HUMAN RESOURCE 11
I.HRM Functions andPractices
PartA: Importance HR Functions with Organization Strategic Plan
Awell-presented and researched institutional strategy is a crucialblueprint on how one will run a business. It sets a clear ambitionand vision for any corporate and at the same time identifying thevital resources needed to deliver on it ("Functionsof aHRdepartment,"2016).Involving the strategy of HR in the overall organizational strategycreates an excellent business sense for some reasons.
Allowingthe department of HR to contribute to the value of the businessstrategymakes sure that it carries out its practicalaffairs in a way that supports the growth and the success of thecompany.
Anefficient HR strategy having a clear connection to the systems ofbusiness allows the company to align its affairs with its HR`s. An HRdivision needs understanding of the firm`sdemands strategy. The aspect will assist in ensuring the departmentpositions employees in a right position to achieve the company`ssupport growth and ambitions ("Functionsof aHRdepartment,"2016).HR departments are mostly incorporated into the executive strategicmanagement crew. It may work in company ensuring that HR needs areequally consideredwith other institutional investments.
EfficientDevelopment and Training
Organizationsareimpactedby a massiverange of internal and external factors that together can alter theway individual job responsibilities or lead to new demands theperson’s skill sets. A human resources strategy linked to company`sstrategy is well placed to forestallany of such alterations and therefore establish a targeted trainingand plan of development to assist the business to adapt rapidly tonew circumstances.
ImprovedRecruitment and Retention
Thestaffthat feels well-supported in theirworks seems happier and highly productive. Further, institutionshaving a positive reputation within the job market for taking goodcare of its employees encounter fewer recruitment hurdles. Togetherall these factors are vital elements in demonstrating the reason thatHR functions linksto company`s strategy. Recruitment and retention being criticalsectors in the financial value might be assigned a highly stable andwell-trained workforce leads to improved operating profits.
Amore mature approach to human resources strategy puts it at the focalpoint of understanding the overall capability and capacity of anorganization. With a clear idea of the employees and their variousskills may assist the business seeing the development potential andthe growth helping the individuals to structure their organization toutilize the benefits of emerging opportunities. Companies at thispoint viewtheir HRas a centraldriver of strategy and fundamental to their future success as opposedto simple administrative role. The aspect makes sure everybody getssalary on time.
PartB: Global Condition Impacting Maersk HR Department
Theglobal conditions impacting the HRM in Maersk Company include anincreased employee turnover (Groysberg & Abbott, 2012). In thepast,Maersk used to train staffwho would work withthe company for many years. However, with the current increasedcompetition from the other companies, the workers trained in Maerskcould leave the group for external opportunities. Anotherchallenge is a highcost involved in extensive training that included formal and on-a-jobtraining (Groysberg & Abbott, 2012). Although this proves a greatinvestment tool considering the amount of time the employees wouldspend at Maersk (Groysberg & Abbott, 2012). However, attritionrates were rising,and the competitors targeted Maersk employees due to their strongtraining. Thethirdchallenge was getting and integrating experienced employees with abetterunderstanding of how to be successful in Maersk environment. Afourthglobal factor was problems in rehiring the former Maersk employee(Groysberg & Abbott, 2012). Toachieve this,the company`s policy must have beenreformulated.Finally, due to the companybecoming highly diverse and customer base it has a problem ofbuilding an inclusiveculture.
Thefirst step in recruitment at Maersk involves concentrating on the top20 employment position in corporate based on the primaryneeds. Thesecondphase includes labelingthe top 20 positions as mission critical (30%), impactful 60%and reduced impactful 10% (Groysberg & Abbott, 2012). In choosingpositionsin this manner,business units are carefully compared to determine the relativeimportance of individual units to the companyas a whole. Next head of human resources and board review persons intop 120 positions and determine people performed exceptionally(Groysberg & Abbott, 2012). Finally,the two surveysare compared to enable the management to assess whether the bestindividualsin the group are in most vital positions.
