HRM in Organisation
HRM in Organisation
There are around 10,510 businesses registered in Sri
Lanka, and according to the statistics, there will be approximately 213 million
companies worldwide in 2020,(brimco,2023) and all of these businesses will have
a large workforce that will remain with them until they depart with the proper
exit clearance. The HR department of any organization will use people with a
variety of abilities, skills, experiences, and ways of doing things to fill its
positions. HRM include organisation design and development, employee
resourcing, learning and development, performance and reward, and employee
well-being services. HRM helps businesses to achieve their goals (linkedin,2019).
But it should also foster trust, openness, and personal fulfilment.
HRM is one of the most important functional fields of Organisational
Management (Opatha,2021). Companies
cannot recruit and retain personnel, improve and strengthen the business, or
maintain a healthy, acceptable workplace culture and environment without human
resources management. Many call human resources management is the heart and
soul of a firm. This is because they are responsible for everything to do with
the people who work for the company.
They are in charge of hiring, training, and managing employees. (Dubrovnik Times, 2022) If you want your company to succeed, it is important to have a strong human resources department. Every organization, specialized functions of human capital management, knowledge management, and competency-based HRM, as well as the ethical and social responsibility issues that must be considered when implementing HRM
What is HRM?
The Human resource management is organizing,
coordinating, and managing employees within an organization to carry out an organization’s
mission, vision, and goals. This includes recruiting, hiring, training,
compensating, retaining, and motivating employees (Coursera,2023). HRM
also helps to ensure that the company’s policies and procedures are
up to date and in line with the current laws and regulations. (hrm
handbook,2019-2023)
Human resource management can be defined as a strategic, integrated and
coherent approach to the employment, development and well-being of the people
working in organizations. (Armstong,2014)
The goals of HRM.(Armstrong,2014)
● Contribute to Develop and implement human
resource (HR) strategies that are integrated with the business strategy
(strategic HRM) in order to achieve the organisational objective
● Contribute to develop the high-performance
culture.
● Ensure that the organisation has the
talented, skilled and engaged people it needs.
●Create a positive employment relationship between management and employees and a climate of mutual trust
The Role of
HRM
4) Motivating-Motivation and opportunity in order to maximize work performance in the organization. Motivation refers to external and internal factors that influence employees to perform a particular task or job well. Stone (2013) explains that knowing how to motivate employees can help the organization to increase productivity and improve customer service and is one factor that creates a competitive advantage over competitors
5) Managing Change - HR can play a dual role in change management by initiating and leading the change and by serving as a facilitator for changes that other leaders and departments initiated. The HR department performs a variety of functions associated with the communication, implementation and tracking of major changes.(SHRM,2023)
6) Maintaining Relationship - HR can play a dual role in change management by initiating and leading the change and by serving as a facilitator for changes that other leaders and departments initiated. The HR department performs a variety of functions associated with the communication, implementation and tracking of major changes.(SHRM,2023)
7) Evaluating- Evaluations are a mechanism to provide feedback and documentation about an employee's performance through a defined time period, and can provide clear communication of job expectations and goals.( The University of Kansas (2023)
Appraising - Human resource department plays an important role in designing and implementing performance appraisals. In fact, the HR team acts as mediator between the functional heads or reviewing authorities and the employee. It is the human resource team's responsibility to ensure a smooth implementation of the appraisal process.( Management Study Guide,2013)
Current Challenges in HRM
Every organization,
regardless of industry or size, is likely to encounter challenges when managing
its workforce. As businesses focus more on improving employee experience and
culture, the volume and nature of the challenges faced by human resources
professionals continue to increase. Many HR challenges can emerge with digital
disruptions, workplace cultural shifts, economic changes, political climate
changes, etc. For instance, the year 2020 puts forward an enormous challenge
for the HR departments to create, tackle, and manage efficient remote
workforces for businesses to keep running successfully even in the pandemic.
