Research Topics: Human Resource Approaches

Training and Development : Case Study of Motorola

Training and Development   Table of Contents    TOC \o “1-3″ \h \z \u 1      Introduction. PAGEREF _Toc29147390 \h 2 2      Training and Development PAGEREF _Toc29147391 \h 3 3      Changes and Development in Human Resource Approaches. PAGEREF _Toc29147392 \h 3 4      Roles of Different Entities in T&D.. PAGEREF _Toc29147393 \h 7 4.1       Employers. PAGEREF _Toc29147394 \h 7 4.2       Training Professionals. PAGEREF _Toc29147395 \h 7 4.3       Employees. PAGEREF _Toc29147396 \h 8 4.4       Labor Unions. PAGEREF _Toc29147397 \h 8 4.5       Government PAGEREF _Toc29147398 \h 9 5      Application and Benefits of T&D.. PAGEREF _Toc29147399 \h 9 6      Conclusion. PAGEREF _Toc29147400 \h 11 7      References. PAGEREF _Toc29147401 \h 12      1      Introduction As of now, the business environment is facing different changes, thus as the dawn of new millennium, a very vital and famous movement in the business had been long considered as the huge resurrection of the interest both in the training and development aspects. Most of the organizations are tired and do not have that much money to waste in their ineffective as well as unproductive development. In addition, individuals are already considered as less equipped in order to take time out from the work for jolly because of the fact that everyone is in great need of detectable changes (Landale 1999). On the other hand, some years ago, and up until now, T&D programs is consists of a trainer and other experts that are standing in group of students or trainees and lecturing and teaching different knowledge and subjects. Thus, the choice of words that both the parties will use relies on the different educative types regarding the approach and meaning that are being taught, whether they like it or not (Rae 1999, p. 3) . Thus, T&D process is a vital factor or aspect of the company that helps to maintain the effectiveness and efficiency of the human resource. It can also help in the process of improvement and development of the entire performance and productivity that can help to maintain competitive advantage that will helps to maintain the organization’s current position in the market. It is important to consider that without the help of an effective T&D program, organization can quickly fall behind in the process of getting the skill sets and the knowledge that are required in order to ensure the competitiveness of the work force (Buhler 2002, p. 142).   2      Training and Development T&D program or agenda is applied and implemented in a company when a new skills and knowledge were done or when one of the existing skills or knowledge has been deemed (Arthur 1995, p. 245). It is an approach or method that is used in order to ensure that the employees are focusing on the specific subject or skill that is needed to be learned. For example, T&D program can be designed in order to prepare the employees to use new technology or system (Sims 2002, p. 175). However, it is important to take note that the success of any T&D programs relies greatly on the different efforts, knowledge, skills as well as devotion of the instructor and other entities that are involved in the entire process, specifically the employees and the management in the process of creating the instructions. That is the reason why it is very important to assign great time as well as effort in the process of selecting the right instructors or trainers (Sims 2002, p. 175). As a result, it can be said that the entire T&D cn help the process of change management that can help to prevent any refusal or negative response of the employees.   3      Changes and Development in Human Resource Approaches Due to the different changes in the business environment, most of the businesses or organizations are focusing on the importance of the labor force or human resource as the most important resources. Thus,  Human resource development or HRD plays a vital role in the modern organizations, this is due to the fact that HRD is the organized learning activities that were arranged in the organization to improve the performance as well as personal growth in order to improve the performance, personal growth that will help to improve the job, individual as well as the entire organization. Currently the HRD environment is facing different problems as well as conflicts that make the HRD profession one of the challenging careers. This is due to the fact that inside the workforce, the entire demographics are changing, thus many organizations are realizing that the workforce diversity is considered as one of the most important source of competitive advantage (Sims 2006). The said condition shows that changes in the HRD are  enormous. This is connected to the different issues about ethnicity, cultural and languages as well as prejudice that are related to the said subjects, or in simple term it is associated with differences. As a result, it shows that the different developmental opportunities are being focused not just on the organizational learning but also on the different acculturation process between the foreign and old employees. Another important thing that must be considered is the growing number of populations of women that are emerging or entering the workforce. Thus, it is important for any company to consider that the interests of the women in the process of seeking positions must be considered, and their vulnerability must be protected. Above all, it is also important to consider the ageing workforce that will push different HRD programs to focus on the needs and demands of younger as well as older employees (Sims 2006). Aside from that said demographic changes, it is also important to consider the two most important and visible factors that affect the entire HRD and pushes the intensive T&D program: globalization and competition. This is due to the fact that it changes the process of HRD, and it is helpful in order to ensure maintenance of both global and local balance. This is due to the fact that companies nowadays are discovering that it is always important not only to focus on the global changes, but also focus on the different local events and trends in order to communicate with their customers. Thus, HRD must also hit the different process of sharing information as well as transfer of knowledge that will drive the process of research and innovation (Sims 2006). As a result, it is important to align the HRD with the technical and technological requirements, thus the needs for more knowledgeable, experienced as well as skilled workers is vital. In connection to that, different technological trends like the demand and growth of more knowledge-intensive goods as well as services; changes in the competencies of human; global network; streamlining of business; rapid response; quicker innovations; quality improvement as well as revolution, shows that companies and organizations as of now are more connected with each other, thus must synergized (Sims 2006). The said development is connected with the T&D processes and programs, this is due to the fact that most of the organizations nowadays are focusing on improving the knowledge and abilities of the individual. As a result, the process of closing the skills gap is considered as one of the most critical and crucial area of HRD for any organization in terms of penetrating the market in continuous manner. This is because skills gap can threatens the productivity as well as competitiveness in the level of organization and operation that requires the entire HRM professional to start on cultivating the workforce from the period of recruitment. On the other hand, the said process is not easy because there are different works that require customization of different skills, that not all of the newly hired employees acquire social skills aside from the basic skills (Sims 2006).             