Give the literature review on valued resources of an organization?
The most valued resources of an organization are its human resources. Proper utilization of the human resources is the key factor of success of any organization. Although the concept of HR is a new concept, it has gained wide significance over the years and now by far employers agree to the fact that hr functions play a very significant role in the sustainability as well as profitability of an organization and hence are now keen on implementing hr policies in their organizations. The major functions of an HR includes recruitment, selection, training and development, performance appraisal and evaluation, human resource planning, formulating HR strategies, remuneration or compensation or payroll, handling legal issues, responsibility for the proper maintenance of the rules and regulations within the organization and last but not the least, making optimum utilization of the available human resources(Humanresourceexcellence.com, 2015). Apart from all the functions mentioned above one of the most important functions of the human resource department is building and maintaining long-term intra-organizational as well as inter-organizational relationships as industrial relations plays a very important role in the growth and sustainability of a firm and is also helpful in proving overseas exposure to the firm (A. Carrillat, d’Astous and Morissette Grégoire, 2014). The management of the day-to-day activities of a firm becomes very difficult in the absence of a human resource department. The HR department is also responsible for proper engagement of the employees towards the achievement of the objectives of the organization. Employee engagement activities such as simulation, sensitivity or T- training, role-plays, In-basket exercises, etc. are all the part of training and development of the employees, and, as a result, of the entire organization as a whole, which is an important HR function. Solving disputes and resolution of conflicts is also one of the major functions of the HR department, the human resource manager acts as a mediator between the conflicting parties. The HR department is also known as the core integral part of the organization or the central part of the organization as it is responsible for the workings and the administration of the entire organization. It is the duty of the HR to maintain the overall health of the organization, make desired improvements wherever needed and also to make strategies to meet the requirements of the future and ensure that it is implemented at the right place and at the right time (Abd Rahman et al., 2013). The performance of the entire organization depends upon the performance of the human resource department, as it is responsible for the functioning of the entire organization, and in case there are any issues or problems related to the employment conditions, or of the employees on an individual level, it the foremost duty of the human resource professional to solve those problems and provide answers to their queries. HR functions also help in maintain proper industrial relations which plays a very important role in the overall growth of the company. HR functions is all about taking care of the human resources of the company which are its capital assets and which play a very important role in the overall development of a company. HR functions have now been successful in letting its importance felt in the world of business as many companies have recorded significant growth after the implementation of the HR policies and procedures (Batterham, 2014).
According to Bratton J and Gold J, human resource management is nothing but a strategic approach towards the management of the relationship between an employer and an employee, which lay emphasis on the fact that leveraging the capabilities of employees is very important and very critical to gain sustainable competitive advantage over the others in business, which is followed by implementing certain programs and policies. The actual importance lies in the fact that how much the organization is capable of utilizing its human resources as the capital. Iftikar M says that an HR is an able partner of the business, whose job is to run the business and make it a successful alliance by generating profit. The definitions, views and prospects of human resource management have changed over the years. Earlier, as early as the 1980’s, it was considered that human resource deals with personnel factors only and only monetary factors are important to engage people at work and get the best out of them, it is now considered that the factors other than the monetary factors that is the social factors such as trust, growth, loyalty, rewards, etc. are essential for retaining employees and optimizing their efforts towards achieving organizational goals (Baum and Kabst, 2014). Apart from the employee engagement activities, which come to play in the later stage, the initial stages of recruitment and selection plays a very important for searching and appointing the most appropriate candidates for the available vacancies, as the appointment of the right candidates for the right positions is very important for the ultimate success of the organization (Constance, 2012). The IT sector of a developing country has observed a huge amount of growth over the recent few years, and this is the result of appointment of right professionals for the right posts, and the ability of the companies to retain their loyal and efficient employees, which is a result of the proper implementation of the HR policies in the related companies. Proper recruitment and selection process can do wonders for a company, by proving the right kind of people in the right place and at the right time (Fawad Latif, 2012). The role of human resource management is mostly considered to be inclined towards the humanitarian factors; it’s all about managing the human resources, optimizing their level of performance, providing them job satisfaction so that they can achieve the objectives of the company both effectively and efficiently, without compromising with their own desires, needs and wants. It also helps the employees to achieve their individual career goals and also the goals of the company, by aligning their individual goals with the goals of the company(Trinet.com, 2015).
