Human Resources (HR) puts emphasis on people in a business organization. It is because people matter in business and they are considered the most important resource.
In general, it develops and implements policies, procedures, structures, systems and approaches to management and leadership by utilizing the human potential within a business to achieve business objectives. For that purpose, the Human Resources (HR) department recruits, selects, organizes, develops, leads, motivates and evaluates all employees. It also deals with consequences of actions and decisions in relation to recruiting or dismissing staff.
The focus here is for Human Resources (HR) to grasp the interrelationship between the organizational structure and management of people within a business and leadership styles and management of people within a business.
1. Functions of HR Management
Human resource management typically begins with human resource planning or workforce planning. The reasons for and role of a workforce plan are explained. There are both internal and external factors that influence human resource planning such as demographic changes, changes in labor mobility, emergence of new communication technologies, etc.
One of the functions of HR management is managing labor turnover – measuring labor turnover and dealing with the implications of high and low labor turnover for a firm.
This section describes the purpose of Human Resources (HR) and its roles in meeting organizational objectives. The role of Human resource management in meeting business objectives includes recruitment and selection, training and development, guidance on morale and welfare as well as redundancy and dismissal of employees. Because arguably it is the people who are the most important resource in a business.
- Recruitment and selection. Both internal recruitment and external recruitment is possible. It includes main methods of recruitment (job advertisements, employment agencies, online recruitment, etc.), common steps in the recruitment process (job advertisements, job descriptions and person specifications) and selection methods (Curriculum Vitae (CV) or resume, application forms, interviews, references, testing, assessment centers). Finally, offering a contract of employment.
- Training and development. The purpose is to secure required skills and motivating the workforce. Main types of training include on the job training (including training, mentoring), off the job training, cognitive training and behavioral training. Training and development impacts the business as employee development encourages intrapreneurship, multi-skilling and flexibility. Main types of employee appraisal include formative, summative, 360-degree feedback and self-appraisal.
- Morale and welfare. Human resource management impacts employee morale and welfare in a business. It includes concepts of work-life balance, diversity, inclusivity and equality.
- Redundancy and dismissal. Undesired workers will be either made redundant or dismissed. There are differences between redundancy (voluntary or involuntary) and dismissal (fair or unfair). Common steps in the processes of dismissal and redundancy must be known to business managers.
Nowadays, there are many ways how working patterns, practices and preferences change and how they affect the employer and employees. This includes mainly working from home, flexible time and migration for work. Additionally, modern human resource strategies include outsourcing, offshoring and reshoring.
Finally, business managers need to be aware how heavily innovation, ethical considerations and cultural differences influence human resource practices and strategies in an organization.
2. Organizational Structure
There is a relationship between business objectives and organizational structure. The main purpose of an organizational structure includes meeting the needs of the business, permitting growth, allowing for development, providing flexibility and encouraging intrapreneurship within a business.
There are many different ways in which a business can structure its workforce to reach its corporate goals. Some business organizations are structured by product while other firms by function or region (geographical area). Obviously, different organization structures offer various advantages and disadvantages.
Hence, main types of corporate structures include functional, hierarchical (flat/horizontal or tall/vertical), matrix, project-based and Handy’s Shamrock Organization.
To better understand organizational structures, the following terminology will help you to facilitate understanding of different types of organizational structures. The features of a formal business structure include:
- Levels of hierarchy and Span of control. The relationship between span of control and levels of hierarchy.
- Chain of command, Responsibility and Authority. The relationship between chain of command and responsibility and authority. Differences between authority and responsibility. Control, authority and trust.
- Delegation and Accountability. The impact of delegation on a business. The processes of accountability in a business. The relationship between delegation and accountability. Advantages and disadvantages of delegating. The impact of delegation on motivation. Conflicts between control and trust that might arise when delegating. The conflicts between control and trust that might arise when delegating
- Centralization and Decentralization. The impact of centralization and decentralization on a business. Advantages and disadvantages of centralization for stakeholders.
- Bureaucracy.
Changes in organizational structures happen very often. The reasons and ways structures change are mainly due to growth or delayering.
Organization charts easily show the relationship between line and staff management. Business managers need to be familiar with examples of and distinctions between line and staff functions and the conflicts between them.
3. Management and Leadership
While human resource management contributes to business success by effective workforce planning, its major role is effective management and leadership of the organization in order to achieve efficiency and competitiveness of the business. There are different that theories that underpin the concepts of management and leadership.
