Thursday, 3 January 2019

Trust, Transparency, Tranquility – Core Competencies of Human Resource Management

Trust, Transparency, Tranquility – Core Competencies of Human Resource Management

A set of individuals who comprise the workforce of an organization or economy or any business sector, is termed as the human resource; Demographics, diversity and qualifications and skills some of the major factors that are considered in governing human resources. Demographics comprise certain characteristics of the workforce like age, gender or social class that are considered for pension offerings and insurance packages. With the shift of industries from manual to more managerial professions, the need for highly skilled graduates increases more. If there are not enough workers for jobs, then competing for employees require community investment and financial rewards being provided by the employers!

The competitive companies therefore require satisfied, loyal and motivated employees to represent them and then increase in the productivity and quality of product and service that is directly proportional to the growth in satisfaction of its employees. These employees help increase the attractiveness of the competitive position of the company in the market and help engage more potential job seekers. Many a time the management fails to know the opinion of its own employees and therefore goes on underestimating the connection between the satisfaction of employees and the success of the company in the market. For organizations, management of career, working conditions and environment remains a problem area in human resource management. This requires implementation of personal policy in a step by step module. The management requires defining these basic and vital points for employees that are why we are here, what our aim is and how we intend to attain defined target.

The profitability of an organization is always relative to its human resource and no machine can replace their abilities. Each individual in an organization contributes to its growth through his/her skills, knowledge and experience. Thinking of such valuable human talent in terms of human capital can lead the pathway to the development of national economy. Organizations focus on the significance of human factor in order to pool ideas and creative inputs for improving their productivity. Recruiting plans are hence designed for approaching talented people. They are trained to meet competencies and their expectations are met in order to create a friendly workplace. This training activity involves a whole lot cost that is suffered by the organization if somehow they fail to employ a right candidate for the specific job.

It is therefore needed to manage the individuals' capabilities, time and talents in order to maximize organizational effectiveness. Human resource management handles this task to ensure that employees are able to meet the goals of the organization. It also is responsible for how people are treated in organizations and for pooling in people to work in the same. The human resource department (HRM) look after seven vital function staffing performance appraisals, com and benefits, training and development, employee and labor relations, safety and relations, safety and health and human resources research. In bigger organizations with more than 100 employees, a human resource manager coordinates HRM duties and reports directly to the CEO.

The HR unit analyses the job since the organization is first set up and looks into the requisite skills and knowledge in employees seeking job. The first and foremost function of the HR in staffing that looks into the job description and specification. The HR department adheres to quality employee selection through job posting and advertising and also assists in screening the resumes of the candidates. It pulls in candidates with apt qualification to attend the interview. It also plans and reviews the current job analysis and descriptions.

After the selection of talented candidate or individual in the organization, the Human Resource Management creates an environment of motivation for the employees that would help them grow and reward them for their exemplary performance. The performances of the employees are reviewed on a periodic basis for evaluation of their performances and this process is termed as performance appraisal. There are several appraisal methods like; Ranking all employees in a group, use of rating scales to define above average, average and below average performance, recording of favorable and unfavorable performances which are known as critical incidents and managing of objectives.
Performance appraisal serves several motives, some of which are:

It guides human resource actions like hiring, firing and promotion; it helps reward employees through promotions or bonuses. It also helps identify training and development needs in order to improve individual's performance on the job and it helps in planning of the human resource by providing useful job related data.

An employee's performance often gets influenced by compensation and benefits. These compensations can be in the form of payment which is either hourly wage or annual salary or through benefits that may be in the form of insurance, pension, vacation, modified workweek, sick days and so on. Compensation is required to be fair and equitable, cost-effective, ethical, adequate, legal and able to provide employment security.

One of the benefits served through performance appraisals is that it helps in determining compensation benefits and also in identifying ways to help individuals improve their current positions, in order to prepare for future opportunities. Downsizing and expansion leads to change in the structure of organizations, which is continuous process and it therefore creates an incessant need of training and development programs. These ideally focus on learning the skills, knowledge and attributes needed to perform a task. There are numerous and orienting employees, developing desired skills, prevent supplying professional and technical education.

Human capital is helpful in increasing entrepreneurial success. Everyday entrepreneurial tasks of discovering and exploiting business opportunities need a consistency. Human capital helps the employees by increasing their ability to perform such tasks.

Planning strategy is directly influenced by human capital and this planning strategy is very crucial in the positive growth of the organization. Good knowledge and adequate skills are both beneficial and needful and when a good human capital is blessed with both, then other resources such as financial and physical capital also get acquired conveniently. Financial capital might be a constraint for many entrepreneurial firms, but with the help of human capital the lack in the financial capital can be compensated. Human capital helps in acquiring new knowledge base and learning various skills. This further creates a stockpile of knowledge and skills which ideally helps in the existence and success of the organization. Hence, owners with higher human capital are thought to be more effective, efficient in running their business. If the human capital is applied successfully and transferred to the specific tasks in the organization, then only can it lead to the success of the business.

Young organizations are more likely to be in need of great human capital. Due to the newness and challenges which a young organization faces, there is greater access to human capital with expert skills and knowledge to take quick decisions. The companies or organizations which are very successful are indeed those who manage human capital in the most effective and efficient manner. Human capital should therefore be treated as assets and not expense.



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