Currently, most of the
companies in Sri Lanka are struggling as their well-trained and knowledgeable
staff turnover with the current economic crisis. In the manufacturing industry,
the turnover rate of Labour was 15% and supervisor turnover was 5% in 2017
(Department of Census and Statistics, 2017), and this has been badly affected
for the organizational performance. As company performance drastically declined
and management has instructed most of the HR departments to work for cost
cutting measures, HR has started to cut down on the number of employees over
time incentives, sales incentives, and motivational events. In addition to
this, organizations have stopped some main job functions like recruitment and
staffing, training and development, motivation, annual increments, and bonuses.
Basically, HR departments have a big
challenge in employee retention, recruitment, and cost cutting measures
implementation in order to run the business while utilizing the available
resources without damaging the company productivity. As mentioned above, these
issues are highly affected for the employee’s monthly income, which is also not
sufficient as the cost of living is very high in Sri Lanka and the recently
imposed tax on employees income has badly impacted the employees who have a
dissatisfaction about their jobs and automatically less engagement with their
job functions.
Conclusion
In
conclusion, human resource departments have to play a big role in an
organization in Sri Lanka to retain experienced employees by using the best HRM
practices, which need to be integrated with the overall strategy to ensure
effective use of people and provide better returns to the organization in terms
of ROI (return on investment)
Armstrong.M(2014), Armstrong’s Handbook of Human Resource Management Practice(13th edition) [Online] Available at https://www.google.com/search?q=e-book+of+ARMSTRONG%E2%80%99S+HANDBOOK+OF+HUMAN+RESOURCE+MANAGEMENT+PRACTICE.[Accessed on 4th April 2023]
Brimco,(2023) Business Statistics you should know in 2023, [Online] Available at https://www.brimco.io/business-statistics-to-know/#:~:text=There%20are%20an%20estimated%20213%20million%20companies%20worldwide. [Accessed on 4th April 2023]
Darwinbox(2023), Staffing, [Online] Available at https://explore.darwinbox.com/hr-glossary/staffing. [Accessed on 4th April 2023]
Open University of Hongkong (2016), Human Resource Management [Online] Available at https://www.opentextbooks.org.hk/ditabook/32088 . (Accessed on 4th
April) 2023HRM (2023), Managing Organizational Change [Online] Available at https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/managingorganizationalchange.aspx. [Accessed on 4th April 2023]
HR must be impartial, professional, and fair while conducting employee evaluations while putting confidentiality and legal and regulatory compliance first. It's critical to provide a welcoming environment that promotes open communication and staff development. HR is essential in establishing an appraisal process that is open and efficient and encourages employee involvement, motivation, and performance enhancement. Please feel free to ask any particular queries or for additional help. I'm here to assist! To ensure compliance with regional laws and regulations, keep in mind to frequently consult your organization's policies, processes, and legal specialists. Happy evaluating!
ReplyDeleteIs it work in Sri Lankan context in fair
Dear Manaoj. Thank you very much for your valuable comment. You have highlighted laws and regulations that have not been included in this article. Among the most important pieces of legislation for HR professionals to know, Equal Employment Opportunity (EEO) laws protect against the discrimination of any individual based on age, disability, genetic information, national origin, race or color, sex, pregnancy, or religion. HR professionals with legal expertise also have a competitive advantage in the workplace, as they are able to proactively minimize a company’s exposure to legal risk. With working knowledge of current laws and their real-world applications, they help companies remain compliant and avoid unnecessary claims while also protecting the rights of valued employees.
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ReplyDeleteVery good analysis and best part is bringing in the Sri Lankan Context. The linked article in this comment will give you some exact figures of labor migration took place in the year 2022 and 2023.
