The human resource management Essay

Human resource management is the backbone of business since its functions have an impact on the entire system of the organization, and it is also the human force that participates in the implementation, activation, and control of the corporation’s connected operations. Human resource management professionals can provide assistance, advice, mediation, and even write corporate policies. Human resource specialists and management at all levels of the organization work together to improve the firm’s success, for example, by debating the sort of staff that a specific department requires to improve corporate productivity. A robust correlation between the human resource and the finance department is often significant for the success of the business even though there are differences as regards the core principles of the two sections. The human resource department believes in the people for the success of the business while the finance unit considers cash as everything that the company needs. When the two groups work collaboratively, they both gain from one another, for example, the finance sector gain from the human resource through the human aspect of the business and by seeing further than the return on investments. On the other hand, the human resource benefit from the finance department through knowing how to use the people data and on how to apply the financial principles and knowledge.

The interrelation between the human resource and the procurement department is also vital as they are both responsible for the company’s talent acquisition and negotiations of contract. A good example is the Charter Global that has benefited a lot from such a relationship as they see the procuring of people as an asset and not the expenditure. The human resource has also gained by more through associating with the ICT department, for instance, when it comes to the storage and retrieval of data and personnel training among others.

Human Resource Management in the Business Context

Introduction

The human resource management affects all the other managerial sub-structures in the logic that it is the human force or individuals who take part in designing, activating, implementing and controlling all the other associated systems of the business. Therefore, even though not the entire management is, for instance, directly engaged in the production, marketing, public relations, or operations, all administrators are, by designation, concerned in the human resource management as they take part in managing other employees. The precise character of the responsibility of the line supervisors and the human reserve experts as regards the human resource management in a given organization, nonetheless, continues to be a feature on which every business’ top administration will have to make a decision. In general, it is assertable, however, that, to a superior or slighter degree, the human resource professionals can fulfill the positions and the responsibilities such as being supportive, consultative, counseling and mediating, and even drafting of the policies and strategies of the firm.

Regardless of the literal nature of the functions of the human resource units, the prominence is ever more on their capability to deliver the results that are related to the business and thus on the way they contribute to the success or the competitiveness of the organization. The human resource experts act in the ways that are complementing rather than competing with the duties of the line managers. In fact, the human resource professionals do more than just advising as they try to achieve the best business results. The drift is hence to craft the human resource management as a universal administration function and responsibility. It is the responsibility of the HRM team to suggest to the management group how to advantageously manage individuals as the company assets, and that is inclusive of the recruitment of employees, organizing staff benefits and suggesting the training for the employees and the growth stratagems. In such a context, the human resource experts are like consultants and not staff in a secluded corporate function. That is so as they take part in advising the management on the various issues that are about the employees and how they assist the company in the achievement of the set goals (Swanepoel, Erasmus, & Wyk, 2003).

The management and the HR experts, at every level of the business cooperate for the enhancement of the employee skills, for example, the human resource specialists counsel the supervisors and the managers when it comes to the assignment of the various roles to the staff in an organization. Through that, they help the company in adapting successfully to the operating environment. In a flexible business, there is always the shifting of the workers around to the different functions of the corporate based on their preferences and the firm’s priorities. Moreover, the human resource management also put forward the plans for escalating the employee obligation to the business, and that usually starts with the process of recruitment or matching the staff with the correct positions as per their qualifications. Upon their hire, the employees must remain committed to their duties and always have that feeling of a challenge by their manager all through the year (Skinner, 2017).

The Interrelations between the HR and Finance

A healthy relationship between the human resource and finance units is always a key to the success of the company. Most of the time, the core principles of each section often show a drastic difference thus making it complicated to get the typical view as the HR department believe in the people as the most significant asset whereas the financial staff believes in the cash. The nature of the work of each office has always been a source of an apparent inconsistency between the two. Previously, the human resource units have perceived it very intricate to evaluate their return on investment programs and for that case, found themselves under pressure to converse with the chief financial officers efficiently. The finance administrators tasked with advancing the business money-wise have traditionally seen the human resource as the labor force defenders, blocking the workers’ resolutions that could potentially lead to reduced morale or grievances, although such decisions may be useful for the firm.

Given the core variations between the human resource management unit and that of the finance, their association can always seem to be conflicting, but eventually, they both work towards the same objective of a healthy and flourishing corporation. When the two sections work collaboratively, their cooperation often results in the constructive production outcomes as the perfect relationship of the departments leads to the upgrading of the productivity and engagement of the workers, and the more significant business pays. Nevertheless, to be in a position for the creation of the positive working affiliation established on collaboration, the finance, and the human resource sections must be appreciative for the goals and the duties of one another (The HR Team, 2014).

The Contributions of the Human Resource to Finance

Previously, the chief financial officers and the finance team members never created a lot of fans within the workforce as they often came up with the tough decisions that often impacted the morale of the employees negatively. Conversely, through the development of a closer association with the human resource, the best chief financial officers have learned on the various issues.

