MANAGING HUMAN RESOURCES 11
Irrespectiveof an institution`s size, it remains operational because of theskills of the people responsible for running daily regular errands.This implies that managing human resources is crucial to attainingexcellent return on investment. Managing the human resources mayinclude improving training, increasing the number of employeesworking for an organization or introducing advanced technology in abusiness. For example, a company can improve its net profit throughintroducing virtualization technology that enables a single person,using one server, to conduct tasks that could previously haverequired more than ten people. Similarly, managing human resourcesmay involve urging the employees to adopt ethical behaviors thatwould impress the customers (Dessler, 2012, 32). Ethical employeesprovide honest and high quality services that keep the customerscoming back. Human management trends may vary among organizations,according to a firm`s size and nature of the work available in everyorganization. In the large companies, human resources management mayinvolve determining employees that deserve promotion, transfer toanother department, or even remuneration increase. The main reasonfor managing human resources is ensuring that the staff is providedwith the necessary resources, environment, tools, and skills requiredto maximize returns of an in institution (Turban, & Greening,1997, p. 24).
Humans,liquid cash, physical assets, and technology are all forms of capitalfor a regular business. The human resources determine performance ofan organization significantly. Organizations that employ severalpeople hire human resource manager to ensure employee equity, as wellas effective utilization of other production resources such asmachines in a manufacturing company. Various studies recommenddifferent human resources management in order to enhanceproductivity. Big organizations have Human Resources Management (HRM)that conducts key responsibilities such as hiring employees, trainingrecruits, setting ethics that the staff should follow, and allocatingtasks among other duties. Managing human resources is a fundamentalbusiness organization task because it ensures maximum return oninvestment.
Sincethe introduction of global businesses, several businesses have becomeinsolvent or downsized significantly. This is attributable to thehigh production cost and the high competition from the biggerorganization that compels local businesses to reduce the cost of thefinal of the final product. To avoid making losses, severalbusinesses have established Human Resource Management (HRM)departments to focus on maximizing returns on investments. Thisliterature review utilizes peer-reviewed journals, case studies, andhuman resource management reports analyzing efficient approaches thatvarious companies utilize to improve human resource productivity(Ioannou & Serafeim, 2014, 39). Eligible sources for the reviewmust be analyzed using qualitative research approach.
Huselid(1999, 2), asserts that human resource managers are using patents,competitive advantage and economies of scale to achieve competitiveadvantage that increases return on environment. The managers developproprietary management techniques that are in turn tested over timeto determine their suitability. If the management approaches functioneffectively, the techniques are protected as a right of theorganization. Employees recruited in the organization are trainedwith skills or production technology that is patented to give theorganization with the objective of attaining success. The authorfurther argues that human resource management mainly should create aflexible, motivated, and skilled workforce in order to enhance returnon investment. The researcher has used emerging studies in strategichuman resource management to prove that the competent workforce isessential for every firm to achieve the best performance. Similarly,the author argues that the HRM intending to create High PerformanceWork System (HPWS) should adopt incentive compensation systems,rigorous selection and recruiting protocols, employee development andtraining activities designed to reinforce, acquire, and refine staffbehaviors and skills essential to execute an organization’scompetitive strategy (Huselid, 1999, 4). The research concludes thatthe fundamental premise responsible for the management of humanresources department in one organization is distinct from theapproach used in another organization that uses unique strategies.
Organizationalstrategy and human capabilities
Zadehand Seyeddjavadin (2009, 5) propose that an organization should matchits HR capabilities and strategy with organizational objectives usingthe Lepak and Snells’ (2002, 424) HR architecture. The research isa case study conducted using Iranian firms. The researchers espouseon the significance of integrating the internal HR strategy with theexternal operation needs. The staff responsible for developingbusiness goals should collaborate with the HR strategy designers inorder to develop compatible goals (Lepak, & Snells, 2002, 13-15).The HR strategy involves matching the processes, programs, practices,policies, and philosophies (the “five Ps”). The five Ps aimsreinforcing and motivating distinct staff roles that are suitable foreach competitive strategy. Moreover, the authors claim that HRstrategy designed is determined by availability of individuals withthe skills and capacity for executing the outline formula. Thesufficient performance of an organization is influenced by adequateintegration of behaviors, knowledge, and abilities of givenemployees. The case study identifies various effective methods thatan organization can follow when executing efficient HR strategies.The techniques include the matching approach, the control-basedapproaches, the resource-based approach, typological approach, andintegrative approach (Zadeh & Seyeddjavadin, 2009, 11-15).
Hashemiet al. (2011, p. 26) argue that empowering employees involveconnecting personal competencies and strengths, proactive behaviorand natural helping systems to social changes and policies. Accordingto the study, empowerment is critical in human resource management.Since empowerment involves giving employees increased autonomy tomake major workplace decisions without much consultation, theconcerned staff has an obligation for ensuring that everyone knowshis or her limits in an institution. The improved technologicaldevelopment and diversification of the customer needs imply that oneemployer can handle a task that previously required many people(Hashemi et al., 2011, 29). As a result, the professionals do nothave colleagues to contact, especially when dealing with technicalissues. This makes it essential for the HRM to train and giveauthority to individual employees to execute decisions that they maydeem suitable for improved productivity of the business. The studyasserts that employees’ empowerment takes a psychological approach(Hashemi et al., 2011, 31). The employee is provided with the skill,the goals of the organization, ethics of a company and theenvironment required to undertake given challenges.
