The Importance Of HR Functions In The Manufacturing Industry

Six Key HR Functions in Manufacturing Industry

Discuss about the HR Development in Manufacturing Sector.

In this activity, I have selected the manufacturing industry as the basis of my study. The general idea, in this case, is obtained from one particular article by TOG (2018). The same article has been instrumental in cementing my understanding for the topic. However, I have used four more articles to support the general argument provided in this case. Of the four, one article mainly demonstrates the impacts of developing HR in the manufacturing sector. The other deals with managing workforce diversity in the Australian manufacturing sector while the other two deals with HR issues in general with regards to the Australian manufacturing industry. According to my observation, small and micro-enterprises that deal in manufacturing are becoming increasingly aware of the amount of impact that an effective Human Resource manager can provide in the organizations, thus, leading to success. An effective HR Manager with proper HR functions has the ability to help bottom line of a manufacturing company by developing a work environment that is engaging and positive.

According to this article, there are six main HR functions that are important with regards to driving success within the manufacturing industry globally. Such functions are compensation management, evaluation and administration of benefits, recruitment, training or development, performance appraisal, and employee or labor relations. Regarding compensation management, the article elaborates that expenses relating to compensation form the second largest expense in business after purchasing or raw materials. HR managers are required to determine the most appropriate mix for base and variable pay alongside benefits that retain or motivate high performers in an organization. Under evaluation of benefits as a function, balancing employee requirements alongside managing the increasing employee benefits costs is an issue that is sensitive with regards to health insurance. In such a case, HR managers are left to answer several questions like if to offer different benefit options.

Regarding recruitment, the article claims that the interest of younger generations is reducing with regards to going for manufacturing career opportunities. Such is because of the current perception that the manufacturing industry lacks the cutting edge compared to other industries. Such a case is an industry-wide challenge which requires the skills of an HR manager that is well-connected and imaginative to give its organization an advantage over others. IN this case, the most crucial obligation of the HR manager is to effectively recruit individuals that are talented in a manner that is timely and cost-effective. Regarding training, leaders of HR departments are required to effectively manage development and training areas within the organization. Also, regarding performance appraisal as a different function, HR needs to design as well as implement formal programs of employee appraisal to ensure that tools and processes are in line with the goals of the organization. Also, HR will provide line managers with the skills and support they need to engage such processes effectively to ensure that the organization achieve the results that are desired. The last function described in this article is labor relations. Under this topic, the argument is that HR leadership with regards to employee and labor relations is vital in the manufacturing industry. For non-union companies, sustaining such a status would take much time and effort. However, for those organizations that are unionized, on-going relations and labor negotiations would have significance on the financials of companies.

Challenges and Benefits of HR and Workforce Diversity in Australian Manufacturing Industry

The main imposition of this article is that the HR department of an organization plays several important duties to ensure its success. Organizations also need to realign themselves to be in a position of competing with others. Similarly, the article discusses the issue of organizational development. Under the same, it argues that such is a way through which companies would be able to implement change processes to realize success. Properly utilizing employees will help realize such developments. With a proper, functional HR Department, employees have a framework through which they can develop their organizational and personal abilities, skills and knowledge. Developing an organization should be the sole priority of every stakeholder in an organization. However, a proper leadership framework and employee support is required to achieve such developments. Regarding HR development, focus should be on the development of superior workforce so that all stakeholders can meet their objectives in service to clients. There are several opportunities aligned to employee development out and in of the work environment.

In relation to our area of study, this article asserts that the development of HR within manufacturing industries is associated with administrative duties, payroll, and worker-management mediation. Many manufacturing countries worldwide rely on the development of HR to tackle issues such as strikes and labor unrests. The context of manufacturing, according to this article amounts to the use of tools, machines, and labor for the production, use, and sale of goods. The same may as well include a variety of human activities from high tech to handicraft. The Australian Bureau of Statistics confirms that about 6.8 million jobs within other sectors are supported by or depend on the manufacturing industry. The country’s manufacturing industry by itself creates more that 10 million jobs. Globally, the sector boasts as the 10th largest economy. Such, therefore, portrays how the manufacturing industry plays a vital role in the functionality of the global economy.

This article discusses the examination of perceptions of workers regarding the challenges and benefits of workforce and HR diversity management practices. The practices, in this case, are in line with the Australian manufacturing industry. According to the study performed in this article, there is little discrimination in the Australian manufacturing industry. Contrarily, the studies show that employers in Australia use a ‘legalistic compliance approach.’ At the same time, they do not considering diversity of the workforce as a way of increasing their competitive advantage. The practices that employers have adopted are not effective enough to manage HR diversity practices. Simply put, the manufacturing industry of Australia does not value diversity enough. The industry also fails to capitalize workforce diversity benefits since it does not recognize overseas skills, soaring costs of training, ineffective communication, and social isolation as its main barriers. The article also identifies some major benefits associated with workforce diversity. Such benefits are cultural interaction and diversity, stronger work ethic, reduced levels of absenteeism, and reduced labor turnover.

