Table of Contents
Human resource management is also known as HRM or HR is the most important department of an organization which deals and works for the benefit of the employees in the organization. An HR not only works for maximizing employee performance by good productivity but also maintains the organizational culture, makes and set up strategies and goals as well as policies etc. for the betterment of the organization as well. An hr makes good strategies and formulates them for the betterment of both the employees and the organization. SHRM or strategic human resource management means the process by which the goals and objectives are established in an organization. SHRM works with all the departments of the organization to fulfill the common targets. So both HRM and SHRM are interrelated with one another and are used in all the working sectors of the world.
Q1. Importance of HRM due to changed nature of work
Every organization has its own work culture consisting of different kinds of people. Organizational culture means a process of shared values, beliefs etc which motivates a person to behave according to the goals and objectives for the development of the organization. This helps to perform works nicely. It is the responsibility of an HR to create a good organizational work culture as people have different views and ideas based on their culture and background (Andresen and Nowak, 2014). So to develop a good work culture Hofstede’s cultural dimension theory can be used. According to Hofstede, an individual’ behavior and values are based on the society where he or she is born. Certain dimensions like individualism-collectivism, power distance, uncertainty avoidance, and long-term orientation based on task and person should be used to encourage employees to work nicely. They should be given responsibilities based on their work and should be motivated to work both as individuals and in teams (Armstrong, 2012). This will help them to learn new things and exchange ideas with one another. This will help the employees to work together and develop a sense of satisfaction so that they can perform well. Handy’s cultural model based on task, power, person, and role will also help to create a good work culture as people will be able to understand that they are very valuable and are rewarded based on their performance and not on partiality (Barber et al., 2013).
Q2. Good management of people by successful implementation of business strategies
Implementation is a system or tool of hr which develops strategies and plans into actions in order fulfill organization’s goals and objectives. A manager should not only focus on recruiting and staffing people but also on other tools like improving communication, encouraging employees to perform well based on rewards. New policies should be introduced so that the employees feel more interested to work (Bravo et al, 2014). There are different ways to implement business strategies that will increase and help in developing good management people who will be able to fulfill the works completely. The steps are– Firstly, an organization should have a clear mission, vision, and values statement. This interprets about the organization and what it wants to achieve and also explains the guiding principles and values that the employees have to achieve. Secondly, a strategic plan should be developed by the manager as it helps to identify the steps required to fulfill an organization’s targets (Chui, Manyika and Miremadi, 2015). It can be either long term or short term or both. Thirdly, organizational goals should be decided to help in the growth of the business as a whole. Fourthly, departmental goals should be clearly declared so that all the units can perform their own duties to complete the set targets (Coeckelbergh, 2015). Fifthly, employee goals should also be clear to the employees can understand their responsibilities and work hard to achieve the targets given to them. Sixthly, the job description of the staffs should have accompanied with their targets as well so that employees are clear about their work. It should be revised annually. Finally, employees should be rewarded based on their performance in the form of appraisals (Guest, Paauwe and Wright, 2012). Like increasing salary, recognition, benefits etc. Since the employee will be clear about their targets they will be able to perform their best. This will help to create a good working environment and it will be easier to manage people together. Good strategies will also help in the communication development as it will be easier for the employees to discuss the problems while performing so that they can give their best (Manyika et al., 2017).
your paper for you
Q3. Impact and challenges of technology and automation in Finance and HR
Technology means a compilation of skills, methods, process or techniques for the development of new services and goods. It can be knowledge of new techniques as well. Automation means a type of technology that can be performed without any human help. Both technology and automation are revolutionizing the finance of an organization (Peters, 2017). Rapidly accelerating technological advances are creating entirely new business propositions such as crowdfunding, digital banking, online investment, introducing new payment systems. They have helped in the massive increase of data and use them in social media, solving customer problems regarding finances etc. This has increased the ability to target consumer markets by increasing services (Nankervis et al., 2017). This helped in increasing profitability and gaining high margins in revenue collections of an organization. Data is used strategically for developing markets and increasing capitals. In HR technology has impacted a lot. Lessened the labor input and more works can be completed in less time helping the companies to gain lots of success (Razzhivina, Yakimovich, and Korshunov, 2015). In spite of having good impact technology and automation has created challenges as well. In HR the employees should always be updated and be successful in using the techniques nicely. This also increased labor strikes as now they are replaced by machines (Mills et al., 2016). In finance, there is a chance of increasing in cheating and fraud cases with customers as it is easier to know about someone and then cheat them or make financial blunders to destroy an organization.