Above all, it is important to take note that the process of building the organization is considered as a vital for existence and the survival of the organization in the modern industry. Time and time again, most of the companies must invest on the different internal customers and employees that help them to take advantage of the entire human capital management. In addition, the sense of ownership is a vital aspect that requires the HRD professionals to develop different strategies that will guarantee superior knowledge, skills as well as experience that must be settled inside the workforce. This can be done by focusing on the different learning skills that will put the skills enhancement and will develop assignment and focus on the process of developing career and empowerment (Sims 2006, p. 19).   4      Roles of Different Entities in T&D 4.1    Employers The main responsibility of the employer is to ensure that the T&D process are connected to their entire strategy and goal. It is also important for the employers to ensure that the T&D program to be implemented is beneficial not only for the company but also for employees’  individual development growth. It is also the responsibility of the employers to inform the employees regarding the T&D process and how it can affect their position or their performance in the company. This is to prevent any conflict and misunderstanding. Above all, it is the responsibility of the employers to hire or employ training professionals that is suitable to the current organization and inform them regarding the different issues that are connected with the different rules and regulations as well as policies of the company. 4.2     Training Professionals In the entire T&D program and process, the training professionals have the most important role this is due to the fact that they are the one that set the pace of the program. Aside from that, they are also responsible in guiding and giving assistance to the trainees and employees, and focuses on furnishing the subject-matter expertise. Above all, they are accountable or responsible in the process of evaluating the entire training and development program (Sims 2002, p. 177). That is why, an effective instructors must have the ability to deliver the different content of the T&D program in manner that they assists and make the entire learning process easier for the trainee employees. This focuses on the different skills such as the ability to: speak well, write convincingly, systematize and put into order the different works of other, creative, imaginative and inventive, and more importantly encourage others in greater performance and success and smoothen the progress of the climate for learning (Sims 2006, p. 176). 4.3     Employees Employees play one of the most vital roles in the process of T&D, due to the fact that they are the direct player or beneficiaries of the program. Thus, it is important for the employees to focus on how they can help themselves in acquiring or absorbing the different subjects and knowledge that are being offered by the training professionals. As a support to the effort of the employer and the training professionals it is important for the employees to participate in the entire program. This is because learning is considered as quicker and more long-lasting when the learner can participate in active manner (Sims 1990).  4.4     Labor Unions            Labor union is considered as an organization of workers that have banded and gathered together in order to accomplish common goals in different areas like wages, hours as well as working conditions. Through the leadership of the labor union, it deals and negotiates with the employers (Lewis 2001). As a result, it is the responsibility of the labor unions to make sure that the different policies and rules and regulations that are connected with the training or development process or initiatives, are fair for the employees. It is also their responsibilities to ensure that the programs that are being implemented are conducive for the learning process and flow of the employees, in connection to good working environment. 4.5     Government The government plays a very crucial or vital role in the entire process and aspect of human resource or HR. This is due to the fact the government focuses on ensuring that a respective organization or firm is following the given standards or procedures of the local as well as international law. Thus, the government is responsible in ensuring that the entire T&D process, together with the policies and procedures are following the standard of both the local, national as well as international standards. 5      Application and Benefits of T&D There are different organizations and companies that are focusing on the process and programs of T&D in order to improve the products and services that they are offering towards their customers. All of them are realizing that it has a great impact over their performance. One of the most well-known brand or figure in the field of T&D is Motorola. It is the company that brings up the popularity of applying Six Sigma in their management process. As a result, the company had been able to establish their Motorola University that focuses on developing the learning process and knowledge of their employees, as well as outsiders regarding the benefits of Six Sigma. Motorola University has long been the equivalent of Harvard or MIT in the organization. It is considered as highly respected in terms of corporate universities due to the fact that it offers leading-edge thinking that is related to the goals of Motorola. It was crafted as an internal development course to be used in a blended learning environment. Thus, the principles about leadership are all explained in different practical terms that are easily translated and applied in the actual workplace (Motorola Inc. 2009). As a result, T&D programs are not just valuable for the organization alone, but also for the individual employees, due to the fact that it helps to develop the current abilities and skills. T&D development helps to improve the profitability as well as positive attitudes towards profit orientation that eventually leads to improvement of the job knowledge and skill all levels of management in the organization. Aside from that, it can also help to improve the morale of the workforce, therefore helps the employees to identify the goals of the organization. On the side of the employees, it can help individual to make better decision and have an effective problem solving technique that helped them to encourage and achieve self-development as well as self-confidence that will help individual to handle stress, tension, frustration as well as conflict. This will increase the satisfaction of the employee that will cause motivation for better performance (Sims 1990).       6      Conclusion T&D process and program focuses on improving the performance of each and every individual employee by feeding them new skills and information that will help them to grow. As a result, when employees are more skilled and knowledgeable, they are intended to develop more self-confidence and self-esteem that enables them to work and perform well.      7      References   Arthur, D 1995, Managing Human Resources in Small & Mid-Sized Companies, AMACOM Div American Mgmt Assn   Buhler, P 2002, Streetwise Human Resources Management: All Information You Need to Manage Your Staff and Meet Your Business Objective, Adams Media   Landale, A (ed.) 1999, Gower Handbook of Training and Development, Gower Publishing Ltd.   Lewis, J 2001, Academic Literacy: Readings and Strategies, Houghton Mifflin   Motorola Inc. 2009, Motorola University, viewed 2 January 2008, < http://www.motorola.com/content.jsp?globalObjectId=3084>   Rae, L 1998, Using Training Aids in Training and Development: A Practical Guide, Kogan Page   Rae, L 1999, Using Activities in Training and Development, Kogan Page   Rae, L 2000, Effective Planning in Training and Development, Kogan Page   Sims, R. (1990). An Experiential Learning Approach to Employee Training Systems. New York: Quorum Books.   Sims, R 2002, Organizational Success Through Effective Human Resources, Quorum Books, Westport   Credit:ivythesis.typepad.com

