Module Code: ILP 303
Module Title: Strategic Human Resource Management
Date Due: 12 October 2009
Result: 47/100
Module Title: Strategic Human Resource Management
Date Due: 12 October 2009
Result: 47/100
1.0 Introduction
The purpose at this paper is to discuss to what extent is Strategic Human Resource Management (SHRM) planned in advance; considering that some commentators argue that it is in fact reactive or even emergent.
Strategic human resource management is “the process of linking the human resource functions with the strategic objectives of the organization in order to improve performance “(Bratton and Gold, 2007, p587) and “the pattern of human resources deployments and activities that enable an organization to achieve its strategic goals” (Snell and Bohlander, 2007, p48). Strategic human resource management also “combines a stress on the integration of personnel policies both one with another and with business planning more generally” (Millmore et al, 2007, p531).
Along with Oxford University Press (2006) reactive means acting before waiting for things to happen, rather than by planning controls, or make things happen.
In accordance with Oxford University Press (2006) emergent means a serious, accidental and the latent dangerous situation needs to take the action immediately.
In general strategic human resource management some commentators believe that it is in fact reactive, some commentators consider that it is in even emergent, and some commentators thought that both all have.
Consistent with cipd.co.uk (2009) some commentators believe that strategic human resource management is in fact reactive because strategic human resource management is based on the future direction, to take the organization's intentions. It was concerned that the long-term people issues and macroscopic structure, quality, culture, values, pledges and the necessary resources to the future need cipd.co.uk (2009). Therefore Strategic human resource management is a coherent method to human resource management. It is done on a planned way that combines with organizational goals, policies and action sequences. Such as in order to improve performance or to streamline structure, the human resource manager will design some strategies to deliver fair and reasonable reward cipd.co.uk (2009).
In accordance with DeCenzo and Robbins (1998) and Bratton and Gold (2007) some commentators consider that strategic human resource management is in even emergent because all of the strategic human resource functions are easily effected by the external environment, such as changes in the world of work, government laws, trade unions and management trends, it will lead to the strategic human resource management can not acting before waiting for things to happen, rather than by planning controls, or make things happen.
2.0 Strategic human resource management functions
In this essay, I will discuss recruitment and selection, reward management, hhealth and wellness management, pperformance management and appraisal, and human resource planning. There five strategic human resource management functions and some commentators believe by these to be reactive but some commentators consider that there are emergent.
2.1 Recruitment and selection
According to Bratton and Gold (2007) recruitment is a process of an organization to attract the labour market at the appropriate applications for vacant posts. In proportion to DeCenzo and Robbins (1998) the objective of recruitment are found out the large group of candidates in order to provide choice, and available messages to individuals doing self-selection at this process. The main source of recruitment staffs has internal recruitment, external recruitment, e-recruitment, Independent indentured workers and temporary help agency workers (DeCenzo and Robbins, 1998), (The Time 100, 2009), (Mohamed Othman and Musa, 2006).
Selection is the “processes to establish the most suitable applications for vacant positions within an organization from a number of applicants” (Bratton and Gold, 2007, p586). According to Snell and Bohlander (2007) selection is to deal with personal choice that has the relevant qualifications to fill existing or anticipated job opening.
Before starting to recruit people, the human resource manager needs to do the job analysis, job description, and job specification to point out the job category, job requirement and everything to be the guideline of them to recruit and select employee (The Time 100, 2009). Then base on the internal policy, the recruitment budget and so on the human resource manager choice the either recruit from internal or external. If decide recruit employees from external the human resource need to do some advertisement to attract the labour market at the appropriate applications for vacant posts (Bratton and Gold, 2007). After attract some candidatures the human resource manager will employ the person who is qualify and provide training to the new employee in order to let the new employee can perform well as fast as possible (Bratton and Gold, 2007).
Some commentators believe that recruitment and selection are in fact reactive because of company is via recruitment and selection to find out the people who is coincide with the expectation of the company and able handle the job (Bratton and Gold, 2007) and (DeCenzo and Robbins, 1998). Therefore before the company starting to recruitment the human resource manager will do the job analysis, job description, and job specification to point out the job category, job requirement and everything to be the guideline of them to recruit and select employee (The Time 100, 2009). It will let the recruitment and selection of company can in accordance with the expected plan. This is reactive.