Q4. Role of senior managers in HRM
A manager is a person whose works are to plan, monitor and appraise the work results of an employee. It is also his or her duty to help in developing, coordinating and enforcing policies, rules and regulations. The most important responsibility of a manager is to manage and see that all the works are accomplished nicely and the targets are achieved. He or she should be able to create a good and friendly working environment. So that employees can communicate freely without any fear about their problems and ideas. A manager should regularly or weekly communicate with the subordinates about their performance (Rees and Johari, 2010). He or she should develop good strategies for the growth of both the organization and employee. A manager should always be updated with the changing scenario so that organization can develop with time by innovating new techniques. The employees should be engaged to do different types of jobs so that they will be interested to learn new skills and technologies. The employees should be given good training on different skills and also be motivated to increase their knowledge. The manager should always monitor the performance and give them feedback as it will help them to work hard and give the best for the organization. The managers should focus more on the employees’ strengths with the help of the training (Schwab, 2016). This will help them to gain confidence and perform much better. The managers should assess employees based on their behaviors as well. The senior managers should assess and monitor whether the jobs are done correctly or not and within a particular time. He should be able to create peace and understanding between all the departments so that all the employees can work nicely and with cooperation. He or she should act as a mediator between the employees and the management so that each other can know about the demands and needs. It is the responsibility of a senior manager to appreciate the employees for their good work and motivate them to perform well (Tissen, 2010).
Thus, based on my studies and theories it can be concluded that the development of good work is very important as it will help in the development of both the bank and its employees. So, it is important to prepare and establish good strategic plans with the hr team so that the organization can achieve its targets. The use of technology and automation may have certain risks and challenges but it is necessary to use them as it will help to gain technological progress too. Employees should be motivated to develop their communication skills as well as training and technical skills so that they can give their best and become successful in life.
- Andresen, M. and Nowak, C., 2014. Human resource management practices assessing added value. New York: Springer International Publishing.
- Armstrong, M., 2012. Armstrong’s handbook of human resource management practice, 12th edition (12th Ed.). London: Kogan Page.
- Barber, M., Donnelly, K., Rizvi, S. and Summers, L., 2013. An avalanche is coming: Higher education and the revolution ahead. London: Institute for Public Policy Research. London. [Online] Available at: <https://www.ippr.org/files/images/media/files/publication/2013/04/avalanche-is-coming_Mar2013_10432.pdf> [Accessed 17 October 2017].
- Bravo, C.E., Saputelli, L., Rivas, F., Pérez, A.G., Nickolaou, M., Zangl, G., De Guzmán, N., Mohaghegh, S.D. and Nunez, G., 2014. State of the art of artificial intelligence and predictive analytics in the E and P industry: A technology survey. Special Journal. 19(04), pp.547-563.
- Chui, M., Manyika, J. and Miremadi, M., 2015. Four fundamentals of workplace automation. McKinsey Quarterly, 29(3), pp.1-9.
- Coeckelbergh, M., 2015. The tragedy of the master: Automation, vulnerability, and distance. Ethics and Information Technology, 17(3), pp.219-229.
- Guest, D.E., Paauwe, J. and Wright, P., 2012. HRM and performance achievements and challenges. London: Wiley.
- Manyika, J., Chui, M., Miremadi, M., Bughin, J., George, K., Willmott, P., Dewhurst, M., 2017. A future that works: Automation, employment, and productivity Mckinsey Global Institute. [Online] Available at: <https://www.mckinsey.com/global-themes/digital-disruption/harnessing-automation-for-a-future-that-works> [Accessed 17 October 2017].
- Mills, D.C., Wang, K., Malone, B., Ravi, A., Marquardt, J.C., Badev, A.I., Brezinski, T., Fahy, L., Liao, K., Kargenian, V. and Ellithorpe, M., 2016. Distributed ledger technology in payments, clearing, and settlement. Sydney: Cengage Publishing house.
- Nankervis, A.R., et al., 2017. Human resource management: Strategy and practice, 9th. Asia-Pacific., Sydney: Cengage Learning Australia.
- Peters, M.A., 2017. Technological unemployment: Educating for the fourth industrial revolution. New York: Pearson.
- Razzhivina, M.A., Yakimovich, B.A. and Korshunov, A.I., 2015. Application of information technologies and principles of lean production for efficiency improvement of machine-building enterprises. Pollack Periodica, 10(2), pp.17-23.
- Rees, C.J. and Johari, H., 2010. Senior managers’ perceptions of the HRM function during times of strategic organizational change: Case study evidence from a public sector banking institution in Malaysia. Journal of Organizational Change Management, 23(5), pp.517-536.
- Schwab, K., 2016. The fourth industrial revolution: What it means, how to respond, World Economic Forum, Global Agenda – Fourth Industrial Revolution. [Online] Available at: <https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/> [Accessed 17 October 2017].
- Tissen, R.J. et al., 2010. ‘Change or hold: re-examining HRM to meet new challenges and demands’: the future of people at work: A reflection on diverging human resource management policies and practices in Dutch organizations. The International Journal of Human Resource Management, 21(5), pp.637–652.