human resource menagement
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Surname : Bascoban
Name : Zohre
Student ID : 0459NINI0409
Lecturer :Rajendra Kumar
Semester : MBA Semester1 Group 1A
London School of Commerce
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Contents
1. Introduction............................................................. ...................................... ...............22. Human Resources Management..................................... ............................................2
2.1. Human Resource and Competitive Advantage....................................... ......42.2. The Relation betweenHuman Resource and Technology............................5
3. Strategic Human Resource Management................................. .................................63.1. Business Competitive Strategies.73.2. Business Strategy and Human Resource Management................................8
4. Business Performance and Human Resource Management....................................95. Conclusion................................................................................................... ................116. References...................................................................................................................12
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1. IntroductionHuman resource management is controlling employees inan organizationt rougha strategic
and coherentapproach. Ithas become presentandpowerful communicates to the supervision
ofjob inmarket economies. Purpose ofthe Human resources management is:
y Conductingjob analyses,y Teachingto new workers,y Assessment ofperformance,y Controlling earnings,y Conversation between employees and employs,y Teachingto current employees.
These things must be in the form of worker guidebook. In addition, amanager has some
responsibilities andthey should know about; equivalent chance, principles and choice action,
member of staffhealthandprotection.
Inthe next section I discuss relatedhuman resources management. In Section 3 I explained
the meaning of strategic human resource management. In Section 4 I present business
performance andhuman resource managementand Section 5 concludes.
2. Human Resources ManagementValue added can be influenced by the effectiveness ofan organization`s human resource
managementpolicy. For instance, the efficientuse of employees helps to reduce costs whilst
appropriate working conditions can increase productivity. The aim of human resource
management is to assist a company. Also employees canable to help to establish strategic
purposes, (McLean, 2006). Aproblem inany ofthe followingareas therefore could indicate a
personnel problem whichmust be addressed:
-The rate of labourturnover
-The level ofabsenteeism
-The level ofproductivity
-The quality of work or service
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-The level of wastage
-The safety record, (Stephen, 1995).
Inadditionhuman resource is essential forall managers because human resource
management canhelpto choose the best worker forthe employment, performingatpeak
capacity, to have employees notdoingtheir best.
Example 1: Inthe world one ofthe biggest retail industries is Marks and Spencer. Inthe
pastand future achievementhuman resources are significant factor fortheir company. In
Marks and Spencerhuman resource is essentialparticularly fortraining. They are getting
benefits fromtraining, for example; opportunity to develop skills and knowledge, increases
general proficiency and confidence, may improvejob satisfaction because they are more
competentto do theirjob, feel valued by the organization.
http://corporate.marksandspencer.com/mscareers/opportunities/store_roles/section_managers
Example 2: If employees satisfied with theirjob and ifthey are getting benefits from their
job means thathuman resource is working efficiently. Forhuman resource of Sainsbury is not
just concerned withjob and teachingjob to their staff. Inaddition, they are also involving
some ofactivities; every employee is equal and they have got equal chance and controlling
earning. For the HRM training and improvement is key factor.
http://www.123helpme.com/preview.asp?id=47477.
Example 3:AtToyotathe aim ofHuman Resources is thathealthand safety are importantat
work. The purpose ofthis act is to protect employees ormem bers ofthe public fromhealth
and safety hazards at work. The actmakes everyone concerned with workactivities. the think
ofToyota is if we look well our employees, our employees will look our customers. As a
resultHR is important forthe company. It is notjustabouttraining, performance. It canable
to include everything.
(http://www.graduates.toyotajobs.com/sf_hr.aspx).
2.1. Human Resource and Competitive AdvantagesWith the purpose of race effectively; a company must have more than one competitive
advantage. It is not enoughjustto have anadvantage over your competitors. Youhave to be
able to beat today's cruel market forces and instability to increase your market share.
Understanding your competitive advantage is crucial to your continued existence. Youmust
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do best rather than your competitors for purchaser to buying your product or service.
Achievementa sustainable competitive advantage is notas simple asjust beingdifferent.
Example 4:HR strategy is significantatAsda fora competitive advantage thatthe business
provides this fortheir consumers therefore the HR is vertical forthe Asda. The result ofthis
case is the business developing frequently. The people strategy is based on employment,
teachingjob, motivating and remaining high quality workers. As a result, amongst other
things, 2,500 colleagues and all new managers have been trained at the AsdaAcademy.
http://www.personneltoday.com/articles/2001/11/08/10097/asda-wins-award-for-best-hr-
strategy-in-line-with-business.html
Example 5, 6, 7:FordandToyotahave access to the same technologies. Technology is not
enough to gain competitive advantage. With helping staffand the organization system that
make itthe difference. Therefore as atthe Shanghai PortmanHotel, businesses today rely on
their human resource management rules andpractices to create the highly committed and
service-oriented employees thatthey need, (Gary, 2009).
