About Human Resource Management

Within a corporation, human resource management is concerned with personnel administration (Hendry, 2012). The discipline, which was formerly known as personnel management, has been one of the most crucial factors in terms of the success of the entire business thanks to its concepts and measurements. The strategic function of human resources and employee engagement are the two human resource topics that this study focuses on.

In general, the strategic role of human resource management entails recruiting, fostering, rewarding, and keeping personnel for their own well-being in the long-term interest of the firm (Chen et al., 2009). It results from strategic human resource management. The latter aims at utilizing talent and opportunity within the human resource available, making the organization stronger and effective. It contributes by a great percentage towards the company success. The basic functions of the human resource which are strategically aligned include: compensation and benefits, employees training, employees relations, recruitment and selection and lastly, workplace safety. This process helps in linking the human resource functions to the organization strategic objectives.

Value Added to an Organization through Strategic Human Resource Management

Adopting this strategy assists an organization to achieve its goals and aims (Chen et al., 2009). There are various benefits that emanate from utilization of strategic human management. First, it helps in evaluating human resource policies making the concerned parties knowledgeable about the basic laws, principles and policies guiding the personnel department and the organization as general. Here the issue of employee turnover which is the rate at which employees enter and leave an organization can be scrutinized and new policies formulated to suite the present conditions. As such the turnover rate diminishes. High turnover is unhealthy to strategic company growth due to hidden costs like training and recruitment expenses as Chen et. al. (2009) observe. Secondly, it helps in fostering a sense of unity through encouraging team building in an organization. Open staff bilateral communication created through team-building contributes to organization success. The forum acts as a scheme of staff training and development where employees are educated and new ideas imparted on them to increase their work efficiency.

Strategic human management thirdly helps in monitoring progress of the activities undertaken to achieve the organization goals and objectives (Chen et al., 2009). Human resource department incorporates the employees in the process through training and development enabling them to contribute positively towards the success of the organization. Lastly it helps in keeping the organization legal. The human resource manager ensures that the business is in the right side of the law presently and in the future as well. Evaluation is therefore done to determine the competent persons or ideas to be retained, presenting a case where by useful employees are maintained within an organization. For instance, all professionals’ licensing is checked to ensure they conform to present and potential future legal market requirements. The employees are fed with additional knowledge of the organization policies and laws through training programs offered (Chen et al., 2009).

Practical Example of Strategic Human Resource Management

A good example is the development of knowledge management which is crucial especially when it is the main component that differentiates the organization from other entities (Mecey et al., 2008). Research indicates that initiatives which have impact on staff skills, knowledge and capabilities elevate competitiveness of the organization. Key differentiating factors of determining whether an activity is strategic is its capacity in human capital development and the establishment development too. Through this the company stands a chance of being strategically successful.

Employees are the key to a company’s success, which is the core strategic aim of all entities (Malik et al., 2010). Training and development which is a function of human resource department ensures that staff skills contribute to meeting overall long-term goals. An example is the sales department. In a company like Coca-Cola for example, human resource department function empowers salesmen on training to promote the firm’s products hence achieve the overall strategy of profit maximization in the company. As such, the company has maintained a competitive edge ahead of its rivals like Pepsi (Malik et. al., 2010).

Risk Associated with not Utilizing the Concept

According to Armstrong et al., disregarding strategic role of human resource results into the organization being faced with various complications or risks (2014). For instance, the number of illegal offenses committed by incompetent staff will multiply significantly since the employees are not educated and trained about the legal aspects of the organization. Moreover, the organization is likely to face the risk of divided work force due to lack of team building and a continuous monitoring process. Due to inefficient policy evaluation, the organization will face obsolete regulations which are not fit or relevant to the prevailing situations.

Taking into consideration my own evaluation and the human resource knowledge gained, I have achieved several competencies. I can now play competently as a human resource practitioner with regards to strategic roles of human resource. One of the areas where I have gained a lot is the various methods used by human resource managers in human development. I have learnt that in addition to monetary rewards, non-monetary motivational schemes such as staff recognition can elevate the company to a great length strategically. Through continuous research, training and practice I will be improving on my strategic skills gradually.

