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| Introduction | | | | With human resource rising as the primary asset of an |
| Previous findings have suggested that human resource | | | | organization, human resources (HR) management are |
| management practices and beliefs play important roles | | | | being faced with new challenges to come up with |
| in the management of businesses today especially | | | | strategic approaches that can add value to the |
| when it comes to planning, recruiting and motivating | | | | organisations when sourcing for new employees. |
| employees to commit themselves for the organisation. | | | | |
| Comes to issues of Therefore, there is a unique | | | | Performance management |
| relationship between the human resource | | | | Dainty (2000) suggests that, it is important that the |
| management practices and techniques employed by | | | | human resource management have a way of tracking |
| an organisation and its overall performance. Certain | | | | employee performance based on objective of the |
| sets of human resource practices are critical for any | | | | organisation and evaluate development of the |
| organization restructuring and if they are not | | | | employee competencies and skills. The old way which |
| implemented, they will lead to poor performances. | | | | was paper based has been proven to be ineffective |
| These practices as discussed below are important in | | | | cumbersome and time consuming. The management |
| jumpstarting the organisation’s revenue and | | | | need to replace these manual ways with complete |
| profit growth if well utilized. This paper will examine | | | | automated performance management system allows |
| various functions of human resource management in | | | | the managers to easily connect organisation |
| relations to business objectives. | | | | objectives to individual objectives, giving the human |
| | | | managers a complete outlook of how effective the |
| Alignment | | | | staffs are. Human resource management can then |
| Strategic human resources management, alignment | | | | analyse the whole staff in order to sport concerns |
| with mission achievement, strategic alignment these | | | | across the organisation hierarchy. (Dainty, 2000) |
| terms are some of the phrases which are being used | | | | He further argues that, tracking the employee |
| to explain the latest, evolving function of human | | | | production will enable the management to know where |
| resources management (HRM). Different people will | | | | and which are need improvement, those employees |
| give different meaning for these terms. Consequently, | | | | who does not perform to the levels of set standards |
| it’s imperative to ascertain from the starting | | | | can be told to improve on their abilities or given duties |
| what we are really talking about. Human resources | | | | which they can perform best. Armstrong (2006) also |
| department alignment implies integrating decisions | | | | supports this, by stating that, since the aim of any |
| concerning employees with decisions regarding the | | | | organisation is to maximize profits and reduce costs, |
| outcomes a business is attempting to reach the | | | | tracking the employees production will also enable the |
| objective of the company in relations to its business | | | | organisation to cut cost of production by for example, |
| targets, | | | | lying off those employees who are not producing. |
| Agency wide Planning | | | | Ultimately these measures will add value to the |
| To a number of organizations, strategic planning | | | | organisation in terms of cost effectiveness. |
| means a manner of life to them. To other organization | | | | Developing human resource strategy |
| is an exercise, while to many organizations it is | | | | Faced with the need to add value to the organisation, |
| obligation. Many organizations pursue an unbroken, | | | | human resource need to come up with a more |
| three stage strategic planning practice. | | | | coherent and focused approach in sourcing practices. |
| | | | According to Dainty (pp 43-46), to develop such |
| Examples of companies | | | | strategy, two issues have to be addressed. |
| Starbucks Corporation | | | | 1. What type of workforce does the organisation need |
| | | | in order to manage and also run the organisation so |
| Starbucks Corporation is a big multinational coffee and | | | | has to meet the organisation strategic business goals? |
| coffeehouse chain/outlet company which is based in | | | | 2. Which type of workforce programs and schemes |
| United States. Starbucks currently is the biggest | | | | must be planned and implemented so as to attract, |
| coffeehouse company in the whole world. | | | | develop and retain a workforce that can compete |
| Evaluation of HRM | | | | effectively? |
| With human resource rising as the primary asset of an | | | | For these questions to be answered the human |
| organisation, human resources (HR) management are | | | | resource has to align four key areas of an |
| being faced with new challenges to come up with | | | | organisation these are; |
| strategic approaches that can add value to the | | | | 1. - The sourcing culture of the organisation; norms, |
| organisations when sourcing for new employees. To | | | | beliefs and the management way of the organisation |
| address this issue the human resource have to | | | | has to be structured in manner that it encourages |
| formulated sourcing strategies that will add value to an | | | | sourcing or recruitment based on merit alone and on |
| organisation in pursuit of identifying, recruiting, | | | | any other factors |
| developing and retaining highly talented employees | | | | 2. - Human resource has also to address the |
| who can take the company to new heights and | | | | organisation structure; this will define proper job |
| provide a competitive advantage to the company | | | | descriptions, reporting lines in the organisation and job |
| (Armstrong, pp76-83). However, global workforce has | | | | descriptions. |
| become extra mobile and much more aware of its | | | | 3. - The workforce; the human resource has to |
| worth. Today, talented employees are hot items on the | | | | address the issue of level of skills, management abilities |
