Human Resource Management

Introduction:

Human resource management is the strategic approach to the effective management of

people in a company or organization such that they help their business gain a
competitive advantage. It is designed to maximize employee performance in service
of an employer's strategic objectives. This work will describe as the most valuable
resource of any organisation, its human capital. All resources, especially the most
valuable, need to be managed in order to obtain the greatest value from them. The
article provides an overview of some of the key areas that fall within the remit of the
human resources function.

1: Know the internal and external factors involved in human resources

planning in organisation.
Successful and dynamic human resource planing is central to the success of an
organization. The aim of human resource planning is to maximize recruitment &
retention, minimize employee issues and maximize employee productivity. A number
of internal and external factors have to be considered when formulating human
resource planning.
 Organizational structure: One of the key internal factors to determine the
optimal staffing requirements is the organizational structure. Planners need to
draw up a hierarchy chart of the organization and clearly delineate the
functions of each designation; providing gaps for areas that need more
employees and cutting out the people who do not have a defined function (or
are not required).
 Budget: It is a critical internal factor that determines how human resources are
utilized. The total budgetary allocation determines how any people can be
hired or retained or promoted, and if any retention program can take place. In
lean times, HR planners can devise innovative solutions such as lower base
pay, more stocks, better retirement benefits, etc.
 Skill level of existing staff determines if new staff (with different set of skills)
need to be hired or if training programs (or tuition reimbursement) can help
build that skill set in the existing employee pool.
 Productivity is an internal factor that can be enhanced by increasing job
satisfaction among the employees. Annual reviews, better communication,
wellness and team-building programs, etc. can help in this endeavor.
 Competition is an external factor that will limit an organization's ability to
recruit better talent and retain it.
 Compensation is a function of labor supply and is less in a crowded market vs.
labor shortage times. HR planners need to continually evaluate and ensure that
the compensation is market competitive.
 Legislation is an external factor that affects the entire industry and HR
planners need to ensure compliance with any legislation affecting the
organization.
https://www.enotes.com/homework-help/would-like-know-internal-factors-external-
factors-490333

1.2: Describe how an organisation identifies skills for employee to carry

out a job function
The sources of information to conduct individual analysis are:

 Performance evaluation-to identify weakness and areas of improvement;

observation-to observe both behaviour and the results of the behaviour; work
samples-to observe products produced;

 Interviews-to talk to manager, supervisor and employee to know about what

he needs to learn;

 Questionnaires- written form of the interview, tests, must measure job-related

qualities such as job knowledge and skills;

2: Understand know how an organisation motivates its employees.

2.1: Identify different ways how an organisation can motivate employees.

Motivating your employees does not have to be a challenge anymore. Here are 12
fantastic ways you can use to motivate your employees:
Create a friendly work environment
Your employees spend a large amount of time of their lives working in the office. So
try to make the office look as friendly and appealing as possible.
When you create a pleasant atmosphere where it is welcoming and comfortable, your
employees will be more than eager to go to work every day.
Acknowledge employees’ achievement
Everyone wants to be recognised for something they have done; regardless if it was
for a work or personal achievement. The acknowledgement of a job well done coming
from upper management will mean more to an employee than you think. Always
remember to give credit when credit is due.

Rewarding employees
There will be times when it takes more than just a pat on the back. Try giving simple
incentives when rewarding engaged employees.
It does not have to be monetary rewards all the time; simple things like a week of
having a personal parking spot at the office would be sufficient. Rewarding
employees could also be a part of the company benefits.

Positive communication is the key

Everyone communicates at work and it is probably the easiest thing you can do with
your employee. Yet it can also be the most difficult. Spend a short period of time each
day to have a word with your employees; discussing things from concerns to ideas.
This will not only make your employees happy, it will also provide you with much-
needed insight on your business from your employees.
Encourage friendly competition
A little competition among the employees would not hurt. A competitive environment
is a productive environment. Encourage employees to participate in competitions or
challenges as it is healthy and may actually lead to increased camaraderie.
Friendly competition amongst teams helps with employee engagement and employee
participation.

