As the new Chief Executive Officer (CEO) has just come on board and is not an HRM specialist, he is interested to know what role HRM policies and practices can play in contributing to organizational goals. What will you tell him? Definition: If a business organisation compare with a human body than HRM plays like brain where the organisation’s success based because it refers to the policies, practices and systems that manipulate employees’ conduct, attitudes, and performance. HRM is essential to overall productivity and efficiency of the strong workforce in any successful company.
In most specialized organisations, the role of the human resources department is not sidelined or eclipsed by other departments. It is one of the most valued and respected department in the organisation which deals with company’s most important asset “people”. Before setting up policies and practices for the company HRM needs to get a big picture of the company to understand the business strategy, develop the mission statement, SWOT analysis of the company to find out strengths and weaknesses, and evaluation employees by current performance.
HRM policies: Human resources management have some policies which contribute a big part to achieve organisational goal by following government’s regulation. Devanna et Al. (1984) states them as follows. HRM practices to obtain organisational goal: To create business and protect competitive advantage Human Resource teams have an important part. Innovative and efficient people strategies make an actual diversity to the bottom line performance. We can divide HRM practices in six ways-
Job analysis and design: Job analysis is the procedure of getting complete information about jobs and defining the way of work will be performed is job design. To produce any specified numbers of product or service and manufacture these products needs a certain task to be performed by a company. A group of tasks become jobs. Job design is important for organisation’s strategy because it requires new or old task performed in a different way. Or sometime it requires to implementing new technologies.
To do these job employee needs to be efficient and innovative. Employee recruitment and selection: Raymond et al. (2006) states that recruitment is the process through which the organisation seeks applicants for potential employment. And selection is the process which attempts to discover applicants with the compulsory knowledge, skills, abilities and other quality that will help the company to achieve its goals. Some times HR department prefer to recruit internally because by this company can save money for training.
Recruitment can be done by universities, agencies and other head hunter organisations. By implement different types of strategies a company needs various types and number of employees. To pursue organisational goal they make sure to select the right people for the right job. Employee training and developments: Training is learning of job related knowledge, skills and behaviour by employees and on the other hand development refers to acquiring those skills and behaviour to meet changes in job requirements.
Training is compulsory for new employees in an organisation to get to know company’s goal and culture. If an organisation changes their strategy, product or services, they need to train their employees to adapt and skilled with the new strategy. Some companies trained their employees for legislative requirement like health and safety training, fire training etc. Performance management: Performance management make sure that the activities and outcomes of employees are relevant to achieve company’s objectives.
Performance management helps the organisation to improve its performance through the employee and involve to implements those activities and outcomes which will make company flourishing. In organisations structure first level manager know more about job should be performed than top level manager (Raymond et al. 2006). These performance needs to reviewed on regular basis and its also important for motivation and development. Finally annual assessment needs to be done which is related to pay received based on achieving the business objectives.