environment
Considering that not everyone in the company are amenable to the business strategy, nurturing a caring and encouraging work environment can help in changing the atmosphere within the organization. This can be achieved by promoting a work-life balance for employees, reviewing employees’ benefits package, and providing training for career development (NISC, 2008, p. 21).
Identification of HR Key Performance Indicators (KPI)
Through effective simulation and forecast efforts, the Human Resources department can determine between the high and low performers in the organization. This is crucial because the type of training and career development opportunities that Unitel could provide its workforce will depend on these reports. Without this, the company will not be able to determine how it maximizes and leverages on its human capital (Maurer, 2014).
Using Five Human Resources Management Practices
Talent Retention and Development
The cost of recruiting and hiring employees can be a major expense for a company especially when turnover rate is high. This could be because of low employee morale, which could be a result of too much reorganization within the company, unstable work environment, decreased productivity, and reduction of company profits, among others. These feelings can be alleviated by ensuring that employees are provided the necessary tools for them to perform their jobs well within their capacity. They can be sent for trainings and conferences that would enhance their knowledge and skills on the job, which they could use to train other members of the organization (Van Bogaert, n.d., p. 2). Programs and benefits that may be provided to employees include work-life balance orientation and services to educate employees how they can set a happy balance between the two, health assessment and counseling services, fitness and wellness programs, provisions for further or higher education, and good retirement benefits, among others (“Talent Attraction, Management & Retention”).
Strategic Recognition, Reward Management, and Incentives
An attractive rewards system offers financial remuneration, promotion, and other forms of recognition to an employee. Unitel can do this to further motivate employees at work by becoming more creative with their ideas and work approach, to take calculated risks at work, and to develop new products and generate new ideas. A reward system also pushes an employee to be more proactive, which increases their participation in the generation of new ideas for the company (Tan & Nasurdin, 2011, p. 158).
Additionally, since most companies freeze salary increases and resort to cost-cutting measures despite increased employee workload, giving bonuses can be a way to recognize an employee’s contribution to Unitel. It may come in various forms depending on the company’s performance or based on an employee’s individual performance evaluation. It can be an expressed bonus which comes in the form of a promised bonus, or an implied bonus, which is basically given to employees if goals are met (Bruce, 2013).
HR Planning in a Changing Environment
This is an important aspect of strategy management when it comes to HRM and businesses. It refers to training, managing, and walking employees through changes in the workplace and developing approaches that allow for compliance. The goals of HR are still the same, such as employee satisfaction, employee retention, efficiency, and retraining. However, apart from these, HR planning can also help Unitel in leveraging the workforce. As an example, HR can help the company leverage on employees’ from diverse backgrounds, such that when an opportunity to set up satellite offices in other countries, employees who have working knowledge about the lifestyle, language, and culture of a certain country can be assigned in that new country for a couple of months. Additionally, with changing organizational structure, managers and staff at Unitel will slowly veer away from titles accorded to them. Instead they will focus more on being creative in the workplace when it comes to executing their goals and carrying out their activities (Lacoma).
In a changing environment, HR should also lead the company in using various methods of communications, especially those that involve the use of social media for faster dissemination of information when required (Lacoma).
Employee Involvement and Participation
Employee participation and employee involvement are two distinct types of employee interaction. Employee participation pertains to the employee’s role in a business activity he shares with fellow employees. He, therefore, is a contributory factor in a larger whole called “team” and which becomes a venue for the employee to voice out suggestions and ideas. Regardless of the employee’s level of input, he is part of a whole team. On the other hand, employee involvement is more of an individual approach of involvement between the employee and management. Employee is often involved in decision-making with the expectation that the employee takes ownership and accountability on the project (de la Morreaux). At Unitel, these two concepts can be applied considering the demographic makeup of the company where some are in favor of the Vision 2020 strategy, while some are not. Ensuring that employees are involved in the process and are encouraged to participate in all aspects of the implementation of the strategy, those who are lukewarm towards the execution of the strategy might slowly be convinced to think otherwise when they see the benefits of the change and the enthusiasm of other employees.
Service Quality Enhancement
At Unitel, HR can help the company adopt a customer-focused culture that can easily be explained and seen through programs, guiding principles, and practices they will implement. This can be a more positive approach when implementing the Vision 2020 strategy. Apart of focusing on how it will change the culture and processes within the organization, HR can focus and educate the employees more on how the strategy will improve customer experience and increase the employees’ productivity and efficiency. By focusing more on the customer, employees and staff take a more positive approach to the strategy and might even take more initiative in providing good service to customers. Therefore, HR must ensure to prepare measures and guidelines that would track performance improvement and efficiency. A great benefit of this best practice is with the successful implementation of the strategy, the company gains as its public image is enhanced (“Human Resource Management Good Practices”).
Human Resource Management is a planned method of managing people’s performance and productivity effectively. Even if companies introduce various programs or approaches to leading the organization, as long as they maintain an open, flexible, and nurturing work environment, employees and staff will remain motivated in completing their work. Companies that have put in place effective workforce development plans, getting and retaining skilled people is much easier as they have adopted different strategies in maximizing their employees and retaining them. As the company grows, so does the talents and skills of the employees. Therefore, good HRM practices are important in achieving company objectives and increase productivity.
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