Part One: Learning Journal
Introduction
This paper presents a collection of the learning journal entries that I have made all throughout the course. The learning journal aims to record the things that I learned from class discussions, personal readings, experiences and observations. It aims to develop my skills in critical things and to facilitate personal development. In this paper, I aim to organize my reflections, thoughts and queries and be able to share them to the readers and other learners.
HRM: Strategy and Policy
Human Resources: Source of Competitive Advantage
Through the module and class discussions I learned that more and more companies worldwide are viewing their human resources (people) as a source of competitive advantage. I find this very interesting so I decided to research on it. I consulted several published materials and searched on the internet. I has been argued that an organization can achieve success if it is able to effectively deploy its human resources (Schuler et al 1993). According to Wright et al (1994) human resources – the total pool of human capital under the control of the firm have the highest probability, among all resources, of being the source of sustained competitive advantage for the firm. This is because human resources are more likely than other resources to be:
o Inimitable
o Non-Substitutable
o Valuable
o Rare
Relating this perspective to my experience as an employee, I reflected on the processes and policies of our organization. Our organization values human resources. It values the talents, knowledge, skills and abilities of every employee. Every HR policy and procedure in the organization seeks ensure that the organization has a large pool of talented human resources. The company values human resources that is why it promotes training and development. The employees are given importance that is why the company has a competitive reward and compensation system. The organization also makes it a point that career development opportunities are available for every one. Through research, reflections of personal experience and by consulting published materials I found that there is a growing interest on human resources as a source of competitive advantage. I believe that the people in the organization that uses their talents, expertise and knowledge in order to achieve organizational goals and objectives are behind the success of every organization.
Human Resource Management and Its Contributions
HRM is really an interesting field for me. The growing interest in the field of human resources has led to many studies and research regarding the contributions of human resource management to the success of the organization. I learned through class discussions and research about the definition of HRM. Human Resources Management refers to the philosophy, policies, procedures, and practices related to the management of an organization’s employees. Human resources management is particularly related with all the activities that contribute to successfully attracting, developing, motivating, and maintaining a high-performing workforce that results in organizational success (Sims 2002, p. 2-3). Human resources management covers the every aspect of the relationship between the individual and firm including recruitment, contractual obligations, individual training and motivation, corporate planning, performance monitoring, grievance handling and general welfare, dismissal and redundancy (Vernon 2002, p.101).
Over the years HRM has become an integral part of every organization that deals with affairs, policies and processes about the people in the organization. As I have observed in our organization, HRM has become more of like a partner of the management. The HRM department works closely with the top management and the employees. The HRM department is part of the strategic planning process. In our organization, the top management seeks input from the HRM department when it comes to planning especially on areas where human resources (employees) are involved. The information that the HR department provides are very essential. I conducted added research on the importance of HRM and how it contributes to the success of the organization. Here are what I have gathered:
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).
Through my added research on the topic, I found out that HRM truly is a contributor to the success of the organization. It adds value to the organization. Today, organizations have equal access to resources. Every organization can acquire new technology, finances and other physical resources. So success now depends on resources that are hard to imitate. I think the overall aim of HRM is to make sure that the organization have an adequate amount of talents and skills, and make sure that these people who use their talents, skills, knowledge and abilities for the sake of the organization are motivated, properly rewarded and that their needs such as learning and development, work-life balance, career opportunities are satisfied.
Strategic Human Resource Management
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).
Key Roles of Strategic Management that add value
According to Ulrich et al (1995), HR has important value-added roles in the organization. These roles must be effectively delivered by the HR because they are essential to the achievement of the organization’s goals. The HR roles according to Ulrich (1997) are:
1. Management of strategic human resources
The focus of this role is on the alignment of the HR strategies and practices to the business strategy. The HR professional becomes a strategic partner that creates a concrete HR practices based on the organization’s strategy.
2. Change and transformation management
This role is also seen as a source of added value to the organization. The HR professionals must help to identify and implement the change processes all throughout the organization. The HR professionals act as mediums and guards of cultural changes.
3. Employee management
This role address issues such as the daily problems, expectations and needs of employees. Identifying and meeting the specific needs of the employees will result to better employee contribution.
4. Management of the administration of the organization
The role of HRM is to make sure that the administrative processes like involving hiring, training, evaluation and promotion are designed and delivered efficiently and correctly.
