HRM Capstone Project - 10 Page Min.

Running head: HUMAN RESOURCE ASSIGNMENT 2

HUMAN RESOURCE ASSIGNMENT 2

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INTRODUCTION

The six functional core areas of human resource extend into: business management and strategy, workforce planning and management strategy, human resource development, compensation and benefits, employee and labor relations and risk management (Deutsch, 2015)-This source is not listed on the reference page, please cite this source on the reference page).

Business management and strategy marries into the workforce’s related skill sets and their ability to meet the business’ objectives while workforce planning and management strategy has a hand in business’ workforce structure and how it may be better aligned to sharpen its competitive edge. In order to improve on the workforce’s skill-set, human resource development promises to train its employees in their nurtured skills in order to stay on track with emerging best practices. The distribution of benefits and compensation seeks to fairly reward and motivate the employees for their laborious contributions to the business while employee and labor relations dictate the manner in which the management and concerned subordinates relate with one another in the working environment. Finally, risk management takes note of upcoming shortfalls, be they are internal and external in nature, with aim of preparing adequately for them.

Analysis

BUSINESS MANAGEMENT AND STRATEGY

According to Allan Bird (1995), the success of a business strategy from its conceptual phases down into its implementation and evaluation phases is highly dependent on the human resource practices developed and executed. The process of conceptualizing a business strategy often begins with an external environment survey that provides input on the nature of the market being targeted and the position of the company. Thereafter, the business endeavors to come up with a draft plan that dictates the course of the company based on the information that was previously gathered (Bird, 1995). Each department in the business in return develops plans that are consistent with their functions in response to the business’ draft business strategy and goals.

There are several theoretical frameworks that have been created in order to assist businesses to align their business strategies with human resource practices. By way of example, Miles and Snow (1984) (This source is not listed on the reference page, please cite this source on the reference page) came up with a business strategy categorization that involved three major tenets: Prospector, Defender and Analyzer strategies. Other strategies that link business competitive strategies and human resources may be drawn from the work of Schuler and Jackson (1987), (This source is not listed on the reference page, please cite this source on the reference page) wherein they distilled their strategy into three fine-points: cost cutbacks, recasting (otherwise known as innovation) and standard augmentation (Yee et al., n.d.) (This source is not listed on the reference page, please cite this source on the reference page). Dyer and Holder (1988) (This source is not listed on the reference page, please cite this source on the reference page) summarized theirs into three main points for consideration: stimulation, funding and participation.

In order to achieve resonance between business strategies and human resource practices, it is essential to choose human resource practices that have a linkage between the external and internal business environment. According to the contingency theory, firm performance meets an upward turn only when human resource practices are implemented and checked against competitive business strategies (Yee et al., n.d.) -(This source is not listed on the reference page, please cite this source on the reference page). It is only then that a company’s human resource department can effectively come up with team structures to meet the business’ strategy, hire new recruits, undertake training of employees in relevant areas and come up with effective policies of strategy implementation (Bird, 1995), all of which intersect under business management.

Part of business management converges with human resource functioning in the area of ethical social responsibility. Regardless of the size of the concerned business, there are certain communal, both internal and external, considerations that must be taken into account as the business seeks to expand its market and operations. Among the most common considerations are those touching on the business’ green practices, social responsibility that reconciles the relationship between the corporate body and the society at large, and the acknowledgement of newly achieved feats. With regard to these areas, a human resource department is tasked with the duty to come up with policies that aim to reduce waste within and outside the company’s jurisdiction, occasionally engage the community in charities or disaster relief programs, and publish as well as celebrate a company’s successes.

