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The Challenges of Human Resource Management

IntroductionThe role of the Human ResourceManager needs to advocate a diverse workforce
Manager is evolving with the change inby making diversity evident at all
competitive market environment and theorganizational levels. Otherwise, some
realization that Human Resource Managementemployees will quickly conclude that there is
must play a more strategic role in theno future for them in the company. As the HR
success of an organization. OrganizationsManager, it is pertinent to show respect for
that do not put their emphasis on attractingdiversity issues and promote clear and
and retaining talents may find themselves inpositive responses to them. He/She must also
dire consequences, as their competitors mayshow a high level of commitment and be able
be outplaying them in the strategicto resolve issues of workplace diversity in
employment of their human resources.With thean ethical and responsible manner.Control and
increase in competition, locally or globally,Measure Results-A HR Manager must conduct
organizations must become more adaptable,regular organizational assessments on issues
resilient, agile, and customer-focused tolike pay, benefits, work environment,
succeed. And within this change inmanagement and promotional opportunities to
environment, the HR professional has toassess the progress over the long term. There
evolve to become a strategic partner, anis also a need to develop appropriate
employee sponsor or advocate, and a changemeasuring tools to measure the impact of
mentor within the organization. In order todiversity initiatives at the organization
succeed, HR must be a business driventhrough organization-wide feedback surveys
function with a thorough understanding of theand other methods. Without proper control and
organization's big picture and be able toevaluation, some of these diversity
influence key decisions and policies. Ininitiatives may just fizzle out, without
general, the focus of today's HR Manager isresolving any real problems that may surface
on strategic personnel retention and talentsdue to workplace diversity.Motivational
development. HR professionals will beApproachesWorkplace motivation can be defined
coaches, counselors, mentors, and successionas the influence that makes us do things to
planners to help motivate organization'sachieve organizational goals: this is a
members and their loyalty. The HR managerresult of our individual needs being
will also promote and fight for values,satisfied (or met) so that we are motivated
ethics, beliefs, and spirituality withinto complete organizational tasks effectively.
their organizations, especially in theAs these needs vary from person to person, an
management of workplace diversity.This paperorganization must be able to utilize
will highlight on how a HR manager can meetdifferent motivational tools to encourage
the challenges of workplace diversity, how totheir employees to put in the required effort
motivate employees through gain-sharing andand increase productivity for the company.Why
executive information system through properdo we need motivated employees? The answer is
planning, organizing, leading and controllingsurvival (Smith, 1994). In our changing
their human resources.Workplaceworkplace and competitive market
DiversityAccording to Thomas (1992),environments, motivated employees and their
dimensions of workplace diversity include,contributions are the necessary currency for
but are not limited to: age, ethnicity,an organization's survival and success.
ancestry, gender, physical abilitiesMotivational factors in an organizational
qualities, race, sexual orientation,context include working environment, job
educational background, geographic location,characteristics, appropriate organizational
income, marital status, military experience,reward system and so on.The development of an
religious beliefs, parental status, and workappropriate organizational reward system is
experience.The Challenges of Workplaceprobably one of the strongest motivational
DiversityThe future success of anyfactors. This can influence both job
organizations relies on the ability to managesatisfaction and employee motivation. The
a diverse body of talent that can bringreward system affects job satisfaction by
innovative ideas, perspectives and views tomaking the employee more comfortable and
their work. The challenge and problems facedcontented as a result of the rewards
of workplace diversity can be turned into areceived. The reward system influences
strategic organizational asset if anmotivation primarily through the perceived
organization is able to capitalize on thisvalue of the rewards and their contingency on
melting pot of diverse talents. With theperformance (Hickins, 1998).To be effective,
mixture of talents of diverse culturalan organizational reward system should be
backgrounds, genders, ages and lifestyles, anbased on sound understanding of the
organization can respond to businessmotivation of people at work. In this paper,
opportunities more rapidly and creatively,I will be touching on the one of the more
especially in the global arena (Cox, 1993),popular methods of reward systems,
which must be one of the importantgain-sharing.Gain-sharing:Gain-sharing
organisational goals to be attained. Moreprograms generally refer to incentive plans
importantly, if the organizationalthat involve employees in a common effort to
environment does not support diversityimprove organizational performance, and are
broadly, one risks losing talent tobased on the concept that the resulting
competitors.This is especially true forincremental economic gains are shared among
multinational companies (MNCs) who haveemployees and the company.In most cases,
operations on a global scale and employworkers voluntarily participate in management
people of different countries, ethical andto accept responsibility for major reforms.