Have a meaningful and worthwhile goal

Managers should ensure that the company has a vision and plan at a corporate and
individual level. Employees who have a path set before them that may lead to
promotion can work towards a goal. Achievable goals are very helpful as it gives
employees the drive to work harder without being asked.

Create a career path

When employees have an idea of what is provided or what the incentives are, they
become further motivated. This will lead to increased commitment towards their
employer. The members of your team will be more valuable to your organisation, and
to themselves, when they have opportunities to learn new skills.
Provide your employees with the training they require to advance in their careers and
to become knowledgeable about the latest technologies and industry news.

Be a leader worth following

As a leader, employees are going to look to you to set an example for the rest of the
group. Leaders tend to be setting a tone and values for the company. By doing so, it
could have a meaningful effect on the mentality of the employees. If leaders set an
example of positive thinking, employees will follow and the entire work culture will
become more motivating.

Encourage creativity
Creativity does not have to be based on the work that the employees are doing. It
could be simple task like giving ideas on the next company retreat or team building
exercises.

Encourage team work

Try to remove any bureaucracy and hierarchy within the company and create an
‘openness’ to new ideas at any level and working together as a team keeps employees
motivated.

Welcome all ideas

Everyone is unique and unpredictable and each with individual desires and some with
complicated ideas. Remember not to shunt away ideas or suggestions no matter how
silly or meaningless they may sound.
No single strategy can ever hope to please all of your workers all at once. A tiny silly
idea could be brainstormed into something brilliant sooner or later.

Don’t let employees become bored

Some employees have a short attention span. Host a cupcake bake-off, plan a happy
hour every Friday, have company lunches together in the office on alternate
Wednesdays or allow a different person to run the weekly meetings to break up the
dreariness.
https://inside.6q.io/how-to-motivate-your-employees-in-12-easy-steps/

3: Know how organisations manage and measure employee performance.

3.1 Describe how an organisation can manage and measure employee

performance.
The performance management process is often linked with other organizational
systems such as:
 Strategic planning. Many long-term workforce planning models use
performance management measurements to assess the "quality" of the
workforce and whether the organization is attracting and retaining talented
workers.
 Total compensation. Most organizations use performance measurements as
the basis for pay-for-performance compensation processes.
 Individual and team development. An individual development plan (IDP, also
known as a career development plan) is often used in conjunction with the
performance review process as a final documented step to assist employees in
goal setting and individual development that will serve to advance their career
and promotional opportunities.
 Succession planning. Performance data over time are vital inputs for long-
term planning for future organizational leadership.
 HR technology systems. Many organizations use software applications to
manage the processes associated with goal setting, performance review and
performance improvement plans.

Elements of Performance Management

Effective performance management systems typically include the following three
broad elements: goal setting, performance review and a performance improvement
process. Employers may use a multitude of options in the execution of the
performance management process, but an effective system will incorporate the three
basic elements in some form.
Element one: goal setting
Goal setting is a process of establishing objectives to be achieved over a period of
time. It is the performance criteria an employee will be evaluated against.
Performance goals for individual employees should ideally align with organizational
goals.
Common types of goals include the following:
 Job description goals. Goals may be based on the achievement of a pre-
established set of job duties from the description. These goals are expected to
be accomplished continuously until the job description changes. Examples
might be financial, customer oriented, or process- or system-oriented goals.
 Project goals. Goals may be based on achievement of a project objective.
These goals may be set for a single year and changed as projects are
completed. Job description and project goals are "what" needs to be
accomplished.
 Behavioral goals. Goals may be based on certain behaviors. These goals are
expected to be accomplished continuously. Behavioral goals are "how" things
need to be accomplished.
  Stretch goals. Goals that are especially challenging to reach are sometimes
referred to as stretch goals. Stretch goals are usually used to expand the
knowledge, skills and abilities of high-potential employees
In addition to focusing only on a few major goals during a single year, the goals
should be SMART:
 Specific, clear and understandable.
 Measurable, verifiable and results-oriented.
 Attainable, yet sufficiently challenging.
 Relevant to the mission of the department or organization.
 Time-bound with a schedule and specific milestones.
Finally, effective goals should be participative. Both manager and individual should
be involved in the development of goals to ensure understanding and commitment.
Goals should be documented, available for review, managed on a continuous basis
and acknowledged. Goals should be flexible enough to account for changing
conditions.
Examples of effective goals include statements such as these:
 Increase revenue by 10 percent during the first quarter.
 Reduce office expenses by 25 percent as compared with the prior year's actual
costs.
 Decrease employee absences from three days to one day per quarter.

