The demand placed on business todayt are expanding, how does HRM assist a company to compete in the 21st century.
Effective Human Resource Management As Tool For Organizational Success ANTHONY IGWE Department of Management, University of Nigeria, Enugu Campus, Enugu, Nigeria J. U. J ONWUMERE Department of Banking and Finance, University of Nigeria, Enugu Campus, Enugu, Nigeria OBIAMAKA P. EGBO Department of Banking and Finance, University of Nigeria, Enugu Campus, Enugu, Nigeria Abstract Human Resource is a very important input in the production matrix.. Other seven inputs include materials, money, time, energy, knowledge, information and infrastructure. These inputs are transformed by the process to get the output with feedback and control. It is also an input of the Leontief’s model. In this model, there are three elements, namely; inputs, transform and output,all of which need human resource to galvanize them to be productive. Management involves the design and provision of an environment within groups and organizations so that the individuals and the groups and organizations can achieve their objectives by utilizing both human and material resources. Human resource management is one of the functional areas of management. The others are finance, marketing, production, research and development and innovation. Human resource management consists of personnel management, industrial relations management and employee welfare management. So the early founders of production management are also the founders of human resource management such are Rountria, Robert Owen, and Henry Fayol. Today, most organizations prefer to use the term human resource management to designate such funsctions as recruitment, section, placement, induction, orientation, training and development, wage administration and motivation. Today, human resource management has become very important as a tool for organizational success. For an organization to succeed, it has to first of all breakeven, when total revenue equals total cost and even to have units produce beyond breakeven point as well as survive and still perform well. To perform well, it has to achieve its objectives and goals. It has to satisfy the demands of stakeholders and staff and the regulatory authorities. It is against this background that this study undertakes a theoretical review of human resource management as a tool for organizational success. Keywords: Human Resource Management, Organizational Success, Management 1.0 INTRODUCTION A major contributory area to organizational success is the management of workers in organizations. Business success in a market economy is dependent on the optimal utilization of relevant resources such as the financial resources, material resources, and human resources. It is through the combination of these resources that the attainment of the goal is achieved. However the most significant and complex component for the attainment of organizational success is the human resource. The concept of human resource, according to Udo-Udoaka (1992: 45), refers to the managerial, scientific, engineering, technical, craft and other skills which are developed and employed in creating, designing and developing organization and in managing and operating productive and service enterprise and the economic institution. Human resource is composed of individual working for an organization, employed these days as temporary staff or contracted staff but collectively making up the most important of organizational resources. Therefore, an organization must have the right number and types of employees who must be managed in such a way that they will be able to achieve their personal and organizational objectives. Since the early 1980s, the field of human resources management has been in a state of rapid transition. As the world continues to experience profound changes, different sets of changes are revolving. Today, most managers are comfortable with the term “Human Resources” but a few still prefer to refer to “people”, “Employee” or “staff” and to use the term “personal management”. Cowling (1998;35) argues at one level that terminology ‘may be deemed to be less important, because it is practice that really counts. However, at another level, he argues that it does matter because ways of managing people at work have come a long way in the last fifteen years, and a refusal to use the modern term “human resources” can be an indication of a failure to recognize and utilize recent development. Retrieved from:http://www.iiste.org/Journals/index.php/EJBM/article/view/18837/19159 Retrieved: Oct 23rd 2015. 210 READING 1 – MME 101 201503 EXAM Human resource management (HRM) involves practices that ensure that employees’ collective knowledge, skills, and abilities contribute to business outcomes (Huselid, Jackson, & Schuler, 1997). The traditional conceptualization of HRM focused on managing, measuring, and controlling organization’s workforces. Tactical HRM (Whitner, 1997) or technical (Huselid, et al., 1997) includes selection testing, training, performance measurement and administration of benefits (Whitener, 1997). Huselid, et al (1997) have identified empirically a second dimension of HRM activities: strategic HRM whih involves employee participation and empowerment, communication, team based work design, and development of managers of the organization. Arthur (1994) identified two types of human resource systems similar to those found by Huselid et al (1997): Commitment and control. The human resource system that is based on commitment is focusing on the psychological links between organizational and employee goals. It is associated with higher involvement in managerial decision, participation, providing training and rewards. A human resource system that is based on control