The Role of HRM in Developing Organizational Strategy

Human Resource Management (HRM) business strategy emphasizes the importance of individual relationships against collective relations between managers or managers and workers. Human Resource Management (HRM) refers to an activity that depends less on hierarchies, orders and mandates, and stresses the importance of active participation of all employees of the company. The aim is to foster a cooperative relationship between management and workers to prevent frequent clashes resulting from a traditional hierarchical relationship. When HRM is working properly, employees are committed to long-term goals of the organization, allowing it to adapt better to changes in markets.

Human Resource Management (HRM) involves taking a range of measures which include: the commitment of employees with corporate objectives, the payment of wages according to productivity of each employee, fair treatment to them, continuing vocational training and link procurement policy to other aspects of organizing work and production, marketing and sales. Some companies carry out some of these measures, but few are able to apply them all simultaneously. The implementation of these measures is independent of the industrial sector it belongs to the company. Thus, companies as diverse as IBM, Marks & Spencer and McDonalds apply business policy, as well as several public sector enterprises.

There are three basic kinds of employer-worker relations. In general, collective bargaining is the process of negotiation between employers and labor unions to establish so set wage levels and working conditions, but this kind of collectivism is applied increasingly in countries with ultra-liberal economic policies. The second type is the application of HRM policies. However, the third type is the most common, hierarchical organization in which managers or directors impose their decisions independently of collective bargaining and HRM.

Encourage employee participation in decision-making and organization of the activity involves additional information and consult them on how to develop these activities. The key of HRM is that the top-level communication channels at the bottom and vice versa. Not enough short meetings or with a transfer of orders from managers to workers. The active participation of workers requires the creation of think tanks to solve the various problems and regular meetings between them and the managers of the company. These meetings underscore the importance of controlling quality of goods and services produced by the company. This participation allows the company to make the most of the preparation of their workers and their initiatives. This way, encouraged some cases, a relationship of trust between the employer and his subordinates.

The second element of Human Resource Management (HRM) involves relating wages to productivity for each worker. Instead of paying a uniform wage based on work to be done, as when implementing collective bargaining, wages are set according to the productivity of each and for the smooth running of the company. Workers are paid for work or performance. The sharing of the benefits and actions among workers ensures the linkage of labor remuneration with the proper functioning of the company. When profits are distributed among the workers is paid a supplement depending on the company’s financial situation may be actions that are not to be sold before a certain period. This helps employee’s worry about the situation of the company. These two policies imply that both parties share some of the risk and benefits of the company.

Organization’s applying Human Resource Management (HRM) devote part of their resources to recruitment and training of it. Seeking to recruit people who can occupy different positions rather than applying strict boundaries of each type of work. Workers should be able to adapt to changes in working conditions, negotiating on a regular basis the number of working hours. These organization’s seek to eliminate the traditional hierarchies that distinguish between workers and white collar workers or laborers. Employees should receive equal treatment in respect of payment arrangements, targets and other benefits such as food stamps or restaurant vouchers.

The last element of the Human Resource Management (HRM) implies that the relations between managers and workers do not only depend on the personal responsibility department. It also underlines the need to link the relationship of workers with the business. To analyze the performance of HRM must be asked three questions: apply all policies of HRM? Unions can they survive in this type of organization, is it the HRM in a strategic way of elimination of unions and their bargaining power? This method does it improve the management of the company? The various aspects related to the HRM-employee participation, wages linked to productivity, the importance of selection and training of staff-affect the entire company’s business, but not usually apply all simultaneously. Indeed, companies with union representation are more likely that there is good communication between managers and workers who can apply a profit sharing system in which there are no unions.

Their role is very different when applied to all policies inherent in the HRM that if collective bargaining operates a traditional type. For example, if you implement all the measures it is easier for the employer to communicate directly with its employees without having to mediate unions, wages will not negotiate, but that union representatives would be established individually. All this suggests that the future of unions in companies implementing HRM is uncertain. Some analysts believe that HRM is a fictional element of strain between managers or managers and employees aimed at eliminating the existence of trade unions.

Experience suggests that companies that employ HRM better results and higher levels of production and productivity as they apply in a traditional hierarchy or where labor relations are made through collective bargaining. However, it seems that HRM does not result in an improvement in personal relationships: there are more layoffs or resignations, increased absenteeism and blur the links between managers and workers. Apparently, this management system is designed to maximize the qualities of each employee and their capacity to engage with the evolution of the company. Those who cannot resist the pressure is removed or absent, relations between workers and managers are more strained than it sounds. But ultimately, the politics associated with HRM seems to be positive as long as it generates better economic results for businesses.

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