Element two: performance review

Performance review is the process of assessing an employee's progress toward goals.
Strengths and weaknesses of all employees are recorded regularly so that the
organization can make informed and accurate decisions regarding an employee's
contribution, career development, training needs, promotional opportunities, pay
increases and other topics. Performance review and evaluation involve the objective
and subjective consideration of how to measure and evaluate employee performance
results.
Recommendations for an effective performance review process include:
 A feedback process that is continuous and timely throughout the review
period so that employees know how they are doing and what is expected.
 A dialogue that includes performance feedback measured against clear
and specific goals and expectations established at the outset of the
performance management cycle.
 A process for acknowledging the outcomes of the performance review process
that is documented between the manager and the employee.
 A two-way individual conversation between the manager and the employee
(preferably face-to-face) at least once a year.
Common Types of Performance Review Systems
Regardless of the type or format of the selected method to review an employee's
behavioral and work expectations, clear definitions of each level of performance must
be provided. Raters should be provided with examples of behaviors, skills,
measurements and other performance factors to assist them in evaluating an
employee. Several types of performance review systems are in common use. Each
system has its benefits and drawbacks.
 Ranking. Ranking systems list all employees in a designated group from
highest to lowest in order of performance. The primary drawback is that
quantifying the differences in individual performance is difficult and may
involve drawing very narrow—if not meaningless—distinctions.
  Forced distribution. The ratings of employees in a particular group are
disbursed along a bell curve, with the supervisor allocating a certain
percentage of the ratings within the group to each performance level on the
scale. The actual distribution of employee performance may not resemble a
bell curve, so supervisors may be forced to include some employees at either
end of the scale when they would otherwise place them somewhere in the
middle.
 360-degree feedback. This process collects information from the employee's
supervisor, colleagues and subordinates about an individual's work-related
behavior and its impact. Other names for this approach include multirater
feedback, multisource feedback or group review. This form of appraisal is
widely favored for employee development purposes.
 Competency-based. This type of system focuses on performance as measured
against specified competencies (as opposed to specific tasks or behaviors) that
are identified for each position.
 Management by objectives. Management by objectives (MBO) is a process
through which goals are set collaboratively for the organization, various
departments and each individual member. Employees are evaluated annually
based on how well they have achieved the results specified by the goals. MBO
is particularly applicable to nonroutine jobs, such as those of managers,
project leaders and individual contributors.
 Graphic rating scales. Graphic rating scale (GRS) appraisals list several
factors, including general behaviors and characteristics (e.g., attendance,
dependability, quality of work, quantity of work and relationships with people)
on which a supervisor rates an employee. The rating is usually based on a
scale of three to five gradations (e.g., unsatisfactory, marginal, satisfactory,
highly satisfactory and outstanding). This type of system allows the rater to
determine the performance of an employee along a continuum. Because of its
simplicity, GRS tends to be one of the most frequently used forms of
performance appraisal.
 Behaviorally anchored rating scales. Behaviorally anchored rating scales
(BARSs) attempt to assess employee behavior rather than specific
characteristics. The appraisal tool generally contains a set of specific
behaviors that represent gradations of performance and are used as common
reference points, called "anchors," for rating employees on various job
dimensions. Developing a BARS assessment tool is time-consuming and
expensive because it is based on extensive job analysis and the collection of
critical incidents for each specific job.