Human resource planning is an important of the human resource management; it is mostly done for the proper analysis of the job, for demand forecasting, supply forecasting, and was also used for determining the strengths and weakness of the employees or the human resources of a company and also to develop their competencies and skills for achieving the objectives of the organization (Fominih, 2013). A well trained and a well equipped labor force is required to compete with the global competitive market environment. The increase in the number of competitive rival forces has led to the decrease in the economic success of the organizations. The sudden changes in the technologies, the change in the demography of the workforce, the cultures and the change in climate, widespread use of science and technology requires the HR manager to develop strategies accordingly to maximize the utilization of the workforce. It is the duty of a HR manager to enhance the knowledge, skills and abilities of the employees as they are the corporate assets of an organization (Gilley, Gilley and McMillan, 2009). According to a survey conducted in the manufacturing sector, there are strong evidences which proves that the programs related to the training and development, compensation and other related benefits such as the fringe benefits, medical benefits, retirement benefits, etc., and, proper practices of recruitment and selection have a positive influence on the performance of the employees and hence, on the performance of the organization as a whole. Hence, one can conclude that human resource practices are linked to the higher productivity and the financial performance of the company. Although the HR policies and procedures vary from one organization to the other, the basic features of the HR functions remains the same (Ganesh and Indradevi, 2015).
One of the most vital functions of the HR department is that of motivation, that is motivating the workforce, in order to motivate an individual to pursue a certain course of action which is directed towards achieving certain specific goals, which relates to certain specific outcomes, and an individual chooses to achieve those outcomes with a great sense of vitality and perseverance (Hassi, 2011). One can relate this to the needs, drives and incentives (needs-drives-incentives) theory of work motivation, where drives are generated to satisfy the needs, while incentives are required to gratify the drives. The content theories of work motivation as well as the process theories of work motivation, laid down by the researchers and scholars in the field of HR, suggests ways as to what motivates people as well as how to motivate people. Only highly motivated employees are satisfied with their jobs, take pride in whatever they do, and hence remain loyal towards the organization and work harder to achieve organizational goals. HR audit is an evaluation of the HR functions over a period of time, it is the measure of the effectiveness of the HR functions, that is whether or not its implementation is useful for the organization or not (Kramar, 2013). HR functions also includes the on boarding of the new employees, is responsible for making them comfortable in the new environment, also monitors the time and attention of the entire lot of employees of an organization, they are also responsible for reviewing the termination of employees and also guiding them accordingly, and is also responsible for the tax as well as benefits administration of the employees, along with the management of their performances as well as legal compliance as well(Werner, 2014). One of the HR functions which is the performance appraisal, which is the part of the non-training activities of the process of human resource development, which can be defined as the objective assessment of the performance of an individual against well-defined benchmarks, helps to judge the performance of the individual employee of the company and also helps to reward or to punish the employee accordingly, it also helps in determining the progress of the company within a certain period of tim(Kromrei, 2015)e . The objectives of the performance appraisal system of a company can be summed up as – it helps to take decisions regarding the promotions of the employees, it also helps to confirm the services for the employees that is if an employee working on a temporary basis is found to be capable and loyal enough, he can be appointed on a permanent basis, it also helps in the evaluation and in the assessment of the training and the development needs of the employees, is also helps in deciding on the system of pay packages and also helps to the communication system within the organization. HR functions are responsible for maintaining the health of the organizations so that they can withstand the competitive forces as well as the ever changing environment of business (Lyddon, 2013).