Training and Development : Case Study of Motorola

Training and Development Table of Contents TOC \o “1-3″ \h \z \u 1 Introduction . PAGEREF _Toc29147390 \h 2 2 T...

Excellent HRM is more beneficial to the organization rather than cost-cutting strategies in the area of Human Resources

During times of economic uncertainty or decline, organizations are pushed to look for cost-cutting strategies to drive down cost and to increase the business’ chances of survival. In the area of Human Resource Management, the common contribution that the HR department can give during tough economic times is downsizing the human resources or other cost-cutting approaches.             IT has been argued that during economic uncertainty, instead of looking for cost-cutting strategies, the HR department must focus more on excellent Human Resource Management. This paper explores the proposition that during times of economic uncertainty organizations should be focusing even more on excellent HRM rather than looking to cut costs in this area.               Lawler (2003) asserts that if the organization wants to be more competitive, it needs to treat its people right (cited in Burke and Cooper 2004). When an organization is faced with economic uncertainty, the key is not downsizing or restructuring but on how its treats people. According to Lawler, it is common believed that there is a conflict between what is good for an organization and what is good for people. While sometimes true, when people are treated right the likelihood of such conflict is reduced. Lawler sees this as a two-way street. Organizations must adopt new attitudes; employees have a responsibility in meeting goals or high organizational performance. Perhaps, what Lawler is trying to make us understand is that no matter what the organization is undergoing (such as economic uncertainty) the organization can benefit from treating its employees right, meaning the organization can benefit from having a more streamlined and strategic human resource management. Employees need to take responsibility for their knowledge, skills, development and performance. These efforts foster virtuous spiral success. When organizations value and reward people, those people are committed to performing well. As a result, the organization accomplishes more and it can then reward employees more and attract and retain more talented employees. This leads to even higher organizational performance. This involves developing a variety of HRM practices that motivate people to peak performance with accompanying rewards. Employees, in return, are more committed to the organization and more responsible for their own behaviors.               Excellent HRM is more beneficial to the organization rather than cost-cutting strategies in the area of Human Resources. I think the foundation of this proposition is the view of human resources as a source of the company’s competitive advantage. This perspective is also commonly termed as ‘resource-based perspective’. Looking at the firm in a resourced-based view has given birth to the idea that Human Resource can be a source of competitive advantage for the firm. The importance of HR as a source of competitive advantage sprung up from the resourced-based view of the firm, which presents a notion that firms develop competitive advantages through valuable and inimitable internal resources. The resource-based view is a conceptualization of firms as unique bundles of accumulated tangible and intangible resource stocks. Resource stocks are defined as internal attributes, including assets, capabilities, processes, routines, and knowledge, that are tied semi-permanently to or controlled by a firm (Barney 1991; Wernerfelt 1984 cited in Niehaus 1995). Examples of resources according to Niehaus (1995) are brand names, in-house knowledge of technology, employment of skilled personnel, trade contracts, machinery, efficient procedures and capital.             Viewing HRM as a source of competitive advantage provides a strong argument supporting the proposition that in times of economic uncertainty, it is more advantageous to develop excellent HRM practices and procedures instead of cost-cutting. Firms must focus on attracting the right people. Streamlining the recruitment and selection process, will lessen the cost spent on attracting applicants that the company does not need. Attracting the right people will make training of new hires more effective, thereby avoiding the necessity to constantly look for applicants. Effective training and development strategies are expected to increase employee performance. Increased employee performance has positive effects on organizational performance and earnings.               HRM is particularly linked with all the activities that contribute to successfully attracting, developing, motivating, and maintaining a high-performing workforce that adds to an organization’s competitive advantage (Sims 2002, p. 2-3). HRM is involved with the institution and implementation of policies, programs, and procedures that affect the performance, competences, and loyalty of the organization’s workforce. Through these policies and procedures, individuals are attracted, retained, motivated, and developed to perform the work of the organization. It is through these policies and procedures that the organization seeks to mold and shape the actions of the employees to operate successfully, comply with various public policies, provide satisfactory quality of employment, and improve its position in the market place through strengthened ability to compete and serve (Clardy 1996, p.1).   HRM practices according to Sims (2002) are increasingly viewed as a means to contribute profitability, quality, and other organizational goals through enhancing and supporting organizational operations. Mannix and Peterson (2003), argues that a carefully crafted human resources strategy can be or at least can result in, a source of competitive advantage in the market place.   