In addition, recruitment and selection are in fact reactive also express in the way of recruitment choice. According to DeCenzo and Robbins (1998), The Time 100 (2009), Mohamed Othman and Musa (2006), Millman (1998), Rozelle and Landis (2002) the main source of recruitment staffs have internal recruitment, external recruitment, and e-recruitment. All of the way of recruitment choice also has it own advantages and disadvantages.
Like internal recruitment, the advantages of internal recruitment are:
1. Can be savings considerable. Internal knowledge and personal business how it works, it only need to taking short periods of training and time for 'fitting in' (The Time 100, 2009).
2. Internal promotion as a stimulus to all the staff to work within the organization (The Time 100, 2009).
3. As an incentive for all staff within the marketing behaviour to work harder within the organization (The Time 100, 2009).
Internal recruitment also has disadvantage, there are:
1. You will want to replace the people who have been promoting (The Time 100, 2009).
2. Perhaps a person's promotion lets others worry in the company (The Time 100, 2009).
The external recruitment causes into possibly to obtain various talents, and provides the opportunity to bring the new experience and the idea to business. The shortcoming is it is more expensive, and perhaps the company finally obtained compared to them has done proves the ineffective person in the paper and in the interview situation practice (The Time 100, 2009).
The advantages of e-recruitment are the e-recruitment will help the organization achieve big goals, and to qualified candidates (Millman, 1998), (Rozelle and Landis, 2002) and achieve cost-effective (Mohamed Othman and Musa, 2006). Along with iLogos research (1998) e-recruitment can recruit low cost. Companies can achieve cost savings in three areas; reduced newspaper advertisement, job fairs and head-hunting costs, reduce communication costs and human resources departments to reduce the workload of direct costs.
The disadvantages of e-recruitment are discrimination internet non-user (Flynn, 2000) and difficult to recruit the Internet the administrative rank talented person (Arkin and Crabb, 1999). Many companies will want to continue to employ certain employees to use more traditional supplementary services, such as administrative staff of the plain (Seminerio, 2001).
Some commentators consider that recruitment and selection are in even emergent because some factors will limit the recruitment of human resources management sources, such as organized image, the work nature and the attraction, the internal policy, government's stipulation and the recruitment budget, it will lead to the recruitment and selection can not acting before waiting for things to happen, rather than by planning controls, or make things happen (DeCenzo and Robbins, 1998).
Beside that, employee absences (such as, sickness, the vacation, the maternity leave or the disability leave, and leaves job suddenly) and unexpected or temporary demand (such as, special projects, seasonal or peak periods, and employee shortages) also will lead to the recruitment and selection can not acting before waiting for things to happen, rather than by planning controls, or make things happen (Schaefer, 2005).
The way to solve the problem of employee absences and unexpected or emergent demand is employ temporary workers (Schaefer, 2005).
The advantage of employ temporary workers to solve the problem of employee absences and unexpected or emergent demand are:
1. It can maintain the flexibility of staff. With the popularity and to maintain the right to flexible working arrangements, the human resource managers must remain in the workforce needs of today’s current. Temporary work is only one approach, the company can provide flexible and at the same time to better meet their needs (Schaefer, 2005).
2. It can let the human resource manager assess the workers, without commitment. Based on the human resource manager assessment or preferences, human resource manager can specify hire short-term temporary workers, if necessary, provide a full-time status of workers who fit their business (Schaefer, 2005).
3. It can save time and money. The cost of hiring temporary staff workers than hiring a permanent employee benefit costs often cheaper. In the short term, it is generally more cost-effective hiring temporary workers. For those who will continue for 6 months or longer work, it can pay to hire full-time employees (Schaefer, 2005).
The disadvantage of employ temporary workers to solve the problem of employee absences and unexpected or emergent demand are:
1. Training needs. When a temporary employees would start a new task, whether they are skilled or unskilled, in order to let them can carry out their assigned tasks suited to the specific needs of that company, company need to provide a certain amount of training (Schaefer, 2005).
