Strategies in the management of Human Resources

Strategies in the lovement of Human ResourcesThe contemporary crinklees purlieu is continuously changing due to the arrival of the information base, association driven, avail intensive economy. Managers today ar recognizing that speed, flexibility and continuous self-re spic-and-spanal atomic number 18 essential in the constitution. As throng ar the number mavin assets in the disposals and companies, the daily patronage tasks and scarpers peck non be completed without mountain. The skilled and motivated mountain atomic number 18 the central point in the operation of companies in the peeled age. HRM is to sponsor an ar cheatment to fulfil strategicalalalal goals by attracting, do and maintaining employees and overly to manage them efficaciously.Attracting and retaining the quality staff is the competitive advantage for many institutions in challenging economic environment. on that point ar two main approaches to attracting and retaining employees b y the strategies employer of choice and employee engagement.Employer of choice has flummox in HRM in contemporary production line recent stratums. It is representative of a whole sweet design of integrated culture. Employer of choice is applied in the familiarity priorities by near favored and respected cargon conveyers today. Now more(prenominal) and more employers are using an employer of choice dodge by providing and offering varieties of employee bene ascertains in put together to attract and retain opera hat concourse. There are four measurements for monitor the corporations performance. In addition to market share, consistent financials and existence a rich corporate citizen, the fundamental element for a successful caller-up is macrocosm an employer of choice. When companies are losing talent and startd staff, the companies are losing skippers and expertise that gained at set forthnership expense, hard -built customer relationship as well that are ra ttling hard to replace todays labour market. To put employer of choice as the cover song priorities list usher out consecrate the association competitive advantage because it bunsful attract and retain circumstantial military personnel assets.The employee engagement is becoming very(prenominal) important across the globe as the customer fountain and employee power are increasing in the modern economic and concern world. As 200 companies survey found that it commode suck in a bun in the oven $21 million benefit moving a men of 8000 employees from low take aim to ripened elevated school level engagement. And compared with 20% of disengaged the employees, more than 65% engaged employees say that they rush a better concord how to meet the customer indispens readinesss and inquires. Employee engagement ass also choose ride on mental and emotional committal to the organization. Engaged employees are willinging to give extra effort to their business concern that bath lead to ontogenesis the productivity. Some explorees show that the employee engagement scheme mends an average less than trinity days sick relinquish per year than six days for the disengaged employeesA successful employee engagement scheme helps lay down a community at the body of get going and not just a work force. When employees are effectively and positively engaged with their organisation, they form an emotional linkup with the company. This affects their attitude towards both their colleagues and the companys clients and advances customer satisfaction and service levels.As the principal mentioned that the companies essential reject the concept that the loyalty is dead among todays employees. The company has to wee-wee a challenging environment that can attract and retain the great unwashed. I totally agree this conception that employee royalty and satisfactory can be score up by employee engagement. It mention employee yield effort to the organization from coginitive level, emotional level and physical level. Engaged employees al slipway weigh about the company, feel inspired by their job, they are customer focused in their approach, they care about the future of the company and are prepared to station their own effort to see that the organization succeeds. It is now a for the virtually go bad accognitiond business fact that employee engagement is a describe device driver of business success.Employee engagement dodge can be applied no matter in small or large companies. It benefits the organizations and individualistics, improving the performance, boosting the underside line and makes employees happier and the work more enjoyable. However, it is not always the win-win situation. Some organization use employee engagement that can drive work intensification. It would obviously unscramble this risk of being detrimental to the individuals concerned. The organization is expecting the employees to go one whole tone further that can make overtime working normalised. And the over-performance rewarded can leave behind the staffs that just do a good job. In early(a) hand, it is not easy to achieve work-life balance in just about high-performance companies under employee engagement strategy. The priority of work with long and non-standard hours takes over family and neighborly life. The increasing effort that engaged employees put into the work time make the work and life unbalanced. The latest investigate shows that the employee engagement by high performance work systems may accrue marginal benefits in footing of the higher(prenominal) level of involvement and commitment. However, these benefits are outweighed by the associated additions in responsibility, workload, work-life tone ending over and work stress.2. How companies are dealing with the linkages between HR and strategic formulation.Strategic Human Resource Management (SHRM) in an organization can be defined as accepting and involving t he HR function as a strategic attendant in the formulation and implementation of the companys strategies through with(predicate) HR activities such(prenominal) as recruiting, selecting, training and rewarding personnel. SHRM means linking of HR with strategic objectives to reform business performance and company culture to fix competitive advantage, innovation and flexibility.There are four different levels of linkage between HR strategic and the strategic forethought border administrative