Example 8: Nowadays Company is much more competitive than it is been in the past.
Therefore employers like Ritz-Carleton they are increasingly working on their staffs
motivationandperformance to provide withthema competitive edge. The metamorphosis of
employees interested in human resource management reflects the fact that at the present
many businesses are keepingtrainedand loyal employees. In orderto, every company needpeople notjustmachines to gain competitive advantage, (Gary, 2009).
2.2. The Relation betweenHuman Resource and TechnologyCurrently, with changing technology companies do the nature of almost everything.
Technology functionplay necessary role inhuman resource management. We canuse Human
resource and technology together to design again our process. (Linda, 2006). Four main
function of HR which are Self-service, call centres, productivity improvement and
outsourcing going to improve by helping technology, (Gary, 2009). The ability offered by
informationtechnology to gather, record, organize andactupon information quickly is vital
in organization. To gain maximum benefit however, information technology needs to be
properly managed and controlled. The best way to manage and controlled is that human
resource department.
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Example 9:The Spanish retailer Zara does not require the costly inventories that burden
competitors like The Gap. Zara operators its own Internet-based global sharing network,
linkedto the check-out registers at its stores aroundthe earth, (Gary, 2009).
Example 10: Dellworkers use the firm`s internet-basedHRapplications to self-service many
oftheir ownHRtransactions, for example to informing individual informationand changing
benefits allocations. Withdevelopingtechnology Dell also generate a centralized call centre.
Professionals ofHR at Dell Company they said: employees of Dell dropping the need for
variety ofHumanResource, (Gary, 2009).
Example 11: Many businesses are developing their internet information therefore they can
able to gain more productivity which is human resource purpose. As can be seen from
worldwide Paper corporation had fitted effectively information system of human resource
many years ago. Therefore the aim of company was improved by using very well technology,
(Gary, 2009).
3. Strategic Human Resource ManagementStrategic human resource management is a branch ofHuman resourcemanagement. It is a
fairly new field. Strategic human resource management is creatingand implementingHRs
plans, HRs rules andHRs exercise that create the worker capabilities andperformances the
business requirements to attaintheir strategic goals, (Garry, 2009).The best way to managehuman resources is that strategic HRM is the process oftransformingtraditional HRpractices
into a limited set of correct HRprocedures andpolicies. The aims of human resource
management and the goals of strategic HRM are appropriated in an organization. Both
methods are forthe future of organization. The aim of company is the aim of Strategic HRM.
Strategic HRM is concerned with longer-term people problems and macro-problems for
instance; business, quality, society and values.
Example 12:Albertson`s top organization relied onthe firm`s human resource managers to
be partners in helping the firm achieve its strategic aims. Amongst other things, dropping
employees expenses so performance ofAlbertsonCompany. To reachthis purpose, they are
giving employmentto who canable to satisfy customers. Inaddition, managers should know
abouthow they candevelopmethodandmeasures. To achievingAlbertson`s strategic goals
the team ofHR should worktogether, (Gary, 2009).
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Example 13: HRM has been a significant position in the direction and planning of
businesses. At the presentHRM programme under way National Health Service in the UK.
The importantpart ofthis plan will be the combination ofHRM withthe strategic aims ofthe
NHS. In the NHS amain factor in stimulating these closer relations is the recognition that
variability of treatment taxes between different hospitals may be as much to do with the
organization of the clinical staffas with theiraccess to medical technology. Therefore the
health service provides very good instance of the strategic situations of HRM, and the
relation of its inputs, (Ianand Len, 2001).
3.1. Business Competitive StrategiesThe business` long-term competitive situation in the marketplace a competitive strategy
recognizes how to buildand strengthen. All organizationhas different interms of its focus,
size, and organization as is every market and the level of competition within it. Allbusinesses, however, face competition to a larger or smaller degree and thus must devise
suita ble strategies to deal with it if they are to survive and prosper, (Stephen, 1995). If
companies can increase the level ofproduction, enhancedmarketing, the introduction ofnew
technology, developing human resources, tightening financial control, they can able to
compete their competitors. It is clearly show that every business needs a competitive strategy.
Example 14, 15, 16: Competitive strategy recognizes, for example, how Pizza Hut will
compete with Papa John`s orhow Wal-Mart will compete withTarget. Inaddition, to attain
competitive advantage managers use some competitive strategies. One, cost leadership,
means the enterprise goals to become the low-cost leader in an industry. Wall-Mart is a
typical industry cost leader. Itmaintains its competitive advantage inpartthrough its satellite-
baseddistribution system, (Gary, 2009).