EMERGING TRENDS AND BEST PRACTICES

Among the most recent trends in this particular area has been the use of technology in integrating business competitive strategies, especially in companies that are set globally. There has been a recent upsurge in the use of Human Resource Information Systems that seek to integrate employees and managing positions on one network which in turn provides a platform for the dissemination of policies that may aim to increase corporate social responsibility (Lokhandwala, 2019) (This source is not listed on the reference page, please cite this source on the reference page). This is important as ethical corporate policies should not only be discernible from the head offices, but they should also be employed in all branches. This not only maintains uniformity in the implementation of policies, but also provides an avenue for tracking their success and improving relationships between employees and managers (Lokhandwala, 2019).

CHALLENGES AND CRITICAL ISSUES

Despite the benefits of using a Human Resource Information System, many are still in the dark about what it entails and many companies are unable to access it due to its cost. Regardless, most, if not all, companies will eventually have to use such a system due to ongoing globalization of businesses that will create demand for these systems which will, hopefully, offset the high cost associated with its set up and maintenance. Much is still to be done though, as the use of such an integrated system gives rise to concerns about online data privacy.

Where is THE REQUIRED section?

· “Discuss the implications at the local, national, and international level as they apply” for BUSINESS MANAGEMENT AND STRATEGY

WORKFORCE PLANNING AND MANAGEMENT

Workforce planning is a strategic method applied when determining what human capital needs to be shored up within a company, assessing relevant skills and how they can be implemented into a business’ competitive strategy, and assessing gaps that may incur either through retirement or redundancy (Lengnick-Hall et al 1988). The process always begins with identifying the company’s direction and flows into recruitment of employees, training and monitoring of their progress. Only then will the company be able to effectively compete with its external environment (Miles et al, 1978) (This source is not listed on the reference page, please cite this source on the reference page).. Unfortunately, this area is least considered by most businesses as they feel that it does not make it to the top of their immediate concerns. However, lack of intensive planning in this area may lead to foreseeable gaps not being closed in time to meet the business’ demand or the wastage of already existing skills and talents.

While workforce planning deals with employees on an individual scale of merit, organizational design concerns itself with bringing into line the structure and flow of the company in order to maximize on output productivity (University of Southampton, n.d.)-This source is not listed on the reference page, please cite this source on the reference page). It involves assessment of responsibilities and workloads, changes that are needed to be implemented in the same structures, testing out new structures and monitoring their efficiency. (University of Southampton, n.d.). These functions fall on the human resource department as it is responsible for regulating the internal environment of the organization to meet the competitive niche required to thrive in the external environment.

CHALLENGES AND CRITICAL ISSUES

As was earlier elucidated, most businesses do not have the capital required to address their staffing and organizational needs from a root level. Most are concerned with shoring up enough capital for external investment or other more pressing concerns hence their deliberate will to push organizational problems aside. This consequently disadvantages them from accounting for the skills they may need to recruit, forecasting pending gaps that may occur through economic changes or retirement of employees and new structural models that they may implement for efficiency’s sake (IBM Centre for the Business of Government, n.d.)- This source is not listed on the reference page, please cite this source on the reference page).

Another challenge that plagues this area is the need to train employees on organizational crosscutting skills applied regardless of departmental positioning. For example, communication and financial management are some of the most common skills needed across departmental fields, yet, employees and new recruits are rarely trained in the fundamental aspects of these fields hence lowering productivity levels. The reasons for their lack of training may range from lack of enough capital to lack of time, however, its necessity cannot be further impressed as data shows that training staff on crosscutting skills has the added advantage of boosting performances of employees and departments once performance assessments are done (IBM Centre for the Business of Government, n.d.).

EMERGING TRENDS AND BEST PRACTICES

At the forefront of organizational and workforce planning is the implementation of strategic workforce planning. Human resource agents are often tasked with the duty to plan for and analyze the number of people available, their skill set and any gaps that may have arisen during the time of inquiry. This has the effect of placing the agent as a ‘firefighter’ and not a seer who can plan into the future. Most businesses, as Bersin of Deloitte notes, concern themselves with putting out problems that could have been evaded or at least mitigated had they planned ahead, which is not the most appropriate approach (Kelley, n.d.) – (This source is not listed on the reference page, please cite this source on the reference page).