linkage, one-way linkage, two-way linkage and integrative linkage. These four levels of linkage are very helpful for an organization to categorize which HRM strategy has to be applied.The administrative linkage has no linkage between strategic plan and HR function. It simply engages in administrative work that has no emphasis primed(p) on achieving the linkage in both strategy formulation and strategy implantation. It focuses on day to day activities and personal solicitude.In one-way link age, the company develops the strategic plan and then informs the HR function. Although it does recognize the importance of man mental imagerys in implementing the strategic plan, it precludes the company from weighing human resource issues while formulating the strategic plan.In two-way linkage, he strategic planning team informs the HRM function of the various strategies the company is considering HRM finality maker directors analyze the human resource implications of the various strategies, presenting the results to the strategic planning team The strategic plan is passed on to the HRM executive, who develops programs to implement it.The combinative linkage is based on continuing interaction. The HRM function is built counterbalance into the strategy formulation and implementation processes.In the higher level linkage such as two-way linkage and integrative linkage are characterized by a close relationship between HRM and business strategies. HRM military strength can be explained by examine the contri just nowions of the HRM function in the process of achieving strategic integration. In both of the short term and long term, SHRM should equilibrate and contribute to the remedyment of the productive capacity of enterprises.Strategic business partner a use of goods and services performed by HR practitioners, aiming to execute organisational strategy by aligning HR processes with the organisational strategy.HR managers become able to reengineer the way HR department executes its job, accomplishes those transactional HR jobs cost-competitively, and increasingly turnits attention to truly being a strategic partner with the squares top executivesWith an integrative linkage, strategic planners consider all the people-related business issues before making a strategic choice. These issues are identified with regard to the missionary work, goals, opportunities, threats, strengths and weakness, leading the strategic planning team to make a more intelli gent strategic choice. While this process does not guarantee success, companies that address these issues are more likely to make a choice that will ultimately succeed.Research has supported the indigence to have HR executives integrally involved in strategy formulation.The level of HR involvement was positively related to the refinery managers evaluation of the effectiveness of the HR function.HR involvement was highest when top managers viewed employees as a strategic asset and this was associated with land turnover.HR practices that are properly implemented do deliver meaning(a) financial benefits to an organization. ( profit efficiency, shareholder return, stock prices and organizational survival)Administrative linkage level will any become more integrated or hardiness extinction. In addition, companies will take up toward becoming interactively linked in an effort to strategically manage human recourses. Integrating the HR function into strategy formulation may help the s trategic planning team make the most effective strategic choice. Once the strategic choice is determined, HR must take the active use in its implementation.HR is uphill as the central concept in assessing the competitive assets of organizations. HR managers and professionals, by virtue of their experience of human performance, are well positioned to exercise strategic leadership and contribute authoritatively to a firms competitive advantage. Therefore, the company has to name opportunities for the HR function to develop a more strategic role in a firms operation (Lawler Mohrman, 2003).As the arrival of the orbiculate economy, the HRM has more gainsays to create an environment to maintain the competitive advantages. In order to become a strategic partner in the organization, the HR executive must have the abilities to research and training that from being ac intimacy of the HR concepts, logical system and practices. HR executives have to show the competencies which add mo re value to the organization. The role of HRM is becoming more creative and strategic to adapt the changes of worldwide workforce social structures. More and more high performing companies have HR executive involved in business at a strategic level. There are four major factors of competencies related to how well an HR professional contributes in a strategic way to businesses in areas such as strategic conclusion making, culture heed, fast change, and market driven connectivity.Previously, organization structured on a centralized and compartmentalized basis-head office, marketing, manufacturing, financing etcetera By the end of the 1980s, HR played largely on administrative work that focus on HR operations and bear upon normalisation and engineering which has no connection with the strategic watchfulness. The role of HR traditionally in the organization is no more than a one- way linkage role. They were doing what the business manager wanted.In recent years, theres a fundamen tal reassessments of human resources structures and positions.The massive change of business conditions, organizational structure and strategic decision makers has been leading HR to develop their perspectives and functions. Today, senior management expects HR to move beyond its traditional. HR is more tightly linked to corporate strategy and to creating business value through HR services that address a companys most pressing strategic challenges. HR now seek t decentralize and to integrate their operations and developing cross-functional teams. HR is anticipating critical workforce trends, shaping and executing business strategy, identifying and addressing people-related risks and regulations, enhancing workforce performance and productivity, and offering revolutionary HR services to help a company change and grow.In order to become a strategic partner in the company, the HR executives need to fulfil five challenges to help the company to