Moreover change is evident and unavoidable, especially in the business world, and it is in the human psychology to avoid change. It the duty of the human resource manager to avoid the resistance of change by implementing any means possible and the ethical means include negotiation, effective communication, effective leadership, etc. whereas unethical means includes cooptation, coercion, manipulation, etc. Managing change within the internal environment of the company is a huge challenge for the human resource manager (Mahajan, Shukla and Soni, 2015). The functions of the human resource management need to be proactive, commercial, strategic and professional. The HR professionals needs to support the transformation of the organization, work on the structure and design of the organization, planning the learning, training and development programs for the employees, is also answerable to the customers and clients, to analyze and administer the overall functioning of the organization and provide suggestions for improvement if required, to keep the organization prepared for facing future challenges. HR functions are carried forward mostly by the line managers, but in order to successfully implement the policies and procedure of HR full cooperation and support is needed from the employees side also because it is them on whom the policies and procedures will be implemented upon (Manoharan, Muralidharan and Deshmukh, 2010). HR practices have a direct impact on the performance of the employees. In a research survey it has been found that HR practices are directly linked to business strategies, and organizational performance as a whole. It was also found in a survey among the employees of the corporate sector that HR practices had a strong impact on the return of assets, growth in the values of the stock as well as in the values of the sales as well, and also on the performance variables of the employees (Mohd.Yusoff, Abdullah and Ramayah, 2009).
Training and development of the workforce provides competitive advantage to a firm as it helps to remove the performance deficiencies, helps to retain the employee for a longer period of time, it also helps to minimize the rate of accidents, scraps and damages, and also helps to meet the future need of the employees. Of the job training activities such as simulation in which the actual work environment is duplicated so as to give a realistic feeling to the employee and sensitivity or T training, in which a group of trainees perform role-plays, in-basket exercises, and business games, etc. so that the employees gain knowledge about not only their own behavior but also the behavior of others, all these activities helps to build intra-group as well as inter-group cohesiveness, as it is said that groups and individuals are the basic units of an organization(Mpungose, 2013). Although proper planning for the training programs is required as to when and where it needs to be carried out, who will be the trainers and the trainees, and what kind of training is required, etc. The purpose and importance of another HR function that is recruitment can be stated as follows-it helps to rightly determine the present and future requirements of the personnel in the organization, it also helps to increase the pool of job candidates at a minimum cost, it helps to increase the success rate of the process of selection and hence ensures that that the candidates once recruited will be selected, it also helps to meet the legal requirements of the hiring process, and also helps an organization to met its social obligation in the process of hiring candidates, and finally it helps to increase the overall effectiveness of the organization(Mphahlele, 2013).
HR functions are very important for the overall development of an employee, as it helps in conducting an assessment on the entire operations of the organization system in order to examine whether all the employees are receiving the services entitled for them and also ensures that they deliver best of their efforts towards achieving organizational goals. Apart from the benefits provided to the employees, the organization also needs the strategic and the transactional services of the HR, for the overall development of the company that is for monetary gains as well as for non-monetary gains. HR services have made their importance felt over the years and now the employers are on hiring HR professionals for the generation of both profits as well as savings (Mr Gaurav Kochhar, 2012). HR functions are all about approaching the people or the candidates, on boarding them, training and developing them and hence preparing them for achieving their objectives as well as the objectives of the organization, motivating them and inspiring them and last but not the least retaining them, as it has been seen that the employees who serve the company for a longer period of time are loyal towards their company and also work hard for achieving the goals of the company, companies do benefit from the timely suggestions provided by them as well (Pekruhl, 2013) .
HRM practices also help a company to establish its business in the overseas market, as it helps in understanding the cultures, attitudes and behavior of diverse group of people around the world. The transformation of the practices of personnel administration due to the implementation of the HR practices in China is worth to notice, no wonder China is doing great on the business front and has been able to sustain a steady economic growth due to the growth in the business sector (Ugoda, 2012). Chinese labor market was tough challenge to handle mostly for the MNCs to set up their business in China, and it was quite a difficult task to attract and recruit as well as retain the right kind of labor force, with the proper implementation of the HR practices this target was achieved. Proper training provided to the local people helped in achieving the objective effectively and efficiently. With the help of or rather more specifically with the adoption of HRM practices in China, it was able to attract to attract significant amount of foreign investors, and, as a result, China is now considered to be one of the biggest markets in the world and no company can be successful globally, without having an established market in the country China (Pilvinyte, 2013).