According to Sims (2002), incorporating the top management’s goals to the HRM practices and policies will bring out and reward the types of behaviour necessary for achieving an organizations’ strategy. Effective HRM practices can enhance an organization’s competitive advantage by creating both cist leadership and differentiation. The HRM function focuses its activities on ways to help the organization achieve corporate goals like growing through recruiting and hiring employees, orienting and training them and making their initial and future job assignments. HRM contributions to a cost leadership strategy focus on recruiting and retaining employees who can work as efficient and productive as possible. HRM contributes to the successful use of differentiation strategy by recruiting and retaining employees who can perform high quality work and who can provide exemplary customer service (Sims 2002).   Human Resource Management is a source of an organization’s competitive advantage because: 1. It provides the right kinds of talent to the organization at the right time. HRM is expected to assure that a supply of qualified labor in a timely fashion (Clardy 1996, p.20). 2. It ensures that the organization is properly staffed. When done effectively, the staffing, recruitment, and selection process provides a flow of qualified individuals for filling open positions within the organization on a timely and efficient basis (Clardy 1996, p. 41). 3. Using appraisals, the employees are assesses and evaluated. Employee appraisals have very profound implications for both the employees and for the future success of the organization (Clardy 1996, p.58). 4. Using effective pay systems, the management can focus employees’ efforts toward desired organizational goals (Clardy 1996, p.79). 5. Ensures that the employees are properly skilled to perform their tasks and supports the organization’s growth through career development. The goal of training as part of the human resources management processes is to create cost-effective programs that build the skills to perform effectively (Clardy 1996, p.103).   Over the years, HRM has taken a more active role in the decision-making and management processes of the organization. HRM is now viewed by more and more organizations as a strategic partner and thus Strategic Human Resource Management arose. Strategic human resource management aims at the improvement of the way human resources are managed strategically within organizations, with the definitive goal of improving organizational performance, as judged by its impact on the organization’s declared corporate strategy, the customer or shareholders (Brewster et al 2000, p.6). Strategic human resource management (SHRM) is a philosophy of people management based on the belief that human resources are uniquely important to sustain the success of a business. SHRM can be defined as the process of linking the human resource functions with the strategic objectives of the organization in order to improve performance (Ahmed et al 2006). According to Sims (2002), effective SHRM planning aids in creating a competitive advantage for an organization (p.30). SHRM planning when done correctly provides a number of direct and indirect benefits for an organization. <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Identification of gaps between an organization’s current situation and 	desired future</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Explicit communication of organizational goals</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Encouragement of proactive instead of reactive behavior</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Stimulation of critical thinking</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Creation of common bonds and a sense of shared values and expectations</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Identification of the potential problems and opportunities </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">HRM 	costs may be lower because management can anticipate imbalances before they 	become unmanageable and expensive</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">More 	time is available to locate talent because needs are anticipated and 	identified before the actual staffing is required</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Better 	opportunities exist to include women and minority groups in future growth 	plans.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Development of managers can be better planned</li> </ul>   Viewing SHRM in a resource-based perspective, Wright and McMahan (1992) argues that human resources have the ability to provide sustained competitive advantage through the fulfillment of four basic requirements. 1. Human Resources can be a source of competitive advantage if they are able to add value to the production processes of the firm. 2. Human Resources can be a source of competitive advantage if they are equipped with rare skills. 3. Human Resources can be a source of competitive advantage if they are able to yield a human capital that is hard to imitate. Although human resources are not subject to the same degree of imitation as equipment of facilities, the firm can invest on its human capita to in order to further decrease the probability of such imitation by qualitatively differentiating a firm’s employees from those of its competitors. 4. Human Resources can be a source of competitive advantage if they are not subject to replacement by technological advances or other substitutes.   Viewing human resources as a resource that has the potential to contribute to the achievement of sustainable competitive advantage, Burke and Cooper (2004) argued that SHRM has emerged as a major approach to improving the competitive advantage of the firm. As an approach to improving the competitive advantage of the firm, the aim of SHRM is to attract, train and develop and retain employees of the highest quality. Over time and throughout rapidly changing circumstances, organizations must be able to sustain the competitive advantage that the knowledge and skills of these employees provide. In the past, competitive advantage could be gained through finding better, cheaper access to financial capital, or marketing a new product, or inventing some new technologies. While cheap and ready access to capital, high-quality products, and new technology remain important components of any organization’s competitive advantage, today’s business environment requires a greater focus on the human resources element in business. Out of this realization has come SHRM (Sims 2002). Sims (2002) considers human resources as a source of competitive advantage for the firm. Thus, he views SHRM as a contributor in developing and retaining this source of competitive advantage.   