Cross Cultural Management
Diversity Management
Diversity on the workplace, especially cultural diversity has become more common because of the increase in international trend and the growth of globalization. Companies all over the world are seeing the advantages of borderless world economy and they start to form partnerships, alliances, and joint ventures around the globe. The workforce is also becoming more mobile. These developments have made management of diversity more important than ever before. As a student who aims to be a manager someday, I need to be aware and educated about the changes that are taking place in the workplace. I need to understand diversity and be able to manage diversity in the workplace. Managing Diversity is the organization’s commitment to integrate and develop individuals that make up a heterogeneous workforce. Diversity management is the development of organizational strategy, culture, policies and practices that support interpersonal respect, communication, and individual, team and organizations performance in a diverse environment. A diverse organization employs people with different culture. I believe that in order to participate and compete internationally, a company needs to have a diverse workforce with diverse talents and skills. Extending the business to other territories and countries means that an organization needs to diversify its workforce. A company that chose to go global explores new markets (host markets). In order to better understand the host market, an international company needs to employ locals. Thus in employing local residents, the international company opens its doors to cultural diversity. When diversity is not properly managed, problems, misunderstandings and conflicts will arise.
Our class discussions made me realize that the world today is becoming borderless. Unlike before, so many things make business a lot easier. I also realized that organizations are changing. In order to succeed in a borderless world, an organization must take advantage of the talents, ideas and values that everyone in the organization brings with them regardless of their background. The organization needs to capture the energy and ideas of every employee to meet the challenges of the intensely competitive marketplace. I believe that organizations that operate globally can be successful if they can manage cultural diversity. Organizations need to bring people together from different cultural backgrounds and forge them into synergistic work groups.
Cultural Dimensions
The increasing number of international firms means that employees are finding themselves to be working side by side with different people from different cultural backgrounds. Interactions between people from different cultures are increasing as international firms sell, purchase and outsource in a growing number of countries, acquire more firms in other countries and use more international joint ventures, alliances and cross-border teams and task forces.
One topic that I found interesting and at the same time useful is cultural dimensions. I found out that there are core value dimensions that vary from one culture to another. Culture is defined as the set of values, attitudes and beliefs that is shared by a group. In order for a member of a group to be accepted and to participate, he or she must embrace the culture of the group. I consider culture as something that dictates the norms of a certain group.
In our class discussions we talked about cultural dimensions. One of these is societal role. There are cultures that encourage people to work alone and there are cultures that support people who work in groups. I realized that in order to be an effective manager in a diverse organization, one must be able to consider this value dimension. We must accept the fact that people have different personalities. Another dimension that took my interest was the mode of communication. I learned that there are two modes of communication – high context and high content. The high-content communications is complete, straightforward and direct. In high-context communication, much of the message is unspoken; the spoken message is indirect, subtle, and incomplete. Communication is an important factor in managing a culturally diverse organization. I now understand that people communicate differently. In order for me be become an effective communicator I must develop a strong relationship with the people that I worked with. It is important to be clear in everything I say to avoid misunderstandings. Another dimension that is of interest to me is masculinity/femininity. A masculine culture exhibits aggressiveness, decisiveness and competitiveness; places great value on achievement outside the home, power, grandeur, and well-defined gender roles. A feminine culture is tender, exhibiting modesty, reticence, caring for other, and concern for favorable environment. I consider Chinese organizations as feminine. Meaning, everyone in the organization values harmony and always avoids conflicts. Chinese people compared to those in the west are more modest and caring. Chinese always settle conflict by negotiation. Perhaps the most intriguing dimension for me is power distance. Power distance as defined by some writers represents the degree to which people accept unequal distribution of power. I consider the Chinese culture as high in power distance. I observed that people in different settings, such as in school or in the workplace, depend in authority and expect the people in authority to direct them. In order to be successful in managing a culturally diverse organization, it is important to understand that power distance is viewed differently from culture to culture.
IHRM and Diversity Management
In the previous section, HRM was defined as the philosophy, policies, procedures, and practices related to the management of an organization’s employees. I believe that diversity management is one of the practices in Human Resource Management. Diversity Management is more active in International HRM.
The increasing number of international firms means that employees are finding themselves to be working side by side with different people from different cultural backgrounds. Interactions between people from different cultures are increasing, as international firms, sell, purchase and outsource in an increasing number of countries, acquire more firms in other countries, and use more international joint ventures and alliances and cross-border reams and task forces.
In the area of Human Resource Management (HRM), managing diversity must be present in all processes. For example, the recruitment process of the organization must reflect its commitment to cultural diversity. In addition, many organizations, are introducing diversity training, in order to ensure that every employee accepts diversity in the workplace. The topic of cross-cultural management always leads to HRM particularly International HRM or IHRM. Broadly defined IHRM is the process of procuring, allocating, and effectively utilizing human resources in a multinational corporation. In the area of IHRM, the management needs to develop HRM practices and policies that consider the cultural background of the employees. For example an international business that seek to expand its operation in China must take into consideration the characteristics of the culture, the values and behaviors of the employees that were derived from their culture.