| global labour market, thus, employers are forced to | | | | of individual employees and staff potential |
| work more hard to be able to retain, motivate and | | | | 4. - The human resources will have also to address its |
| develop good employees. | | | | systems; the human resource should have a |
| Human capital is the most important and expensive | | | | workforce focused mechanism that will deliver a plan |
| resource of an organization, many professional, and | | | | of workforce selection, training, communication, career |
| market analysts do agree that up to 80% of the | | | | development and rewards. |
| organisation worth is contained in the organisation work | | | | Druker (1995) also states that, If the human resource |
| force. Armstrong (76-83) observes that, highly | | | | need to add value to the organisation in terms of |
| successful organisations understands this vital | | | | quality and better services then, it has to retain its |
| differentiator and do take the required measures to | | | | workforce, reward them, carry out appraisal, open |
| get the most out of their human resource assets. | | | | communication systems and then re-examine the |
| Strategic recruitment, hiring, retaining and training | | | | organisation human resource management plans. |
| programs by the human resource management should | | | | These strategies will ensure that the organisation is |
| focus on getting the best out of its workforce of the | | | | able to get and retain a workforce which will drive the |
| organisation. (Armstrong 76-83 | | | | organisation to new heights. (Druker, 1995) |
| Each employee requires more learning in order to | | | | However some market experts disagree and they |
| improve his /her skills, no matter how best a candidate | | | | argue that aligning the HRD does not ultimately lead to |
| is, he/she can not be 100% percent qualified. Thus, the | | | | an organization achieving its objectives. Human capital |
| human resource management should implement | | | | is the most important and expensive resource of an |
| learning management system (Beardwell & | | | | organization, many professional, and market analysts |
| Holden, 1997) | | | | do agree that up to 80% of the organisation worth is |
| Starbucks Corporation has understood this aspect and | | | | contained in the organisation work force. Armstrong |
| that is why it recognizes that its employees are one of | | | | (2006) observes that, highly successful organisations |
| their highly valuable resources. The very first guiding | | | | understands this vital differentiator and do take the |
| rule in their mission statement also addresses the | | | | required measures to get the most out of their human |
| Company’s principle towards its employees: | | | | resource assets. Thus strategic realigning of this vital |
| Provide a great work environment and treat each | | | | asset of the company is bound to create distraction to |
| other with respect and dignity. The management | | | | the smooth operation of the company and this will |
| recognizes that the Starbucks employees play a | | | | make the company not to achieve their market |
| foremost function in the expansion of the company. | | | | targets. |
| (Hoovers.com, 2007) | | | | |
| Starbucks Corporation training can be termed as | | | | Sound employment policy |
| systematic enhancement of knowledge, skills and | | | | Grant (2005) suggest that, along term employment |
| attitudes of the needed by an employee in order to | | | | policy that projects fairness in promotions and career |
| perform a given task. Development is the growth of | | | | advancement is important in order for the workers to |
| an employee in terms of capability, understanding and | | | | work harder so as to earn promotion. An organisation |
| awareness. In Starbucks Corporation training and | | | | need to base on merit as the main consideration of |
| development has helped the company to; | | | | promotion, this will ensure that employees feels that |
| 1. Develop a workforce that can perform higher-grade | | | | fairness is being done and will be satisfied with their |
| assignments | | | | jobs and the organisation at the same time. Otherwise, |
| 2. Increase efficiency, effectiveness and standards of | | | | if the organizations have a constant approach of |
| performance by the employee | | | | changing its human resources to achieve its marketing |
| 3. Keep the employees informed | | | | objectives, it may not realize the intended goal. (Grant, |
| 4. Provide the usual training of new recruited | | | | 2005) This point is also supported by Hunger & |
| workforce (Armstrong, 2006) | | | | Wheelen (2003) who states that creating a culture of |
| Compensation and benefits | | | | good performance in an organisation is much better |
| Workers need to be compensated for their | | | | than aligning the structure of human resources |
| performance in order to encourage them to keep up | | | | management. it the company is well structured and |
| or improve on that performance. The moment the | | | | cultured it will clearly adapted to changes without being |
| human resource establishes the performance of the | | | | aligned. |
| worker, managers should reward to commensurate | | | | According to Hunger & Wheelen (2003) they |
| with the worker’s achievement. These will | | | | points out that for a company to achieve its marketing |
| ensure maximum production and effectiveness of the | | | | goals, it is more important to create an environment |
| worker; current compensation programs should include | | | | which can make the organization realize its goals. In |
| a mix of basic pay, equities and variable pay. (Dainty, | | | | order to a work to be comfortable and satisfied in an |
| 2000) this has been taken care well by the Starbucks | | | | organisation, he needs to work in a working |
| human resources management as All Starbucks | | | | environment that is positive. The employee will feel |
| employees are known as partners no matter which | | | | worthwhile and also important if he/she is in a good |
| job position the employee occupy. Starbucks’s | | | | working environment. The management should |
| cultural values bestow employees with a feeling of | | | | welcome each employee and be ready to listen to all |
