Human Resource Management
Human Resource management entails management suitable more on becoming participative and flexible. It intends to encourage cooperative associations involving management and employees. “Where HRM is successful, the employees will be committed to the long-term future of their organization and this, in turn, will help the organization adapt to competitive pressures” (Fernie & Metcalf 2001). HRM entails to measure and focus on the; “employee involvement; relating pay to performance; care with selection and training and fair treatment of employees; and the dovetailing of personnel matters with other company policies such as production, marketing, and sales” (Fernie &Metcalf, 2001). Lots of corporations considered this some of these few elements but a small number company operates the whole package. HRM is not limited and private.
There are three basic styles of employee-management relations. Initially is the collective bargaining, where pay and conditions of employment are settled mutually between management and unions. Second, in place of collective bargaining a number of organizations manage strong or weak forms of HRM. However, even more workplaces are authoritarian. The third is the managerial privilege, with no trade union and no HRM involve.
A two-way communication is the key in HRM wherein employees’ participation is involve providing them with more information and consulting more about the corporate operations. Briefing information along the management chain is not sufficient. Right employee involvement means problem-solving groups such as quality circles, and regular meetings between top management and employees. Such communications accentuates the value of quality control for the goods and services provided by the association. Employee involvement lets the company to illustrate fully on the available knowledge, skills, and initiative of its employees. In this way, a high-trust relationship is promoted between management and labor.
Making pay contingent on performance is the second element of HRM. It focuses on payments that vary according to the performance of the individual and of the firm. Employees are evaluated and awarded individual performance-related pay. Profit-sharing and employee share method guarantees that pay is also connected to the fate of the company. Under profit sharing a pay bonus is granted according to the financial performance of the company. Employee share schemes offer some compensation in the form of shares which must be seized for some years in the future. These help joint the employee to the company. “Both profit sharing and employee share schemes mean that the company''s workers are sharing both some of the risks and the benefits of the operation of the company with its owners” (Fernie & Metcalf 2001).
Organizations operating HRM policies dedicate resources to staff recruitment, selection, appraisal, training, and development. “They are particularly keen to employ individuals who can operate flexibly and adapt to different tasks as opposed to keeping to rigidly defined job demarcations” (Fernie & Metcalf 2001). They must also be able to familiarize themselves to fast changing work planning. These organizations would anticipate eliminating old-fashioned hierarchies between white collar and blue collar workers. Employees would be treated equally regarding method of payment, recording starting and finishing times, and subsidized meals.
The final element in HRM is that employee relations become the accountability of all managers, not just personnel managers.” More thought is also given to integrating personnel matters with the business functions of the company” (Fernie & Metcalf 2001).