The strategic view of human resources as a source of competitive advantage has given birth to new roles for the HR department especially the HR manager. Ulrich’s (1997) model of HR roles seeks to focus HR delivery on a framework that promotes specialist knowledge and positions it to deliver on the challenges presented to HR. These challenges are: <ul style="margin-top: 0in; margin-bottom: 0in" type="circle"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Strategy</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Financial Performance</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Change 	Management</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Business Performance Improvement</li> </ul> In Ulrich’s model, each role combines to focus on delivering improvement with the function and within the business. The new roles of the HR manager according to Ulrich (1997) are: 1. Strategic Partner – by having a strategic partner who clearly focuses ob strategic issues, HR is able to tackle them. As strategic partners, HR managers understand the critical factors affecting organizational competitiveness and communicate benefits that change strategies and interventions provide to the firm. Strategic partners thoroughly understand business fundamentals, core processes, operations and procedures (Gilley and Maycunich 2000). 2. Administrative Expert – through an administrative expert, the HR function is able to demonstrate it is supporting financial goals of the company by focusing on having efficient and high quality service. 3. Employee Champion – through the employee champion role, the HR function is able to focus on the employee relationship and improving employee capability. Human resource managers, according to Ulrich (1997), are in a unique position to serve as employee champions. As such, they reveal the correct balance between work demands and resources, identifying legitimate demands on employees and helping these workers focus by setting priorities. Employee champions also distinguish creative ways of leveraging resources so that employees do not feel overwhelmed by what is expected of them. 4. Change Agent – the change agent role allows the function to meet the challenges of the changing business environment and positioning the business to execute strategy. In the role of change agent, HR managers exercise the greatest organizational impact and influence. When HR managers act as change agents, they establish high credibility within the organization and great influence with key decision makers, line managers, and employees (Gilley and Maycunich 2000).   Shrinking HR vs. Transforming HR             Many companies will make across-the-board budget cuts to respond to mandates from senior management to lower costs. This strategy achieves short-term results, but dies not necessarily help a company achieve its long-term goals for greater efficiency. Although a short-term solution to reducing HR costs might be to cut “discretionary” programs like training, college relations, and health and wellness initiatives, forward-looking companies understand that these types of cuts will hurt the business in the long term. Delaying investment in HR can ultimately increase a company’s people-related costs (Rison and Tower 2005). Firms that have cost-reduction strategies do not invest in human resources. This in turn can result to lower levels of training, teamwork, internal labor markets, employee participation and pay (Marchington and Wilkinson 2005).             On the other hand, there are companies that instead of shrinking HR opt to transform HR. Transforming HR means closely aligning HR practices, policies, goals and objectives with the goals and objectives of the company. Thinking holistically about how HR delivers services is the most effective way to reduce costs over the long term. This means looking beyond the current costs to understand how work gets done and delivers value to the organization. It also means holding tenaciously to the goal of providing value through HR, even in a time of intense budget scrutiny (Rison and Tower 2005).       References   Ahmed, F.. Ullah, M. H. and Uddin, M. K.  (2006), Strategic Human Resources Management: Linking HR Practices with the Business Strategy, 34(3), 15-30.   Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17, 99-120.   Brewster, C, Mayrhofer, W. and Morley, M. (Eds.) (2000). New Challenges for European Human Resource Management. Basingstoke, England: Macmillian.   Burke, R. and Cooper, C. (Eds.) (2004). Reinventing Human Resources Management: Challenges and New Directions. New York:Routledge.   Clardy, A. (1996). Managing Human Resources: Exercises, Experiments, and Applications Workbook. Mahwah, NJ: Lawrence Erlbaum Associates.   Gilley, J. W. and Maycunich, A. (2000). Beyond the Learning Organization: Creating a Culture of Continuous Growth and Development through State-Of-The-Art Human Resource Practices, Cambridge, MA: Perseus Publishing.   Lawler, E.E. III (2003) Treat People Right. San Francisco, CA: Jossey-Bass.   Mannix, E. and Peterson, R. (Eds.) (2003). Leading and Managing People in the Dynamic Organization. Mahwah, NJ: Lawrence Erlbaum Associates,   Marchington, M. and Wilkinson, A. (2005). Human Resource Management at Work: People Management and Development. CIPD Publishing.   Niehaus, R. (1995). Strategic HRM. Human Resource Planning, 18(3), 53+.   Rison, R. P. and Tower, J. (2005). How to Reduce the Cost of HR and Continue to Provide Value, Human Resource Planning, vol. 28, no. 1, 14+.   Sims, R. (2002). Organizational Success through Effective Human Resources Management. Westport CT: Quorum Books.   Ulrich, D. (1997). Human Resource Champions: The Next Agenda for Adding Value and Delivery Results. Harvard Business School Press.   Wernerfelt, B. (1984). A Resource Base View of the Firm. Strategic Management Journal, 5, 171-180.   Wright, R. M. and McMahan G. C. (1992). Theoretical Perspectives for Strategic Human Resources Management. Journal of Management, 18(2): 292-320.                   Credit:ivythesis.typepad.com