III.External vs.Internal Hires
Duringthe hiring process,it is always unclear whether to cast a broad net or choose what youare familiarwith.In the 21st century,both building and buying areimportant,and one has to determine the conditions when to apply external orinternal hiring ("Functionsof aHRdepartment",2016).Internal hires typically retaininstitutional knowledge and adapt fast to their new functionsthan external hires. There isalso increasedengagement in internal hiring where the folks are more likely torefer others tothegrowthof their careers within the company. On the other hand, externalhiring injectsnew ideas and fresh sets of skills into the organization and alsoallows the HR and hiring managers to get a tremendous candidatessupply ("Functionsof aHRdepartment",2016).Despite these differences,both approaches may be highly costly. The best approach that can beapplied by is internal hiring as the this has proven to work best forthe Maersk company in the past, making it gethigh profits. Again using external hiring would have a detrimentalimpact on the businessas most external hires demand high salaries.
Traininganalysis is carried out usually to determine what knowledge areas orbehaviors are required by training to achieve with learners("Functionsof aHRdepartment",2016).It put into consideration the results organization needsfrom the learner,what skills and knowledge learner currently has and frequentlyconcludes with determining the skills and knowledge a learnermust obtain
Needsassessment is aprocessofidentifyingneeds as well as opportunities and whether training may be required.
Thereare three levels of analysis:Organizational analysis entailsidentification of the suitability of training, provided with theorganization’s business strategy, resources, managerial and peerbacking for training ("Functionsof aHRdepartment", 2016).Taskanalysisinvolves determining the necessary tasks carried out as well as theknowledge and behaviors needed to perform such tasks. Personanalysisinvolves
Identifying whether performance insufficiencies are as a result lacking knowledge, abilities or skills to problems having the motivation, or work design.
Determining individuals requiring training.
Determining readiness of employees for training
Adoptinga learning and development strategy by a company will be of benefitto both the management and the employees. One of the advantages oflearning and development is that the corporation will be in aposition to meet the demands of the current workforce. By aligningthe learning tactics with the corporate goals, institutions willprofoundly improve their learning process and hence attract thetalented workforce ("Functionsof aHRdepartment", 2016).Other benefits include the improvement of business performance,throughout, and efficiency, which will ultimately contribute towardsgaining the competitive advantage. Training and development programsalso improve workers’ generic and communication skills as wellteamwork and issue solving skills. Some of the adult learningprinciplesinclude, adults come with prior knowledge with them they want towhat learning has for them ("Functionsof aHRdepartment", 2016).They enjoying interacting and speaking to one another not just listento the voiceof tutor they expect respect. Adults enjoy active learning movingaround the room and small group exercises. They expect toimmediately utilizewhat they have learned. They learn at different paces via differentmethods require a feedback and constructive mechanism and finallylike laughing ("Functionsof aHRdepartment",2016).Experiential learning methods include internships, study abroad,clinical learning, community-based research, field work andundergraduate research experience.
Trainingneeds assessment is important in a sense that one overview thepersons, groups as well as the whole institution as progressivelylarger units. Different methods of assessment determine what must belearned by the individual and how the nature of these entities may beapplied in benefit of learning ("Functionsof aHRdepartment",2016).Also,it can provide a good grasp of how different entities see theknowledge acquisition.
SMARTprinciple helps in organization and achievement of the goals one atthe time.
Specific: Goal specifically states what should be accomplished.
Measure: One’s goals should be in a position to be measured in some way so that one can know if he/she has achieved it.
Action-oriented allows you to make some effort to realize your goal.
Realistic: the goal is not a dream but something attainable.
Finally, helps to set the time when one wants to attain his or her goal to keep yourself accountable.
CompensationPhilosophy is a collection of regulatory principles that determinedecision making when it comes to compensation ("Functionsof a HRdepartment",2016). Every company willexplain the reasons the decisions it makes on how it pays itsemployees,and this philosophy differs from one business to another,but every company wants to hire and retain the beta talentsavailable. One of the market factors that influences compensationphilosophy is the average salary in the market for a given position.Forinstance, anindividual company may notify its employee about an overpaid positionbut will not increase their salaries until it matches that of themarket. The other factor is labor market that covers thing likecustomary laws on salary and wages, payment time, labor contract,wage payment delay and so on ("Functionsof a HRdepartment", 2016).Theeconomy state alsoinfluencesthe salary and wagefixation. Wagerates in the stableeconomy are different from a depressedeconomy. Finally,inflation which is an increasein the price of a given product and decrease in the value of themoney. Inflation is as a resultof increasing costs, international fall of currency value, governmentrising taxes and poor economy of a country.