| meaning to their duty even if it is just only serving a | | | | their problems. This way, an employee feel satisfied |
| cup of coffee. Each one of the partner (even | | | | and will produce more when in such a relaxing |
| part-timers) is entitled to get health care, take part in | | | | atmosphere. (Hunger & Wheelen, 2003) However, |
| the Bean Stock program, and also get a free pound of | | | | if the organisation does not want to listen to |
| coffee every week. In the Bean Stock program, | | | | employees, the employees will definitely be unsatisfied |
| Starbucks employees are given stock lower than the | | | | with the organisation and this will lead to low |
| fair market value a number of times per year. At the | | | | production. |
| same time the employees also take part in a 401(k) | | | | Grant (2005) agues that human resources aligning are |
| profit sharing plan. (Hoovers.com, 2007) | | | | not the best strategies to employ when a company is |
| Human resource management (HRM) practices of | | | | looking for achieving its market goals. To him a |
| Starbucks Corporation are among the best as | | | | company should use market orientation concept which |
| attested by being rated as on of the best companies | | | | stresses customer orientation. He further observes |
| to work for by Fortune magazine. (Fortune.com, 2002) | | | | that, Customer orientation entails continuous |
| The management knows that the most important | | | | improvement of business processes. This according to |
| asset for any organisation-its human resource-requires | | | | him will bring about the needed achievement instead of |
| extensive investment, commitment, financial benefits | | | | targeting the human resources. He further points out |
| among others to be highly motivated and also | | | | that changing people from their long time duties may kill |
| committed to the company. (Armstrong, 2006) | | | | their morale reduce their performance to the company. |
| Humana Inc. Company is a marketing company for | | | | More so aligned employees will take time before |
| healthcare services that was founded in 1961. Currently | | | | adjusting to their new tasks and, this will certainly lead |
| the company has more than 11.5 million customer base | | | | to reduced production during the time of adjustment |
| in America and it is considered to be the biggest | | | | which according to Grant will definitely reduce the |
| company with revenue of over $21.4 billion | | | | overall projected sales target. |
| Humana company human resource planning strategy | | | | Conclusion |
| Employee recruitment, training and selection practices | | | | Business strategy remains important in ensuring that a |
| The best method in which Humana Company has | | | | business performs well. It is important that human |
| directly improved its performance in successfully | | | | resources management is carried out in a proper |
| dealing with the technological and sociological changes | | | | manner the human resource has a function of |
| in the near future is to employing, selecting and training | | | | delivering strategy insights in the organisation so as to |
| the right people in the organisation. Humana Company | | | | enable the organisation to be more effective in |
| used the best strategic practice to achieve this that is | | | | sourcing, evaluating and motivating employees in this |
| normally referred to as a job-fit practice. This practice | | | | increasingly unstable business environment. In addition |
| is was use by Humana company has it did not want | | | | the human resource has to continue providing |
| to have its employees undergo extensive training but | | | | administrative services which are dependable, |
| rather conduct their duties right away using their skills | | | | responsive and cost effective to the needs of the |
| gained elsewhere pertaining the new technology | | | | organization. Starbucks and Humana companies have |
| (Dainty 2000) | | | | been able to be successful because of their good |
| Another strategy that was used by the company is | | | | human resources management practices. It is clear |
| the person-organisation fit practice. In this case, | | | | that, for any company to be able to achieve, its |
| Humana Company seek to recruit and select persons | | | | market goals, it has to have correct human resources |
| with good morals who are able to meet the | | | | management. However, aligning the human resources |
| organizations’ values, culture and structure in the | | | | does not guarantee 100% success towards achieving |
| changing sociological aspects of the society. Human | | | | the market objective of a company. |
| resource management practices in the company have | | | | Armstrong. M ( 2006): Handbook of Human Resource |
| been utilized in measuring the analysis of the task to | | | | Management Practice, 10th edition, (Kogan Page) |
| be carried out by organisations. These practice guided | | | | London, |
| the management in selecting persons with desirable | | | | Dainty, A (2000): Improving employee sourcing within |
| attitudes and characteristics suitable for the job | | | | construction organisations, Proceedings of the |
| description. | | | | ARCOM 2000 Conference; Glasgow; Vol. 1; |
| The human resource managements in Humana | | | | Druker, J (1995): Misunderstood and undervalued; |
| Company also carried out management training for its | | | | Personnel Management in Construction, Human |
| entire workforce in preparation for future managerial | | | | Resource Management Journal, Vol. 5, No. 3, |
| duties that will be in line with the new technological and | | | | Grant, R.M. (2005): Contemporary Strategy Analysis; |
| social changes which are expected. This was done in | | | | Blackwell Publishing Ltd., Oxford (U.K |
| response to business demands for the company. The | | | | (2002); Best Companies to Work For; Retrieved 10 |
| human resource management of Humana Company | | | | Feb., 2008 on the World Wide Web: |
| has kept its employees well trained, recruited and | | | | Hunger, J. D & Wheelen, T, L. (2003): Essentials of |
| selected as per the current and expected changes in | | | | Strategic Management. New Jersey: Pearson |
| the sociological and technological aspects of the | | | | Education Inc. |
| company. These strategies have enabled the | | | | |