Employee Engagement

Employee engagement is the actual relationship between the organization and its employees (Mecey et al., 2008). It dwells on the factor that personnel are fully engaged by an organization and are enthusiastic to work with it. Such employees develop a positive attitude towards the organization. Therefore an entity with a high employee engagement will automatically perform better than those with low employee engagement. The concept was created under management theory in the year 1900 and has been since used in various institutions.

Value Added to an Organization through Employee Engagement

Employees contribute positively to an organization in various ways (Mecey et al., 2008). The first is through employee satisfaction due to the feeling of being connected to the entity. They therefore work better resulting to overall excellent performance of the firm. Secondly, with employee engagement the rate of turnover is lowered and the retaining capacity of an organization is increased, hence evading the cost of hiring and onboarding process.

Thirdly, the concept helps in increasing organization productivity, since the employees work faster, harder and stronger (Mecey et al., 2008). Employees get the sense of responsibility and reciprocate back to the organization through better accountability. Fourthly, as a result of good performance due to employee engagement, the organization realizes great profit compared to when the organization has lesser staff commitment. In addition to these, the rate of absenteeism reduces since the employees feel a sense of responsibility as opposed to obligation (the later leads to work burnout). Lastly, the employee loyalty is enhanced therefore minimizing theft or burglary incidences.

Practical Examples of Employee Engagement

Employee engagement can be practiced through a number of ways as observed by Armstrong et al. (2014). An example is through creating a culture of commitment. Managers and leaders should develop a commitment environment daily in the work place in order to set a high tone of employees’ morale. Discussion engagement is also a practical way of enhancing this concept whereby employees and employers sit and discuss issues affecting them and the organization in general. Establishing a welfare association which looks into all-rounded employee environment aspects is crucial in employee engagement and results into motivation. Lastly, stress reduction forums such as get-away events play a great part in employee engagement. These activities slowly develop the employee potential and morale to perform their duties.

McDonald’s Employee Business Networks is a forum established by the company for the purpose of employee engagement (Marciano, 2010). The body has been having diverse biennial symposiums, an engagement process that has been ongoing for at least 20 years. In year 2015, all its branch networks met for a summit where approximately 800 employees from various McDonald’s fraternities gathered to offer solutions that assist in driving the entity forward as Marciano (2010) observes. This not only a good instance of the role of human resource department in employee engagement but how the section uses personnel strategy to achieve the entity’s goals.

Risks Associated with Non-Utilization of Employee Engagement

According to Armstrong et al. (2014), employers who do not utilize employee engagement miss out on great opportunities. For example, employee talents can be lost since their abilities are not regularly developed. When employees are disengaged their customer services will be low hence resulting to ‘the angry customer’. Reduced productivity and monetary reward is also a potential consequence of lack of employee engagement. A company faces the hazard of being beaten by competitors since the employees do not perform to their best. Distrust will exist between employees and employers who are involved in the engagement process. A disengaging environment is also likely to repel potential talent and is less receptive to new inventions. All this will result to under-performance of the organization which is likely to lose its competitiveness, a factor which most organization put first in their strategy.

Through my own evaluation and the human resource knowledge gained, it is evident that I have attained certain qualification and can now play effectively as a human resource practitioner. Some of the areas where I have gained a lot are human resource metrics and how they assist in the department as well as overall company strategies. Through continuous research, training and practice I will be improving on my skills gradually.

References

Armstrong, M., & Taylor, S. (2014). Armstrong’s Handbook of Human Resource Management Practice. Kogan Page Publishers.

Chen, C. J., & Huang, J. W. (2009). Strategic human resource practices and innovation performance — the mediating role of knowledge management capacity. Journal of Business Research, 62(1).

Hendry, C. (2012). Human Resource Management. Routledge.

Macey, W. H., & Schneider, B. (2008). The meaning of employee engagement. Industrial and organizational Psychology, 1(1).

Malik, T. A., Khan, H. U., Shah, A., & Gul, S. (2010). Performance measurement using distributed performance knowledge management system: Empirical case study of Coca Cola Enterprises. International Review of Business Research Papers, 6(1).

Marciano, P. (2010). Carrots and Sticks Don’t Work: Build a Culture of Employee Engagement with the Principles of RESPECT. McGraw Hill Professional.