Theimportance of conducting Salary Surveys is that they offer theessential market data to create a competent pay structures for anyorganization ("Functionsof a HRdepartment", 2016).There are several objectives to a well-formulatedcompensation plan,but two often referenced are, making sure the organization’s plansare internally equitable and externally competitive. Satisfying bothof objectives put the organization in a position to attract andmotivate the enough numbers and right types of employees. Some of theadvantages of discretionary benefits include the creationof the positive relations as workers may appreciate their employeeswhen they receive benefit packages ("Functionsof a HRdepartment",2016). The other advantageis matching the benefits of a competitorbecause failure to offer same or even better benefit packages acompany may not be able to attract and retain best employees.Offering choices is another advantage as the employers may not be ina position to know what benefits their employees want or need most.Discretionary benefits boost the productivity as the healthieremployees both mentally and physically, due to the availabilityof benefits of healthcare work moreproductively.
Thus,the HRM has a responsibility to communicate to the employees as wellas senior managementtheirpart in the process of performance appraisal. HR managers should besupportive of the process, demonstrateits value, and encourage others to take part ("Functionsof aHRdepartment", 2016).He/she should be prepared to answer questions from different partieson matters regarding the process of performance appraisal.
Theredifferent type of performance appraisal systems and includebehavioral checklist which a list of standards an employee must workup to become an industriousworker. This method is applied when the performance of an employeeis not compared with other employees ("Functionsof aHRdepartment", 2016).The other system is 360-degreeappraisal characterized byfeedbackfrom the team members, supervisor,and manager and any direct reports. It is applied where the appraiserneedsan in-depth employee feedback. Management through objective involvesan agreement between employee and manager on particular andattainable goals with a fixed deadline. Used when reviewer wanteasilyto define success and failure ("Functionsof a HR department", 2016).Finally,psychological appraisal assesses emotional stability, analyticalskills, intellect and other mental behaviors. The system is Usedwhen a manager wants to put the workers in proper terms.
Toidentify best-suitedappraisalsforemployee job duties managers must conduct accurate and exhaustive jobdescriptions as well as specifications ("Functionsof aHRdepartment",2016).They should know the employees’ job accountabilities which entailfamiliarizing with both job description and standards of thedepartmentfor productivity and quality as well as an array of skills requiredto do a job well.
Thegraphicalscale is commonly used scale in performance appraisal,and it typically has Likert scale starting from 1-3, 1-5 and so on.Forinstance,1-3 rating may include replies such as 1. Poor, 2. Average, 3.Excellent. Graphical scale applied for a particular performanceappraisal may differ from one organization to the other ("Functionsof aHRdepartment", 2016).Forexample,a company may choose to use accountability dimension which will havea differentgraphic scale from the aspectof customer service. In numeric scale system employees are assessedon the scales such as 1-5 or 1-10. By utilization of numbers,employees can easily track performance using a scalethat can be easily understood by both employees and managers. Anexplanation of why 1istermedas poor performance and 5as above average should beprovided.If in case the employers want a more accurate assessment they can1-10. Letters scales use the letters as indicators of achievement.Managers may create a rating system where the traditional alphabeticvalues areallocatedto each letter ("Functionsof aHRdepartment", 2016).Forinstance,a letter A would indicate an exemplary performance,and letter C would mark a satisfactory achievement.
Functionsof a Human Resource Department(2016). Retrieved from nctions of a Human Resourced0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000Dineshbakshi.comon20 July 2016, fromhttp://www.dineshbakshi.com/igcse-business-studies/people-at-work/revision-notes/850-functions-of-human-resource-department
Groysberg,B., & Abbott, S. L. (2012). AP møller-maersk group: Evaluatingstrategic talent management initiatives.