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Master of Business Administration University of Sunderland, UK Oct 2010 Semester Assessment

Human Resource Management HRM 5002 Submission Date: 26th Nov 2010 By: Ong Meng Seng

CONTENT
pg 1.0 Introduction 2.0 General View of Human Dimension 3.0 Leadership 4.0 Coordination 4.1 Human resource planning or employment planning 4.2 Employee recruitment 4.3 Employee selection 4.4 Job analysis 4.5 Human resource planning or employment planning 4.6 Performance management planning 5.0 Communication 6.0 Motivation 7.0 Conclusion 8.0 Appendices 9.0 References 2 2 3 4 5 5 5 5 5 5 6 7 9 10 18

1.0 Introduction In the following author will discuss on the subject of To what extend is organizational success a function of the human dimension. From the Human resource management perspectives, in the organization, Human resource or People resource are not just another cost or factor of production or business. They are the key to competitive advantage in the global market place. In general review of the Human dimension Author will discuss about the co-relationship with regards to the success of the human dimension in the organization, which is focus more on the Leadership, Coordination, Communication and Motivation, Author will then further discuss about those theories that has been shared or in used for many decade of years. Examples the leadership pipeline of the succession planning, Maslows Hierarchy of Needs and Theory X and Theory Y from Douglas McGregor, the guru of human motivation. Therefore Author concludes that the success of organization is highly depending on how the functions of Human dimension performing. The current new age of globalization impact, the global success companies like Brady or other fortune companies are thoroughly rely on the Human Management strategy to drive people to perform and to achieve the organization mission and vision objective. 2.0 General View of Human Dimension In recent years, the global economy is moving very fast and changing rapidly. The globalization effect and impacted the local and global companies, therefore in the way of managing the business and resource management are now became higher and highest expectation. Eigenhuis and Dijk (2008) cited some of the critical skill sets today are different from those that will be needed in 10 years from now, just as they are different from those 10 to 20 years ago. To be successful in the local and global business environment, companies need highly capable humans who are thoughtful, who understand how to work with others and who have maturity and emotional intelligence, qualities that are more difficult to develop. There is many evident show that the organization who success as market leader have quite similar attributes of Competitive Advantage through People. Refer to Appendix 1, Eigenhuis and Dijk (2008) have investigated from survey on what are the key successful factors to those fortune companies, the findings confirmed that those key factors are the differentiating factors between mediocre companies and high-performance companies.

Most of those factors like attract and retain talented peoples, management quality, effectiveness and innovation are all related to what we generally called the function of human dimension. People or human dimension is essentially focus base on the Leadership management for all level in the management team, a good leader basically should be able to coordinate his team members to work around the company mission, which then communicate clearly the next course of action between the organizations. In order to gain the commitment from the team member and motivate they work extra mile to achieve organization or company business objective, the motivation strategies have to be put in place. To summary, the major elements of success in human dimension from the human management perspectives as below: Leadership Coordination Communication Motivation

Refer to the (Appendix 2) for the diagram of the Strategic human resource management. Its explained each function and objective that co-relate with the Leadership, coordination, communication and Motivation perspective. 3.0 Leadership What is leadership, what makes a good leader? According to Boltony et al (2008), a good leader is able to coordinate his followers around a credible mission and vision statement, which will also effectively communicate the future course of action of the organization. In practice, leaders learn about the best course of action for the organization over time and change or improve the organization strategies then communicate again to his followers. Lastly Maddock and Fulton (1998) emphasized that leaders can be made, after they come to learn and understand what motivation is all about. Base on Charan, Drotter and Noel (2003), cited in the organization one of the success factor in the Leadership management is the structured and established leadership Succession Plan, its also the motivation factor to the talented employees to progress their career path in the corporate leadership level, refer to the (Appendix 3): The Leadership pipeline in six career passages. Below are the short summary of the Passages through the Pipeline:4

Passage One: From Managing Self to Managing Others. Passage Two: From Managing Others to Managing Managers. Passage Three: From Managing Managers to Functional Manager. Passage Four: From Functional Manager to Business Manager. Passage Five: From Business Manager to Group Manager. Passage Six: From Group Manager to Enterprise Manager.