2. Morale factor. Morale and employee relations will have problems when you have temporary worker alongside permanent staff for months, do the same work and putting in the same hours, but not receiving the same benefits pay for their permanent employee colleagues (Schaefer, 2005).
3. Safety factor. Certain type of works are essentially danger, therefore needs the careful safe training (Schaefer, 2005).
2.2 Reward management
Reward is “all forms of financial returns and tangible services and benefits that employees receive as part of the employment relationship” (Bratton and Gold, 2007, p586). According to Armstrong (2002) how people are rewarded in accord with their value to the organization. Reward involves the philosophy, strategies, policies, plans and processes used to develop and maintain the organization and reward system (Armstrong, 2002).
Some commentators believe that reward management is in fact reactive because the objectives of reward management are to recruit and retain sufficient qualified workers and motivate employees to perform well (Bratton and Gold, 2007). Therefore, in order to achieve the reward objectives the human resource manager will design some strategies to deliver fair and reasonable reward. In order to set up a fair and reasonable pay level the human resource manager need to do job analysis and job evaluation before establishing the pay levels (Bratton and Gold, 2007). The general reward system includes base pay, performance pay, indirect pay and etc (Bratton and Gold, 2007). It will let the reward management of company can in accordance with the expected plan. In order to incentive employees, employer also will provide some incentive compensation to encourage the employees when the employees perform exceed the expectation of the company (Appelbaum and Mackenzie, 1996). There are many type of incentive compensation, for example, cash bonuses, stock purchase, and profit sharing and so on (Appelbaum and Mackenzie, 1996).
Some commentators consider that reward management is in even emergent because some factors will change the reward management of the company, such as political, economy, pay system, shifts of management thinking and etc, it will lead to the reward management can not acting before waiting for things to happen, rather than by planning controls, or make things happen (Bratton and Gold, 2007). According to Bratton and Gold (2007) a pay system is likely to highly appropriate in one period, with a specific organization and job design and support management strategies, can be highly inappropriate in the next, when the business strategy and organizational design changed. Therefore, there is not single best pay system exists until now (Bratton and Gold, 2007).
2.3 Health and wellness management
According to Singer (1990) health and wellness management occur is because of the workplace accident kills the thousands employee every year, and causes tens of thousands to lose ability. Unfortunately, the effect on productivity is staggering. Therefore, the workers’ health and safety becomes more and more importantly to the employers (Singer, 1990). It was an emergent situation, in consequence is the government and employers starting to pay attention in providing healthy and safe environments for workers (Singer, 1990).
The task to create a safe workplace is shares together by the government and the personal department employers (Singer, 1990). Some country’s government make much account of health and wellness of workplace. Some government agencies were established to conduct research, audit work environment, lifting behaviour, and impose a fine of, in order to accomplish let all employers to create and regular monitoring of workers in the workplace, insurance, pollution, safety and protection of the environment (Singer, 1990). In Britain
With the development of the law, endanger the security and the growing awareness of health issues (Bratton and Gold, 2007). In order to more effective to ensure that the employers have create and regular monitoring of workers in the workplace, insurance, pollution, safety and protection of the environment, the Congress was create and pass some act, such as Occupational Safety and Health Act (OSHA), Occupational Safety and Health Act of 1970, Health and Safety at Work Act of1974 (HASAWA 1974) and so on (DeCenzo and Robbins, 1998), (Singer, 1990), (Bratton and Gold, 2007). The health issues that the government and employers will concern include workplace stress, alcoholism, smoking, workplace violence and AIDS, and key elements of a workplace wellness programme (Bratton and Gold, 2007). Beside that, the personal problems, such as substance abuse, marital problems and financial problems, also obtain the widespread popularization (Singer, 1990). The health and wellness management is become more perfect and reactive.
2. 4 Performance management and appraisal
Performance management is “The process of creating a work environment in which people can perform to the best of their abilities” (Snell and Bohlander, 2007, p605). Consistent with a system's attempt connects the organization strategy with the employee through the active integration within the performance result and the behaviour (Bratton and Gold, 2007).
