MN7181 MODULE GUIDE: PEOPLE AND ORGANISATIONS: PRINCIPLES AND PRACTICE IN GLOBAL CONTEXT

21 st October 2018

Introduction to Human Resource Management

The success of any organization is largely depending upon the people who are working for the organization.   Hence, people or the “Human” factor of the organization is the most important element or a “Resource” in achieving any organizational objective. Having a talented, skilled, motivated, efficient, dynamic & knowledgeable workforce with right attitude is a dream of any organization as it will lead to maximize the performance and help reach to the targets or objectives easily.

Human Factor: A Change From  Variable Cost .......to An Asset!!!

With the industrial revolution (1760-1820) the concept of managing people has been changed as organizations have identified the importance of their work force and start treated them as an “Asset” and not like a “Cost” as they used to treat them early. With this revolutionary conceptual change a new concept of “Human Resource Management” emerged.

What is Personnel Management??

Personnel management is commonly defined as an administrative specialized function which is mainly focuses on hiring and developing employees to become more valuable to the employer or to the company. However this is now considered to be a sub-category of Human Resources Management as Personnel Management is only focuses on administration.

What is Human Resource Management???

Given below are some of the definitions on HRM

According to Dessler (2005) HRM  was described as policies and the practices involves in caring out the people or HR aspects of a management position including recruiting, screening, training, rewarding and appraising.

According to Armstrong (2014), HRM is defined as a strategic and coherent approach to the management of an organization's most valued Assets – “The People” working there who individually and collectively contributes to the achievement of organizations objectives.

According to Decenzo and Robbins (2013),HRM is more concerned with the people dimension in management. As each and every  organization is made up of people, while they are acquiring services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization is essential to achieve organizational objectives.

According to Bratton & Gold (2007), they have identified and described HRM as a strategic approach to managing employment relations which emphasizes that leveraging people’s capabilities is critical to achieving competitive advantage, while this being achieved through a distinctive set of integrated employment policies, programs and practices.

What are the basic objectives of HRM?

According to Ivancevich (2004), efficiency and effectiveness are the ultimate goals of an organization. The HR function is both “action-oriented” and “people-oriented” and with the globalization, it has become both “globally-oriented” and “future-oriented”. The basic HR function cold be categorized based on following objectives:

1. Assisting in the goal fulfillment process of the organization.

2. Enhancing employee skills and utilizing them.

3. Effectively recruiting the relevant skill base.

4. Training and motivating the work force of the organization.

5. Setting performance appraisal measures.

6. Fostering the organizational culture.

7. Introducing and maintaining new policies as necessary to the mutual benefits of both the organization and its workforce.

8. Effectively announcing and communicating policy changes.

However, with the globalization, Human Resource Management also changed accordingly in order to adept to the new challengers. Given below a successful and unique changes that Google adopted in order to manage its human resources in global context.

An example from Google…..

About Google...

 Google has been ranked  first place “Best company to Work for “by both Fortune Magazine and Great Place to Work Institute a total number of 7 times and received this award again in 2017 recently .Google’s workforce is comprised mainly of young people, and a large number of Millennials with an average employee age of 29. As a result, this youthful workforce is instigating change, as these employees demand a different type of work environment .An average Google employee contributes to generate more than $1.2 million in revenue each year

Their Policy.... At Google they describe their human resource policy as more democratic and very informal which they further describe it as a less hierarchy and  less bureaucratic. They are less rigorous on the way the dress the way they eat and the way they act rigorous when it comes to thoughts. They believe in attitude and talent rather than the knowledge and skill and adopt democratic and 360 degree decision making approach to be more transparent. Project teams are assigned for cross functional operation and rotations are used to enhance and develop the skill of their staff apart from continues training, knowledge sharing and development programs. 

At Google happiness levels are also monitored and researched; with data driving new directions and policies. They have  carries out experiments and plans its human processes in accordance with its findings. This research includes determining the most effective approaches for managing people and maintaining a productive environment (including the type of reward that makes employees the happiest). Google have also notably increased the health of its workers by lowering their calorie intake at work by relying on such scientific data; and an experiment which decreased the size of its canteen plates.

Google is deliberate in its HRM actions and does not do things by chance or by accident but by design.

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The most important learning from all above would be to look after your people. Happier employees are more likely to go above and beyond, and do the very best for their employer once they feel valued and appreciated.

References

Dessler, G (2005) Human Resource Management, Pearson, 13th ed., USA

David A. Decenzo, Stephen P. Robbins (2013), Fundamentals of Human resource management

Armstrong, 2014. Armstrong’s Handbook of Human Resource Management Practice. London: Koganpage.

Ivancevich,J.M.(2004).HumanResourceManagement.McGrawHill:9^th edition

Bratton & Gold (2007) Human Resource Management, Theory and Practice, 6th Edition

https://www.youtube.com/watch?v=FRsJbpppvEU