Human Resource Contribution for Organizations Growth.

Understanding the Role of Human Resource Management in Enhancing Company Performance

by Sanjay Mahajan*, Dr. G. D. Singh,

- Published in International Journal of Information Technology and Management, E-ISSN: 2249-4510

Volume 12, Issue No. 1, Feb 2017, Pages 173 - 176 (4)

Published by: Ignited Minds Journals


ABSTRACT

An effective Human Resources Management gives chance employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. In working life, the most important value is employees. That is why Human Resources Management is the key factor for success of a business. Being a global world and being a part of global competitive markets processes force businesses to manage human factor more truly for every level. Human resource management is one of the necessary needs of today’s business. Human resource management department has a very important role for supply of the human being to main resources of companies. Human resource management department has fundamental role for personnel recruiting, orientation and performance appraisal and so on. The performance evaluation within this process, it’s not only for evaluate of employees performance therewithal it’s important to get strengthening of the bond between employee and employer. Performance evaluation is one of the important matters for companies getting successful. If the companies can use to performance evaluation correctly, it’s bring to successful performance management and then bring success of the company. The aim of this study to give some information about human resource management and underline important of human resource department is then make prelude to performance evaluation and give some information about performance appraisal process.

KEYWORD

human resources management, employees, organizations growth, business success, personnel recruiting, orientation, performance appraisal, performance evaluation, performance management, company success

INTRODUCTION

The challenge of growth faces most companies in today‘s highly interdependent, competitive global economy. HR is staring at an incredible opportunity to increase its impact on organizational performance and become a true strategic partner by contributing to the organization and work design challenges that enable growth (Aray, 2008. Akçakaya, 2010. Mohrman & Lawler, 2005. Acquaah, 2004). This is an important focus for HR, because talent management is inextricably linked to organization and work systems design, in a way that each constrains the other. By expanding its focus to include organization and work design, HR multiplies its influence on both people and business performance. Growth agendas present a compelling need for this expanded HR contribution. Whether seeking organic growth in new markets, expanding through developing innovative products, services, and business models, or growing through acquisitions and partnerships, companies face the need to find and integrate new resources, realign existing ones, and reconfigure core design features to handle the increased size and complexity that accompanies rapid growth. Various growth scenarios present different challenges. Thus, gaining organization design expertise and leadership is no easy task, but it can make an appreciable difference in organization effectiveness.

REVIEW OF LITERATURE:

Human resource functions naturally have honed in on the formidable talent issues inherent in growth, including hiring and assimilating large numbers of people, reaching new talent pools, developing existing employees to provide required new knowledge and skills and addressing the needs for a rapid expansion of leadership capability. Particularly in the era of current and predicted talent shortages, the talent strategies associated with growth must be robust. Assuming a leadership role in organization and work design is not a natural extension of the current roles of many HR departments. In fact, most HR functions have been bystanders over the past decades, as this critical component of organizational functioning and talent utilization has unfolded and new designs have been

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HR professionals have not learned the essential knowledge to be players on this field of organization design. Yet, rapid change has made organizational agility essential, and demanding shareholders have made growth imperative. Growth has become more difficult to achieve and manage, and people are often the passive recipients of what is left after the ―experts‖ have come in to help with the restructuring, or the new design has been drawn on a napkin by line executives. HR then scurries to pick up the pieces and address the talent needs. Much of the time, this just doesn‘t work. HR must learn how to view the organization through the lens of organization design for growth, and contribute to and proactively influence it (Zellars & Fiorito, 2007. Huselid, 2009. Dyer & Shafer, 2010). This article describes the domain of organization and work design expertise, and describes the breadth of design challenges that HR must address to support different kinds of growth strategies. It then describes the competencies that HR needs to be a major player in this domain, as well as some of the approaches that can be used to build the foundation for this capability. Growth Strategies, Design Challenges: Today, most organizations find that competitive conditions, technological capabilities, fashion and customer preferences change so dramatically and quickly that growth strategies involve a combination of organic and externally fueled growth. Growth strategies often are conceived in an uncertain environment, one that requires organizational flexibility and agility. Organizations must be ―built to change‖ (Price, 2007). To get a sense for the substantive and process expertise entailed in helping design an organization for growth, we will look at a number of ways in which organizations grow and their associated design challenges We will start with the foundational processes involved in business life-cycle growth and then address: growth that builds on the core business model and capabilities of the firm; growth by developing new capabilities; growth through innovation; and growth through mergers and acquisitions. Clearly these are not mutually exclusive; a company may use all of these approaches to grow. But, each offers its own design challenges and requires that the process of growth is built into the routines of the organization. Furthermore, the challenges and problems of talent acquisition, development, and management differ. Growing into New Markets, Products and Customers: Extending existing capabilities to new products, markets and customers raises predictable design challenges. Foremost is sustaining focus on the new, when most of the knowledge of the firm and the current revenue stream comes from established markets and customer sets. Sufficient structural differentiation is required to protect and nurture new units, and management processes must be designed to ensure that resources are dedicated and protected. The traditional 3M approach to starting new business growth.