Even the MNCs of Ireland have benefited from the use and implementation of the HR practices, as it has helped to establish their business both in the foreign market as well as in the local market of Ireland (Thakore, 2013). While a study on the companies of the UK states that, in the UK, the companies tend to follow three types of HR functions, and they are as follows – the HR function which is autonomous in nature, in which the national level of management is done by their own senior management that is the senior management of the host country, they are not concerned with the issues or the markets outside the boundaries of the country, another type of the HR function includes a tight or controlled HR function, in which the national level HR is controlled tightly or rather strictly monitored by the higher levels of management outside the host country that is at the regional level or at the corporate level, etc., and the last type of the HR function includes the limited autonomy type of the HR function, where the host country has the right to implement certain policies on the international basis and also has certain influences in crafting the international HR policies (Rakowska, Valdes-Conca and de Juana-Espinosa, 2015). The human resource information system also helps in spreading the business globally. In fact the Americans were the highest users of the human resource information system which is nearly 70% of the total usage in the world, as indicated by a survey, in which the service sectors were the highest users of the human resource information system (Rao, 2015).
Some of the HR practices have a huge impact on the employee satisfaction, which includes proper selection, training and development according to the needs of the employee as well as according to the need of the organization as well (Stiehl et al., 2015). The placement of the right kind of people at the right place and at the right time not only motivates the employee but also encourages him to take pride in whatever work the individual is doing, which not only provides him satisfaction, but also helps him to reduce and manage stress at the work place both effectively as well as efficiently (Rogers, 2012). The motivated worker is also profitable for the company as he is more productive and loyal to the company, and a token of reward from the company enhances his level of motivation, this also helps the company to retain its loyal employees. The HR of a company also provides advice to draft the career path to the employees which also helps to achieve the personal career goals of an individual and as a result also helps in the career of an employee. An example from the corporate world is as follows – The company COSTCO which is a US based company have been successful in not only sustaining in the market for a longer period and become a well-established company but has been recording a steady growth in terms of profits as well (Sheehan and Cooper, 2011). This has been possible because the company has been able to implement the HR functions both effectively as well as efficiently. The company takes care of its employees, respects them, has given them the right to participate in the decision making process of the company, the employees as a result are happy and satisfied with their jobs, and, as a result, are more productive and loyal towards the company. The leadership styles followed by the company which includes transformational leadership style, democratic or participative leadership style, affiliative leadership style have proved to be a blessing for the company (Ryu and Kim, 2013) .
HR functions have a great impact on the overall effectiveness of the organization, as it not only helps the organization to sustain for a longer period of time in the business world but also helps to gain profits. It has been seen that the organizations which have implemented and followed the HR policies and procedures have observed an immediate growth in their businesses, as they have been able to recruit the right kind of workforce at the right time and at the right place, they have been able to motivate as well as provide job satisfaction to their employees, the employees are to maintain a healthy relationship with the company as a result of the employee engagement activities, and hence, the employees turn out to be more productive and loyal towards the company. HR functions not only helps to empower the employees but also helps to increase their level of performance and make the maximum utilization of the workforce as much as possible. Many companies specially the ones which are small and have lesser number of employees either do not feel the need to hire HR professionals or are keen on also help them to understand other people and mix with them and also help them to gain their outsourcing the HR services for their companies, but it is always better for a company to have its own HR department to make the maximum use of the HR policies and procedures as well as HR functions. HR functions are responsible for optimizing the performance of an individual by providing him the required training, developing their skills, knowledge and abilities, giving them proper advice on how they should proceed in their career path in order to record a growth in their career, helps to minimize the conflicting situations, helps to build inter-group as well as intra-group relationships, and also helps them to avoid the resistance to chance as change is evident and unavoidable and also them to take pride in whatever work they are doing. Employee engagement activities and the rotation of jobs within the company relieve the employees from the boredom of their jobs, and knowledge. An HR function not only helps to build relationships within the organization but also outside the organization, that is it helps in building inter-organizational as well as inter-organizational relationships. It is also helpful in maintaining proper and healthy industrial relations which helps in spreading of the business globally. The HR functions of recruitment, training and development and performance appraisal helps in the engagement of the employees with the organization. It also helps to assess and evaluate the training and development process of the individual, helps to appraise the performance of the individual and help the employees to increase their overall potential, and also takes care of the entire administration of the organization as a whole, and, as a result, helps the organization to sustain as well as succeed in the world of business. The HR functions relate to the human resources of an organization and aims at maximizing their potential for achieving the objectives of the organization. The importance of the HR functions, HR policies and procedures have been realized by the employers over the years, and HR functions has been gaining significant importance since then, unlike the earlier times when it had no importance.
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