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Managing The Human Capital Commerce Essay

Paper Type: Free Essay Subject: Commerce
Wordcount: 2450 words Published: 1st Jan 2015

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Human Resource Management (HRM) is one of the most important strategies in organisations. HRM practices and policies is taking shape and affecting the employee’s experiences in organization. It also provides relationship between employees and employer. According to, Turner, Keegan & Hueman , if the company wants to be effective and successful, HRM functions has to be integrated into the various organisational strategy. (Turner, Keegan & Hueman 2006,317). According to this model, HRM functions its goals and aims, need to be aligned with the strategy of the organization. 

Today, human resource policy on organisation performance research has changed from micro to more general, strategic macro level. It was used to set of policies designed to maximize organizational integration, employee commitment, flexibility and quality of work.

 This essay will aims to how strategic goals of HRM helps to organizations and how improve the company performance.

Human resource management is relevant with planning, recruitment, training, motivation etc in an organization. The first aim of HRM is developing people through work and also managing employees or human resources. HRM check the employee’s side of company. In addition this it control benefits of people, career development, training and more functions. It is known that HRM do interview and explain company benefits by people at recent times bur roles of HRM is much bigger than only interview and company benefits. They bring many benefits to the company.

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Example1; There is a company in Shanghai called Portman. It was not such a good hotel just a few years ago. It was realized that costumer and employees satisfaction rate % 70-80 The Ritz-Carlton Company has been took over the hotel recently and new general manager Mark Decocinst set out to make new property for the hotel. That strategy has improved dramatically to costumer rate. The hotel is being called “Best Employer in Asia” at the moment and %98 employees’ satisfaction.

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Figure1 http://www.auhy69.dsl.pipex.com/images/b202/human%20resource%20cycle.jpg

HRM explain that they have got five function all employees and managers perform; Planning, leading, staffing, organizing and controlling. HRM is very important for all the managers. For example, if you want to hire right person as a manager for the job or do not want to waste your time unless with a interview, HRM strategy will important for the manager.


Strategic human resource means basically, executing and formulating HR policies. It makes strategic human resource plan like which knowledge or skills the employees should have, how to recruit, training, text etc. SHRM want to keep employees who can help to company or who have useful skills for the company. HR’s purpose is to guide Human Resource Management and practise programs. Strategies provide vision for next term and how to vision should be realized in the organization. There are many types HR strategies however two of them are being identified. First one is overarching strategies and the second one is specific strategies.

Example2; “The Ritz Carlton and Signcasts’ human resource managers are involved in partnering with their top manager in both design and executing their companies strategies.” (Desseler 2008)

Example3; Facing rising pressures from classic grocers and from online firm, Albertons with 23,000 employees and 2,500 food stares had to improve their performance. The company’s basic strategy maximizing get back product on invested capital and focus to costumer provide to growth. In addition this company also aim to employing technology and energizing associates Albersons management relied on their HR manager to help the company active its strategic goals. It was helped to company with training, pay and other HR politics. (Desseler, 2008)

Job Analysis

Job analysis makes that which kind of employee should keep or hire for the job. It organises that human behaviours, performance standards, work activities, human recruitment or job context. For example; work activates information is being collected such as buying, selling, transporting etc.

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Figure 2 http://www.ppbafrica.com/images/ppbstrategy.jpg

Example 4 ; Mercedes Benz was assembled organization in Arkansas and managers confused. They could not give a job, training or pay the company employees unless they knew that what staff expectation was. They needed a job description for each employee however in this organization their duties and jobs could change every day. Unfortunately, they could manage to do job analysis but they could not implement.

There are many advantages of job analysis on the company. First off all, it provides that what skills are required to this activity. Secondly, Job description helps requisite skills and training. (Desseler, 2008)

Recruitment and Selection Process

Recruitment basically selects an employee for the company. When the department of the company select a person, they try to choose a high quality person with low coast. First off all, they decided to what position needs an employee secondly, recruitment build a pool for the people who apply the job and then candidates fill application forms. After those steps the department implement physical exams and test for the candidates and finally they decided that who is going to offer for the

job position to supervisor or manager.

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Figure 3 http://www.magautarecruitment.co.za/images/recruitment%20process.jpg

Example 5; The Cheesecake Factory has opened 110 restaurant and it adds 20 chain each year. The company interviews 24,000 people per year. It is too much recruits for the company. Manager of the company says that one interview is not enough to choose right person and it makes huge amount money and big time too. Because of that reasons it was established a recruitment department in the company. (Desseler, 2008)

The recruitment process starts with employment planning. It is decide to which position in the firm is going to be filled and how it is going to do. That has to follow the organization’s plans.

Example6; JPS Unihase decided to expand. It was known that number of employees have to increase from 140 to 750. They had to do a plan about who are going hire as employees and when the plan will be put in to plans. (Desseler, 2008)

Example7; British Airways included self-assessment, application forms, testing, group selection centres, and interview.