Key functions of management need to be discussed including traditional manager functions such as planning, organizing, directing, controlling as well as Mintzberg’s roles of management. Additionally, McGregor’s Theory X and Theory Y ought to be introduced here as well.
Management vs. Leadership. What are the differences?
Business leadership is all about having the ability to make decisions. However, there are many different ways to lead a company.
Key functions, roles and styles of leadership need to be discussed including autocratic, paternalistic, democratic, laissez-faire and situational. Goleman’s Four Competencies of emotional intelligence including self-awareness, social awareness, self-management and social skills are crucial for leaders.
Finally, how ethical considerations and cultural differences may influence leadership and management styles in an organization?
4. Motivation
Motivating a workforce is very important. But, what motivates individuals to perform well at work?
Managers and leaders use motivation as a tool to constantly encourage employees to achieve the objectives of a business. Because motivation links with human needs, the question is how human needs may or may not be satisfied at work.
That is why here comes the importance of motivation techniques and theories in understanding employee needs and wants. Managers need to know what motivates individuals to perform well at work.
Motivation theories are divided into Content Theories and Process Theories. The most well-known motivation theories include Taylor’s, Maslow’s, Herzberg’s, Adams’s, Mayo’s, McClelland’s, Vroom’s, Pink’s, Deci and Ryan’s.
There are many different methods to keep people happy. Motivation methods in practice include financial motivators, non-financial motivators.
The following types of financial rewards include salary, wages (time-based rates and piece-based rates), commission, bonuses, profit-related pay/profit sharing, performance-related pay (PRP), employee share ownership schemes and fringe payments (perks). These are mainly the ways in which employees are offered money or money-related items.
The following types of non-financial rewards include job enrichment, job rotation, job enlargement, empowerment, purpose/the opportunity to make a difference and teamwork, training, opportunities for promotion, development, status, job re-design, team working and participation. These are mainly the ways in which employees can participate in the management and control of business activity.
Finally, how financial rewards and non-financial rewards affect job satisfaction, motivation and productivity in different cultures?
5. Corporate Culture
Different types and elements of corporate culture, also known as organizational culture, will be considered here. Individuals influence organizational culture and organizational culture influences individuals.
Nowadays, diverse stakeholder groups, ethical considerations, different needs of a multinational workforce and cross-cultural understanding are becoming crucial, especially in examining global corporations that have a multinational workforce and diverse stakeholder groups. Therefore, the reasons for, and consequences of, cultural clashes within organizations when they grow, merge and when leadership styles change must be considered in details.
6. Employer and Employee Relations
This section is about relationships between management and workforce. Positive cooperation between management and the workforce benefits both sides. Managers should be given tools to analyze the relationship between different stakeholder groups as well as the role of individuals in a business.
Employer and employee relations are often managed through employee and employer representatives usually through the process of collective bargaining. Other industrial/employee relations methods include slowdowns (go slows), work-to-rule, overtime bans and strike action, threats of redundancies, changes of contract, closure and lock-outs.
Considering the pace of change in modern businesses structural changes and changes in the business environment, it all impacts on human resource management. This section also looks tat
Finally, the section covers specific laws and regulations applying to working conditions, corporate cultures and industrial relations.
7. Conflict Management
We will be looking at sources of conflict in the workplace. Also, analyzing approaches to conflict resolution including conciliation and arbitration, employee participation and industrial democracy, no-strike agreement and single-union agreement.
There are usually plenty of reasons for resistance to change in the workplace that cause conflicts including self-interest, low tolerance, misinformation and interpretation of circumstances. The role of the Human Resources (HR) department is to implement strategies for reducing the impact of change and resistance to change including getting agreement/ownership, planning and timing the change and communicating the change.
Innovation, ethical considerations and cultural differences may also influence employer-employee relations in an organization causing conflicts.
8. Business Communication
This section introduces how communication works within a business organization and the importance and methods of effective internal and external communication.
It explains purposes of communication in a business and describes situations in which communication is essential. As well as it describes standard methods of communication including interpersonal, general to and within groups (spoken, written, electronic and visual). It also analyzes strengths and weaknesses of those different methods of business communication.
Channels of communication are outlined along with differences between one-way communication and two-way communication; differences between vertical and horizontal communication. Also, the role of informal communications within a business. In addition, problems associated with different channels of communication are analyzed in details.
Major barriers to communication include attitudes, perceptions, noise, language, inappropriate medium, etc. Therefore, it is the role of management to facilitate communication, find ways of improving communication in a given situation and find ways in which communication can positively influence the efficiency of a business.
These days, cultural differences and innovation in communication technologies may impact on communication in a business organization.
