Critical theories and concept of Organizational HRM

Critical theories and concept of Organizational HRM

Introduction:

Human Resource Management (HRM) is planning, staffing, organizing, development, maintenance, compensation, integration as well as directing and controlling of procurement of human resources to achieve the organizational goals and objectives. Human Resource Management is one of the important functional areas of management whose nature appears to be people oriented, action oriented, development oriented, as well as future oriented. Human Resource management is a continuous process and is found to govern other functions such as fire prevention activities, staff function, dynamic activity, system activity as well as interdisciplinary activity. On the whole, Human Resource Management is a people oriented function. It takes care of people to make them committed and motivated as well as acts as a system existence in an organization. Without people, an organization is impossible, so, where there are people, there is Human Resource Management (Hersey et al, 2017). The operative functions of Human Resource Management include Procurement, Induction, or orientation, Development as well as Compensation. Organizational goals and successful utilization of people are the two purpose of Human Resource Management. 

This includes both the payroll and personnel function. There are four main objectives of

Human Resource Management that are as follows:-

 Driving Productivity and Defining Organizational Structure:- 

Accomplishment of organizational goal is the chief determination of Human Resource Management. Apart from achieving organizational aims, it governs urgencies and rules as well as takes care of the key problems. Moreover, it kindles organizational vigor by hiring efficient people and effectively employing the workers by providing proper training. Moreover, Human Resource Management develops service through structuring employee confidence in a positive direction which is important for group performance.

Diversity Management and Culture:

There is constantly a necessity for the overall variety control and the maintaining of the proper way of life in a place of work of the organization. The upkeep of the diversity management in the corporation enables to bind the unique employees operating in the business enterprise together. The variety in the business enterprise is the bringing together of different humans of different religions or distinctive ethnic heritage. The diversity management may be very a lot required for the fulfilment of an enterprise and additionally to assist the organization to attain the overall objectives of the corporation within the future (Aust et al. 2015). The management of the different organizations needs to maintain and encourage more and more to increase the diversity management in an organization. The control of the one-of-a-kind groups wishes to maintain and encourage more and more to increase the range management in a corporation.

The diversity management plays an important part in the overall success of an organization. The management of the different organizations has to be very strict and have to help their different leaders in the organizations to find innovative ways of maintaining a safe and healthy diversity management in an organization. The diversity management also helps to bring the different views of the different people of different cultures to come together as a cohesive unit in the workplace of an organization (Barrick et al. 2015). The management of an organization has to identify the different areas of disputes or difference in areas and try to manage the diversity management in an organization. The right maintenance of diversity management also helps to improve the overall culture of an organization. The culture of an organization comprises of the different persons of different religions or values who me together to form a stable work system in an organization. 

Communication:

The management of the organizations has to acknowledge the different values of the employees of the different cultures and to encourage and motivate to work together in a workplace. According to Bowen (2016), the diversity management brings in the right maintenance of the different people of different religions together to bring innovative ideas for the organization and to help the organization to achieve the desired objectives in the future scenario. 

Group Building:

The diversity management also helps in building a strong relationship with the different employees in an organization for the achievement of the overall objectives of the organization (Boxall et al. 2016). The management of the different organizations identifies the right management of maintaining the diversity and culture in an organization as a right asset for the overall growth of the organization in the future and to build the right and safe workplace for the different employees working in the workplace.

Overall Performance:

The diversity management is the right indicator for the overall maintenance of the objectives of the organization and also helps to improve the performance indicator of the organization in the future scenario. The different organizations in the market consider the overall success of the diversity management as the right performance indicator tor measuring the success of an organization which helps to achieve the right objective of the organization in the future. The different strategies of maintaining diversity involves the right communication, commitment and hiring of the right type of employee for the success of an organization. 

International Performance Management:

A number of environmental contingencies are considered in relation to various subsidiaries because the Multinational Enterprise (MNE) is not uniform across all of its subsidiaries. These contingencies include the mental distance between the host and the parent country, the role of the subsidiaries and entry modes (Colakoglu et al., 2018). Several staffing models are considered in filling up positions in subsidiaries. In geocentric staffing model, the most competent person irrespective of the country that person belongs to is usually employed by the companies whereas in region-centric staffing model, managers are allowed to enjoy regional autonomy and the employees remain within a particular geographic region (Schuler et al.,2012). On the other hand, ethnocentric staffing model is a geographic strategy where the parent country nationals are recruited to fill up the higher level positions whereas in polycentric staffing model, host country nationals are recruited so that the local knowledge of the local employees would prove to be beneficial for the company (Varma et al.,2015). As a matter of fact, the geocentric and the ethnocentric staffing models requires integration in order to obtain better performance from the subsidiary which highlights the fact that the adopted staffing strategy would have an impact on the performance of the subsidiaries (Clakoglu et al.,2018). The need for strategic Human Resource Management is created by the dynamic global environment as well as by the diverse business strategies of an organization. Therefore it has become necessary to manage the human resources strategically so that it performs well and gets fit into the global environment. Geographic dispersion and multiculturalism are the two dimensions of operation of multinational enterprise. A mixed adoption of centralized and decentralized approach balances these two aspects of operation of multinational enterprise. Both the centralized and decentralized approaches are associated with the performance evaluation (Chelladurai & Kerwin, 2017). Different performance criteria used by the multinational companies is based on employee traits and on end contribution to the company. The performance criteria based on employee trait include decisiveness, initiative, judgement, and dynamism. The performance criteria based on end contribution to the company include profits, productivity, ROI and cash flow. For local settings of a subsidiary, these criteria might be invalid. Economic system, social and cultural environment, institutional setup and structure and political ideologies that is found to influence the performance of the managers as well as the business vary from the host country to the parent country. The performance criteria in the host country might be invalid in the parent country.