Cultural diversity management has made me realized that the world is becoming flatter. I think that cultural diversity in the workplace will continue to increase. As people become more mobile and as businesses become more global, diversity in the workplace will become more common. Perhaps the key to successful cross-cultural management is respect and being open-minded. As a future manager, I should develop a respect for every person, regardless of his or her cultural background. I should also learn to be more open-minded. Instead of judging people, I must learn to accept that every individual is unique. Everyone can contribute to the success of the organization.
Managing Change
Management of change is defined as a structured approach to individual, ream, organization, and society transitions. The aim of management of change is to move the target from a current state to a desired state. Management of change is primarily focused in managing the people side of change. Management of change involves the adaptation of new business model into an organization in order to transform.
I learned that change does not happen overnight. It is a process that must be properly planned. The major focus of managing change is managing the people within the organization. I believe that in order for a change initiative to be effective, the people within the organization must be educated and informed about the planned change and why it is important. Management of change must be continuously monitored for effectiveness and must be implemented throughout the organization and must be adjusted in order achieve the desired goals. Management of change is defined as a structured approach to individual, ream, organization, and society transitions. The aim of management of change is to move the target from a current state to a desired state. Management of change is primarily focused in managing the people side of change. Management of change involves the adaptation of new business model into an organization in order to transform.
Core Concepts
The organization is viewed as a system that is comprised of the following components:
§ Task
§ Individuals
§ Formal organizational arrangements
§ Informal organization
In order to change, an organization requires an appraisal of its internal and external environment. Analyzing threats and opportunities, strength and weaknesses, and resources is the cornerstone of strategic management. One of the core concepts of managing change is the identification of change need. I learned that in order for the organization to facilitate change and to be successful in implementing change, identification of the change need must first be accomplished. In managing change, it is also important to deal with the factors that cause resistance to change. This entails the management of the people side of change. People resist change because of different reasons but it all boils down to the fear of the unknown. People resist change because they are uncertain about the impact of the change. They resist change because they are not well informed and educated.
I learned that change is a process that requires a deep understanding of the organization and its components. Change can be caused by different environmental factors. For example, many organizations are introducing flexible working arrangements and family-friendly policies. This change in the aspect of work can be caused by the changes in the demography of the labor force. This can also be caused by the desire of the organization to attract and retain its employees and to improve its production. Whatever may be the reason behind a change, the change agent and the management must have a proper understanding of the organization.
Recognizing and Diagnosing the Need for Change
Recognizing and diagnosing the need for change requires an in-depth analysis of the organization and its need for change. Before the organization embarks on a change process, the management must first find out the current state of the organization and its needs. The need for change is often propelled by a demand from either the internal or the external environment. Change strategists and implementers must understand the organization’s operations, how it functions in its environment, what its strengths and weaknesses are and how it will be affected by proposed changes in order for them to craft an effective implementation plan. Recognizing and diagnosing the need for change is a very crucial stage in the change process, as it will direct the organization the right path. If the initial stage of the change process (recognizing and diagnosing the need for change) is not sound, no amount of implementation know-how will help the organization in achieving its goals. Organizations recognize and diagnose the need for change by conducting the following:
§ A full financial audit of the organization
§ A structural survey in which different departments and their staff are identified
§ A skills audit of the organization’s personnel
§ A marketing analysis of the business within the industry
It will also be helpful, if the implementers at this early stage of the change process systematically examine the forces for and against change. Change will not occur unless the forces for it are stronger than those resisting it.
I learned that the initial stage of the change process, which is the identification of change need, is very crucial. The need for change must be identified and this must be communicated to all levels of the organization. One way of identifying the need for change is by conducting an internal and external analysis such as SWOT analysis.
Managing People Issues
The implementation of change is always faced with challenges and difficulties, especially when the people in the organization resist change. In order to deal with employee resistance organizations according to Randall (2004) need to energize, enable and empower their people. By energizing we mean creating a goal that will prompt or energize everyone in the organization. Also the management must be able to lead from the front by showing integrity and establishing trust. Enabling involves invigorating the top team by strengthening its leadership capability. In addition, in order to enable the people, the organization must build a culture of empowerment by opening the door to ideas. Moreover, the organization must also make sure that the employees understand the change process and reasons behind it. Empowering the entire organization means aligning HR processes and practices to improve capabilities. The organization must also seize opportunities and empower employees in order for them to adapt with change rapidly.
Management of Organizations
The concept of Management of Organizations (MO) is about the analysis and management of people in organizations with particular emphasis on behavior. This learning journal aims to present a collection of the things that I learned from the course. The focus of this learning journal is about organizational behavior and concepts such as group formation and structure, organizational structure and design, organization development and organization change.
