Current issues in human resources management Essay
to staffing, training and development, performance review, and evaluation and compensation. In truth, improving productivity can just be a matter of a company getting out of its own way (The Psychology of Rewards Systems). The firms with truly effective HRM systems, such as Southwest Airlines and General Electric, have developed their own unique approaches to managing people. The HRM systems fir their strategies and respond to a broad range of external environmental influences. Human resources management systems evolve over long periods of time, and people outside the organization often have difficulty fully understanding them.
Thus, competitors can not easily copy other’s approaches, which give the truly effective firms a competitive advantage. Although specific HRM philosophies, policies and practices vary greatly, every organization faces a few common challenges. In particular, organizations must operate within the constraints of the law, recruit and hire people to staff the organization, be sure that employees are trained to do the work they were hired to do, assess employee performance, and compensate employees fairly for the work they do.
When a manager is tasked with changing an organizational structure within a company, the first thing that he/she should do is to have a thorough study of the company;
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There should be a clear organizational chart to pinpoint responsibilities and to guide employees and also supervisors on whom to call for help or report to, on what jobs or concerns. These steps would minimize confusion, promote transparency within the division and perhaps, solve the problem on inter-departmental adversarial communication. A seminar-workshop of sorts should be held so that employees of Department A should be able to appreciate its role in the whole division and how its work or output interacts with other department’s work or output.
This would instill a sense of purpose to the division, with the different departments sharing a common vision for the company. Employees would have a sense of purpose while working for the company, morale gets boosted, workers become happy with their job and perhaps, with the inter-departmental animosity out of the way, productivity would be greatly improved. Employees should be made to realize that their future with the company is dependent on its growth, and that any salary increase(s) will have to be sourced from corresponding increases in the earnings of the company (Quick).
With a clear organizational chart in place, savings will be achieved from the eradication of similar functions and termination of trivial/unnecessary positions. Cost cutting measures however, should only be resorted to in the short term while the company is being trimmed-off its excess fats and never as a long term strategy. As the manager, I would inform my employees that any savings achieved by their judicious use of the company’s resources would redound to their benefit in the form of bonuses should the company increase its income.
Anyway, environmentalists tell us there is much more to be gained in conservation of scarce resources, other than money. Without a good product to sell, there would a threat to the continued existence of the company. A product is good only if it continues to sell. Human Resources Management must initiate a brain-storming session to harness ideas on how the product could be improved; a production process can be simplified with the least cost. The best people to get these ideas from are the very people involved in its production, sales and consumption.
HRM must launch a sales campaign to re-generate awareness to the “new product”, improve relationship with existing delivery and supply networks, while maintaining close monitoring of expenses. This strategy would increase sales and hopefully keep lid on costs, so that the company’s bottom line will improved. In line with these steps, HRM must create a small section which will be responsible for research on and developing new products that can sustain the company’s growth in the future, when the sales on the existing product lines begin to decline.
In the United States and some other countries, governments have determined that equal opportunity in all aspects of employment is a worthy goal. As a result, executive orders, laws, and court rulings specify acceptable and unacceptable human resources actions. These legal requirements affect not only recruitment, selection and placement, but also pay plans, benefits, penalties and terminations. An example of a successful company that failed is the Enron.
It was in December 2001 when Enron collapsed amid an outbreak of accusations pointing to misleading accounting, unreliable financial disclosures, and probable criminal behavior on wholesale energy markets necessarily contributing to a sudden downturn in worldwide equity markets. If the problem is not a systemic corporate corruption and that a greater part of business people and corporations are honest and responsible, the downturn in the U. S. equity markets may actually reflect fear of too much government interventions in a market already working diligently to right itself (Jickling).
