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Strategic Human Resource Management (SHRM) Is Known For Its Functioning

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Question:

Discuss About the MMH230 Fundamentals of HRM ?

 

 

Answer:

Introduction

Strategic human resource management (SHRM) is known for its functioning that links the practices of human resource with the strategies and objectives of the organization with the help of employees’ skills, behavior and attitude (Schuler & Jackson, 2008, pp. 101-104). It helps the Hr management to address the needs of human resources. Hence, it can be said that SHRM facilitates the organizations to get the complete engagement of the employees within the organizational activities, which ensure the long-term services to the organization.  If an organization is not applying SHRM, then the issues related to the employee make take place during the achievement of short-term and long-term organizational goals. The issues related to employees affect the motivation of the employees and create workplace issue that reduces the impacts of retention policy of the organization (Rynes, Gerhart & Minette, 2004, pp. 381–394). In this context, this paper will analyze the factors that cause employee turnover and their implications to the HR management of the organization.

 

Theory and Concepts of SHRM

There are many theories related to the human resource management that allows the HR management to address the needs of employees and meet the rules and regulations related to the employees to ensure the long-term growth of the organization. In this context, Shonfield (2001) gives the definition of SHRM and also define the theory of SHRM that is used by the organizations to set the working environment, flow of information and communication within the organization, job responsibility, incentives, and employee role towards the goal of the organization. It also considers the employee's betterment. The concept of the SHRM can be understood with the help of some of its points that are:

Performance management: It is an important concept of the SHRM because the poor management of performance will reflect in the effort of the employees. Due to this, the employee may not be able to fulfill their objectives along with the objectives of the organization (Acevedo & Yancey, 2011, pp. 349-354).

Employee retention strategies: The retention concept of SHRM helps the HR management of the organization to focus on such steps and implement such strategies that only benefits the employees replace the dissatisfaction and motivate the employees towards the achievement of the organizational goals (Armstrong, Brown & Reilly, 2011, pp. 106-120). The retention strategies of an organization include rewards for the best performance of the employees, promotions, career growth, regular training, and social benefits to the family members, facilities to family and after job security to the employees. Strategies such as employee retention strategies are different from the HR strategies that are used by the HR management to hire and select an employee to fulfill the internal job vacancy (Armstrong, Brown & Reilly, 2011, pp. 106-120). The concept related to the SHRM shows the importance of the human resources of an organization in achieving the goal based targets in the competitive market.

 

Employee Turnover

The theories and concepts of the SHRM focus towards the performance management and retention of the employees within the organization. To ensure the low turnover of employees, each organization introduces the employee motivational strategies that ensure the performance and efforts of new employees in the favor of the organization (Boswell et, al, 2001, pp. 307-327). But there are several other factors that are not different related affects the performance of the employees but it makes negative impacts on the performance of employees and regular poor performance motivates employees to leave the organization forever.

Factors that Cause Employee Turnover

There are several factors that cause the employee turnover. Some of the factors are given below:

Lack of Training

A new employee needs employees training and development program to develop the understating towards the workplace environment, job responsibilities and career growth within the organization (Rothwell, et al, 2015, pp. 115-119). If an employee start working without getting the proper training cannot be able to perform their responsibilities in a more effective manner because of the poor understanding of the policies of the workplace and processes which would help an employee to get a positive appraisal. On the other hand, an employee which face the regular issue related to their performance will not able to work for longer-time and lie to leave the workplace of an organization to get new job opportunity in market (Rothwell, et al, 2015, pp. 115-119). Further, untrained employees cannot get the support of the management of the organization which will also increase the turnover of the employees.

Poor Working Environment

Workplace environment is another factor that plays a role in the employee turnover. It means if the workplace environment is in the favor of the employees then it will reduce the employee turnover. But the negative workplace environment that not supports the employees may be increased the turnover of the employees (Aslam, et al, 2011, pp. 738-745). Workplace environment includes the necessary tools such as technology, machinery, and required equipment and strategies related to the production that facilitates an employee to do better performance and achieve organizational objectives and goals (Krar, 2013, pp. 717). On the other hand, the poor working conditions because of the physical elements will only lead to the lower level productivity and create job dissatisfaction. The organization cannot address the issue related to workplace, employees will no longer able to work for the organization.

 

Ineffective Leadership

The training to leadership, development of employees and seminars for the development of professionalism and functions of the workshops demonstrate the interest of the employers to tapping the existing human resources for their higher level performance within the workplace through the help of internal promotions and career succession policies (Rothwell, 2015, pp. 283-284). In this context, the ineffective leadership causes poor impacts on the performance of the employees and causes their failure in providing support to employees who show interest and attitude in the workplace opportunities as like promotions (Mol, 2003, pp. 166-167).