focuses on directly monitoring and rewarding employee behavior or the specific outcomes of that behavior (Arthur, 1994). The theoretical literature suggests that HMR practices increase productivity by increasing employees’ skills and motivation. Moreover, HRM practices contribute to business objectives through strategic innovation or technical competence. Recent empirical studies on larger companies supported the basic assumptions of HRM theory (Arthur, 1994; Huselid, 1995; Huselid et al., 1997). Does this theory apply to small-scale enterprises as well? HRM also carries costs and they might neutralize the positive effects of HRM in small-scale enterprises. HRM is an investment, and thus, it costs time and/or money. The current performance of employees may even be decreasing because of the time spent on training. Moreover, HRM can only have effects when employees stay in the company for a certain period of time. Otherwise, the company suffers a loss because of the investments in HRM. Thus, the benefits of HRM must exceed costs invested in HRM. Since small-scale enterprises have limited financial resources it is very well possible that large investments in HRM do not pay off. … 2.0 Perspectives of of Human Resource Management and the Human Resource Management Function There are numerous definitions of the term human resource management as there are many experts in the field and it is called by different names for example, in certain public enterprises it may be called personnel administration, employee relations or manpower. Human resource management is concerned with the proper use of human factors in business. Byers and Rue (2000 :75) are of the opinion that human resource management is that part of management that is designed to provide for and coordinate the employees in the organization. Plants, equipment and all others that a modern firm uses are unproductive except for the effort and direction by human resource. … Human resource management has to do with various operative functions of recruiting, maintaining and utilizing a labour force in such a way that objectives for which the company was established are attained economically and effectively. In sum, human resource management can simply be defined as an effective and efficient utilization of human element at work. Human Resource Management Function The personnel/human resource department programme of each organization is unique and personn
el activities will vary some what from firm to firm yet trends clearly indicate that the scope personal responsibilities in increasing in organizations of all sizes. Personnel/Human resource management functions can be described as follows; • Job analysis and design • Recruitment and selection • Appraisal Training and Development • Compensation and wealth • Employee relations Role of the Human Resource Department The primary task of personnel department is to ensure that the organisation’s human resources are utilized and managed as effectively as possible to acquired and retain an organisations human resources, personnel administrators perform four critical roles, create and implements policy, offer advice, provide services and control personnel programs and procedures. 211 3.0 Importance of Personnel and Human Resource Management Now, more than ever before, human resource management is recognised as being critical to the survival and success of organisations. In 1991, IBM and the internationally recognised consulting firm of towers Perrin jointly conducted a worldwide study of nearly three thousand senior personnel and human resource management leaders and chief executive officers. Results indicate that about seventy percent of human resource managers see the human resource function as critical to the success of organisations. By the year 2000, more than ninety percent expect the human resource department to be active while the human resource respondents here perhaps a bit more positive about this trend. The Chief executive officers were very close behind. While serving the very success of the business can certainly be regarded as an important goal of personnel and human resource management. 4.0 Current Challenges, Issues and Trend To a large extent, the personnel department’s newfound yet well deserved prestige is the result of the enormous responsibilities undertaken by personnel managers. Today, many problems and issues that have traditionally been the responsibility of the personnel department remain so. Examples are the recruitment, selection, orientation and training of high quality personnel, job analysis and job evaluation, labour relations and employee appraisal systems. Current problems and issues have created a new era of professionalism in personnel management. … 1. Productive improvement Despite the comparisons of productivity among nations, the United States still leads the rest of the world in total output yet in recent years, productivity output per hour of work has remained steady in the United States while it has increased in other countries, such as Japan and China. The crisis in productivity arose for a number of reasons; poor labour management relations, and often hostile relationship between business and government, out dated plants and equipment and lack of capital for plant modernization. In addition, the management of human resources is increasingly being recognized as having an important bearing on unemployment and productivity. Many companies report that the implementation of modern practices of personnel management has led to greater output and improved quality. … 2. Quality of working life Sociologists have spoken of the quality of life. Behavioural scientists have also begun using the related term, quality of working life (QWL). The quality of working life refers to the extent to which employees personal needs are met through their work. One’s quality of working life improves as one’s work meets more and more personal needs, such as security, responsibility and self esteem. Many organizations consider that producing a good quality of work life to employees is both a social and ethical responsibility each firm must bear. But there are strong indications that improvement in quality of work life favourably affects organization performance. 