From the above we can see how the structured level from Corporate Leadership plans and having the right People in the right Place is important to the company success. Jim Collins (2001), coauthor of Built to Last: Successful habits of visionary companies, notes how people provide the most consistent source of long-term success among the companies he has studied. Products, business models and other aspects of a business are easy to steal, but having the right people is much harder to duplicate. As refer to Brady Corporation, one of the latest growing and success company emphases the leadership culture seriously, the top management team often emphasis leadership in all aspect, bottom line, its all about people and personal excellence that build the foundation of the leadership. Below is what exhibited their theory of leadership. Business Excellence is the Goal of leadership. Work Excellence is the Proof of leadership People Excellence is the Power of leadership. Personal Excellence is the Foundation of leadership

(Refer to Appendix 5: Bradys Leadership theory chart.) 4.0 Coordination Coordination is the process of synchronizing activities of various persons in the organization in order to achieve goals. It is undertaken at every level of management. It deals with the task of blending efforts in order to ensure successful attainment of an objective. It is accomplished by means of planning, organizing and controlling. It is a part of all phases of administration and that is not a separate and distinct activity. (Source: http://wiki.answers.com/Q/What_is_coordination_in_business_management)

Basically, organizational coordination and control is taking a systematic approach to figuring out if you're doing what you wanted to be doing or not. It's the part of planning after you've decided what you wanted to be doing. Therefore coordination involve of decision making, planning, execution and measurement as well. Below are some of the major coordination approaches to organization from the HRM perspective of each function that related to the human dimension:(Source: Management Function of Coordinating / Controlling: Overview of Basic Methods) 4.1 Human resource planning or employment planning is the process by which an organisation attempts to ensure that it has the right number of qualified people in the right jobs at the right time. 4.2 Employee recruitment is the process of seeking and attracting a pool of applicants from which qualified candidates for job vacancies within an organisation can be selected. 4.3 Employee selection involves choosing from the available candidates the individual predicted to be most likely to perform successfully in the job. 4.4 Job analysis defines a job in terms of specific tasks and responsibilities and identifies the abilities, skills and qualifications needed to perform it successfully. 4.5 Human resource planning or employment planning is the process by which an organisation attempts to ensure that it has the right number of qualified people in the right jobs at the right time. 4.6 Performance management planning is the processes that involve performances assessment and feedback, Talent management-career path plan, rewards and pay methodology. Refer to (appendix 6: Brady Corp Employee Performance and Potential Grip), the chart show how one of the coordination in performance management plan in Brady Corporation. Its show the strategy of HR department and the Management how they coordinate in term of rewards, promote and manage the performance of the talented peoples in the company.

5.0 Communication First, in the organization environment, communication consists of two basic aspects, the interpersonal communication and intra-team communication. Interpersonal communication is the process that we use to communicate our ideas, thoughts, and feelings to another person. Intra-team communication is a process through which team members communicate with one another. It is made up of the communication strategies and styles of each member of the team. Both interpersonal and intra-team communication skills can be improve through knowledge, practice, feedback, and reflection. The effective communication begins with first understanding how the communication process works. The sender-message-channel-receiver (SMCR) model describes the communication process. The SMCR model is described pictorially below.

Table: SMCR model. (Source: http://www.foundationcoalition.org) Listening, oral communication, interpersonal communication, and teamwork rank near the top of skills that employers seek in their new hires. When you learn to communicate effectively with others, then more opportunities for successful team memberships are available to you. In successful organization examples like Brady Corporation, their CEO communicate the companys strategies plan, Mission and Vision, Financial performance results and Achievements or Success story with their employee via the Companys website or intranet. (Refer to the appendix 7: Bradys communication portal.) In the performance management, Bradys manager communication the performance expectation via the coaching, performance appraises and setting annual goal plan in the recorded database