Example 17: Tesco is as retail industry which is very competitive industry therefore all
companies need to implement their competitive strategy excellently. Their slogan which is
every little helpshas beenhelpto decrease prices and raise customer base. Furthermore, it
is a competitive strategy to obtain competitive advantage. They are always debate about rules
of HR and implementation of HR. The company proffer to teach employment to their
employee and improve the level of staff. Nowadays the function ofHRatTesco has been
increased. http://www.businessteacher.org.uk/free-business-essays/tesco-hrm-essay/
Example 18:With competition fromWall-Mart and other chains, Wegman`s chose to pay
overaverage wages andprovide fortheir employees free healthtreatment. As a result, ifthey
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take care of their employees, the employees will take care of their customers. Wagman`s
organizationdecided that its competitive strategy was to compete with othergrocery chains
based onproductivity and quality of service. Its compensation strategy effectively supports
that competitive strategy, (Gary, 2009).
3.2. Business Strategy and Human Resource ManagementIncreased combination betweenhuman resource managementand business strategy is one of
the most significant requirements that are placed upon present strategic human resource
management. Onthe otherhandthe managementandthe academic literature, it is generally
approvedthatthe strategic deploymentandmanagement of employees can contribute to the
success, developmentand continuity ofthe companies. Inadditionto thatall companies can
gain competitive advantage by usinghuman resources efficiently and effectively. Therefore it
is essential for companies to create human resource managementpractices thatmeet their
business strategies ifthey wantto create highprofits. What is more, there are many results of
the human resources for instance, it is crucial for the management. As a result the human
resources management and the management of the organization should corporate and
communicate every stage of whole companies and strategic plans.
Nevertheless, althoughaccountappears to be encouraging, to implementthe strategic human
resource management is complex. Studies carried out appear to be very limited in term of
empirical researches andprovide inconclusive result. In other case, the literature providesrathernormative models of strategic human resource management, models whichare still in
need of being the subject of close observation. Also, in general, most literature is mostly
concerned with what strategic human resource management is andmuch less with howto
use it inpracticalsituation.
Example 19: Above the last few years, HR management of Shell has been changed.
Importance HR for Shell Company is that the department ofHR essential for the employee
performance and establishes ifthere is aneedto developthe performance. Furthermore, HR
department should be aware of lack of the reverse. If there is somethingnot enough for the
company they need to arrangement a conference with managers or employs to complete
them. What is more, the rules ofHRandthe procedures ofHRhas been raise effectively.
http://www.shell.com/home/content/careers/current_campaigns/hrcareers/hr_in_shell/hrcaree
r_hroverview_03072007.html
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Example 20: Functions ofhuman resource management can be reorganized by employers in
more innovative ways. For instance, Randy MacDonald, IBM`s senior vice president of
human resources says the typical human resource management organization chart unduly
isolates the HR functions into silos suchas employment, trainingand employee relatives.
Using this silo approachmeans there is no one team ofhuman resource specialists focusing
onparticulargroups of employees, or on individual employees` requirements, (Gary, 2009).
Example 21: Forthe human resource department responsibilities ofmanagers or supervisors
is vital to the company suchas Sarbanes-Oxley Act. They are interested in those managers
are doinggood communication with staff, to be equal, seriously measure skill and knowledge
of staff. As can be seen, the aims of company to raise performance of staff because if your
staffdone theirjob successfully, you wouldgetprofitand successful, (Gary, 2009).
Example 22: Safety is particularly in large, difficult utility like Con Ed, many of whose
facilities go back 60 years ormore than 60 years. Backthen, people didnotunderstandusing
product`s risks like asbestos, therefore nowadays employees ofCon Eddiscover themselves
working with dangerous materials on a daily basis. The Grand Central explosion forced
organizationto review strategy ofCon Ed.
Injectinga safety firstmentality into all the firm`s operations involvedmany HRactivities.
Suchas, for their ecological healthand safety employees Con Ed recruitedand trainednew
people. As can be seen from experience of Con Ed how top management can use its
particularhuman resources strategies andpractices to support its strategy, (Gary, 2009).
4. Business Performance andHuman Resource Management
The last ten years it has been analyzing that does human resource management affect on
professional performance? Human resource is consideringabouttraining, workperformance,
recruitment therefore the answer is human resource management influence the business
performance. (Wood & Wall, 2002). Because inan organization to manage employee or to
improve theirperformance are depend onhow company is providing trainingprogramand
how is employs communication with employees? Inthis case company needHRdepartment.
Strategic management is concerned with explaining significant variations in business
performance, (Peter &john, 2003).
Business Performance Managementassistthe businesses in recognizingand identifyingareas
oftheir company thatare indicating goodperformance andthose that require to development
and improvement theirperformance levels. Basically, productivity, reductions of costs,
process analysis, improves theirmarket share that will provide opportunity to improve their
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business performance. Furthermore, Business Performance Management also involves
collectingdata from variety resource; examine the informationandapplyingthe outcome into
practice for reaching the mostpreferred outcome. Business Performance Managementhelps
fordevelopmentall these purposes, recognize of organizationand solvingproblems. Business
Performance Management is also effective in riskanalysis andpredication results orplanning
for overcomingthe potential issues.