achieve critical goals.Posses and use the ir knowledge of how people can and do play a role in competitive advantage as well as policies, programs and practices that can leverage the companys people as a source of competitive advantageFirstly, knowledge management is essential for competitive advantage for service of process HR to play an important role in developing company culture for organizational attainment as a strategic partner. With knowledge management, business success is achieved in a culture of learning and workplace planning. The Research Quarterly found that the HR executives can leverage the company people through knowledge management, for competitive advantage in a challenging economy. HR executive and professionals has to acquire the knowledge and skills that are inevitably link HR to stakeholder value. And HR related policies, programs and rules can have a fundamental incline on workforce behavior that helping company to achieve the competitive advantages.To become the strategic partner, it requires HR executive to be involved in transferring knowledge. HR professionals must know how to optimize policies and practices, how to manage the learning that results from any change or execution process associated with new business structures. And HR executives need to have quadruplex channels to make sure the engagement of business strategies.HR executives must manifest business knowledge includes not only how it fulfills its mission, but also how it serves its customers and differentiates itself from its competitors. When HR professionals demonstrate their understanding of what is driving their business, they will add value by mobilizing the cover workforce with the right skills to achieve the business goals of enterprise. companionship management requires knowledge managers. Key business resources like labor and capital have unattackable organizational functions devoted to their management. Knowledge wont be well managed until some group within a rm has clear responsibility for the job. Among the tasksthat such a group might perform are collecting and categorizing knowledge establishing a knowledge oriented engineering science infrastructure, and monitoring the use of knowledge.HR need to have clear strategies, outcomes, products , services and structuresSo the HR staff can achieve their goals and deliver the necessary outcomes.HR staff can do this to fulfilling for management rolesStrategic HR role- aligns HR and business strategy and delivers the executive of strategyHR executives must be able to translate business needs in HR strategies to build up individual, team and organizational capabilities. HR strategy should be directly relevant to business requirement and delivering value that lead to an importunate focus on structural realignment for HR teams. It requires HR to have competing perspectives, set and services. It also involved meeting stakeholder need for respect and ownership. HR executives need to widen the focus on learning new behaviours, cha nging attitudes and processes.Management of company infrastructure role- reengineers organization processes and builds an in force(p) infrastructureManagement of employee contribution role- listening and responding the employees- employee commitment and cap efficacy is increaseTransformation and change role- ensuing the organization has the capacity for change and delivers a renewed organizationHRIS- HR information systems- technology is facilitating the transformation of HR functionHRIS is designed to help provide information used in HR decision making such as administration, payroll, recruiting, training, and performance analysis. HRIS makes HR department working more effective to handle daily administrative tasks. Using the value-added approach to justify the HRIS expenditure links the system with the key business direction of the organization, and makes the critical of HR information to business success. The HRIS becomes not just a way to reduce administrative costs, but a key element of the business strategies. In additional to providing a poser of justifying HRIS expenditure as a strategic investment, the value-added approach emphasizes the role of HR as an active strategic partner in achieving the originations strategic business objectives Technology is facilitating the transformation of HR function. These technology solutions can cover multiple HR tasks, such as recruiting, benefits administration, and training administration. Applications and data are ordinarily shared in common across the company, with links to new(prenominal) systems in services centre operations, finance, and accounting as well as third-party systems for such tasks as payroll and benefits.Modern HRIS are comprehensive, accurate and entryible systems for arrangement employee and work data relevant to HRM, HR and organizational planning. HRIS helps the organization to improve strategic planning and program breeding and faster information touch on times.By increasing administ rative efficiency, technology allows HR to have few staff marking more value-added contributions to their organizations. The rapid evolution of electronic HR delivery systems is pushing more information in more uncommitted formats to employees and managers who can use it directly for the benefit of their organizations.Fast and cheap entrance to accurate real time HR informationAccess and the ability to analyse, assess, interpret, manipulate, leverage and share the information effectively will be key to giving organizations a strategic edge. Successful data mining will be made possible by the use of date warehouses with their ability to consolidate intragroup and external information with powerful analytical tools omnipresent access to information to improve employee effectiveness and efficiency.This means working from anywhere and at anytime, the size, format, the footprint of technology deliverables will more from departmental ground devices operating under the full control o f the user organization to a mixture of hand-held, pocket-sized, integrated devices and wireless linkage that provide needed access on a real time basis to centralized processing and data storage capabilities. Instant access to all needed knowledge and to essential meaningful data will be a anchorperson for the successful enterprise.A variety of analytics and decision trees.Smart self-service.Customized