system, as the base line of measurement to the performance, (refer to the appendix 8) from the Performance management chart. It communicated clearly that the company performance management culture is base on Counsel, Coaching, Rewards and Termination as basic guiding rule to managing people. 6.0 Motivation Motivation is one of the important factors in HRM. Motivation drive people want to work. Motivation is the latent force in us to drive us progress and to works, its ascent behind and the Motive behind. One of the most influential theories of human motivation is base on the needs, according to Abraham Maslow (1943), a famous humanistic psychologist and guru. He come out the Maslows Hierarchy of needs (refer to the appendix 9). Maslows theory maintains that a person does not feel a higher need until the needs of the current level have been satisfied. Maddock and Fulton (1998) cited that is a Structure of the Human motivation. Because the nonconscious mind is simple and straightforward and not complex or devious, These categories exist in every human being, and they account for most all human behavior, They are: 1. Orientation 2. Survival 3. Adaptation 4. Expectation 5. Play They also emphasized that the emotional drivers of the non-conscious must be understood, because they are vital components of decision making. Author repeats that theory again, Leadership is motivation; the leader is a motivator. And Leadership = Motivation = Emotion. And if A = B and B = C, then A = C. Torrington, Hall and Taylor (2005), identified some of the key concepts addressed in motivation theories and suggest which leadership perspectives tap into these concepts: Expectancy has an impact on motivation. If we treat people as responsible and selfmotivated then they will act in a responsible and motivated manner. In addition Vrooms (1964) expectancy theory of motivation recognizes that in the process of motivation the

extent to which the individual feels they can realistically achieve the target will have an influence on whether they are motivated even to try. Importance of the work itself. Maslow (1943), Herzberg (1968), and Hackman and Oldham (1976), all underline the way in which individuals are motivated to seek and may achieve satisfaction through their works, the opportunities for achievement, recognition, responsibility, autonomy, challenging tasks and opportunities for development may all be motivational. Recognizing different people are motivated by different things. Expectancy theory, previously mentioned, also identifies that different individuals value different things and hence have different motivational needs. In 1960, Douglas McGregor developed his theory X and theory Y of human motivation at the MIT Sloan School of Management. In his book 'The Human Side of Enterprise' cited there are two opposing perceptions and theories about how people view human behavior at work and organizational life. (Source: http://www.leadership-basics.com/leadership-motivation-X-andY-theory79.shtml) 1) Theory X In this theory management assumes employees are inherently lazy and will avoid work if they can. Because of this workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with a narrow span of control at each level. According to this theory employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. A Theory X manager believes that his or her employees do not really want to work, that they would rather avoid responsibility and that it is the manager's job to structure the work and energize the employee. The result of this line of thought is that Theory X managers naturally adopt a more authoritarian style of leadership and training based on the threat of punishment. 2) Theory Y

In this theory management assumes employees are ambitious, self-motivated, and anxious to accept greater responsibility, and exercise self-control and self-direction. It is believed that employees enjoy their mental and physical work activities. It is also believed that employees have the desire to be imaginative and creative in their jobs if they are given a chance. There is an opportunity for greater productivity by giving employees the freedom to be their best. A Theory Y manager believes that, given the right conditions, most people will want to do well at work and that there is a pool of unused creativity in the workforce. They believe that the satisfaction of doing a good job is a strong motivation in itself. A Theory Y manager will try to remove the barriers that prevent workers from fully actualizing their potential. In general this gave the false impression that Theory X managers were the bad guys and that Theory Y managers are the best. In Brady Corporation, they management implemented DID rewards plan to motivate employees as recognition culture for high performance and leadership behaviors across the company, the rewards not just monetary rewards but also included the incentive trip or vacation rewards. (Refer to Appendix 10: Brady Corporation DID rewards). 7.0 Conclusion From all the above discussion, Author concluded that the organizational success a function of the human dimension has been well developed and many of the evident has been shared and discussed, in many institution or famous humanistic psychologist and Gurus theories regards to the human dimension are basically involve to Leadership, Coordination, Communication and last but not least the Motivation. The successful organization, like Brady Corporation and others fortune companies in the world are all strongly engage into the Human management strategy and people management philosophy that help to drive growth and sustain their business via Leadership, motivation and all others that related to the functions of Human Dimension.