Strategic workforce planning seeks to go beyond the number of work personnel at the business’ disposal and the skills that they bring to the table by creating a model framework whose dynamic qualities last into the foreseeable future. By collecting data on fluctuating demand and supply of skills whilst maintaining a positive relationship with stakeholders who have some measure of control in said fields, then workforce and organizational planning will be up to per with the global economic needs the company ought to keep up with (Kelley, n.d.).

Where is THE REQUIRED section?

· “Discuss the implications at the local, national, and international level as they apply” for WORKFORCE PLANNING AND MANAGEMENT

HUMAN RESOURCE DEVELOPMENT

Human resource development concerns itself with improving the employees of a business by training them from a personal or organizational perspective with the aim of bettering their service output and overall performance (Swanson, 1995). Once a new employee has been recruited into a company, most businesses undertake a training program that not only familiarizes the new employee with the organization, its functions and their policies, but also incentivizes the performance of the employee. Overtime, the employees of the same organization may need to learn new skills in order to adapt to a change in their internal or external business environment hence the need for human resource development. The same also has a positive effect over employee retention and enabling the employee to better meet the needs of the company (Swanson, 1995).

The development of human resource yields many benefits not just from a performative and productivity stance but also on the motivational levels present in an organization. For starters, Swanson (1985) notes that employees who have undergone workshops or learning activities related to their work are more motivated to perform in their organization. This supported with proper reward systems and policies creates a culture that assures the satisfaction of the company’s innovative capacity. The added value of the employee gives the company a competitive edge like no other, hence necessitating the need to place human resource development as a major business process.

Lastly, human resource development has the effect of positively improving the company’s dynamism when faced with fluctuating economic impediments and / or demand in trending skillsets. By training employees on a regular basis, you increase their problem solving capacities which ensures that your internal business environment has the capacity to stay afloat during such uncertain times. Employee participation levels also increase tenfold when the business actively engages its employees in incentive workshops which has the overall effect of building up on the business’ competence and building up strong relations between the management and its staffs (Singh, 2007) - (This source is not listed on the reference page, please cite this source on the reference page).

CHALLENGES AND CRITICAL ISSUES

In countries that are facing economic, political and health crises, human resource development is usually the last item considered in a long list of other raging concerns. If the crisis is prolonged, technological and economic changes occur globally hence leaving said country behind up until the crisis has been fully dealt with. Though the promise of building economies bud in the minds of those who were lucky enough to retain their jobs, there is still need for said employees to quickly catch up with the advancements that were made by the rest of the world, which may prove to be a challenge especially when the country is forced to prioritize other concerns (Ahmeti, 2015) - (This source is not listed on the reference page, please cite this source on the reference page). Getting trainers who are skilled at the company’s concerned area may also be a challenge since surrounding countries may be triggered to impose travel restrictions that prevent movement into and out of said country. These encounters are reminiscent of those faced in Kosovo after the end of the war in 1999 (Ahmeti, 2015), and are still being faced by the country as it struggles to achieve stability.

EMERGING TRENDS AND BEST PRACTICES

In order to counter the inaccessibility that often lags behind human resource development, companies have taken to using online means to not only teach but assess their employees. This has been a tremendous breakthrough that sustains the business’ end-goal and operations. Though this means that the business must invest in internet access for their employees, it has the effect of cutting down costs that are involved in transport and other related considerations.

Nonetheless, the global impact of training schemes and workshops that are accessible online has tremendously propelled the performance levels of companies and has seen them create wider nets for prospective markets.

Where is THE REQUIRED section?