content.HR executives must implement the new plans or programs. HR executive must have the skills to oversee the change in a way that ensures it success. miscellany was more successfully where HR professionals had been involved in developing the vision of the organisation, strategic planning, the change required and where the HR manage was well paid and inform directly to CEO.In previous times, change is constant. HR executives like scanning, scenario mental synthesis and search conferences can help to predict the future and manage change. However, the most effective HR executive s will not depend on formulas but will develop their strategic intelligence including foresight, partnering with people who complement their strengths, visioning with systems thinking, motivating and empowering their collaborators to realize their visions to create a winning future for their organizations.HR executives must have integration competence, the ability to integrative the three other competencies to increase the companys value. Although specialist knowledge is necessary, a generalist perspective must be taken in making decisions. This means that how HR all functions fit together to be effective and recognising that changes in any one part of HR package are likely to requires changes in other part of the package.There are a few competencies the HR executives have to curb to become a strategic partner. The integration competency is one of the most important that can integrate the other three competencies together to increase the organizations value. HR executives are play ing the role as connecting hiring, training and prole evaluations via organizational competencies. From talent mapping and planning to performance evaluation, recruitment, retention and even out benefits administration, todays human capital professionals are constantly seeking new ways to streamline, integrate and align human capital functions with broader corporate objectivesThe organization management has to realize that it is very important to have an integrated and consistent technology platform for HRM. The more integration between activities as diverse as recruitment, payroll and benefits management, training/ education and performance measurement, the better HR executives can be at boilers suit workforce planning and managing and motivating individual role players. As the result, the organization can be more effectiveThese developments lead to an entirely new set of competencies for todays strategic Hr executive. The new strategic role of HR shows both opportunities and c hallenges. These include forming a series of partners with senior executives, line managers and external providers of HR services.As companies cope with the economy, HR can be instrumental in helping organizations leverage knowledge-based resources for business results. As highlighted in Creating People Advantage, critical HR challenges focus on three strategic categories, all related to knowledge management 1) developing and retaining the silk hat employees (talent, leadership development, work/life balance) 2) anticipating change (demographics, change, cultural transformation, internationalization) and 3) enabling the organization (becoming a learning organization). (4) As indicated in a SHRM April 2009 poll of U.S.-based organizations and transnational companies, the primary focus of companies now is workforce planning. Although hiring expectations are low, talent management priorities remain high despite the economic downturn (see Figure 1Competitive challenges influencing HRM The challenge of HR innovationKnowledge managementIt is no secret that knowledge is power. Knowledge management can create competitive advantage for a company and its customers. By sharing information and best practices, organizations create expanded opportunities for market share and financial increase. Furthermore, knowledge management provides a means for organizations to differentiate themselves from competitors. Second, KM can create a truly customer-focused culture. Appropriate organization resources can be directed toward dissolve customer problems or meeting customer needs quickly and effectively.Third, knowledge management can be a catalyst. done tools, resources, and systems, it can help ignite creativity and innovation in the development of an organizations products and services. Fourth, KM can improve time to market. By leveraging best practices, learning and other time-savers to improve productivity, products can be introduced faster. Last, KM can expand a companys strategic options. By leveraging intellectual property in research and development efforts as well as overall market and business strategy, organizations can discover new ways to create value. Knowledge management can provide an organization with man benefits. Organizations can more effectively counter problems and threats and can respond more proactively to opportunities. In a knowledge based economy, managing knowledge along with other resources is a requirement, not an option.Knowledge workersSelf-managing, automony, responsibility for continuing innovationKnowledge workers in todays workforce are individuals who are valued for their ability to interpret information within a specific subject area. They will often advance the overall understanding of that subject through focused analysis, design and/or development. They use research skills to define problems and to identify alternatives. Fueled by their expertise and insight, they work to solve those problems, in an effort to infl uence company decisions, priorities and strategiesAs the workers become more knowledge based, firms will need to implement strategic human resource practices in order to retain their soundless knowledge base either by retaining the tacit knowledge or by retaining the knowledge worker and thus retaining a critical competitive advantage. Performance of knowledge based industries depends on organizations attracting, holding, and motivating knowledge workers (Drucker, 2003). The transition to knowledge workers is having a significant impact on human resource practices. The knowledge workers must think like entrepreneurs, and the firms must think of the knowledge workers as entrepreneurial professionals as well as ensure a learning organization where tacit knowledge is actively diffused throughout the firm. This will allow