The Human Aspect of the Business. The chief financial officers were naturally in the view of others, the opponents, particularly among the human resource bands. They used to be, and still are, commissioned with the formulating the tough decisions to keep their businesses ever growing forward. The CFO, the HR management, and other senior finance decision makers through working together have started looking beyond the short-term numbers when it comes to the weighing of the choices. They have begun incorporating the human facet of the production into the long-term tactical plans. The finance unit has realized that keeping a firm restriction on cost control, budgeting, and income tax management may have a strain on the human resource department. Moreover, it has come to their understanding that the workers are not usually costs and non-refundable possessions.

Seeing Further than ROI. Not every achievement in the business is always easily quantifiable as it can be hard in determining how an agenda or the assistance intended to develop the morale of the workers will eventually impact success. However, the best chief financial officers are today in a position to witness the way in which the human capital investment can constructively affect the organization in the means that are not often instantaneously quantifiable.

Beneficial Input from Finance to Human Resource

Beforehand, the human resource units have been in the view of people as a cost center with the primary function of providing support and conformity. Conversely, the businesses with good performance have commenced the inclusivity of the HR management in the tactical arrangement efforts. The best human resource teams have utilized the opportunity to build the concrete associations with the department of finance, and through that, they have learned a lot.

The Business Perspective. The chief financial officers’ primary concern is in knowing the way in which the result of the decision impacts the performance of the business, for instance, they want to get the records of the returns anticipated from the funds invested in a new appointment of employees. The solid human resource administrators have gained the vital knowledge on how to quantify and make prosperous the premeditated personnel savings. The more the human resource can learn from the financial officers how to correctly apply the principles of finance as regards the decision making, the more excellent the opportunity to put the human resource in a strategic role.

How to Utilize the People Facts. The active human resource supervisors have learned in the ways of influencing the decisions that relate to the performance, metrics, and industry objectives. By reporting to the chief financial officer, the human resource has had an opportunity to develop the fundamental capabilities, and they have come up with the perfect practices for collecting, tracking and reporting the data of their staff. The success of using the people data by the HR necessitates that the CFO takes a concern in the actions of the HR with data and how they are utilizing the information.

The Interrelation between Human Resource and Procurement

In spite of the variances between the functions and the tasks of the human resource and the procurement, the two departments do possess many features in common. They are both responsible for the company’s talent acquisition whether in the form of new workers, new suppliers, or even the original contingent staff. Furthermore, they both negotiate contracts on the business’s behalf. The two units have become entangled than ever witnessed before as the human capital has become much of a human resource matter as it is procurement’s and a good example is the Charter Global that deals in IT. Therefore, the sections should work as one, organize, and cooperate with each other on such an intricate but seriously significant resource for the attainment of the maximum value.

Benefits Arising from the Relationship

The procurement of the human capital together with other products or services in the past was more of a process of a source and pay, however, as corporations begin to grow to be leaner and meaner to keep on being competitive, the procuring and sourcing have become more strategic roles. As procuring the human assets gets to be more of value and not as much of about expenditure, a robust, reciprocally respectful and favorable association with the human resource can assist the procurement to recognize better and lessen risks. Besides, it can lead to the creation of the more useful talent acquirement procedures, and eventually give the best value for the business funds (Info Mart, 2017).

If both teams work in partnership and commune efficiently, the company will always realize a great success. Through the exchange of information, the human resource will ever have an excellent comprehension of the purveyor supervision and the market insight, and the procurement will be in a position to better comprehend the demands of the human resource. Also, the supply will be able to support the needs of the human resource through the tactical resourcing of the contingent workforce. When the two sections learn from one another, each can advance the superiority of their plans. The business will also gain from the more updated proof of purchases, reimbursement processing, onboarding, and even departures. Through doing so, the company will be in a better position to reduce the risks of the utilization of the contingent workers (Plumondon, n.d; Carter, Smeltzer, & Narasimhan, 2000).

Uniting the procurement and the human resource has offered the companies a distinct view of the supply base, instead of every specialty of the human resource being mindful of their suppliers. Such a model can result in the cost competencies due to the degree and range of the services provided to the business generally, and a good example is the Charter Global that had the forethought to implement the same strategy that facilitates the flawless execution of the IT capital to the customers. Therefore, the creation of a consistent approach to the vendor relationships not only assists the merchants in expecting a particular working association with the business but can also aid in ensuring consistency when it comes to the management of that unity between the procurement and the HR (Schleifstein, 2017).

Interrelation between HR and the ICT Department

The IT applies to every department in an organization, and that is inclusive of the human resource section. In today’s world, various functions of the HR department take place electronically thus making work quicker, efficient, and more time-saving. The information technology, therefore, has multiple roles in the human resource department as stated below.

Personnel Training

The duty of training the end users of a technological system is always by the IT team as they understand technology better, and they can make the instruction plans accessible for the new staff even from the remotest parts through the application of the cloud systems and the virtual classroom (Elhazzam,2015).

