A considerable number of worldwide companies have developed their essential parts in order to go along with the period of globalization, global competition, increased development, improved business paradigms, and corporate reorganization. The inevitable and continuing transformations from the traditional industrial framework with its hierarchical companies to a worldwide, knowledge-founded financial system and intelligent corporations have altered the ideas regarding the social contract involving employers and employees. A progressively more adaptable pool of talent and a body of workforce necessitates human resource (HR) purposes to realign and relocate itself in the vicinity of these drivers.
This paper analyses the HR function and conditions of Harrison Brothers Corporation. Included in this report is internal analysis of the whole HR process. Specifically, it sought to answer the following questions:
1. How does McCain view her role as Human Resource Manager?
2. What is Harrison’s business strategy?
3. What is the structure and staffing of HR?
4. Analyse the data in Exhibit 1.5. What are its implications?
5. Given the organisation’s size and strategic goals, evaluate the development of the human resource function at Harrison Brothers. What problems do you see? How could its major human resource functions be improved?
The Role of HR Manager
The continuous and dynamic competition in the global business arena has been very stiff and complex. In this regard, the organization must be able to utilize a strategy and management system that will enhance the performance of the business so as to outgrow its rivals (Pearce & Robinson 2000; Thompson & Strickland 2003). One of the contemporary management concerns in the business world today is the concept of a good manager. What makes a good and functional manager?
The job of every manager involves all the elements of what is known as the functions of management: planning, organizing, directing/leading, coordinating and controlling (Matthews and Scott 1995; Witzel 2003; Roney 2004). These functions are goal-directed, interrelated and interdependent with each other. They also are viewed as being critical and universal for all levels of managers, from supervisor to CEO in all types of organizations – business, government, educational, charitable, etc. – of any size. This is usually called the universality of management. The basic process of management is the same, even though the context within which it is practiced is very different from management level to management level and from organization to organization (Alvesson 2002). A good manager is not based on an honorary and academic achievement. Instead, a good manager is a person who possesses the ability to do the job effectively and efficiently at the most possible, fastest, and best way.
In relation to McCain as a HR Manager, she views her role seriously but she is forgetting one of the most crucial factors in the management function – the external condition(s) or macro-environment of the workplace. It is given that McCain is focused on the HR function within the vicinity of the working environment. She is very much dedicated in doing her prescribed duties and responsibilities as the HR Manager. From selection to recruitment, performance appraisal to training, and labour relations, McCain’s ability is undisputable. Guided with the conceptual principles of HR function, she implements them the way a knowledgeable and competent manager performs. She also recognized the need for the HR in expanding its coverage especially in relation to the realities and emerging trends of the retail business. The pressure of having a cost-efficient expansion is a prime concern. Given the ability to predict up-and-coming situations make her even more proficient. But then again, she is neglecting the external factor(s) or macro-environment affecting the HR conditions such as the competitors’ HR functions, employee attributes, new methodologies, and technological advances growing in the market.
Harrison Business Strategy
Basing it from the long operations and the rundown of economic activity presented, the Harrison Brothers Corporation overall business strategy is based on the Industrial Organization Approach. The said approach is characterized by the economic theory that deals with the concepts of resource allocation, competitive advantage and rivalry, and economies of scale (Buckley and Mitchie 1996, p. 222). It assumes that rationality, self-discipline behaviour, and profit maximization are core attributes. As shown with the decentralized form of corporate governance and small corporate office, the management is focused in achieving its goal to become the leading chain of department stores in the area. But with the changing trends of the business, Mr. Harrison decided to shift into the other approach of business management – the Sociological Approach. This approach tackles primarily on human interactions and assumes that through bordered rationality, rewarding behaviour, and profit sub-optimality, the business will succeed (Foss 1999, p. 3).
Because of the predicted trends that might occur in the line of business, Harrison decided to focus on the customer and human resources. He wanted ‘well trained, highly motivated sales staff and management team’ to be involved in the business. The foreseen trends brought out changes to the ‘same old things’, transforming it into strategic management with five strategic goals. This strategic management technique implemented by Harrison can be considered as a collaborative process. Aside from the attempt to change the business strategy, functional strategies like the ones present in marketing, new product development, financial, and legal aspects are refocused. Most importantly, he gives particular attention to the human resources strategies.