· “Discuss the implications at the local, national, and international level as they apply” for HUMAN RESOURCE DEVELOPMENT

COMPENSATION AND BENEFITS

Human resource managers are tasked with the responsibility of overseeing compensation and benefits plans from a strategic and administrative point of view. Compensation works to not only equitably reciprocate the work put in by the employee, but they also serve to motivate the employee as well as retain the most valued ones, once integrated with reward systems (Human Resources Edu., n.d.) - (This source is not listed on the reference page, please cite this source on the reference page). As Bryant and Allen note (2013) losing a valued employee often has the consequential effect of surging expenses on recruitment and training up. This married with the loss of organizational memory and buffeted skill through employee training means that the company will not only have made pecuniary losses, but will also have lost its competitive edge.

Compensation must be made in line with the company’s policy as cost-efficiency is key when running any organization. This may necessitate the need to blueprint cost effective and employee incentive schemes whilst managing an efficient record keeping system. To do this, the same may also have to engage the use of data surveys that provide data on pay scales applied to people working in similar positions in different firms. The significance of such ground work cannot be emphasized enough as a pay check that’s below average pay scales will have the effect of demotivating the employee who may look for another position elsewhere, while a pay check that’s too high will cripple the business’ ability to invest in and expand its market (Bryant, Allen, 2013).

CHALLENGES AND CRITICAL ISSUES

One of the most critical concerns underlying compensation and benefits schemes are the forms of pay that a company uses. The most preferable form of compensation has always been pecuniary forms as it is versatile to the needs of the employee. However, a company may opt to use other forms that are not monetary in nature which always gives rise to misunderstandings and conflict between both parties. In some instances, it seems to the employee that he/she is being cheated out of what is rightfully theirs. Therefore, in order to navigate what could easily become a quagmire of projected ill-will, the human resource specialist or manager must endeavor to set up an elaborate framework that dictates what forms of payment will be used, when salary increments will be applied and merits for reward systems alongside their pecuniary scale (Bryant, Allen, 2013).

EMERGING TRENDS AND BEST PRACTICES

While it may seem beneficial to the company to solve any compensation and benefits related conflicts by offering high counteroffers to their employees, as Bryant and Allen note (2013), this may cost them a lot of capital whilst failing to deter the loss of the valued employee. The work force of the company is at the heart of its profitability, nevertheless, this should be met and appreciated with opportunities availed to the employee for growth, an assessment of employee job satisfaction and regulation of employee versatility (Bryant, Allen, 2013).

Where is THE REQUIRED section?

· “Discuss the implications at the local, national, and international level as they apply” for COMPENSATION AND BENEFITS

EMPLOYEE AND LABOR RELATIONS

Employee and labor relations generally entail the management of employees, the processing of any work-related conflicts through proper conflict management systems, strategizing company policies, the overseeing of employee relations within the working environment as well as performance management and wage bargaining. (Pace University, n.d.) (This source is not listed on the reference page, please cite this source on the reference page)..

On that note, employees are free to join international labor associations with the aim of protecting their economic rights and freedoms. Globally speaking, international treaties such as the International Convention on Economic, Social and Political Rights backed by the United Nations Charter are one among many legislations that contain provisions strictly aimed at ensuring that employees are not only protected from labor exploitation but the employees get equal bargaining power in all matters concerning the work environment and its systems. The same treaty also provides for collective bargaining, compensation benefits as well as protection from exploitive business practices (Bercu, Voda, 2017).

Legislations such as those mentioned above find their grounding in economic histories that saw employers yield excessive power over their employees that led to cases of child labor and poor compensation, lack of protection in the working environment among a host of other issues. The provisions step in to provide a buffer between the employee and the employer by affirming the employee’s rights to an overall conducive environment and empowering them to join unions and associations that protect them in such a manner. Majority of the world’s states have assented to these legislations thereby dictating the manner in which corporate bodies and legal persons draft their policies, compensation models and strategies. Companies that aspire toward sharpening their competitive edge operate in line with these provisions not only to maintain a good public image which expands their market, but to retain their most valued workforce as well (Bercu, Voda, 2017).

