Human resource management and social capital in nonprofit organizations

life of a non-Profit employee course number & name: Human Resources Management (BAL1127A)

The research paper will be exploring 'How new learning dimensions of human resource studies can be applied for expanding the HR role in optimizing and shaping organizational and employee behavior in non-profit organization'. This is the thesis statement upon which the whole research will be build upon using number of authors review, recommendations, journals, academic reading and statistical data on the subject matter concerned.

Today, organizations are faced with number of human resource challenges among which some of them are developing leaders for the next generation along with fundamental staff required, succession planning, motivating volunteers and staff with the diversified work and managing work style and work environment in nonprofit organizations. Due to the growing need of nonprofit institutions in an economy, universities have started nonprofit courses and programs, yet it doesn't guarantee to establish a link to the career in the nonprofit sector. Under such scenarios effective management and development of diverse human resource is critically important for the growth and sustainability of nonprofit organizations. For the development of human resource in nonprofit organizations, social capital like trust, principles of reciprocity and social networks are important.

The major difference between nonprofits and business in human resource and stakeholder management is that of the relationship management maintained internal and external to the organization (Drucker, 1990). Nonprofit organizations are responsible for creating social capital in the community (Frumkin, 2002). In the nonprofit organization the application of social capital is used in recruitment and board members appointments, and in sharing vision and mission with the staff (King, 2004). Thus the new learning dimension of building human resource development in nonprofit organization is also through the consideration of establishing and utilizing social capital and social networks.

human resource functions in non-profit workplace

It is not surprising that the role of HR management is also changing to help nonprofit organizations achieve structural and cultural changes. However from the very beginning HR has gone through several changes. In the early 1900s personnel people first were responsible to oversee the hiring and firing from supervisors, looked after payroll department and administered benefit plans. The job mainly consisted of ensuring that procedures are being followed. With the advancement of technology and global changes, the personnel department began to play a magnified role in employee selection, training and promotion (Berliner & McCkarney, 1974).

The progression in the HR practices has taken place with the introduction of different laws, regulations and legislation in the field of Human resource planning and development. The surfacing of union legislation in the 1930s led to a second phase in personnel management and importance was given on protecting the firm in its interaction with unions. The discrimination legislation of the 1960s and 1970s provoked a third phase. Since there companies were now strictly bound with the laws and legislation they have started implementing stronger and effective HR management policies and procedures.

EEO and Affirmative Action

Equal Employment Opportunity Commission was instituted that enriched the federal government's ability to enforce equal employment opportunity laws. The commission required executives to take affirmative action plans to make sure equal employment opportunity prevails in the organizations. Affirmative action plans are basically the steps taken for the purpose of eliminating the present effects of past discrimination. Some of the areas which is guided under this law are:

a) Uniform Guidelines on Employee Selection Procedures: Descriptive guidelines should be used by the employers of the nonprofit organizations approved by the EEOC, Civil Service Commission, Department of Labor and Department of Justice (Dhanens, 1979).

b) Discrimination made on disability: American with Disability Act was introduced that required employers to make reasonable accommodations for disabled employees; it prohibits discrimination against disabled persons.

c) Discrimination based on physical characteristics: It was sought to be unlawful when employers asking for certain type of physical attributes like height and weight as a necessary element for hiring which causes discrimination among men and women groups. These were taken as strict lawful consideration until and unless it is requirement of the job.

d) Gender, racial and social discrimination: Discrimination made on the basis of certain type of groups, racial groups or social elements were strictly prohibited in the work place.

Human resources development

Progression of the professional development is equally important in the profit and nonprofit organization because beside the personal commitment of employees in the firm they also seek their career to grow. Therefore, organization irrespective of their nature must seek to develop the career oriented approach in employee development. The following table shows the role of employee development and how it can be brought into an organization of nonprofit nature.

Table 1: HR Traditional Vs Career Development Focus

Activity

Traditional Focus

Career Development Focus

Human Resource Planning

Analyze jobs, skills, task present and future, project needs. Uses statistical data.

Adds information about individual interest, preferences and the like to data

Training and Development

Provide opportunities for learning skills, information, and attitudes related to job.

Provide career oath information. Adds individual growth orientation.

Performance Appraisal

Rating and rewarding workforce

Adds development plans and individual goal setting

Recruitment and Placement

Matching organization needs with qualified individuals

Matches individual and jobs based on number of variables including employee's career interest.

Compensation and Benefits

Rewards for time, productivity, talent and so on Adds non-job related activities to be rewarded like United way leadership position

Source: Adapted from Fred L. Otte and Peggy G. Hutcheson (1992) Helping Employees Manage Careers.

Compensation and benefits

Nonprofit organizations can develop the program of fringe benefits in their firms. The beneficiary of this program is not limited to the staff members but also executives and board members (Nicholas, 1993). For the purpose of looking after the employee life after employment the organization can also workout for employee pension and retirement income plan. Benefits like sick paid leaves and vocational pay can also be introduced to me work environment more conducive. Organization can also arrange for group life, accidents and health insurance coverage for its employees. Employee medical expenses can also be borne by the firm to support their income.

In our society there is the common perception to expect employee to work for nonprofit organization on the pay rates lower than the market. For this reason there are many nonprofit organizations that indeed due to budgetary constraints may lose out quality of workforce due to low compensation package as compared to the market rates. Nonprofit organization in such cases must seek to establish certain level of complementary benefits to employees working for the nonprofit firms on the low rates (Hopkins, 1993). These complementary benefits can be in shape of increased recognition of employee efforts through social publications, recognition, name printing on the walls and notice boards of the organization showing special thanks to their efforts and giving gratitude to their work more then what corporate organizations are doing.

Safety and Health, and Employee and labor relations

Occupational Safety and Health Act was also passed by Congress in 1970 to making organizations responsible to ensure the proper working conditions for the employees. Nonprofit organizations sometimes due to the nature of project under consideration must work in the areas where it's risky with regard to security. It has to ensure that its entire workforce is working in safe and healthy environment thus not harmed by anyone in any way. Labor relations and labor union has its own importance in the workforce security of its right. Procedures of collective bargaining and negotiation teams are adopted by the nonprofit organization (Richardson, 1977).

Conclusion and recommendation

The research paper has looked How new learning dimensions of human resource studies can be applied for expanding the HR role in optimizing and shaping organizational and employee behavior in non-profit organization. It has covered various areas of human resource functions that can be customized in the nonprofit organization for the betterment of employee's life during the work and also after the work when they retire. Human resource functions are dynamic and changing with the ever changing environment. Their role to the growth and development of corporation can't be ignored even in nonprofit organization. These organization due to many reasons and the most prominent one the lack of financial funding and high budget constraints, doesn't look after their human resource as the most important functional component of the organization.

There are many aspects which give rise to the working of nonprofit organization in managing their workforce. In the nonprofit organization contribution of volunteerism is also very important. Great part of the work is managed through volunteers and social groups that work voluntarily for the firm. They come from different parts of the world thus exhibiting pluralism and diversity and workplace. Under such circumstances boosting workforce diversity, employee recognition and employee contribution needs to be managed at its optimum level. Organizations need to provide strong leadership role, research work access, training for new skills, minimizing discrimination and encouraging cultural change within the organization (Dessler, 2000).