Group Formation
One of the interesting topics in the course is the formation of groups. From the discussion in class, I learned that groups are essential to the success of organizations. Organizations today are forming different groups to fulfill various tasks. A group is a distinguishable set of two or more people who interact, dynamically, interdependently, and adaptively toward a common and valued goal who have been assigned specific roles or functions, and who have a limited life span or membership. The members of the group have different and unique roles, each role is critical to the success of the group. Every group undergoes group development. The stages of group development are forming, storming, norming, performing, and mourning. It is important that to understand the stages of group development in order to effectively deal with the issues and challenges.
o Forming – during this stage of group development, the members get acquainted with each other. During this stage, the group establishes ground rules.
o Storming – this stage is characterized by a high degree of conflict within the group. I consider the storming stage as the most crucial stage. In this stage, the group members and the leader have to resolve the issues that may affect the group in the future. If the group is unable to resolve the issues, it may be disbanded. If the issues are resolved the group will become cohesive.
o Norming – during this stage, the group becomes more cohesive and identification as a member becomes greater. During this stage, the group members start to develop relationships.
o Performing – during this stage, questions about group relationships and leadership have been resolved and the group is ready to work. Each member devotes his/herself to getting the job done.
o Adjourning – during this stage, the group will cease to exist. This is because it has met its goals and is no longer needed.
I found the topic group formation interesting and educating. I learned that in order for an organization to succeed, it must resolve all the issues and challenges that arise at every stage. Each member plays an important role in the success of the group.
Group Structure
Another interesting topic is group structure. Group structure refers to the characteristics of the stable social organization of the group, the way the group is ‘put together’. I learned that the way the group is structured affects its performance and ability to function. Through class discussions, I learned about the factors that affect group performance.
o Size – the size of the group affects its ability to function. I learned that is best to maintain a small group with 10 members. In a small group, everyone feels needed and everyone is given responsibility.
o Nature of the task – the nature of the task affects the group’s ability to function. The task should contain the right amount of challenge that will excite and push members to perform better.
o Resources and support – adequate resources also affect group performance.
o External recognition – rewards and recognitions are linked motivation. The members must feel that their work and efforts are valued.
o Group composition – it is important to maintain a small group with diverse talents and skills.
I learned that the structure of the group is also important in its success. Every member of the group has a set of activities to perform. Norms are also important. Norms are standards shared by the membership of a group. They have certain characteristics that are important to group members. Group cohesiveness is another important factor. Cohesiveness is regarded as a force acting on the members to remain in a group.
Organization Structure and Design
Organization structure refers to how the organization is put together. Organization structure and design reflect some of the underlying ways that people interact with one another in and across jobs or departments. I learned that the structure of the organization must coincide with its goals and objectives. The allocation of duties, tasks and responsibilities between departments and individuals, an element of organization design, must also take the organizational goals and objectives into consideration. Organizations have traditionally structured themselves into three forms:
o Functional – the functional structure is the most widely used. The organizational chart resembles a pyramid with the senior management at he top, middle and lower managers spread out directly below, and workers at the bottom. The organization is usually subdivided into different functional units, such as engineering, research, operations, human resources, finance, and marketing.
o Self-contained Unit (Divisional) – the self-contained unit groups organizational activities on the basis of products, services, customers, programs, technical processes, or geography.
o Matrix – matrix structure is basically a combination of functional and self contained structures. The aim of organizations that adapt this structure is to maximize the strengths and minimize the weaknesses of both structures.
I think the most important thing that I learned from organizational structure and design is that the structure and design of the organization must match its goals and objectives. Any structure can be effective if it is used in accordance with organizational goals and objectives.
References
Brewster, C., Harris, H., and Sparrow, P. (2004). Globalizing Human Resource Management. New York: Routledge.
Burke, R. & Cooper, C. (Eds.). (2004). Reinventing Human Resources Management: Challenges and New Directions. New York: Routledge.
Buyens, D. & De Vos, A. (1999). The added value of the HR department. In Brewster, C. & Harris, H. (Eds.) International HRM: Contemporary Issues in Europe (pp.31-47). New York: Routledge.
Clardy, A. (1996). Managing Human Resources: Exercises, Experiments, and Applications Workbook. Mahwah, NJ: Lawrence Erlbaum Associates.
Schuler, R. S., Dowling. P. and De Cieri, H. (1993). An Integrative Framework of Strategic International Human Resource Management. Journal of Management. 19, 419 – 459.
Sims, R. (2002). Organizational Success through Effective Human Resources Management. Westport CT: Quorum Books.
Ulrich, D., Brockbank, W., Yeung, A. K. and Lake, D. G. (1995). Human Resource Competencies: An Empirical Assessment. Human Resource Management 34(4), 473-95.
Vernon, M. (2002). Business: The Key Concepts. New York: Routledge.
Wright, R. M., McMahan, G. and McWilliams, A. (1994). Human Resources and Sustained Competitive Advantage: A Resource-Based Perspective. International Journal of Human Resource Management, 5(2), 301-326.
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