Excellent HRM is more beneficial to the organization rather than cost-cutting strategies in the area of Human Resources

During times of economic uncertainty or decline, organizations are pushed to look for cost-cutting strategies to drive down co...

Strategic Management of Human Resources

Question 2: Learning Approach to Development               For a developmental activity to be deemed ‘strategic’ organizations need to shift the focus from a ‘training’ to a ‘learning’ approach. Organizations today must deal with a plethora of challenges and problems such as changing business environments, stiff competition among firms, volatile economic conditions and the intensifying race for talents. In order to succeed in the current situation, organizations are starting to focus on their human resources. The organization’s human resources or its people is now considered as a source of sustainable competitive advantage. In order to use the full potential of their human resources, organizations are training and developing their people – helping them acquire the skills, knowledge and abilities that are sure to yield positive results. But, there is a growing acceptance among practitioners, managers and employees that training is not enough. In order for the organization to keep its competitive advantage and in order for its employees to remain competitive, the organization must adapt a learning approach to human resources development (HRD). Thus, lifelong learning emerged as a new approach to developing employees. Training is considered as planned learning experiences that teach employees to perform their current jobs. Training focuses on present jobs (Sims 2002). Based on this definition of training, we can assume that training is more focused on short-term acquisition of knowledge, skills and abilities. Trainings are planned learning activities. So form this definition, it is clear that training is not enough to ensure the success of the organization and it is enough to keep the workforce at pace with the changes in the business environment. So now, organizations are beginning to adapt a learning approach to employee development. Learning is defined as a relatively permanent change in an attitude or behavior that occurs as a result of repeated experience. Organizations must encourage learning through both formal and informal circumstances. Organizations must encourage employees to continue learning inside and outside their work settings. Thus, Human Resource Development (HRD) and lifelong learning emerged.               Human Resources Development according to Eggland and Gilley (1998) can be defined as the introduction of organized activities designed to foster increased knowledge, skills, and competencies and improved behavior. HRD refers to learning and to the activities that bring about desired change (p.5). Training alone is not enough to develop and prepare the employees for their present and future responsibilities. HRD according to Smith (1988) is a series of programs and activities, direct and indirect, instructional and/or individual that positively affects the development of individual and the productivity and profit of the organization. According to Donaldson and Scannel (2000), training is an attempt to transfer skills and knowledge to trainees in such a way that the trainees accept and use those skills in the performance of their jobs while learning is a lifelong process in which experience leads to changes within the individual. Learning is a change in behavior resulting from experience. Learning is the act of acquiring knowledge or skill. It is a mental activity by which skills, habits, ideas, attitudes, and ideals are acquired, retained, and utilized, resulting in the progressive adaptation and modification of behavior. HRD is the filed of study and practice responsible for fostering of long-term, work related learning capacity at the individual, group, and organizational levels. As such, it includes but is not limited to training, career development, and organizational development. According to Nadler and Wiggs (1986) HRD is a comprehensive learning system that releases the organization’s human potential; a system that is both experience and experiential, on-the-job experiences that are keyed to the organization’s reason for survival.             From the discussion above, it can be said that HRD is primarily a ‘learning’ approach to employee development. As such it facilitates organizational learning through training and development of individuals, groups, and organization as a whole. HRD is composed of a series, a lifelong learning that aims to increase the capability of the employees and the organization through performance based activities. HRD can then be described as a comprehensive learning system designed to enhance individual performance for improving organizational efficiency.             Lifelong learning (or continuous learning) provides extensive continuing training, from basic remedial skills to advanced decision-making techniques throughout employees’ careers. Tannenbaum (1997) defines continuous learning as the process by which individual and/or organizational learning is fostered on an ongoing basis. One of the major tenets of continuous learning philosophy is that employees at all levels of the company must actively pursue training and development activities. Continuous learning also requires employees to understand the relationship between their jobs and work units and the company’s mission. Continuous learning is an ongoing acquisition of new skills, which happens as the person senses the need for updating, as opposed to a less frequent, massive reskilling process. Continuous learning focuses on helping the employees to develop and update their knowledge and skills. Just as the current business environment demands that organizations unleash employee potential by empowering them and delegating authority and responsibility for meeting customer needs, employee also needs to be given responsibility, autonomy, and resources for his or her own continuous learning and development (Craig and Hall 2004).   Macquarie maintains a flexible management and organizational set-up so as to be able to change according to the demands of the business environment. During the 1980s and 1990s changes occurred in the environment of Australian financial institutions. These included rapid deregulation of the financial services sector by the Australian Labour Government. The critical moves involved were the floating of the Australian dollar; progressive removal of restrictions on competition between banks, building societies, merchant banks and other institutions which offer financial and financially related services; approval of new banking licences including licences to 16 foreign-owned banks to operate in Australia. Macquarie Bank manages to remain successful by introducing incremental adjustments while operating in a rapidly changing environment.       Question 3: Strategic Performance Management             In the recent years, Strategic Human Resource Management (SHRM) increased in popularity among researchers, practitioners, and managers. SHRM is defined as linking the HRM function to the strategic goals and objectives of the organization to improve business performance and develop organizational cultures that foster innovation and flexibility (Verweire and Berghe 2004). The main objective of SHRM is to strategically improve the way human resources are managed within the organization. The definitive goal of SHRM is to improve organizational performance as judged by its impact on the organization’s declared corporate strategy, the customer or shareholders (Brewster et al 2000, p. 6).             