Human resources refer to the people that operate an institution. They play a very important role in adding value to the organizations they work in and help them retain their positions in the dynamic and competitive environment. Just like other institutions, companies have their employees categorized into a structured hierarchy. The board of directors is made up of people who are decision makers in a company. Then there are other managers heading various departments in the organizations and finally the ordinary and junior staff. This article will discuss the human resources in an organization.
Every employee needs to feel a sense of belonging and ownership of the firm. They ought to take part in the overall attainment of the company’s vision and mission statements. Top managers understand that the driver of success for a company is the way in which the company manages its employees. Today’s economy is unpredictable and it is necessary for companies to proactively keep up with the chaotic environment in order to ensure that their firms experiences stable growth, and shareholder value. Human resources increase value to a company through the following activities performance (Dawley, Houghton & Bucklew ,2010, p. 253). First, they effectively manage other people in addition to generating competences that improve the individual and the organizational performance.
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There is need to have a positive social dialogue, unlike a high level of authoritarianism, between the managers and employees. The reason behind the company’s success lies in the way in which the norms of social exchange have been established by the company. When employees are treated well and also appreciated, there is an observable positive change in performance (Dawley, Houghton & Bucklew ,2010, p. 253). Just like the way a company is concerned to retain its customers, it management should be willing to retain and develop their employees.
Other added benefits that employees ought to enjoy at the workplace include competitive salaries, and other benefits, health coverage for full and part time workers, retirement plans, training and educational scholarships. This will result not only to effectiveness in the workplace, but also ensure that opportunities offered to employees are based on their needs in order to establish their loyalty (Jacob, Galinsky, Hill, 2008, p.152). This implies that the management of the company not only made sure that the employer’s perception of their job is met, but also it is a way of communicating that the employees are valued in their organization. Consequently, a positive dialogue is enhanced between employees, and the management team.
There are a number of options that companies can choose from which enhances that employees are motivated. For instance, instituting a rewarding scheme, providing training opportunities and facilitation, support for career development while still working among other initiatives. This provides an effective approach towards employee performance in the firm.
According to collected data by PricewaterhouseCoopers (PwC), most of the company executives have shifted their focus on data driven, human capital management. This ensures that there is balance in workforce stability and skill, economic sustenance and nurturing of employee talents (Patel, 2010, p. 26). Human resources departments have been applying an ‘evidence based’ approach to decision thereby making and human capital management.
One of the issues that pertain to employee performance and development is the effectiveness during the hiring processes. According to PwC, assessment of the quality of hire is done by studying the percentage of hires that left the company within a period of three months of the service and within the first year (Patel, 2010, p. 26). When more employees leave a company within the first year of their service, then it means that there is problem in hiring procedure
Also, companies are supposed to develop and strengthen their succession plans. With the workforce constantly being shifted, organizations should come up with plans that sustain the talent pool for the success of the organization (Hawkins, p. 61). If not there is a possibility that companies may experience a problem in their efforts to retain employees. When firms provide opportunities for leadership training and development within the organization, they are helping their junior employees to easily acquire necessary skills that ensure that they are competent to handle bigger responsibilities.
One of the ways by which companies have addressed the issue of motivating employees is by increasing the benefits offered to employees. It is a strategy that is used hoping that the benefits would be attractive enough to increase motivation among employees to (Norman, Brett, Luthans,2005, p. 59). The benefits are given out to employees as an equivalent financial incentive that is cheaper for both them and the company than if the person acquired this benefit on his own (Shaw, Dineen, Fang, Vellella, 2009, p. 1022). They include company cars and other associated benefits, medical insurances, allowances on various luxuries among others. The main function of these incentives is to handcuffed employees to the organization besides appreciating them (Hind, 1990, p. 47).
However, not always do benefits translate to employee motivation. Sometimes reducing the benefits is helpful in checking a number of things (Middlebrook, 1999, p. 10). The added value to reducing the benefits is that companies will be in a better position to distinguish the good from the bad performers performance (Dawley, Houghton & Bucklew ,2010, p. 253). Good performers are those who are not only interested in the salary, but more importantly they have career goals that they want to meet. In other words these performers are looking for career development, and promotions.
The success of an organization lies in the awareness of managers of the importance of managing an effective talent pool. A company should therefore address the needs of their workforce strategically and analytically (Owens, 2009 p. 29). Scott extends this idea further by saying that addressing the retention rate problem is a strategic measure and therefore the stakeholders must be a key component as they can help align the key issues of retention to the objectives of the company. In order to understand the issue of retention Scott states that organizations should first realize the value of voluntary turnover rate and the amount of impact that it has on the bottom line (Scott, 2003, p. 4). Second, they should establish the cause of why people are voluntarily leaving the organization. Such information can lead to targeted interventions that make sense for the organization” (Scott, 2003, p.4). afterwards, they can conduct a confidential exit survey, and also conduct a stay survey to find out why people are staying in an organization, and build on those strengths.
Managers have a significant role to play in ensuring employee are performing optimally nevertheless, factors such as workload and work environment play an important role in employee’s decision to grow themselves in an organization. Allocation of duties to employees is a good approach to encouraging a motivated work team. Holding someone accountable helps to develop his responsibilities in handling of duties. Therefore managers and other employees should be accountable in execution of their duties. Incentives must be built into their performance management system to make sure that managers implement methods that addresses employee career progression.
In order to understand the factors that impact effectiveness in employee performance, it is essential to have a working knowledge of the ever changing correlation between the employer and the employee. What has been established is that there are many provisions to managers and the other employees that enhance good working environment and overall productivity in a firm (Forrier, Sels, and Stynen, 2009, p. 748). Companies need to balance managers’ awareness, employees’ perceptions, and the external environment in order to truly come to establish a collaborative effort from all stakeholders.