According to Bratton and Gold, (2007) performance appraisal is a analysis of the employee's capability and potential, from the past and current work, behaviour and performance, allocating decisions to be make in relation to intention, for example the human resources development, needed to formulate the appraisal data. In accordance with Snell and Bohlander (2007) performance appraisal is a process, usually by a manager, every year is a subordinate, is for the purpose of helping the staff to understand that own role, the goal, expects and performs successfully
According to Bratton and Gold (2007) a person's work the main aspects can be precisely defined in terms of performance, allowing also takes into account the situation in the performance of special restrictions within the agreed period of measurements. The data has provided a PMS, a very important best path, human resources management strategy conception work foundation (Bratton and Gold, 2007). Through its link to measurement, the performance management has provided the evidence; the management is reasonable, effective, the active control organization (Bratton and Gold, 2007). In recent years, with the challenges of expanding into a narrow measure of organizational performance measurement to provide a more balanced point of view (Bratton and Gold, 2007). Therefore the human resource management will do the performance management and appraisal once a year in order to make a decision on the salary, promotion and work responsibilities and development purposes to improve performance, identify training opportunities and plan of action (Snell and Bohlander, 2007).
According to Bratton and Gold (2007), Snell and Bohlander (2007) some commentators consider that it is in even emergent because the performance management and appraisal may to estimate with the different way. Lacks the reliability perhaps by the individuality attribute or the characteristic form input, and is seen perhaps like to be subjective and to be unreasonable. Human resource managements' training insufficiency, subjective and organization's politics will twist examination (Snell and Bohlander, 2007). Beside that, the performance management and appraisal, supposition all staffs are often achieving the goal, deals with the survey interest which this organization stipulated that although has many evidence to indicate that the people have many other benefits, but is not all match this organization's request (Bratton and Gold, 2007). All of these factors will lead to the performance management and appraisal can not acting before waiting for things to happen, rather than by planning controls, or make things happen.
In order to avoid human resource managements' training insufficiency, subjective and organization's politics will twist examination, using more than one evaluator is a good idea (Snell and Bohlander, 2007). According to Snell and Bohlander (2007) different people see different aspects of employee performance. For example, has in employee's legitimate authority, and is discerning a good position he or she whether to create organization's goal. Colleagues and team members, on the other hand, there is frequently have an employee's work activities filtration point of view, especially with the problems, such as the co-operation and reliability. Subordinates often provide information on whether employees to facilitate their work, customers can deliver the degree of increase in the value of employees to meet their needs good information (Snell and Bohlander, 2007). According to Snell and Bohlander (2007) with a view to let the performance management and appraisal of company can in accordance with the expected plan there are several methods can be used for performance management and appraisal. These methods include trait approaches (such as the graphic rating scale, mixed-standard scale, forced-choice form, prose), behavioural methods (such as key behavioural event's rating methodology, inventory, BARS, and BOS), and results methods (MBO) (Snell and Bohlander, 2007). There is reactive.
2.5 Human resource planning
Human resource planning is a “human resource management approach to planning, set in the context of organizations’ views of people as the source of competitive advantage” (Bratton and Gold, 2007, p582). Human resource planning is the “process of anticipating and providing for the movement of people into, within, and out of an organization” (Snell and Bohlander, 2007, 603).
According to Snell and Bohlander (2007) strategic human resource management integrated strategic planning and human resources planning. It can be considered to be the deployment of human resources and activities in ways to enable an organization to achieve its strategic objectives. Human resources planning and strategy becomes more important, once the organization's global strategic considerations, mergers, plant, innovative relocation and layoffs, or when the composition of the workforce is undergoing tremendous changes.