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8.0 Appendices Appendix 1: Fortune global survey of the worlds most admired companies.

Fortune global survey of the w

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n m c i g e a r t S

Appendix 2: Strategic human resource management.

Leadership
u s c h t d e l i g n a M y f s d e h l n o i t a p u c O o e l a i r t s u d n I g e d i s y l n a b o J m u H g i l p c o s e r n a y t f i c o s e r n a m u H o l s d a n m t i u r c e R

Coordination

S trateg hum resou ic an

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Comm

Appendix 3: The Leadership pipeline in six career passages

(Source: The Leadership pipeline, A Wiley Company, 2003). 13

Appendix 5: Bradys Leadership theory chart.

Leade
(Source: Bradys Leadership model) Appendix 6: Brady Corp Employee Performance and Potential Grip.

Business

People Excellen
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Appendix 7: Bradys communication portal.

(Source: www.insidebrady.com)

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Appendix 8: The Performance Management Chart.

(Source: Brady Corporation, 2008)

Goals/Objective Growth
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Appendix 9: Maslows Hierarchy of needs chart.

(Source: Maslows hierarchy of Needs www.valdosta.peachnet.edu)

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Appendix 10: Brady DID awards plan.

DID Awards

DID Best DID Path

Reward: $500 per individ Incentive trip to Criteria : Annual Contest f


(Source: Brady Corporation, 2010)

DID Star Aw

I) Best C II) Best Sales Pe III) Spec

Reward :$200 per individ Criteria:CI / Sale


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DID Apprecia

9.0 References 0.0 Ap Eigenhuis and Rob van Dijk: HR STRATEGY FOR THE HIGH PERFORMING BUSINESS, Inspiring Success through Effective Human Resource Management, Kogan Page Limited, UK. (2008). 1.0 Abraham Maslows Hierarchy of Needs. (1943). http://www.temple.edu/CETP/temple_teach/cm-needs.html, accessed on 25th Nov 2010. 2.0 De Cieri, Kramar, Noe, Hollenbeck, Gerhart, Wright and Helen De Cieri: Human Resource Management in Australia, 2nd edition, McGraw-Hill Australia Pty Ltd. Australia. (2005). 3.0 Derek Torrington, Laura Hall and Stephen Taylor: HUMAN RESOURCE MANAGEMENT 6 edition, Prentice Hall Europe, London, UK, (2005). 4.0 Effective Interpersonal/Intra-team Communication, http://www.foundationcoalition.org access on 25th Nov 2010. 5.0 Hogan, R., Curphy, G. J., & Hogan, J.: What we know about leadership. American Psychologist 49(6), (1994), pp.493504. 6.0 John B. Miner: Organizational behavior I: Essential theories of motivation and leadership. M.E. Sharpe, Inc. New York (2005). 7.0 Jim Colins: Good to Great, Harper Collins Publishers, New York, (2001). 8.0 Management Function of Coordinating / Controlling: Overview of Basic Methods, http://managementhelp.org/cntrllng/cntrllng.htm, accessed on 24th Nov 2010. 9.0 Maslows Hierarchy of Needs, www.hcc.hawaii.edu, accessed on 25th Nov 2010. 10.0 11.0 Maslows hierarchy of Needs, www.valdosta.peachnet.edu, accessed on 25th Nov 2010. Patrick Boltony, Markus K. Brunnermeierz and Laura Veldkampx: Leadership,

Coordination and Mission-Driven Management, Columbia University, Princeton University, New York University, (June: 2008) pp.1-3. 12.0 Richard C. Maddock and Richard L. Fulton: MOTIVATION, EMOTIONS, AND LEADERSHIP: The Silent Side of Management. QUORUM BOOKS, Westport, Connecticut London. (1998). 13.0 Ram Charan, Stephen Drotter and James Noel: The leadership pipeline: how to build the leadership-powered company. Jossey-Bass Inc., A Wiley Company, California (2003).

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14.0

Leadership - motivation and Douglas McGregor's X and Y theory,

http://www.leadership-basics.com/leadership-motivation-X-andY-theory79.shtml, accessed on 25th Nov 2010.

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