Strategic human resource management (SHRM) is a philosophy of people management based on the belief that human resources are uniquely important to sustain the success of a business. SHRM can be defined as the process of linking the human resource functions with the strategic objectives of the organization in order to improve performance (Ahmed et al, 2006). Strategic human resource management involves the linking of HRM with the strategic goals and objectives of the organization in order to achieve a progressive business performance and achieve an organizational structure that promotes innovation and flexibility (Buyens and de Vos 1991). Strategic HRM according to Burke and Cooper (2004) has emerged as a major approach to improving the competitive advantage of the firm. The goals and objectives of HRM are aligned with the strategic objectives and plans of the organization. The role of HRM is to determine the human resources needed to support strategic objectives and to ensure that employees are selected, trained, evaluated, and rewarded in ways that further the achievement of business objectives. Strategic HRM is frequently described as a linear, balanced process that begins with the identification of goals that will guide human resource practices. The integration of the HR programs with the goals of the organization will result to the organization’s increased value. The recruitment, compensation, performance appraisal, promotion, training and other functions are designed and managed so that they work towards the strategic objectives of the firm (p.92). Strategic HRM has the purpose of improving the way that human resources are managed within firms. The main objective of strategic HRM is to improve organizational performance as judged by its impact on the organization’s declared corporate strategy (Brewster et al 2004, p. 29). Strategic human resources management means accepting the HRM function as a strategic partner in both the formulation of the organization’s strategies and the implementation of those strategies through activities such as recruiting, selecting, training, and rewarding personnel (Sims 2002, p. 27). The enhanced value of innovation in determining competitive advantage requires organizations to attract, train and develop, and retain employees of the highest quality. Over time and throughout rapidly changing circumstances, organizations must be able to sustain the competitive advantage that the knowledge and skills of these employees provide. In the past, competitive advantage could be gained through finding better, cheaper access to financial capital, or marketing a new product, or inventing some new technologies. While cheap and ready access to capital, high-quality products, and new technology remain important components of any organization’s competitive advantage, today’s business environment requires a greater focus on the human resources element in business. Out of this realization has come SHRM (Sims 2002).               In order for a performance management system to become strategic, it should be designed in such a way that it develops the potential of staff, improve their performance and, through linking an employee’s individual objectives top business strategies, improve the company’s performance. Performance management is about directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organization (Williams 2002).   Performance management helps organizations sustain or improve performance, promote greater consistency in performance evaluation, and provide high-quality feedback. Performance management helps organizations link evaluations to employee development and to a merit-based compensation plan. Moreover, it form a basis for coaching and counseling, permits individual input during the evaluation process, and allows for a blend of qualitative and quantitative expectations of job demands and factors that reveal how well the job is done (Gilley and Maycunich, 2000). Performance management is the integration of performance appraisal systems with broader HRM systems as a means of aligning employees’ work behaviors with the organization’s goals. Thus, a performance management system consists of the processes used to identify, encourage, measure, evaluate, improve, and reward employee performance at work (Sims, 2002).             Performance management is founded in the following intentions and expectations: <ul style="margin-top: 0in; margin-bottom: 0in" type="circle"> <li class="MsoNormal" style="text-align: justify; line-height: 200%">It 	transforms organizational goals to individual, team and unit goals</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">It aids 	in clarifying the organizational goals</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">It 	supplies a process for measuring outputs compared with objectives but also 	examines the inputs needed to achieve the objectives</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">It 	relies on consensus and co-operation</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">It 	encourages self-management of individual performance </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">It is a 	continuous and evolutionary process and achieves improvement over time</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">It is 	strongly associated with development and especially identifying what 	development is needed (Thomson 2002)</li> </ul>               As an instrument of strategic human resource management (SHRM), a system of performance management is predicted on the need to take the wide, strategic goals of the organization, and translate them into goals for smaller groups and individuals (Mabey et al 1998).   In the case of Macquarie Bank, the firm hurdled through the different challenges imposed by the changing business environment. The firm has taken a strategic approach in management of its human resources. Studying the history of the bank from its inception up until now, it is evident that the bank has undergone restructuring and changes. It was first established as a merchant bank that later on diversified. Macquarie continuously adjusted its operations and strategies depending on the demands of the business environment. The bank demonstrates features of SHRM.             The bank views its people as a source of competitive advantage and important to its success. The goals and objectives of the HR department are linked with the overall goals and objectives of the organization. This is evident on the amount of attention the bank is giving on developing its Recruitment and Selection, Performance Appraisal, Rewards and Compensation, and Organization and Development. The bank began to expand in the 1980s and 1990s. This created problems of co-ordination. In order to deal with the problems, the bank took a strategic approach to HRM by creating a ‘Goals and Values’ statement. The goals and values statement is an articulation of deeply held values about cultural and business behavior, including how the process of change should be managed. The values statement is essentially a set of values and norms; internal controls, that substitute for external control systems.  This was supplemented by developing business units into highly autonomous profit centres and then creating cross-functional synergies through more systematic communication by management across these centres.               The bank also maintains its small size, and align all its strategies with its business philosophy. The management also believes that as the bank grows, the management philosophy, policies, procedures and Human Resource Management must be assessed and developed.      References Ahmed, F., Ullah, M. H. and Uddin, M. K. (2006). ‘Strategic Human Resources Management: Linking HR Practices with the Business Strategy, 34(3),15-30.   Brewster, C. Mayrhofer, W. and Morley. M. (eds.) (2000). New Challenges for European Human Resource Management. England: Macmillan, Basingstoke.   Buyens, D. and De Vos, A. (1999). ‘The added value of the HR department’, in C Brewster & H  Harris (eds.), International HRM: Contemporary Issues in Europe (31-47). New York: Routledge.   Craig, E. and Hall, D. (2004). The New Organizational Career Too Important to be Left to HR? In R. J. Burke and C. L. Cooper (Eds.), Reinventing Human Resources Management: Challenges and New Directions (pp. 115-132). New York: Routledge.   Donaldson, L. and Scannell, E. (2000). Human Development: The New Trainer’s Guide. Cambridge, MA: Perseus Books.   Eggland, S. and Gilley, J. (1998). Principles of Human Resource Development. Reading MA: Addison Wesley.   Mabey, C., Salaman, G. and Storey, J. (1998). Human Resource Management: A Strategic Introduction. Wiley-Blackwell.   Nadler, L. and Wiggs, G. (1986). Managing Human Resource Development: A Practical Guide. San Francisco: Jossey-Bass.   Sims, R. (2002). Organizational Success through Effective Human Resources Management. Westport CT: Quorum Books.   Tannenbaum, S. (1997). Enhancing Continuous Learning: Diagnostic Findings from Multiple Companies. Human Resource Management. 36, 437-452.   Thomson, R. (2002). Managing People. Butterworth-Heinemann.   Verweire, K. and Berghe, L. (2004). Integrated Performance Management: A Guide to Strategy Implementation. SAGE.   Williams, S. (2002). Managing Employee Performance: Design and Implementation in Organizations. Cengage Learning EMEA.             Credit:ivythesis.typepad.com