The promotion of employees without providing the minimum level of training to employees increases the risks to the employer because of the low productivity and high turnover. Hence, it can be also stated that the poor training to the employees related to the leadership and development of the employees makes direct impacts on the employee turnout (Wulf, 2012, pp. 320-322). This is because leadership training facilitates the employees to work as per the needs of the organization through developing the cooperative the behavior in the workplace. If the performance of employees has poor and their supervisor reports, to the management of the poor performance of the employees then it will also affect the employee-supervisor relationship that also increased the turnover of the employees.

Workplace Conflict

Conflict is a factor that makes direct impacts on the workplace relationship. In this context, it can be stated that workplace conflicts take place if the human resource management of the company fails to resolve or investigating the issues related to the performance of the employees. Due to this situation, the employees do not able to perform their responsibilities with applying full efforts. As a result, the performance of employees suffers (Patricia, 2013, p. 172). On the other hand, the conflict in the workplace causes detrimental impact of the morale of the employees, which increase the employee turnover. The employer can address the issues related to the workplace conflict by offering equal opportunities and benefits for the employees with the help of fair working practices which will provide the equal chance to each employee to grab the opportunity. Otherwise, the use of unfair work practices in the workplace will also increase the workplace conflicts and increase the employees’ turnover (Patricia, 2013, p. 172). 

Employee Communication

The regular communication between the employees and employer is a good thing for an organization to achieve the productivity level. In this context, if an employer makes regular communication with the employees helps to improve the positive behavior and interest of the employees within the organizational activities of those employees, who feel unappreciated and undervalued (Carroll, 2015, p. 326). Further, regular communication with employees allows the employer to inform about the changes in the organizational activities, plans related to staffing and demand of the business that will help to ensure the availability of the employees within the workplace. In this context, if the employer neglects their employees and do not make direct communication with them then it may affect their performance and productivity. The communication gap can also develop the negative attitude among the employees towards the organizational policies (Carroll, 2015, pp. 326-328) that can affect their overall productivity, which may restrict the employer from good appraisal of the employees. Hence, this situation will also increase the employee turnover. 

Need of Growth in Career:

In the context of present technology era, everybody is using the Internet to get the real time information from the market in the context of job and available opportunities to them. The internet is also allowing the employees to learn new skills that can improve their competencies in the organization. In this context, the changes in the existing job profile to give pace to the growth of the career are also a reason behind the turnover of the employees (Felps, et al, 2009, pp. 545-561). This is because the learning gain from an organization may help the employees to the get high salary in the other organization. HR management of an organization cannot stop it but can change the existing job profile of the employees by shifting their responsibilities and role within the organization (Boswell, Boudreau & Tichy, 2005, pp. 882-892).  As a result, Hr management can provide an effective job profile to the employee, which can help to learn new skills and knowledge which will reduce the employee turnover for some period not for forever.

Effectiveness of Retention Affecting Factors for HR Strategies

HRM policies play a significant role to reduce the employee turnover in the organization by addressing the factors which increase the employee turnover. For example, lack of training of new employees is a factor that causes employee turnover. To overcome this issue, the HR department of the organization should have to introduce the effective training and development plan to the new employees, which will help the new employees to develop the skills and competences as per their job description (Phillips & Connell, 2004, pp. 189-102). After getting training, HR management can increase the engagement and interest of the employees in the organizational activities that will improve the productivity and performance of employees. As a result, the organization may be able to provide the good appraisal to them that will increase their availability to the organization for long-time. 

On the other hand, the workplace conflict will define the HR management that there is not something wrong with the existing HR practices. With the help of this, the HR management of the company can be able to make changes in the existing employee practices to ensure the use of fair work policies within the company that will ensure the equal participation of each employee (Boswell, Shipp, Payne, & Culbertson, 2009, pp. 844-858). The communication between employees and employer is another important factor that will increase the performance of the employees if it is good and favor the employees.

The good communication will also help the HR department to the reduce the gap between employee and employer which will increase the mutual cooperation within the workplace which reflect positive impacts on the performance and productivity of the employees (Phillips & Connell, 2004, pp. 189-102). Therefore, it can be stated that the factors related to the employee turnover can help the HR management of an organization to reduce the issues related to employees, which will also increase the performance of employees.