The Structure and Staffing of HR
Given that the hierarchy within the organization is decentralised and traditional, it is presumed that the structure and staffing is similar to the existing structure. The structure and staffing of HR is the standard HR function –from recruitment to selection to interview/exam until eventual employment. Other HR functions like training, performance appraisal, reward and punishment, and labour relations are sufficiently tackled. As stated earlier, it is only bounded within the micro-environment and internal conditions of the company.
As observed and noted in an interview to the Store Manager, the HR department, according to her is ‘too internally focused most of the time’ wherein the group is only concentrated to day-to-day activities. The company sales are thriving but there is a need to have a better group of qualified workforce – someone who is a key player, can learn how to do things differently, and stay competitive. Similar to the observations of the Operations Manager, the HR department ‘seem terribly understaffed and overworked most of the time’.
There is really a problem in the HR function of the company. It is predetermined that any organisation, may it be profit oriented or not-for-profit, the most vital asset is its employees. And for these organizations to maximize their assets, they should manage the employees’ working condition with intelligence and efficiency (Ulrich 1998). They must be allowed to be involved in making work-related decisions to further enhance the organisational structure (Delaney & Huselid 1996). Furthermore, the structure of tasks among the employees strengthens the organizational performance (Wilson 1989). It is therefore necessary to understand the employees for the organization to be effective. The development, building, motivation, enhancement and enrichment of the employees of any organization largely depend on the leadership, mandate and vision of the organization (Rainey & Steinbauer 1999).
With the given importance of effective HR function implementation; there is a need for the HR Manager to review the responsibilities of HRM. Traditionally, HRM helps the organizations in achieving its goals by means of hiring and maintaining efficient employees. According to Sims (2002), the following are some of the responsibilities of HRM: (a) Train the workforce to maintain competitiveness of the organization; (b) Develop and communicate industrial policies and procedures in line with legislation; (c) Involvement in grievance and disciplinary hearings; (d) Lead negotiations; (e) Implement termination and hiring procedures; (f) Assessment and management of organizational climate and employees relations; (g) Liaison with trade unions; (h) Implementation of outcomes of collective bargaining and negotiation; (i) Develop compensation strategies and polices in line with legislation and the organization’s business strategy; (j) Attach meaningful monetary values to posts in the organization ensuring that the organization’s compensation is in line with market forces; (k) Develop appropriate compensation systems for the organization; (l) Manage overall labour costs; and (m) Provide current information regarding employees to be used in the decision-making process and measurement of HRM’s contribution to the organization.
Analysis of the Importance of HR Responsibilities and its Implications
In reference to the result of the survey conducted among the HR Manager and Store Managers, there is a surprising reality that was discovered. There is a significant difference in the perceptions of the both managers towards the importance of HR responsibilities. In staffing and safety, the HR and Store Managers are similar in response. Training, Performance Management and Compensation are quite the same. Surprisingly, Knowledge of Business and Managing Change are less important according to the HR Managers as to compare with the Store Managers.
The implications of such result are the fact that there are no unified and common perceptions of the role and importance of human labour force. There is an urgent need to redirect both Managers to a common view of HR or even objective of the company. The difference in the understanding of the role of HR in the organization affects the business performance. In the era of globalisation (Kim & Weaver 2000, p. 121; Ohmae 1990; Naisbitt & Aburdene 1990), every organization like Harrison must keep itself along with all the other organisations on being competitive not only to their business operations but also to their workforce. A workforce must work as one large yet unified team. The diversity of beliefs in HR responsibilities is a potential source of conflict within the organization and among its people. Communication is also affected. The overall state of working relationship within the industry is risky given the fact that there are misconceptions in HR. other repercussions of this phenomenon are the possibilities of HR difficulties, employee trust, trade union issues, failure in plans, poor coordination, shaky chain of command, and other that might create spill-over effects to the overall welfare and being of the company. Therefore, the HR Managers and Store Managers must have sole corporate vision aside from the stated in the business. Team building activities and team effort must be built among them. Besides, the company and its people are working into identified overall goals – increase profits, improved services, and market stability or competitive advantage.