the firm to better manage their knowledge resources through HR practices and help guard their competitive advantage.High-performance work systems (HPWS)- combining pe ople and technology- self-managing work teamsChange in employees work roles and skill requirementThe use of teams to perform workChanges in the nature of managerial workChanges in company structureIncreased ability of HR informationHRM practices in HPWSThe challenge of sustainabilityThe challenge of globularisationThe challenge of attracting and retaining peopleNOKIA CASE- Connecting PeopleExernal and internal peopleNokia is the worlds leading mobile phone provider and a leading supplier of mobile and fixed telecom networks including related customer services. Nokias corporate home plate are in over 120 countries and employees are more than 47000 people worldwide. Human Resource Management plays an important role for Nokia to become the whale among the communication rivals, HRM in the new economy should to be human central with a strong technology focus. Nokia use the SHRM to leverage on rising technologies to better satisfy the wants and needs of the knowledge workers and in t he process to build a competitive advantages.Nokia Australia is recognized as an employer of choice having been named National scoop Employer in 2002 by Best Employer to Work for in Australia Awards sponsored by Hewitt, AGSM and sewer Fairfax. Nokia is one of only five companies to have consistently featured in the Best ployer category since the inception of these awards.Nokias HR policies have played a key role in helping the company to reach its 45 percent share of the global handset market and sedulousness-leading profit margins of 20 to 25 percent, at a time of technological change and intense competition from Asian manufacturers.At Nokia values are the foundation and people the core. Nokia offer a workplace with a world of opportunities, engaging work, global culture and competitive rewards.The goal of Nokia HR is to create an environment in which all employees can fulfill their likely. It is crucial for the company to have the ability to adapt successfully to the high spee d of change in the global market. The scale of Nokias business also means that Nokia employees can lead or participate in projects that have global impact, affecting the lives of millions of people and fulfilling Nokias mission connecting people.Attracting, motivating and retaining people have become the main external influence on Nokias HR strategies. These four elements areThe first element of Nokia HR strategy is the Nokia way and values. Nokia is a networked organization with speed and flexibility decision making. Nokia provides individuals with a platform for personal growth in a challenge environment with a clear vision, goals and management principles. The Nokia Way brings talented people together who share the principles and success. Through the extensive employee engagement, Nokia have renewed their values that reflect their business and changing environment. Nokia is continuing engage all the stakeholders and employees to meet the needs of customers. And Nokias HR strategy includes the passion for innovation through new and improved ways and better understanding the world.Professional and personal growth (Challenge of Innovation)Nokia is focusing on professional and personal growth. Only with truly innovational ideas can make the company and its people to develop the industry and improve the products and services.Commitment to Self-developmentsPeople at Nokia is continuously looking for ways to improve their performance in order to stay at the forefront of technology and develop own competencies. Employees are encouraged to create their own development plan and take advantage of the variety of available learning solutions and methods. On the job learning is heavily encouraged.Nokia has the high-performance work systems (HPWS).First, Employees reward and compensations at Nokia is related to the companys performance.Nokia provides employees with market competitive rewards through a flexible global structure, which can address diverse and changing busi ness and employment environments, as well as specific individual preferences. Nokia rewards employees for good performance, competence development, and for overall company success. This creates a positive and encouraging environment with opportunities for employees to optimize their potential and be rewarded fairly. Higher performance and contribution will lead to higher rewards. The Nokia global market competitive rewards structure addresses the need for flexibility, personalization, empowerment and commitment. Second, Nokia has the teach and management training system. Coaching is regarded as a vital part of continuous learning. Highly skilled colleagues at Nokia provide employees with rich sources of experience and knowledge. Receiving coaching and participating in different teams will fuel employees development as well as give them the opportunity, every day, to share ideas and goals with innovators and industry leaders. Employees have access to a wide variety of training activ ities. Through global network of Learning Centers, Nokia HR aim to offer a consistent standard of training and development to all employees. The Learning foodstuff Place Intranet contains information on all Nokias learning solutions including e-learning as well as classroom training. Management Training Nokia place grumpy focus on developing managers in management and leadership skills. It is one of the key areas in competence development. There is a full range of training available from new managers programs to senior programs for our more experienced people. inhering Job Market (Changes in the place of work)All employees at Nokia are invited to look at the job opportunities available inside Nokia. All vacancies, with the ejection of very senior positions, are advertised internally. Employees are encouraged to improve their competencies through changing their positions. Internal job opportunities, the possibility to register to our internal candidate pool and other services for job-seeking inside the company are available through the Internal Job Market Intranet. The aim is to give Nokia people the opportunity to manage their own careers.Performance ManagementNokia has created a successful performance management system across the whole