 

Employee Retention Strategies and its Effectiveness for HR practitioners to address problem

The retention of the employees within an organization is a subject related betterment of the HR policies and practices. According to Aslam, et al, (2011), employee retention strategies facilitate the HR management of the organization to increase the interest of the employees in the organizational activities. As a result, the rate of employee engagement in the organizational tasks increases that will reflect in the term of productivity improvement. With the help of this, the HR management can also address the issue related to poor perform, less effective workplace environment and gap in the desired productivity of the employees because the engagement of the employees will motivate the employees to apply best effort that can help to complete the task of organization within the given time with accuracy. The researcher also separate the employee retaining strategy with the HR practices of the organization and says that the retention strategy is a part of the SHRM strategies but the poor retention strategy may not help the HR management to get the benefits of effective HR practices (Aslam, et al, 2011, 738-745).  

On the other hand, Osman, Ho & Galang (2011) states that the employee retention strategy does not only help the organization to ensure the availability of the employee for ling-time but these strategies also turns the negative behavior of the employees into positive, which motivate them to ignore the issues related to their performance if the management are supportive and favors the employees by addressing the employee oriented policies. With the help of this, the HR management can also address the issues related to the workplace communication and employees will come with their issues to the management due to the two way communication facilities.

In the word of Cahalane & Sites (2008), Emotional relationship between management and employees is an employee retention policy that can be achieved by the HR management through the education and health policy for the family of the employees. This policy can be costly for the organization because of the impacts on the revenue but it will help to get the service of the employees for the long period that will help the organization to gain more benefits rather the investment on the employees. With the help of this retention policy, HR management of the organization can address workplace conflict in effective ways. This is because the emotional relationship will help the employees to secure the social security of employees (Cahalane & Sites, 2008, pp. 91-114). As a result, employees would express their issues to the HR management without any fear and management can be able to make changes in the policies to address the issue as soon as possible.  

In the word of Monsen & Boss (2008), strategic entrepreneurship is an effective term for the HR management that impacts on the staff and management positively. This entrepreneurship includes the innovativeness, proactiveness, and risk taking approach, which facilitates the organization to improve the job satisfaction of the employees. This is because strategic entrepreneurship helps the HR management to reduce the job stress and increase the employee retention (Boswell, Olson-Buchanan & LePine, 2004, pp. 165-181). Employee satisfaction will also help the HR management to address the issue related to poor workplace while the satisfied employees will take involvement in each organizational policy (Monsen & Boss, 2008, pp. 71-104) that will improve the performance of their groups also. 

The research outcomes of Moncarz, Zhao & Kay (2009) describes that the culture of the corporate, the process of employee hiring, promotions of employees, the practices of the training influence and security of the employee future after job the job are some retention strategy for the retention of non?management employee. If these strategies do not discriminate among the employees and provides the fair workplace practices to the employees, organization will not see the growth in the employee turnover because these strategies will help HR management to replace the lack of the leadership training and employees will get self-motivation to lead within the organization (Moncarz, Zhao & Kay, 2009, pp. 437-458).

According to Samuel & Chipunza (2009), there are some extrinsic and intrinsic motivational variables, which influence the retention of the employees along with the employee turnover. If the motivational factors are enough and effectively encourage the employees towards the productivity, then the organization may be able to retain employees for long-time. This situation will also help the HR management to reduce the employee turnover which will benefit the organization positively.

On the other hand, the researchers Schuler, Jackson & Tarique (2011) describe that the regular focus on the needs and necessities of human resource to perform the daily work practices will help the organization to reduce the employee dissatisfaction and increase the performance of the employees. In this context, reward to employee for the better performance and achievement or the recognition of the employees’ performance by the employer will help the HR department to make effective policies to replace the performance gap and increase their productivity level (Schuler, Jackson & Tarique, 2011, pp. 506-516). Therefore, it can be stated the employee retention strategy also increases the effectiveness of the HR practices of the organization because retention policies define the efforts of the organization that has to use to motivate the employees for their longer service to the organization.

Conclusion

Above discussion explores that the SHRM is used by the organization to target some small-term and long-term targets through the help of the employees. For this, organizations used the employee retention policy that helped the HR management to reduce the turnover of the employees. But the poor workplace environment, less effective training, poor communication, and workplace issues are some factors that did not only affect the performance of the employees but also increased the dissatisfaction level, which motivated the employees to leave the organization and search new jobs. Any organization can address the high rate of employee turnover through providing the regular support to the organization in the area of performance improvement, which will help them to fulfill the expectations of the organization along with the personal needs. With the help SHRM strategies, the management of an organization can also replace the issues from the workplace and provide the best possible career options to them that will definitely reduce the employee turnover.