2.3 Training

Training improves employee’s knowledge, skill and attitude. Employees who have more knowledge give the company get higher performance from the staff. As a first step the company identify that which type of training need to give its worker. Second step should decided to training program like; activities, workshop or exercise. The next step can be validation the steps.

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There are many training types are being using. The company should decided which they need and should choose the best one. The training can be given to new employees and exist staff too. If the training is giving new staff it aims to teach the job to new people. If the training giving exist employees it teach new technology or new events for the company.

Example7; Samsung Company provides its employees many courses to learn and develop staff ability knowledge and skills. The company gives the staff opportunities to go oversee to learn more. For example centre of design go to outside of the county or can get to work famous people. In addition this manager of Samsung led launched a design revolution; IBM designer was invited from the USA to design company designers by the manager. 370 designers in the design centre and the company gives them a change to go the best schools which gives design education in the USA.

With the developing technology many companies use online training nowadays. For example, Saba.com offers web-training course for its staff.

Example8; Honda decided to build a new company in Alabama and it had to provide thousand employees. 18,000 people applied the job. The employment agency screened and eliminated. About 340 have stated to get training and finally some of them graduated from the training. Honda teams interview the candidates, looked at the training scores and decided to who can get the job. And then they were performed drug test and finally they were get 3 days orientation. It was quite long procedure but Honda want to get the best ones for the job. (Desseler, 2008)

2.4 Motivation:

Probably almost everybody need some intelligence, knowledge base, study skills, and time management skills, but if someone does not have motivation, he or she won’t get far. For example; you have a car with a full tank of gas, a well-tuned engine, good set of tires, quadraphonic CD system, and a sleek, polished exterior. There it sits. This car has incredible potential. However, until a driver sits behind the wheel, puts the key in the ignition, and cranks it up, the car doesn’t function. You guessed it; the key is motivation. “Interest is an important motivator for a student. So is a desire to learn. When you link these two things together, you create success. Often success in an endeavour leads to more interest and a greater desire to learn, creating an upward spiral of motivation toward a goal you have established.”(www.d.umn.edu)

2.5Knowledge Management

” Knowledge management is any process or practise or creating, acquiring, capturing, sharing and using knowledge, wherever it resides, to enhance learing and performance in organization” (Armstrong,2006)


Innovation in human resource brings many benefits to company.

Example9; Dell computer company created a HR call centres. It is being answered all the questions which comes from employees. Dell computer also prove to their employees self service personal transaction like, chancing benefits all location.

Many companies try to use innovation their business such as computer or internet to get high performance and improving HR. Technology innovation also makes many think easier for example, it is so easy to reach all employees information or all staff salary, when they are going to holiday, all about employees.  

Example10; IBM employed 350,000 people and they spreads around the world in many locations. They need to give induction for all new employees. The company ensure the people understand key of the system and processes. It was needed a way which provide reducing cost of faced induction. An online technology was created for the induction. it was invested $100 million. It is IBM’s online innovation.



Culture is the important in an organization according to Andrzej H. & David B. “When you walk into hotel, a bank, a night club, or a company your first impressions tells you about the organization that you have just entered how friendly will it be? How expansive it will be? What kind of behaviour it’s expected”

This theory tells that very basic thing is the culture of the organization. An organization can be know with the culture if a company have good reputation then everybody know that company. “Organizational culture is a set of shard assumptions, values and behaviours that characterize the functioning of and organization.” Organizational Culture depend strongly rules, super vision’s and control on the employee. If a organization have good rules and have good control on employees then the organization will be best with reputation.

Example11; “The culture of a large, for-profit corporation is quite different than that of a hospital which is quite different than that of a university. It can be told that the culture of an organization by looking at the arrangement of furniture, what they brag about, what members wear, etc”. similar to what you can use to get a feeling about someone’s personality.

According to Wendell L. F.(1998 page 111) “A work group is a number of persons, usually reporting to a common superior and having some face to face interaction, who have some degree of interdependence in carrying out tasks for the purpose of the achieving organizational goals.” Organizations which have good teams and have good group of employers then the organization’s outcome will the highest. A team or a group of employees can work more efficiently than the individuals. Organization can have big projects and a group can distribute the work and perform their duty with full attention and with full devotion and if there is some laziness in some employees that can be overcome in others works so groups work is best in organization. At this era of life, world is a global village the business in not so much small and there a numerous organizations which have different departments. If all the departments work together and coordinate with each other then the result will the most excellent. An organizational culture with strong unit integration makes the organization finest

Example11;McDonalds were expanding restaurants in India, when closing selected stores in the UK. The plan to change packaging, and uniform it will affect the culture of the organisation. McDonalds were diversifying, ‘Mc Kids’, and toys too. It is the HRM policies that will ensure a smooth changing. The major concern is the cultural change; HRM must ensure that staffs are involved in the changes allowing them to ‘buy’ into the plans. The extension plans should run efficiently as all the policies and legislation should already be in place. The investment in ‘Mc Kids’ could prove difficult for HRM, because they are dealing with a separate market. The current policies in place cover a wide range of issues, which are sufficient for Mc Donald’s strategic plans.




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