Maintaining Ethics, Diversity, and Anti-Discrimination in the Working Environment

For the global industry, the article is very clear. According to Monga (2013), maintaining ethical practices and diversity is vital to small and micro organizations in case they would wish to gain their employees’ loyalty. Training ethical practices has well become a trend in the world of business. Through such training, stakeholders are able to achieve the vision and mission of their organizations. Ethics begin with the assumption that all workers perform their operations in line with the organization’s moral guidelines. In as much as an organization can be influential or large, unethical behavior within it can reduce its success levels. Ethical issues may face any business organization. Therefore, organizations are required to set ethical operation standards since such is a vital professional practice applied in several sectors of the economy.

This article discusses the relevance and importance of HR policies and practices. According to the article, organizations try to deal with worker uncertainties fast enough before conflicts arise within the workforce. In relation to tackling issues pertaining to employee-management relationship, this work addresses the following factors:

We regard individualism as preference to a particular social model. Such preference is knit loosely in any given business community. On the other hand, collectivism is the opposite of individualism and referees to a social model that is knit tightly.

In this context, we term masculinity as the preference of forcefulness, fulfillment, and materialistic success. On the other hand, femininity refers to the preference of healthy relationships, modesty, and upholding team playing and care for everyone.

In relation to the mentioned factors, this article makes it clear that HR leaders should effectively manage the acquisition of suitable attributes by employees through training. The leaders also need to develop performance appraisal and also implement formal programs of employee appraisal to ensure that tools and processes are in line with the goals of the organization.

The main argument in this article is that there are laws relating to equality and anti-discrimination in the working environment. Every law, regardless of the country or state in which they are made, needs to ensure the working environment is discrimination and harassment free. Workers are also required to be well conversant with the laws and regulations covering their responsibilities and rights. With effective anti-discrimination and anti-harassment procedures in place, business organizations stand a chance of improving productivity and increasing efficiency. Also, maintaining ethical practices and diversity is important in ensuring that workers’ loyalty and trust put on the manufacturing companies by customers is maintained. Anti-discrimination means employees are utilized equally and effectively. When employees are properly utilized, organizations stand a chance of meeting their goals. The HR department is responsible for ensuring that such utilization processes are in line with the lain laws and regulations. On the contrary, it is the obligation of every stakeholder in an organization to ensure that the environment is safe for work. However, a good leadership framework and employee support would increase the chances of enhancing ethical practices within an organization.

Business – large or small, are exposed to issues regarding cultural diversity, demographics, and education levels. According to Agatha (2010) handling the aforementioned issues in a way that is appropriate improves the future survival chances of an organization. On the other hand, effective ethical operations and cultural diversity within an organization needs management training. As a result business organizations ensure that they have well established training programs to help in the promotion of ethics and diversity. However, organizations that are on the verge of growth require written codes of ethics instead of creating standards of diversity. Such codes are written on handbooks and handed to workers. Managers also need to be trained apart from just having policies written. Afterwards, teams and managers should be given tools required when dealing with situations of conflict that are tricky to handle. In the end, this article also highlights benefits associated with workforce diversity and anti-discrimination. The associated benefits include reduced levels of absenteeism, stronger work ethic, and reduced labor turnover.

References:

TOG. (2018). 6 HR Functions That Drive Results in Manufacturing. Retrieved April 13, 2018, from https://www.theoverturegroup.com/blog/6-hr-functions-that-drive-results-in-manufacturing/

Ritika, S. (2018). HR development in manufacturing sector. Retrieved April 13, 2018, from https://www.peoplematters.in/article/strategic-hr/hr-development-in-manufacturing-sector-14992

Monga, M. (2013). Human resource diversity management practices in the Australian manufacturing sector. Retrieved April 13, 2018, from https://www.tandfonline.com/doi/abs/10.1080/09585192.2013.826714

Assignment. (2017). The importance of HRM Policies And Practices Business Essay. Uniassignment.com. Retrieved April 13, 2018, from https://www.uniassignment.com/essay-samples/business/importance-of-hrm-policies-and-practices-business-essay.php

Agatha. (2010, May 25). Adapting the Marketing Mix across Culture. Retrieved April 13, 2018, from https://hh.diva-portal.org/smash/get/diva2:326017/FULLTEXT01.pdf