HRM Challenges in Today's Organizations
All organizations require employees to make them a success and this function is considered as important as finance, machinery and land for running the organization successfully. The important point to note here is that individuals all have different temperaments and working methods, and some people in the organization are responsible for making them all work together. This is the job of the human resources department which is otherwise known as the personnel department. If an organization is not staffed correctly then it ends up loosing the economy of scale that it should have got also the maximum possible customers and profits.
On the other hand, if there are too many people then there is a lot of financial liability if they are retained, and when they are laid off, there are financial implications from redundancy payments. If the organization cannot do manage its own staff then a lot of funds will be required for the needed consultation and needed action. The people to be removed cannot be removed immediately as there are some minimum periods of notice that has to be given. Thus there are a variety of problems. The problems that have been discussed are only the problems regarding the number of people as that is what we have to discuss.
At the same time, the importance of the human element is different in different types of organizations. In certain sectors the function of human element is the most important, and these are the service sector organizations. With the development of manufacturing technology, the number of direct shop floor workers is getting less, and the greater emphasis is now on making people happy through proper service to them. Yet, in many parts of this industry, the turnover is very high, and this is causing a lot of cost. The objective of this paper is to find out the reasons for the departure of people from these organizations so that corrective measures can be taken to reduce the high turnover. At the end of the exercise, it is expected that we shall be able to find out some reason as to why the people develop a sense of dissatisfaction, and then decide to leave the organization or the circumstances under which the employees are compelled to leave the organization.
There has to be some methods to measure this dissatisfaction so that we can go ahead and stop the dissatisfaction from happening. So far as the other reasons, for employees being compelled to leave an organization, it may be different, like policies of the government or a better profit to be earned by the proprietors. It is still important to know why the employees are being compelled to leave. This was viewed to be very important before the last elections for President, but is not being considered to be so important now. At the same time, the general financial conditions do not seem to have improved. Our research will thus be concentrated on methods of measurement of employee dissatisfaction, the reasons for the same and whether this is resulting in a high employee turnover. In any organization aimed at customer satisfaction, employee satisfaction should be an important function.
The direction of this research is on the reasons why employees continue to work or do not work at their best after they have been employed by the organization for long durations. This can be found through a continuous study and review of the financial, psychological and physiological rewards that the employees receive when they are working. Hours of work are determined by the national level agreements or government decisions. A lot of other factors in the salaries and working hours of the workers are decided through local negotiations and similar matters. To the workers these are probably as important as the other part of the compensation. It has to be understood that the number of employees needed depends on the achievement of individual workers and that is the reason why good personnel policies are beneficial for the organization. The achievements also depend on other conditions like environment, welfare, employee benefits,...
The development of behavioral science is leading to a situation where the limitations of money as being the prime motivator are being questioned, and this is leading to the mobile and multi-skilled employees laying more stress on things like job satisfaction, involvement, participation, etc. (Employee Evaluation)
There is only one professional association for accounting technicians in England and they have recently conducted a study among their students who were directly supported by their employers. It was seen that the students supported by their employers are the group which achieves better results in their scheme of educational research and training as also in the examinations for the other qualification. The direct support and link with employers and the training center provide an invaluable net of support that helped the students. To find out the reasons for success, the organization approached many employers with more than 250 employees. It was expected that there will be many different answers to the questions, but there was a clear trend that emerged in the answers. The respondents who are using the skills of their accounting technicians to the full extent and constituting 40% of the organizations interviewed had the most satisfied employees. The concerned students also performed the best. The other group of 60% is not utilizing the potential of the employees. (Accounting Technicians in 2001)
The next important point was to find out the biggest problems that were being faced by the organizations today and the problems which came out at the top of the list were meeting internal and external customer service requirements and the impact of new technology and its use expanding rapidly. Apart from that were the changes in laws, shortage of skills and e-commerce. These were important and cannot be neglected. It is clear that one of the most significant issues for all organizations is the introduction of new IT systems. The public sector organizations also emphasized that they must get value for the money that they spent. The relationship of money spent and efficiency of the employee is an important consideration for all organizations. (Accounting Technicians in 2001)
While it is clear that technical know-how is required, it is seen by users of accounting technicians that there is requirement of need of further skills. The skills which are felt to be important are personal effectiveness in terms of communication and time management, IT skills, development of skills in project management, staff management and supervision and operations management. This is a matter of continuing training to employees for the purpose of updating them with technological changes and this is another aspect that must be pursued. This is an area of research which has shown clearly that when human resources are satisfied, they produce better results, and it is up to the management to provide them resources so that they can meet the new challenges. (HR growth: what you need to know about the changes in HR?)
In another are we have to see the development of human resources practice unit of Korn/Ferry International at Dallas. This organization directly places human resources executives at the highest levels and the ones at middle management come from its subsidiary called Futurestep. According to the chief of the human resources practice unit of the organization, Greg Hessel, "We consider our human resources practice as the second-highest priority, second to our CEO and board of directors' practice. We have 20 people worldwide dedicated to the human resources practice, with the United Kingdom, Mexico, Latin America, and the U.S. [as] the most active markets." (HR growth: what you need to know about the changes in HR?) Thus it is clear that the organization considers the practice of human resources as very important. (HR growth: what you need to know about the changes in HR?)
Through practice, this organization was able to discover the importance of human resources function to its total activity, and it realized this further when the total activity of the organization remained steady even when the economic situation turned bad. The company did not loose its total requests for service, though that was the result in many other organizations in the industrial areas, technology or even retail sales. At the same time, when the situation became difficult, it was seen that the job of the human resource person became more difficult. The organization realized that some of their members were not capable of becoming business partner executives even though that was the role for which they were destined. Here there was no shortage of satisfaction in terms of money or any other benefits, and the obvious question comes as to the reason of this failure. (Advances and challenges in human resource management in the new millennium)
The problem that was seen after study was that the concerned persons did not have the…
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