Strategic Management of Human Resources

Question 2: Learning Approach to Development For a developmental activity to be deemed ‘strategic’ organizations need to shi...

Strategic Human Resource Management in Subway Sandwich Restaurant

HUMAN RESOURCE MANAGEMENT IN A SUBWAY SANDWICH RESTAURANT   The world’s famous subway sandwich restaurant franchise system in the world that is independently owned and operated by various entrepreneurs.  Franchisees established their own human resources strategies and policies and implement their own employment rules and policies.  The Subway sandwich restaurant chain is increasing tremendously, and still continues to boom with new marketing opportunities in shopping center, mall and free standing  locations.  Other franchisees locate their own Subway chain to hospitals, colleges, sports arenas and airports.  The Subway chain has been in every part of the globe.  And, most of these franchise stores are located in the United States and others are located in other parts of the globe. The company has innovative and efficient Subway developers, field staff and leasing specialists from different parts of North America.  The Subway chain has an effective marketing and operational system that helps in promoting their products as well as in increasing its wide range of consumer base.  Subway restaurants have unique restaurant concepts, and do not need a wide and spacious location.  The Subway restaurants are flexibly operating anywhere.  In addition to that, Subway restaurants have different marketing concepts and designs as well as various strategic locations such as Jeep assembly plant in Ohio; you can also find it in a new car showroom in California.  In the same manner, there is also a Subway sandwich restaurant in a church in New York.  Other consumers can also eat healthy sandwiches while inside the laundry and tanning salon in Wisconsin.  There is also a chain store inside the High School compound in Detroit, and the best thing is, the students can earn college credits for operating a Subway sandwich restaurant inside the university.  You can also find a floating Subway sandwich restaurant aboard on a river boat in Germany.   And, there is still a plan to try to put a Subway sandwich café to satisfy the food needs of the employees in the office buildings and large establishment and huge commercial buildings.  The menu will include the baked goods and frozen coffee drinks.  The Subway café concept will be designed as a combination of sandwich shop and coffee bar that is located in a cozier environment for coffee break.  (http://www.hr.com/en/communities/subway%C2%AE-world-headquarters-selects-ultimate-softwa_g5rg5kop.html)   The Subway restaurant chain is presently the world’s leading submarine sandwich store franchise that has 32, 200 locations in 90 countries worldwide.  It started our in Milford, Connecticut.  At the same time it has also regional operation in Amsterdam, Beirut, Brisbane, Miami, Singapore, India, and in the United Kingdom.  And, because of its excellent performance worldwide, it has been recognized as number one Global Franchise sandwich restaurant in the globe.  More than that, the Subway restaurant has been providing its employees an outstanding strategic human resources management, recruitment, strict compliance to attendance management as well as performance supervision among its employees.  Payroll and talent and performance solutions have been also in the company’s top priority.  These are all the strong evidences that Subway restaurant has been recognized as having excellent human capital management solution for over the years now.  In fact, Subway‘s headquarters uses payroll service bureau in its US-based chains. All its human resources capital will be centralized already through the help of UltiPro; this is a most complete solution that meets all the human resources management system of Subway sandwich restaurants worldwide.  Currently, Subway has its outstanding strategic and systematic transactional human resources management system for the most advantageous workforce performance and productivity among its employees.  (http://www.managementparadise.com/forums/human-resources-management-h-r/215128-organisational-structure-subway.html) Furthermore, Subway sandwich restaurants are a fast food franchise, but they prepare and serve healthy and fresh food for their customers but in a reasonable price that everyone can afford to buy and eat.  In fact Subway has its new great “Five dollar foot long” campaign in a very affordable cost.  They have sandwiches that are loaded with fresh veggies.  They really make great sandwiches, they are generous with toppings, and the employees are keen to details.  The employees are really giving excellent customer service.  After all, Subway is an American restaurant franchise that primarily caters submarine sandwiches, salads and personal pizzas.  The specialty sandwich that the restaurant has is the Chicken Pizziola sandwich; this is a 6-inch sandwich that made of nine-grain wheat bread, lettuce, tomatoes, onions, green peppers, cucumbers and cheese.  In Subway, the customers may choose the bread, toppings and condiments for the sandwich they order.  And, healthy sandwiches are being prepared in front of the customers. This restaurant chain has been dominating in the world market since 1995 through its employees’ hard work and high quality food products.  (http://renegadehr.net/case-study-hr-practices-subway/)  References: (http://www.hr.com/en/communities/subway%C2%AE-world-headquarters-selects-ultimate-softwa_g5rg5kop.html) (http://www.managementparadise.com/forums/human-resources-management-h-r/215128-organisational-structure-subway.html) (http://renegadehr.net/case-study-hr-practices-subway/)         Credit:ivythesis.typepad.com

Strategic Human Resource Management in Subway Sandwich Restaurant

HUMAN RESOURCE MANAGEMENT IN A SUBWAY SANDWICH RESTAURANT The world’s famous subway sandwich restaurant franchise system in the worl...