Some commentators consider that human resource planning is in even emergent because as early as in human resource planning approach to enterprise strategy and planning to ensure that the people providing the necessary response to the importance of the supply, both in quantity and quality (Bratton and Gold, 2007). Rationalization of the method, according to the language of economics, it was suggested that, as well as the organization's image to allow a range of stocks and flows of human resources to build advanced statistical model applications (Bratton and Gold, 2007). This organization method, however, has missed good personnel management complex frequently, and the manpower planning gained the bad reputation, from the use the few advantage manpower planning technology which requests (Bratton and Gold, 2007). Beside that, in accordance with Bratton and Gold (2007) human resources accountant had advocated the achievement proposed person's value takes the property, but has lacks surveys one legitimate and the reliable model. There are several organizations, especially in Sweden, has been incorporated into their management control of the process of human resource accounting methods, but studies have shown that the use of some managers of their own contradictions (Bratton and Gold, 2007).
Some commentators believe that it is in fact reactive because human resource planning can using the labour mobility, be absent from work without an excuse with the stable manpower measure diagnoses and solves the question, after aids more and more by the PC software package (Bratton and Gold, 2007). Human resources information can be used to start, such as low awareness of the problem of staff retention, follow-up to find a solution before use quality data. Overall planning, management is crucial in the role of the employment relationship (Bratton and Gold, 2007). Human resource planning activities have recently been through human resource information systems support, especially in areas such as employment records, payroll and control transactions in case of application. Such a system can also provide the functionality of the Internet as electronic human resources. Through the use of ERP software, some organizations are trying to integrate all the information flow, but with all attempts to depict the organization through information systems, many of interpretation on how the information is determined (Bratton and Gold, 2007). There is a growing trend, many transactions outsourcing services, human resources, supplier other than the requirement that the transfer of administration of human resources staff will focus on strategic and high value-added work (Bratton and Gold, 2007). In many organizations, a flexible language and a different scope of practice are often not considered employed on employment relations. Currently employed are often not considered the impact of the employment relationship. Has in some increase in the number, timing and remote home office employees, flexible working with the government's support, as well as outsourcing and services, shoring, but the overall performance of the enterprise there is little evidence and people's motives. Some studies suggest that more and more work as the characteristics of job insecurity, value will be lost, but other studies found that the changes in the contract can be used to obtain a better work-life balance (Bratton and Gold, 2007). According to Snell and Bohlander (2007) enterprises need to establish a set of parameters, focusing on "the expected results of strategic planning" and that they will use the indicators to monitor how the company provided for these results. Measurement problems, benchmarks, adjustment, adaptation, and flexibility are critical to the assessment process. Companies use benchmarking, strategy mapping and balanced scorecard (BSC) tools to measure their results.
3.0 Conclusions
In general strategic human resource management some commentators believe that it is in fact reactive because strategic human resource management is based on the future direction, to take the organization's intentions. It was concerned that the long-term people issues and macroscopic structure, quality, culture, values, pledges and the necessary resources to the future need. Therefore Strategic human resource management is a coherent method to human resource management. It is done on a planned way that combines with organizational goals, policies and action sequences. Such as in order to improve performance or to streamline structure, the human resource manager will design some strategies to deliver fair and reasonable reward.
In general strategic human resource management some commentators consider that strategic human resource management is in even emergent because all of the strategic human resource functions are easily effected by the external environment, such as changes in the world of work, government laws, trade unions and management trends, it will lead to the strategic human resource management can not acting before waiting for things to happen, rather than by planning controls, or make things happen.
In my option there are both, some strategic human management functions will appear to solve some emergent cases, such as health and wellness management, and with the development of the law and experience, health and wellness management is become more perfect and reactive. Some strategic human management functions is perfect and reactive, such as recruitment and selection, but it is still will affect by external environment (such as organized image, the work nature and the attraction, the internal policy, government's stipulation and the recruitment budget), it will lead to the recruitment and selection can not acting before waiting for things to happen, rather than by planning controls, or make things happen.
4.0 Recommendations
Inevitably, every company had to planning a plan before they carry out any strategic human resource functions. In addition to planning a plan before they carry out any strategic human resource functions there are necessary to planning a preparatory plan to avoid some emergent cases because all of the strategic human resource functions are easily affected by the external environment (such as changes in the world of work, government laws, trade unions and management trends), therefore the human resource manager of a company need to planning more than one plan in order to let the company able to acting before waiting for things to happen.
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