3. Safety and health Creating a work environment which minimizes the likelihood of an accident or injury has long been a goal of both personal specialists and operating managers. In the modern work place, a number of safety and health issues have proved difficult to resolve in both manufacturing and service industries. First there is evidence that some work environments are responsible for cancer, infertility, lung disease, and other illness. Unlike an accident or injury occupational injuries, some are difficult to detect and often they remain undetected until it is too late for remedy. More and more, the work place is being labeled as hazardous to one’s long term health. Secondly, job stress can be just as hazardous as an unsafe work place unlike accidents and injuries which are at most concern in construction, manufacturing, mining, and transparent industries. Job stress can be a problem in any kind of firm in any job, whether it be blue collar, clerical, managerial, or professional. Extreme stress can lead to ulcers, heart failure, nervous conditions and other psychological stress on job.. Managers are now beginning to recognize potential personal and organization job stress and reduce the problem. Thirdly, many employees suffer from some form of chemical dependency. About one in every ten employees suffers from a drinking problem that negatively affects performance. In the past, an alcoholic employee was either ignored or fired. But because such solutions fail to rehabilitate the sufferer, a growing number of firms have implemented employee assistance programs (EAP), whereby troubled employees (mostly alcoholic employees) are recognized, counseled, rehabilitated and placed back on the job. 212 4. Equal employment opportunity Creating an environment in which equal employment is reality rather that popular slogan is no doubt one of the personnel managers toughest jobs. … There has also been the discrimination of women at occupying managerial positions in organisations because of the belief that woman cannot make effective and … crucial decisions. 5 Increased use of computers Computers are not new to the personnel department, though in the past, their use was primarily limited to payroll task and record keeping. The advantages of computerization are speed, flexibility and on-line capability. With the aid of desktop computers and even laptops, a manager can quickly retrieve a vast amount information about an employee’s job status or a personnel activity, skills inventory or attendance record can obtained in a matter of seconds, flexibility is achieved through the computers ability to generates a wide variety of special reports and documents. 5.0 Some Results of Human Resource Management in Business Success Without the assurance that HR does make a distinction, HR professionals will not, and cannot, be encouraged to develop HR measures that drive business performance. … To develop significant HR measures, a structure is needed to outline how HR can impact business performance. … If HR practices can impact business accomplishment through building up organizational capabilities, improving employee satisfaction, and shaping customer satisfaction, new HR measures should be developed to drive business performance. … Dramatic changes in HR measures are urgently required to refocus the priorities and resources of the HR function. …Instead of looking backward (what has happened), innovative HR measures should be forward looking, allowing managers to assess and diagnose the processes and people capabilities that can predict the future success of corporations (Kaplan & Norton, 1992). Finally, instead of focusing on individual HR practices (the performance of staffing practices, training and development practices, etc.), future HR measurement should focus on the entire HR system, taking into account the synergy existing among all HR practices. 6.0 CONCLUSION The issue of human resource management as a tool for achievement of goals and objectives of any organisation cannot be over- emphasized.It is imperative, therefore, that for human resource managers to fully achieve the goals and objectives of any organisation, both the organisation and the employees must come to terms with regard to what would be beneficial to both. Since an organisation
does not exist in vacuum, it has to employ personnel to achieve its set objectives and this is what human resources management is all about. Management involves working with and through people to accomplish organisational goals and objectives. The head of management is concerned with systematic co-ordination of affairs. It is aimed at utilizing available resources to attain the goals and objectives of the organisation. Of all resources available to the organisation, human resources enjoy primacy of position because without it, all other resources will remain idle. From this research study, it can be deduced that human resource department must be seen as a pivotal unit in facilitating competitive advantage. It is imperative that the human resource department serves as a communication link between the stakeholders, management and employees in a business organisation. It should be managed by well trained human resource managers. 213 NB: This article has been edited by the MM
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