CHALLENGES AND CRITICAL ISSUES

Conflict management has been the most recurrent issue in human resource that is yet to get a sustainable solution given the dynamism of the nature of conflicts themselves. The most corrupt element of the issue lies within unsupported communication systems that only serve to further rot the relationship between the employee and the employer. While it is common knowledge that the employee and the employer are two different stakeholders with differing interests, it is vital to the functioning of the company to create a bridge between both stakeholders in order to create an operational communication that flows to and from (Bercu ,Voda, 2017).

With the advent of trade unions and employee associations, it was believed that bargaining negotiations as well as conflict management would get easier. While there have been perceivable positive changes in the general welfare of the employer-employee relationship, much is yet to be done especially since the human resource agent has now been tasked with the responsibility of overseeing multitudes of paperwork and seemingly endless negotiations that yield no compromise.

EMERGING TRENDS AND BEST PRACTICES

In a bid to track and reduce disputes arising from a company’s annual leave and attendance policy, most businesses have opted to rely on software that tracks each employees’ attendance and leave days while allowing the employee to be in full viewing control as well. By doing so, there are little to no misunderstandings arising from the nitty gritty details pertaining to when leave days should be taken and whether the employee was on time to work on certain days.

Where is THE REQUIRED section?

· “Discuss the implications at the local, national, and international level as they apply” for EMPLOYEE AND LABOR RELATIONS

RISK MANAGEMENT

Risk management has often only been associated with the provision of conducive healthy work spaces that are environmentally conscious and cognizant of the number of natural disasters that the area is prone to. Most businesses, with this regard, are up to per with the training of employees for events such as fire or tornados, provide proper working attire and equipment if there are any physical risks and provide sound occupational health policies.

While this does entail a major facet of risk management, this does not form the sum of the whole. Erven (2019) (This source is not listed on the reference page, please cite this source on the reference page).. notes that risk management casts a wide net that encompasses unmotivated employees who refuse to take on urgent extra work to personal tragedies that affect the ability of the employee to work such as divorce or illness. Viewed from this angle, the workforce of any business ultimately becomes a source of risk that a human resource agent must learn to manage lest the business fails to uphold its duty of care to its clients, leading to a loss of competitive edge.

CHALLENGES AND CRITICAL ISSUES

Companies and legal personalities are rarely aware of the intersection between human resource management and risk management hence blunting their value and competitive edge. To counter this, human resource managers can employ the use of both leadership and interpersonal skills to not only navigate employee relations but also set up assessment and tracking structures that take note of what skills are needed by the business and whether the same may be solved through recruitment or training of the individual(s). This will also forecast future gaps in the workforce that may arise either due to evolving currents or personal events (Kelley, n.d.). - (This source is not listed on the reference page, please cite this source on the reference page)..

All in all, unprecedented natural disasters are by far the most rampant challenges businesses both big and small have to endure. Depending on the scale of the event, companies are always set to generate loses during periods of occurrence and restoration, and those who make it out with their workforce intact are almost considered lucky. Though preparation may be made to counter some of the effects that spontaneous natural disasters have on businesses, there is no disagreement in our collectives that same would be better off if they did not have to deal with unpremeditated catastrophes in the first place.

EMERGING TRENDS AND BEST PRACTICES

In more technical businesses such as engineering, accounting and medicine, employers have integrated the use of configuration management tools that help eliminate mistakes made in their employees’ work. Since work that is riddled by mistakes is a risk that businesses should buffer themselves against, the use of such technology greatly increases the value of the work output hence affirming customer satisfaction (Simonic, Gyorkos, Rozman, 2003). - (This source is not listed on the reference page, please cite this source on the reference page)..

Where is THE REQUIRED section?