cultural backgrounds. Thus, a HR managerThis type of pay is based on factors directly
needs to be mindful and may employ a 'Thinkunder a worker's control (i.e., productivity
Global, Act Local' approach in mostor costs). Gains are measured and
circumstances. The challenge of workplacedistributions are made frequently through a
diversity is also prevalent amongstpredetermined formula. Because this pay is
Singapore's Small and Medium Enterprisesonly implemented when gains are achieved,
(SMEs). With a population of only fourgain-sharing plans do not adversely affect
million people and the nation's strivecompany costs (Paulsen, 1991).Managing
towards high technology and knowledge-basedGain-sharingIn order for a gain-sharing
economy; foreign talents are lured to shareprogram that meets the minimum requirements
their expertise in these areas. Thus, manyfor success to be in place, Paulsen (1991)
local HR managers have to undergoand Boyett (1988) have suggested a few
cultural-based Human Resource Managementpointers in the effective management of a
training to further their abilities togain-sharing program. They are as follows:A
motivate a group of professional that areHR manager must ensure that the people who
highly qualified but culturally diverse.will be participating in the plan are
Furthermore, the HR professional must assureinfluencing the performance measured by the
the local professionals that these foreigngain-sharing formula in a significant way by
talents are not a threat to their careerchanges in their day-to-day behavior. The
advancement (Toh, 1993). In many ways, themain idea of the gain sharing is to motivate
effectiveness of workplace diversitymembers to increase productivity through
management is dependent on the skilfultheir behavioral changes and working
balancing act of the HR manager.One of theattitudes. If the increase in the performance
main reasons for ineffective workplacemeasurement was due to external factors, then
diversity management is the predisposition toit would have defeated the purpose of having
pigeonhole employees, placing them in aa gain-sharing program.An effective manager
different silo based on their diversitymust ensure that the gain-sharing targets are
profile (Thomas, 1992). In the real world,challenging but legitimate and attainable. In
diversity cannot be easily categorized andaddition, the targets should be specific and
those organizations that respond to humanchallenging but reasonable and justifiable
complexity by leveraging the talents of agiven the historical performance, the
broad workforce will be the most effective inbusiness strategy and the competitive
growing their businesses and their customerenvironment. If the gain-sharing participants
base.The Management of Workplace DiversityInperceive the target as an impossibility and
order to effectively manage workplaceare not motivated at all, the whole program
diversity, Cox (1993) suggests that a HRwill be a disaster.A manager must provide
Manager needs to change from an ethnocentricuseful feedback as a guidance to the
view ("our way is the best way") to again-sharing participants concerning how they
culturally relative perspective ("let's takeneed to change their behavior(s) to realize
the best of a variety of ways"). This shiftgain-sharing payouts The feedback should be
in philosophy has to be ingrained in thefrequent, objective and clearly based on the
managerial framework of the HR Manager in hismembers' performance in relation to the
her planning, organizing, leading andgain-sharing target.A manager must have an
controlling of organizational resources.Aseffective mechanism in place to allow
suggested by Thomas (1992) and Cox (1993),gain-sharing participants to initiate changes
there are several best practices that a HRin work procedures and methods and/or
manager can adopt in ensuring effectiverequesting new or additional resources such
management of workplace diversity in order toas new technology to improve performance and
attain organizational goals. Theyrealize gains. Though a manager must have a
are:Planning a Mentoring Program-One of thetight control of company's resources,
best ways to handle workplace diversityreasonable and justifiable requests for
issues is through initiating a Diversityadditional resources and/or changes in work
Mentoring Program. This could entailmethods from gain-sharing participants should
involving different departmental managers inbe considered.Executive Information
a mentoring program to coach and provideSystemsExecutive Information System (EIS) is
feedback to employees who are different fromthe most common term used for the unified
them. In order for the program to runcollections of computer hardware and software
successfully, it is wise to provide practicalthat track the essential data of a business'
training for these managers or seek help fromdaily performance and present it to managers
consultants and experts in this field.as an aid to their planning and
Usually, such a program will encouragedecision-making (Choo, 1991). With an EIS in
organization's members to air their opinionsplace, a company can track inventory, sales,
and learn how to resolve conflicts due toand receivables, compare today's data with
their diversity. More importantly, thehistorical patterns. In addition, an EIS will
purpose of a Diversity Mentoring Programaid in spotting significant variations from
seeks to encourage members to move beyond"normal" trends almost as soon as it
their own cultural frame of reference todevelops, giving the company the maximum
recognize and take full advantage of theamount of time to make decisions and
productivity potential inherent in a diverseimplement required changes to put your
population.Organizing Talentsbusiness back on the right track. This would
Strategically-Many companies are nowenable EIS to be a useful tool in an
realizing the advantages of a diverseorganization's strategic planning, as well as
workplace. As more and more companies areday-to-day management (Laudon, K and Laudon,
going global in their market expansionsJ, 2003).Managing EISAs information is the
either physically or virtually (for example,basis of decision-making in an organization,
E-commerce-related companies), there is athere lies a great need for effective
necessity to employ diverse talents tomanagerial control. A good control system
understand the various niches of the market.would ensure the communication of the right
For example, when China was opening up itsinformation at the right time and relayed to
markets and exporting their products globallythe right people to take prompt actions.When
in the late 1980s, the Chinese companiesmanaging an Executive Information System, a
(such as China's electronic giants such asHR manager must first find out exactly what
Haier) were seeking the marketing expertiseinformation decision-makers would like to
of Singaporeans. This is because Singapore'shave available in the field of human resource
marketing talents were able to understand themanagement, and then to include it in the
local China markets relatively well (almostEIS. This is because having people simply use
75% of Singaporeans are of Chinese descent)an EIS that lacks critical information is of
and as well as being attuned to the marketsno value-add to the organization. In
in the West due to Singapore's open economicaddition, the manager must ensure that the
policies and English language abilities.use of information technology has to be
(Toh, R, 1993)With this trend in place, a HRbrought into alignment with strategic
Manager must be able to organize the pool ofbusiness goals (Laudon, K and Laudon, J,
diverse talents strategically for the2003).ConclusionThe role of the HR manager
organization. He/She must consider how amust parallel the needs of the changing
diverse workforce can enable the company toorganization. Successful organizations are
attain new markets and other organizationalbecoming more adaptable, resilient, quick to
goals in order to harness the full potentialchange directions, and customer-centered.
of workplace diversity.An organization thatWithin this environment, the HR professional
sees the existence of a diverse workforce asmust learn how to manage effectively through
an organizational asset rather than aplanning, organizing, leading and controlling
liability would indirectly help thethe human resource and be knowledgeable of
organization to positively take in its strideemerging trends in training and employee
some of the less positive aspects ofdevelopment.
workforce diversity.Leading the Talk-A HR



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