Storage and Retrieval of Data

The human resource department always generates a lot of information that needs safer keeping. The IT creates and implements the systems that are for the storage and retrieval of records quickly whenever there is the need. Today, in the HR unit, there is the storage of files and personal data in the electronic format, through the assistance of the ICT department (Piry, Hatamikhibari, Janfeshan, & Ghahramanai, 2013).

Personnel Management

The information technology has made more straightforward the duties of the HR management through the creation of interfaces that can accommodate the information of every employee, hence ensuring the frequent update and accessing the personal data. Through that, there can be no leaving one out for the promotion or demotion opportunities as the data is ever available by the effort of the ICT department (Green Elephant, 2016).

For that case, the ICT affects the human resources management practices on different ways and the first one being the improvement of the workers’ skills especially when it comes to the accessing of the information and decision making. Also, the IT tools allow the human resource experts to contact a broader applicant pool and make resolution crafting more purposeful and advantageous for the recruitment of more relevant and competent individuals. Moreover, the ICT enables collaboration and communication among the workers through the means such as messaging, E-mails, teleworking, electronic workgroups, and video conferencing among others. All these have made the workplace interactions possible for the staff even if they are far away from the place of work. The IT team has also escalated the level of efficiency of the human resources management practices as the extreme utilization of IT aromatizes and normalizes the customs (Unal & Mete, 2012).

Conclusion

In every business sector, the partnership between the departments is always vital to the success of the company and attainment of the set goals and objectives. The interdepartmental collaboration and communication are healthy for a long-term business success as it ensures that everyone is on the same page and understands what the other is working on for the accomplishment of the company vision and mission. The departmental interrelation is of significance to the corporation as it assists in the reduction of the jeopardy of assumptions and gives confidence to every unit to stay focused as regards the shared vision.

The interrelations between the human resource management department and the other units within an organization are of great importance as it impacts on the HR’s input when it comes to the recruitment of staff. A well informed human resource department will strive through every possible means to make sure that every unit receives qualified individuals that are having excellent skills. A company should balance the conflicting interests between the human resource and the other offices to ensure that they work faultlessly to be functional and successful as concerns the mutual purpose. Besides, the human resource department must have a clear understanding of every section’s requirements and contributions and try to give a helping hand whenever necessary to produce a healthy workforce for the success of the business. The other departments must also involve the human resource and not just work independently as their roles always evolve and can be of great importance in case of any crisis.

References

Carter, J. R., Smeltzer, L. R., & Narasimhan, R. (2000). Human Resource Mangement within Purchasing Management: Its relationship to Total Quality Management Success. Journal of Supply Chain Management. Retrieved from http://onlinelibrary.wiley.com/doi/10.1111/j.1745-493X.2000.tb00077.x/abstract

Elhazzam, M. (2015). The Effect of ICT on Human Resources Management. International Journal of Innovative Research in Engineering & Management.

Green Elephant. (2016, September 1). The Role of Information Technology in Human Resource Management. Retrieved from http://greenelephantteam.com/research-collection/the-role-of-information-technology-in-human-resource-management

Info Mart. (2017, May 30). HR & Procurement: The Missing Link - InfoMart. Retrieved from http://www.infomart-usa.com/blog/hr-procurement-missing-link/

Piry, A., Hatamikhibari, H., Janfeshan, K., & Ghahramanai, M. (2013). The Role of Information Technology in Human Resource Management. Journal of BAsic and Applied Scientific Research.

Plumondon, J. (n.d.). Why Procurement and HR should work together. Retrieved from HCM works: https://www.hcmworks.com/blog/why-procurement-and-hr-should-work-together

Schleifstein, C. (2017). Charter Global: IT Services, IT Consulting, Digital Services. Retrieved from https://www.charterglobal.com/hr-procurement-building-an-effective-working-partnership/

Skinner, W. (2017, December 1). Managing Human Resources. Retrieved from https://hbr.org/1981/09/managing-human-resources

Swanepoel, B., Erasmus, B., & Wyk, M. V. (2003). South African Human Resource Management: Theory and Practice. Retrieved from https://books.google.co.ke/books?id=uilaYjWdvN4C&pg=PA34&lpg=PA34&dq=how+A.+Human+Resource+Management+cuts+across+all+functions+of+Management&source=bl&ots=GFTA1c61qv&sig=I9aCvkLuOzpDQGv3U_5GtlS2weE&hl=en&sa=X&ved=0ahUKEwj21IDhquPXAhWHvxQKHV9RAbEQ6AEIJjAA#v=onepage&q=how%20A.%20Human%20Resource%20Management%20cuts%20across%20all%20functions%20of%20Management&f=false

The HR. Team. (2014). The importance of a strong Relationship Between HR and Finance. Maryland. Retrieved from http://www.thehrteam.com/hr-management/the-importance-of-a-strong-relationship-between-hr-and-finance

Unal, O. F., & Mete, M. (2012, June 1). The Impact of Information Technology on Human Resource Practices and Competencies. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.458.7034&rep=rep1&type=pdf