This was a case where as senior Enron executive put it to Richard Foster, a McKinsey partner who celebrated Enron in his 2001 book, “Creative Destruction, “We hire very smart people and we pay them more than they think they are worth. ” (The Talent Myth). The Enron management did exactly what the McKinsey consultants said the company ought to do in order to make it big in the modern economy—it hired and rewarded the very best, but in the process, became bankrupt (The Talent Myth). Throughout 2001, investors in Enron appear to have been more concerned about the firm’s future prospects than about current results.
Enron continued to post double-digit growth and EPS numbers throughout 2001, but the share price continued to fall. (Frontline). While the market was sending signals of concern about Enron and its future prospects, Enron’s external auditor, Andersen did not qualify any of the quarterly reports or resign as the company’s auditor. Nor did the SEC launch an informal inquiry into third-party transactions until October 22, 2001, or a formal inquiry until October 31, 2001. The rating agencies, moreover, did not downgrade Enron below investment grade until November 28, 2001, just days before its bankruptcy. (Lobby Watch).
Investors were focused mainly on future prospects while regulators appeared to be focused on past events and how they were reported. Enron’s management continued to be focused on earnings per share, while investors reduced the value of the shares. In short, there is strong reason to believe that, despite Enron’s attempts to fool the market, the firm had not entirely succeeded in that endeavor (Lobby Watch). In the desire of short-term accounting targets and annual bonuses, Enron executives harmed the wholesale energy markets, damaged the credibility of the derivatives markets, and handed those in the regulation a powerful political weapon.
That has had the combined effect of reducing the attractiveness of new energy projects and increasing U. S. dependence on external providers of energy. It has damaged the credit ratings of all energy traders and precipitated ratings downgrades and liquidity problems that undermine efficiency in energy trading and, therefore, consumer prices. Indeed, effective human resources management satisfies the concerns of multiple stakeholders. For stakeholders, an effective human resources management system is essential for an organization to achieve its strategic goals.
The reason is that numerous studies have found that effective HRM translates directly into bottom line results. Firms that have only average HRM systems are not as highly valued by the market as those that have truly effective HRM systems (Connecting HR to the Bottom Line: GSB HR Management Programs Exceed). REFERENCES Connecting HR to the Bottom Line: GSB HR Management Programs Exceed Expectations. Retrieved Jan. 2, 2008 http://72. 14. 253. 104/search? q=cache:FKrYx21Zc_gJ:https://www. gsb. org/newsle tters/GSB_Connection_ENews_Fall07. pdf+effective+HRM+translates+directly+i nto+bottom+line+results&hl=en&ct=clnk&cd=2&gl=ph
Frontline. Accounting Lessons. Retrieved Jan. 2, 2008 at:http://www. pbs. org/wgbh/pages/frontline/shows/regulation/lessons/ Jickling, Mark, The Enron Collapse: An Overview of Financial Issues. http://72. 14. 253. 104/search? q=cache:7Bva6Ij- dWcJ:fpc. state. gov/documents/organization/9267. pdf+December+2001+when+E nron+collapsed&hl=en&ct=clnk&cd=1&gl=ph Lobby Watch. Arthur Andersen, Vinson & Elkins. Retrieved Jan. 2, 2008 at: http://www. tpj. org/docs/pdf/lobbywatch_andersen. pdf Quick, Gordon. The Role of Inspiration in Cultivating High Performance. Retrieved Jan.
2, 2008 at: http://www. fastcompany. com/resources/leadership/quick/role-of- inspiration/071007. html The New York Times. Symphonic Cooperation. Published 20 February 2002. The Talent Myth. Department of Human Resources. Gladwell. com. July 22, 2002. Retrieved Jan. 2, 2008 at: http://www. gladwell. com/2002/2002_07_22_a_talent. htm The Psychology of Rewards Systems. Retrieved Jan. 2, 2008 at: http://greymaterial. wordpress. com/2007/04/28/the-psychology-of-reward- systems/ Wikipedia. Systems Analysis. Retrieved Jan. 2, 2008 at: http://en. wikipedia. org/wiki/Systems_analysis