· “Discuss the implications at the local, national, and international level as they apply” for RISK MANAGEMENT

CONCLUSION

Business management and strategy, workforce planning and management strategy, human resource development, compensation and benefits, employee and labor relations and risk management have at their core the need to not only create an environment for business development and the achievement of its objectives, but also sharpen the skills availed to them in the form of a work force while maintaining conducive employee-friendly environments and relations. These six functioning areas highlight that employee relational engagement spheres are very impactful in the achievement of business’ goals and that failure to adequately engage in the same will result in a lack of profitability and competitive edge.

Two modern solutions have been proffered in a bid to ease and improve relations in the concerned area. Firstly, investment should not only occur on an external scale because it undermines the workforce input that generates work that is valuable to creating high demand and profitability ratings. As Swanson (1995) notes, investments directed toward businesses’ internal systems are not a waste of funds, as they create value not only in the product or service, but have the consequential effect of propelling the business towards newly discovered market bases, hence increasing its competitive edge. Secondly, in light of the globalization of many concerned businesses, digitizing technologies that help narrow down problem areas as well as logistically chart the tenability of a workforce structure to the business’ objectives should be embraced as precision in the business’ operations will no doubt increase its marketability through increased value-based output. It is through the consideration of the aforementioned that a business, regardless of its size may witness groomed competitive and value advantage.

REFERENCES

1.Allen, G.D., Bryant, C.P. (2013). Compensation, Benefits and Employee Turnover: HR Strategies for Maintaining Top Talent. Sage Journals. Vol 45, Issue 3. (pp 171-175). Retrieved from < https://journals.sagepub.com/doi/abs/10.1177/0886368713494342 > on 1st May 2020.

2.Baird, L., Meshoulam, I. (1988). Managing Two Fits of Strategic Human Resource Management. Academy of Management Review, Vol.13, No. 1. Retrieved from < https://doi.org/10.5465/amr.1988.4306802> on 1st May 2020.

3.Bercu, A.M., Voda, I.A. (2017). Labor Relations: Contemporary Issues in Human Resource. IntechOpen. Retrieved from < https://www.intechopen.com/books/issues-of-human-resource-management/labor-relations-contemporary-issues-in-human-resource-management > on 1st May 2020.

4.Bird, A.(1995). Links Between Business Strategy and Human Resource Management Strategy in the U.S.-Based Japanese Subsidiaries: An Empirical Investigation. Journal of International Business Studies, Vol 26 (1.) (pp23-46). Retrieved from < https://www.researchgate.net/publication/5222676_Links_Between_Business_Strategy_and_Human_Resource_Management_Strategy_in_US-Based_Japanese_Subsidiaries_An_Empirical_Investigation > on 1st May 2020.

5.Karev, M.V., Tikhonov, I.A. (2019). Risk Management in Human Resource Management. Technology, Education and Management Journal. Volume 8, Issue 4. (pp 1185-1190). Retrieved from <DOI: 10.18421/TEM84-11> on 1st May 2020.

6. Lengnick-Hall, A.C., Lengnick-Hall, L.M. (1988). Strategic Human Resource Management: A Review of the Literature and Proposed Typology. The Academy of Management Review, Vol 13, No. 3 (pp 454-470). Retrieved from < https://www.jstor.org/stable/258092?seq=1 > on 1st May 2020.

1. Swanson, A.R. (1995). Human Resource Development: Performance is Key. Human Resource Development Quarterly. Volume 6, Issue 2. (pp 207-213). Retrieved from < https://onlinelibrary.wiley.com/doi/abs/10.1002/hrdq.3920060208 > on 1st May 2020.

2. Wright, M.P., McMahan C.G., McCormick B., Sherman, S.W. (1998). Strategy, core competence, and HR involvement as determinants of HR effectiveness and refinery performance. Human Resource Management, Vol. 37, Issue. 1. (pp17-29). Retrieved from < https://doi.org/10.1002/(SICI)1099-050X(199821)37:1<17::AID-HRM3>3.0.CO;2-Y> on 1st May 2020.

PLEASE CITE ALL SOURCES MARKED IN RED ON THE REFERENCE PAGE