Accordingto Syverson (2011, 326), the productivity level of an organization isdetermined by some elements that can be controlled by humans at somepoint. For example, a coffee farmer at the primary level and thecoffee miller at a secondary level determines the final quality ofcoffee. This is because humans have complete control of the finalproduct a given point, at least theoretically if not practically. Theresearcher uses a case study of China and India to draw conclusionson the reason that has made the countries have significantly distinctproduction levels. Syverson (2011, 329) claims that the productivityin China and India differs because each nation has a unique humanresource management. The author argues that HRMs should emphasize oneffective use of time and emphasize on relevant job skills. Everymanager should have a philosophy, as well as an established plan toachieve improved productivity.
Peetzaet al. (2008, 405) study emphasizes on the significance of humanresource managers to establish policies for promoting equity. Thestudy argues that organizations that depend on non-compulsoryinstruments such as peer-regulation and self-direction rarely producea friendly working environment. According to the Australian-basedreport, the authors contend that Australia public productivity andefficiency has significantly improved because the law has set uniquerequirements that the human resource manager should consider whenhiring staff. This includes qualifications, gender, and level ofskills among others (Peetza et al., 2008, 409). The employment equitystresses on anti-discrimination regulations that force business tohire individuals because they have the necessary skills, instead oftheir nationally, ethnic background, or even gender. The report notesthat voluntaristic work environment may lead to increased output, asthe employees feel trusted and motivated to prove they are capable ofaccomplishing the mandate they have at their workplace (Peetza etal., 2008, 412). However, availability of strict operation policiesmaximizes the returns on investment of a given business because theindividual is obliged to meet given goals.
Futuretrends in human resource management
Pandey(2012, 612) asserts that human resource management has significantlytransformed in the last thirty years. He asserts that businesses areshifting from the brain drain globalization and privatization.Besides, the human resource management is shifting focus fromscreening and protecting employees into planner and change agents. Onthe contrary, human resource managers will require attaining a widerange of both soft and physical skills throughout to 2020 in order tohave capacity to manage diversified staff. According to theresearcher, several businesses are currently unable to meet thedesired performance because the staff is underutilized, undertrained,under motivated, and undervalued, thus their performance issignificantly below average (Pandey, 2012, 615). This implies thatorganizations are presently absorbing changes at a faster rate thanever before. The market for skilled and talented individuals isextremely competitive, thus the reason human resource managementdepartments in the future will need to emphasize on organization,process, and process knowledge, experienced staff, and emphasize onemployee retention. The cost of training new staff createsinconveniences, and inexperienced individuals may deliver low-qualityworks that compromise the returns on investment. Moreover, the authorasserts that future human resource managers will need to emphasize onglobal work environment ethics. The present rate of technologydevelopment is quickly making the earth a global village, andorganizations that does not meet international business standard maysuffer a blow of losing its customers to the well-organizedbusinesses offering low cost and high quality goods and services(Pandey, 2012, 618).
Insummary, managing human resources is a fundamental businessorganization task because it ensures maximum return on investment.The managers should emphasize on providing enhanced training,equipping, and the environment necessary to enhance personalproductivity. In addition, empowering employees is also valuable foracquiring maximum returns on investment. The research has resolvedthat many small and middle-sized businesses are still to achieve HighPerformance Work System (HPWS). The main reason the organizationshave been incapable to attain the desired performance include undertraining, lack of incentives, ineffective regulation policies, andlack of flexibility.
Apartfrom empowering employees, creating new laws and improving training,emphasizing on corporate social responsibility (CSR) andsustainability will also improve productivity of businesses. The CSRhelps to improve the perception of customers towards a given brand.In addition, CSR enhances individual motivation employees towardsgiving back to the society.
Howdo the Employee Health, Safety, and Security affect return oninvestment?
Thehuman resource managements are championing changes in businessfunctioning and productivity in the future. However, there is limitedresearch whether the HRM should also champion the employee health,safety, and security programs to improve return on investment. Theincreasing danger of a global pandemic is demanding for improvedorganizational planning. Vast research is required on strategies thatfirms can use to enhance organizational disaster planning.
Huselid,M.A. (1999). The impact of high performance work systems,implementation effectiveness, and alignment with strategy onshareholder wealth. Academyof Management.Web, retrieved on October 9, 2014 fromhttp://www.markhuselid.com/pdfs/articles/1997_Shareholder_Wealth.pdf
Zadeh,M.H., & Seyeddjavadin, S.R., (2009). HR strategy and its aligningwith organizational strategy and human capabilities. IranianJournal of Management Studies,2 (2), 5-29.
Lepak,D.P. & Snells, S.A. (2002), Examining the human resourcearchitecture: the relationships among human capital, employment, andhuman resource configurations. Journalof management,28: 417 -543.
Hashemi,A., Ahmadi. H., Kahreh, M.S., (2011). Achieving competitive advantagethrough empowering employees: An empirical study. FarEast Journal,3 (2). 26-38.
Syverson,C. (2011). What Determines Productivity? Journalof Economic Literature,49(2). 326–365
Peetza,D., Gardner, M., Brown, K., & Berns,S. (2008). Workplace effectsof equal employment opportunity legislation: the Australianexperience. RutledgeTaylor and Francis Group,29 (4). 405-419.
Pandey,S. (2012). Future trends in human resource management. InternationalJournal of Business and Management Research,2(2). 612-619.
Ioannou,I. & Serafeim, G. (2014). The Impact of Corporate SocialResponsibility on Investment Recommendations. Harvardbusiness school.
Turban,D.B., Greening, D.W. (1997). Corporate social performance andorganizational attractiveness to prospective employees. TheAcademy of Management Journal,40(3): 658- 672.
Dessler,G. (2012). Fundamentals of Human Resource Management, Boston:Pearson.2 nd edition ISBN 978-0-13-255590-6