 

References

Acevedo, J.M. & Yancey, G.B. (2011) Assessing new employee orientation programs. Journal of Workplace Learning, 23 (5), pp. 349-354.

Armstrong, M., Brown, D. & Reilly, P. (2011) Increasing the effectiveness of reward management: an evidence-based approach. Employee Relations, 33 (2), pp. 106-120.

Aslam, H.D., Javaid, T., Tanveer, A., Khan, M. & Shabbir, F. (2011) A Journey from Individual to Organizational Learning. International Journal of Academic Research, 3 (3), pp. 738-745.

Boswell, W. R., Boudreau, J. W. & Tichy, J. (2005) The relationship between employee job change and job satisfaction: The honeymoon-hangover effect. Journal of Applied Psychology, 90, pp. 882-892.

Boswell, W. R., Moyniha, L. M., Roehling, M. V. & Cavanaugh, M. A. (2001) Responsibilities in the “new employment relationship”: An empirical test of an assumed phenomenon. Journal of Managerial Issues, 13, pp. 307-327.

Boswell, W. R., Olson-Buchanan, J. B. & LePine, M. A. (2004) Relations between stress and work outcomes: The role of felt challenge, job control, and psychological strain. Journal of Vocational Behavior, 64, pp. 165-181.

Boswell, W. R., Shipp, A. J., Payne, S. C. & Culbertson, S. S. (2009) Changes in job satisfaction over time: The surprising role of honeymoons and hangovers. Journal of Applied Psychology, 94, pp. 844-858.

Cahalane, H. & Sites, E.W. (2008) The Climate of Child Welfare Employee Retention. Child Welfare-Arlington, 87(1), pp. 91-114.

Carroll, C.E. (2015) The Handbook of Communication and Corporate Reputation. USA:John Wiley & Sons.

Felps, F., Mitchell, T.R., Hekman, D.R., Lee, T.W., Holtom, B.C. & Harman, W.S. (2009) Turnover Contagion: How Coworkers' Job Embeddedness and Job Search Behaviors Influence Quitting. Academic Management, 52(3), pp. 545-561.

Krar, S.F. (2013) Technology of Machine Tools. Australai: McGraw-Hill Education. 

Mol, T. (2003) Productive Safety Management. USA: Routledge.

Moncarz, E., Zhao, J. & Kay, C. (2009) An exploratory study of US lodging properties' organizational practices on employee turnover and retention. International Journal of Contemporary Hospitality Management, 21(4), pp.437-458.

Monsen, E. & Boss, R.W. (2008). The Impact of Strategic Entrepreneurship Inside the Organization: Examining Job Stress and Employee Retention. Entrepreneurship Theory and Practice, 33(1), pp. 71–104.

Osman, I., Ho, T.C.F. & Galang, M.C. (2011) The relationship between human resource practices and firm performance. Business Strategy Series, 12 (1), p. 41-48.

Patricia, P. (2013) International Business Strategy and Entrepreneurship: An Information Technology Perspective: An Information Technology Perspective. USA: IGI Global.

Phillips, J.J. & Connell, A.O. (2004) Managing Employee Retention. USA: Routledge.

Rothwell, W.J. (2015) Effective Succession Planning: Ensuring Leadership Continuity and Building Talent from Within. USA: AMACOM Div American Mgmt Assn.

Rothwell, W.J., Jackson, R.D., Ressler, C.L. Jones, M.C., Brower, M. (2015) Career Planning and Succession Management: Developing Your Organization's Talent—for Today and Tomorrow. USA: ABC-CLIO.

Rynes, S.L., Gerhart, B. & Minette, K.A. (2004) The importance of pay in employee motivation: discrepancies between what people say and what they do. Human Resource Management, 43 (4), pp. 381–394.

Samuel, M. O. & Chipunza, C. (2009) Employee retention and turnover: Using motivational variables as a panacea. African Journal of Business Management; Victoria Island, 3(8), pp. 410-415.

Schuler, R.S., Jackson, S.E. & Tarique, I. (2011) Global Talent Management and Global Talent Challenges: Strategic Opportunities for IHRM. Journal of World Business, 46 (4), p. 506–516.

Shonfield, D. (2001) Equal Pay Guide. UK: CIPD Publishing.

Wulf, K. (2012) Ethics and Compliance Programs in Multinational Organizations. Springer Science & Business Media.

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