ReplyDeletehttps://www.economist.com/asia/2023/03/30/middle-class-sri-lankans-are-fleeing-their-country
Thank you very much for your comment. Further, I included HR-related practical things as HR departments in organizations in Sri Lanka have to be more engaged with well-trained staff retention without allowing them to find foreign jobs, as Sri Lanka saw a record high labour migration in 2022 as people moved to other countries in search of jobs in foreign currency after the island nation’s currency collapsed and inflation soared to an all-time high, the government data showed. Sri Lanka saw 311,269 people leave the country in 2022, the highest in history. Previously, the country’s annual peak was 300,413 in 2014. It was more than double the migrant population of 121,795 in the previous year, the central bank data showed.(Crisis-hit Sri Lanka sees record labour migration as rupee collapse, high inflation weighhttps://economynext.com/)
DeleteIn this article, the author has discussed the importance of human resource management function in the business operation, further highlighted the application of human resources in a Sri Lankan business context, and finally discussed contemporary human resource management and its challenges locally and globally.
ReplyDeleteHere HR plays a very crucial role focusing on maintaining an efficient workforce, recruiting, training, motivating, compensating, promoting and terminating employees, further developing the culture of best fit in HRM organizations. and helps to nourish. Further, HRM can be considered as a continuous function of planning, organizing, directing and controlling human resources. Here, the main focus of HRM is to help enhance employee performance to achieve higher results by achieving overall business objectives.
However, most of the small and medium enterprise sector in Sri Lanka do not implement HRM function, which can be observed as a big problem to take the next step to become a large-scale business, further with the great economic downturn and social disasters, HRM professionals face great challenges. For example cost cutting, work at home concept,
Thank you very much for your summarized comment. As you explained, the small and medium enterprise sector in Sri Lanka does not implement HRM functions, as most of the small businesses probably don’t have the resources to double-check and make sure HR functions are being performed correctly. Budgetary considerations may necessitate the hiring of an employee whose skills and expertise are still developing rather than a true expert in the field. (Berman,2023)
DeleteHi Amila,
ReplyDeleteThe article provides a comprehensive overview of human resource management (HRM) and its functions, as well as the goals of HRM and the current challenges faced by HR professionals. The article is well-structured and organized, with clear headings and subheadings that make it easy to follow the main ideas.
The article draws on a variety of sources, including academic literature, industry reports, and online resources, to provide a balanced and informative discussion of the topic. The use of examples and statistics from Sri Lanka and other countries also helps to illustrate the practical implications of HRM.
Overall, the article provides a useful introduction to HRM for readers who may be unfamiliar with the topic, as well as more detailed information for those who are already familiar with the field.
Dear Dias, Thank you very much for the summarized comment .Further Human Resource Management is an important part of a management course, as it helps to develop a strategic approach to find, train, recruit and retain the right professionals for the right job. Courses share how the role has evolved and the impact it has on business. Studying HR management helps to work on the theory and discover one's own style of managing people.
Delete(Why is it Important to Study Human Resource Management?,https://talentedge.com/)
All the HR functions are equally important for the organizational successful development and the long run with the profitability from the HR planning stage to livening the employee from the organization. Fixing the right person for the right position at the right time, inducting, compensating, and motivating, evaluating, bridge the gaps and develop individuals are the responsibilities of the HRM. If the leaders of the organization along with HRM, manage those functions in proper way will create a better organizational culture in achieving the better results.
ReplyDeleteThank you very much for your valuable comment. I agreed with you as There is a symbiotic relationship between leadership and HR. So much of good HR strategies, policies and practices are dependant upon good leadership and so much of good leadership is dependant upon good HR practices – the right interventions at the right time, for the right leaders.
DeleteHRM is essential for organizations to ensure they are able to attract and retain top talent, improve employee performance, and drive business success. Ineffective HRM can have negative consequences, such as poor employee performance, low morale and job satisfaction, high employee turnover, legal and compliance issues, and an inability to adapt to change. It is essential for organizations to invest in effective HRM to ensure they are able to attract and retain top talent, improve employee performance, and drive business success.
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