4: Understand how organisations cooperate with their employees.

4.1: Describe how organisations gain cooperation from their employees

For an organization to run smoothly and meet its goals, it is important to foster a work
environment that supports collaboration amongst colleagues. Unfortunately for most
organizations, this does not occur naturally, and thus you must make an effort and
take steps to help build and sustain a cooperative work environment.
There are many activities and steps that the leadership along with the employees can
take to help improve collaborative relationships.
Teamwork must become part of your culture
For co-workers to successfully collaborate, the leadership within the firm must work
to make collaboration one of the key values of the enterprise. Employees must see
that the leadership within the firm works together as a team to accomplish goals. Also,
the company’s leadership must award teams publicly when they are successful at
working together to achieve their objectives.
To truly improve collaboration, leaders must provide an environment where
employees are not afraid to share their ideas. Leaders must create a culture where the
exchange of ideas is encouraged and rewarded. Teamwork and collaboration must be
a central theme of the mission statement to improve collaboration.

Provide employees with the resources they need to work together

To make improvements with communication, the organization must provide the
necessary resources to the teams. This includes comfortable work spaces where the
teams can work together. If the teams are spread out amongst different locations, then
the organization must provide the resources that allow the teams to work together
remotely such as video conferencing.

Train employees and encourage ongoing learning

Working as a collaborative team member is not a skill that everyone is born with;
however, it is a skill that can be learned, which is why it is imperative the
organization spend the money investing in the employee’s teamwork skills. There are
fantastic team building courses out there for your employees to attend. Also, there are
specific skills employees need to learn to be effective collaborators.
One of these skills is the ability to communicate with co-workers effectively. There
are practical workshops employees can take to learn how to better
communicate through public speaking. Learning public speaking skills will increase
their confidence and ability to articulate points, as well as bring them closer together
if the course is completed as a group.

Encourage people to socialize outside of work

When employees are in the office, they are focused on the tasks at hand, which means
there is little time for co-workers to bond on a personal level. It is vital to team
collaboration for people to get to know each other outside the office. The event does
not have to be a significant expense; it could be going to the movies, having a casual
lunch or going for a drink after work. Participating in a social event will help break
down barriers in the office and will help improve collaboration, as co-workers will
have built trust and feel more comfortable collaborating together.

Clarifying roles and setting expectations

Organizations will find when all employees are on the same page, working
collaboratively will quickly become a seamless and natural process. Making sure each
employee understands, not only his or her role, but the roles of the people around
them will help everyone understand the big picture and how they fit into the larger
puzzle.
It is also imperative that the leadership set clear expectations for the teams so that as
employees work together, everyone is clear on which goal or objective needs to be
reached.

Review individual’s talents

An organization must look at every single employee’s skills and place them in a
setting where they can add the most value. When forming teams, for them to
effectively collaborate, one must identify each individual’s strengths and place them
with co-workers who will complement those strengths. When each team member is
the best at what their role is within the team, you will see them producing results
above your expectations.

Resolve team conflict quickly

No team will ever be perfect, and it is crucial for organizations to recognize this and
have a system in place to handle any conflicts that arise. The system should allow any
employee to share their concerns without repercussions. Also, employees should be
allowed to have input on any solution to the conflict made by the organization.

Employees who know there is a system in place and are comfortable knowing the
dispute will be handled fairly will be able to return to the team in a healthy and
collaborative manner

https://www.teambonding.com/improve-cooperation-amongst-co-workers/

Conclusion
Hence it can be concluded that it is indeed very important for the organisations to
have a proper and well maintained HR department in order to ensure maximum as
well as effective utilisation of the human resources. Moreover the HR managers must
be efficient enough to make sure that the human resource requirements of the
company as successfully met with as and when required.