Training and Development:

The training and development is one of the key success factors for the growth of an organization and to help the organization to achieve the overall objectives in the future. The training and development is considered as an important factor for improving the overall performance of the different employees working in an organization. The organizations gives hard effort on the training and development of the employees for the increasing the overall growth of the organization in the future and to gain a competitive advantage over the other rival companies in the future (Benzer et al, 2017).

Importance of development in the organization:

The development is an important process in the overall growth of the different employees working in an organization. The development of the employees includes the right opportunities given to the different employees to grow or make improvements in the overall work performed in an organization (Bratton & Gold, 2015). The development helps to create right opportunities for the different employees to grow more and top perform better work for the achieving of the overall objectives of the organization in the future. The right development of an employee helps the employee to grow more and to utilize different skills for the overall growth of the organization. The development process includes provide basic learning for providing the right communication skills, working and utilizing the other areas or skills of the different employees working in the company.

Importance of Training in the organization:

The training is required in an organization to increase the overall knowledge skills and abilities of the different employees working in an organization. The right method of training helps to provide the basic knowledge to the different employees in achieving the right objectives of the organization. The training features include training in technology, skills training and quality training given to the different employees in a company. The skills training are given to increase the overall communication, skills and also to increase the other abilities of the employees. According to Felin et al. (2015), the technology training is the right way of coaching the different employees on handling of the different machineries in the organization. The management of the organization demonstrates the right way f training to the employees. The quality training is conducted on the employees to increase the overall abilities or the skill levels of the work to produce a better productivity for the organization.

Thus it has the following advantages for both individual and organization:

• It helps to increase employee motivation
• It assist to develop employee engagement
• It helps to increase the productivity and competency of the organization.
• It increases the growth
• It helps to reduce employee turnover

The training and development process forms the backbone of the success of an organization. Kaufman (2015) argued that, the right training and development produce is absolutely essential for increasing the overall morale of the employees to increase the standard of the work performed in the organization. It is very much necessary for matching the abilities of the different employees with the wants and needs of the management of the organization to focus on the future objectives of the organization. It also helps to create an everlasting and strong bond of relationship with the management and the employees working in an organization in the future (Kaufman, 2015). The right method of training and development process helps to bring a lot of positive for the organization and helps the organization to be ahead in terms of performance measurement in comparison of other rival organizations in the market.

Recommendation:

Effective HR strategies ensures maximum success and productivity, hence important roles are played by HR professionals in coming up with the right strategies for an organization. Three high level areas of focus are recommended to drive success which is as follows:- Knowledge transfer:

Transfer of knowledge between department workers should be ensured in order to insure continuity and minimal impact on effectiveness and productivity. Transferring knowledge requires a critical strategy. A survey found by the National Association of Professional Employer highlights the fact that one-third of Knowledge transfer plans have been created by small business owners which are designed to retain and capture the knowledge of older workers that are to be transferred to younger workers of the organization. 

Strategic vision consideration:-

HR strategies must be aligned with the organization’s strategy in order to be effective. An indication of where the company is heading is provided by strategic vision. The Company’s current vision should be reviewed by the HR leaders in order to support that vision by the HR activities (Alexiou et al., 2018). Moreover, HR staff in concert with other leaders of the organization should analyze whether the vision is based on internal or external factors as well as analyze changes in the market place and suggest possible business strategies with a new vision.

Demographic consideration:-

On retirement of baby boomers, an organization faces an evacuation of key staff members. The demographics of the workforce should be examined by the HR leaders to determine the gaps between the current skill and need for skill in alignment with the strategies and vision of the organization (Jhong et al., 2017). Therefore implementation of the HR strategy is essential to fill up the gaps through strategic training, retention, and recruitment efforts.

Up gradation of Job descriptions:-

Within a company, there should be job description for each position. Job description is an important part of HR processes that includes orientation, hiring, and employee performance management. Job descriptions are not viewed on an annual basis and hence job descriptions become outdated. The duties performed by the employee should be reflected by job descriptions. Job description is a measure of performance evaluation; hence current job descriptions help the employees to understand the duties in a better way.

Development of hiring/interviewing process:-

An organized hiring process helps the company to select qualified applicants for different positions. Guidelines and procedures should be developed and followed while hiring applicants. Very often it is seen that the managers do not have a proper interviewing skill and asks irrelevant questions that do not have relevance to the position. Behavioural interviewing training is important in selecting a most skilled and best fit applicant (Bradley et al, 2017).

Conclusion:

Human Resource Management is needed to be seen as a strategic function of an organization because it a competitive edge by engaging its employees in a positive direction. An effective two way communications with employees and an appropriate leadership style of Human Resource Management creates a honest and open environment which makes the employees feel confident and contributively toward decision making. This in turn makes the engaged employees believe in the values of the organization. The functions of Human Resource

Management play a pivotal role in the effective working of an organization. In terms of Strategies and business practices, the firm needs to be ahead of the curve. This motivation makes Human Resource Management a valuable tool for management in order to achieve success. Moreover, Human Resource Management focuses on matching the needs and development of employees with the needs of the business However, Organizations must carefully reap the benefits of this tool. Society for Human Resource Management, Chartered

Institute of Personnel and Development, Institute of Recruiters, American Society for

Training & Development, Recognition Professionals International, and Academy of Management are some of the well known professional associations of Human Resource Management.

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