Evaluation
The Harrison Brother is long established and there is no doubt that the company is able to cope up with the trends of the changing business environment. The need to develop its HR into strategic HRM is potent. The traditional approaches in the area of specialisation might be reviewed and probed if it is still effective in the current times. With the fact that every aspect of the business change, it is also same as true to the company environment. The Harrison Brothers Corp. possesses the capacity to achieve its strategic goals with the right choice of people to work out such. However, there are some predictable problems that might occur in the process. The management change will create an overwhelming feeling to the employees affected. There is a significant requirement to inform them beforehand that a change is to be implemented. Modern technological advancement is also a relevant consideration. The dynamic business environment is also couple with the rapid development of systems and equipment that makes the manual work easier yet efficient and better. Before the management decide to allocate funds in the acquisition of technology for the company, further research is to be done. With the given size and strategic goal of the business, Harrison Brothers is ready to improve its major HR functions.
The HRM function plays a great role in the execution of company’s goal (Hornsby and Kuratsko 2005). Improving the HR functions of the company is a gargantuan challenge to the HR Manager with the given supervision of the upper management. There are three main HRM functions: attracting a quality workforce, developing a quality workforce, and maintaining a quality workforce (Schermerhorn 2001). The HR functions of Harrison can be improved by shifting the traditional HR into contemporary and strategic HRM. Strategic HRM is synonymous with the “traditional” HRM (Sims 2002). Strategic human resources management is defined as “the linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility (Truss and Gratton 1994, p. 663). It is also “the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals” (Wright and McMahan 1992, p. 292). SHRM means accommodating the HRM job as a strategic collaborator in the formulation of the organization’s strategies and the performance of those strategies through HRM activities such as recruiting, selecting, training, and rewarding personnel. In the strategic version of HRM, the functional duties of a HR Manager remain significant. Certainly hiring, training, and providing pay and benefits to employees are essential tasks that must be accomplished in any organization. However, a lot of organizations began to significantly switch their people-managing policies and systematize them in new directions (Budhwar & Debrah 2001, p. 9). In general, SHRM will help in the improvement of the organisation performance.
With this new-fangled view of SHRM, HRM personnel must work with other top managers to devise company strategy as well as implement it. In serving in their role as strategic partners, HRM personnel must recognize the actions they must take to associate HRM planning to the organization’s strategic plans. This understanding must also include an appreciation of the challenges and pitfalls of SHRM planning. Further, there is an increased requirement for managers and HRM personnel to assess the effectiveness of the HRM function and its function in serving the organization in accomplishing its strategic objectives. This evaluation usually focuses on specific HRM practices and the more current importance on bundles of so-called HRM finest practices.
Making the change to SHRM from traditional HRM is a protracted and multifaceted procedure. It is essential for both senior managers and HRM personnel to subject the benefits of the process of transforming SHRM. Importantly, the evaluation of the effectiveness of a particular HRM practice must continually scrutinize the concern of whether SHRM really provides benefits for all the effort that goes into the organization. It is vital to reemphasize the value of the partnership between the HRM department and managers at all levels.
The improvement of an organization performance depends on the people behind HRM whether or not it is SHRM or the traditional one. It is all on their brilliant and effective implementation of the best and systematic human management policies and procedures. With the help on the “work force”, company’s success is definite and viable. Through effective implementation from the start up to the end, it will yield to higher employees’ productivity and increase of revenue. All HRM functions are deliberate and directed to the success of the organization. The function of HRM is for the betterment of the organisation’s working force. It is very essential for the HRM Managers and staff to concentrate on the feature wherein it needs special kind of attention. Everything changes. And in order for companies to go with the flow of current trends, they must be fully equipped with all the necessary factors affecting a satisfactory human resources management system. As from the conception of an employee up to the end of his or her service to the organization, the HRM function will always be directed to the purposes of holistic human development to attain the ultimate goal – growth.
WORD COUNT: 2596 words (including in-text citations and sub-sections)
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