Figure 1- Challenges of Growth

These decisions guide the process of designing the various star points to build growth capability into the routines of the organization, rather than seeing it as an add-on process. Similar design logic is required in all growth strategies, as we will see below, but the complexity increases as growth strategies deviate from the core capabilities of the organization.

Developing New Capabilities and Business Models: Organizations in many industries are facing the need for capability and business model change to drive growth. Major pharmaceutical companies are introducing biotech capabilities because their traditional chemistry-based approaches to developing drugs are yielding blockbuster drugs less frequently. Many financial services firms are basing much of their growth on providing multi-product financial solutions to customers instead of stand-alone products. Eastman Kodak has had to migrate from being a dominant player in the chemical film business to building a digital camera business (Armstrong, 2006). HR has naturally gravitated to the individual level to the formidable issues of talent acquisition and development that are inherent in such transitions, while sometimes not even being invited to contribute to the design elements at the other star points and levels. This relegates HR to managing talent without its voice in the key design decisions that shape the context for employees.

Figure 2- Designs at All Systems Levels

Sanjay Mahajan1* Dr. G. D. Singh2 1

between organic growth and externally fueled growth on the vertical axis, and between growth within a business model and growth that implies a changing business model on the horizontal axis. Clearly each of these distinctions is actually a continuum, and companies‘ growth tactics are often a mixture of approaches. In each of the quadrants, the high-level design challenges are described, as well as the kinds of growth routines that the organization must develop in order to grow effectively (Kumar, 2009). The upper left quadrant, organic growth within a current business model, is exemplified by Procter and Gamble, and necessitates the design of an organizational framework and of routines for adding products, services, and markets. On the lower left, externally fueled growth within a business model, the organization must organize for excellence in bringing in and incorporating knowledge from the outside, and in partnering with external resources for growth. A close look at any example of a company that is growing reveals that their strategy is not purely in one quadrant or another but at any one time the growth strategy it is pursuing may be understood through the lens of this typology.

Figure 3- Types of Growth & Design Challenges

CONCLUSION:

Human resources with developed talents and creativity who are able to reach and utilize information constitute the main power of competition in the world market. Those companies and institutions that make investments on human resources and attempt to create working conditions that are compatible with their requirements and wishes are the ones who reach success. The employees are the biggest support that institutions need during renovation periods. Institutions that were able to please their employees in the past and were able to implement loyalty and trust, can endure difficulties more easily. The merit given to humans not only increases personal productivity but it also uplifts the quality of the company and the team. The main purpose of human resources management is Communication is the power of competition in production and service. Sharing information with the all the employees and managers, production of information, its distribution and reflection to daily life and service constitute the main structure of communication inside the institution. Human resource management is one of the necessary needs of today‘s business. Human resource management department has a very important role for supply of the human being to main resources of companies. Human resource management department has fundamental role for personnel recruiting, orientation and performance appraisal and so on. The performance evaluation within this process, it‘s not only for evaluate of employees performance therewithal it‘s important to get strengthening of the bond between employee and employer. Performance evaluation is one of the important matters for companies getting successful. If the companies can use to performance evaluation correctly, it‘s bring to successful performance management and then bring success of the company. The aim of this study to give some information about human resource management and underline important of human resource department is then make prelude to performance evaluation and give some information about performance appraisal process.

REFERENCES:

Acquaah, M. (2004). Human factor theory, organizational citizenship behaviors and human resources management practices: An integration of theoretical constructs and suggestions for measuring the human factor. Review of Human Factor Studies, Vol. 10(1), pp. 118-151. Akçakaya, M. (2010). İnsan Kaynakları Yönetimi İnsan Kaynakları Planlaması Norm Kadro Uygulaması, 1. Baskı, Turhan Kitapevi, Ankara, p.17. Aray, S. T. (2008). Effects of Perceived Sufficiency of HRM Practices on Organizational Commitment and Intent to Quit. Unpublished Doctoral Dissertation, Marmara University Armstrong, M. (2006). A Handbook of Human Resource Management Practice. (10th Ed.) . London: Kogan Page Limited. Dyer, L. & Shafer, R.A. (2010). From human resource strategy to organizational effectiveness: Lessons from research on

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Huselid, M.A. (2009). The impact of human resource management practices on turnover, productivity, and corporate financial performance. The Academy of Management Journal, Vol. 38(3), pp. 635-672. Kumar, A. (2009). The Strategic Role of Human Resources Management. http://www.slideshare.net/kumaravinash23/shrm-2634998 Mohrman, S. A. & Lawler III, E. E. (2005). Transforming the human resource function. Human Resource Management, Vol. 36(1), pp. 157-162. Price, A. (2007). Human Resource Management in a Business Context. (3th Ed.). London: Thomson Business Press. Zellars, K.L. & Fiorito, J. (2007). Evaluations of organizational effectiveness among HR managers: Cues and implications. Journal of Managerial Issues, Vol. 11(1), pp. 37- 55.

Corresponding Author Sanjay Mahajan*

Research Scholar