Experts in this field believe that unhappiness is one of the chief causes for poor
performances in most of the cases in the employment. As a result of this is that salary
concern, lack of motivation and training, poor communications between management and
employees. Whereas developmentthe performance ofthe employees, and further on keeping
talents, business needs to do its bestto keepthemhappy. This not only means regular wage
raise andpromotion butalso business needto improve relationship withthem, treatingthem
with respect, dignity and values their workand rewarding their successes. The benefits of
business performance managementare that encouragedthemto maintaintheir skills in order
to be able to performtheirtaskattheir bestto result inproductivity rise.
Example 23: Morrison raised their half-year profits by a bove 45% with helping people
strategy, motivation, communicationand training. Result ofhuman resource is thatmanual
labour has been decreased by 40% at Morrison last a few years whilst mem ber of staff
pleasure has increased by more than 12%.
http://www.hrmagazine.co.uk/news/938861/Morrisons-HR-director-claims-investment-
people-development-contributed-its-strong-performance/.
Example 24: Forany business Human Resource Management is anecessary part. What is
more, the first step is that improvement ofHRmanagement. It is important for each business
but it is more vital for international companies for example, CocaCola. Technology and
employee are essential for company butto create an organizationpeople are more important
than technology. Therefore HR Management is crucial at Coca Cola Company. The
disadvantage of to be worldwide company is that too difficult to make certainpolicies or
procedures because ever country has their own rules. The company can be reducedmistakes
by HR management because business performance management collecting data from
different resource; analyse the information and applying the outcome into practise for
reachingthe mostpreferred outcome. http://www.bookrags.com/essay-2005/8/16/134242/800
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Example 25:TurkishAirlines is a big family. They have a wide visionand share common
values. Unhappiness of employees is significant forTurkishAirlines because it is one of the
major reasons for poorperformances. As a result of this is that salary concern, lack of
motivation and training, poor communications between management and employees.
Company needs to do its bestto keepthemhappy thus HRmanagement is important. Turkish
Airlines provides to their employees to develop their careers in the company. This is to
increase employees` performance. The benefit of business performance management is
raisingproductivity.http://www.thy.com/en-INT/corporate/human_resources/index.aspx
5. ConclusionThe consequence of efficiently controlling human resources is bigger profitability, low
workerturnover, high quality ofproduct, lowerproduction costs, andthe results ofhavingthe
right employees motivated to perform. As a result, mainly if coupled with competitors who
do not have the rightpeople encouraged to perform, cangenerate quantity of competitive
advantages throughhuman resource management exercises.
Every company has their own gaols, vision and strategy therefore responsibilities within
Human Resource Managementare many-layeredand complex notat least. It is clearly show
that there is a very close connection linking the managementandHR. Inaddition, HRalso
stands forthe human requirements andall the times withthe aimaheadto make the company
most efficient.
6. References
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Beardwell, I. & Holden, L. (2001) Human Resource Management, third edition, Prentice
Hall: Financial Times.
Boxall, P. & Purcell, J. (2003) Strategy and Human Resource Management, first edition,
Palgrave Macmillan: New York.
Danks, S. (1995) GNVQ Advanced Business, second edition, DP Publication: London.
Dessler, G. (2009) A Framework for Human Resource Management, fifth edition, Prentice
Hall: New Jersey.
Holbeche, L. (2006) Understanding Change Theory, Implementation and Success,
Butterworth-Heinemann: UK.
http://www.shell.com/home/content/careers/current_campaigns/hrcareers/hr_in_shell/hrcaree
r_hroverview_03072007.html .
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http://www.atrium.com/content/Menu/667/FT/2/FF/11/ContentPageLoader.aspx.
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http://www.thy.com/en-INT/corporate/human_resources/index.aspx.
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http://www.businessteacher.org.uk/free-business-essays/tesco-hrm-essay/.
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http://www.graduates.toyotajobs.com/sf_hr.aspx.
Accessed on 27 Jan, 2010
http://corporate.marksandspencer.com/mscareers/opportunities/store_roles/section_managers
Accessed on 4 Feb, 2010
http://www.bookrags.com/essay-2005/8/16/134242/800 .
Accessed on 4 Feb, 2010
http://www.personneltoday.com/articles/2001/11/08/10097/asda-wins-award-for-best-hr-
strategy-in-line-with-business.html.
Accessed on 12 Feb, 2010
http://www.123helpme.com/preview.asp?id=47477
Accessed on 21 Jan, 2010
http://www.hrmagazine.co.uk/news/938861/Morrisons-HR-director-claims-investment-
people-development-contributed-its-strong-performance/
Accessed on 11 Feb, 2010