Essay on Human Resource

This essay has a total of 1345 words and 6 pages.

Human Resource

Human Resources
With today's workforce becoming increasingly diverse and organizations doing more to
maximize the benefits of the differences in employees, Human Resource managers are
evolving from the "old school" sideline player to the front-line fighters. Organizations
are relying on managers to get the people who get the job done, and of course, make the
company money. People have always been central to organizations, but their strategic
importance is growing in today's knowledge-based business world like never before. An
organization's success increasingly depends on the knowledge, skills, and abilities of its
employees, particularly as they help establish a set of core competencies which
distinguish one organization from its competitors.

When employees' talents are valuable, rare, difficult to imitate and organize, an
organization can achieve a sustained competitive advantage. In order to "compete through
people", an organization has to be able to do a good job of managing their human capital:
the knowledge, skills, and capabilities that add value to the organizations. Managers must
develop strategies for identifying, recruiting, and hiring the best talent available.
Develop these individuals in ways that are specific to the needs of their individual
firms, encourage them to generate new ideas while familiarizing them with the company
strategies, invite information sharing, and rewarding collaboration and team work. The
basis on which compensation payments are determined, and the way they are administered,
can significantly affect employee productivity and the achievement of organizational
goals. Establishing compensation programs require both large and small organizations to
consider specific goals. Employee retention, compensation distribution and adherence to
the budget must be carefully weighted against the overall organizational goals and
expectations. Compensation must reward employees for past performance while serving as a
motivation tool for future performances. Internal and external equity of the pay program
will affect employees' concepts of fairness. Organizations must balance each of the
concerns while still remaining competitive.

For internal equity an organization can use one of the basic job evaluation techniques to
determine relative worth of job. The most common are the ranking and classification
methods. The job ranking system arranges jobs in numerical order on the basis of the
importance of the job's duties and responsibilities to the organization. Job
classification slots jobs into preestablished grades with higher rated grades requiring
more responsibilities, working conditions, and job duties. External equity can be
determined by a wage survey. Data obtained from the surveys will facilitate establishing
the organization's wage policy while ensuring that the employer does not pay more, or
less, than needed for jobs in the relevant labor market. Base salary is only one aspect of
a retention plan for important employees. Benefits and incentive plans are valuable perks
in recruiting and retaining essential employees. Benefits are an established and integral
part of the total compensation package. In order to have a sound benefits package there
are certain basic considerations. It is essential that a program be based on specific
objectives that are compatible with the organizational philosophy and policies as well as
affordable to the company. By utilizing a flexible benefits package, employees are able to
choose those benefits that are best suited to their individual needs. Incentive pay plans
can be advantageous to both the employer as well as the employee. The success of an
incentive pay plan depends on the organizational climate in which it must operate,
employee confidence in it, and its suitability to employee and organizational needs.
Importantly, employees must view the incentive plan to be equitable and related to their
performance.

Performance measures should be quantifiable, easily understood, and bear a demonstrated
relationship to organizational performance. Performance appraisal programs serve many
purposes, but in general those purposes can be clustered into two categories:
administrative and developmental. The administrative purposes include decisions about who
will be promoted, transferred, or laid-off. They can also include compensation decisions
and the like. Developmental decisions include those related to improving and enhancing an
individual's capabilities. These include identifying a person's strength and weaknesses,
eliminating external performance obstacles, and establishing training needs. Within many
organizations, performance appraisals are seen as a necessary evil. Managers frequently
avoid conducting appraisals because they dislike playing the role of judge. As a result
appraisals are conduct annually, for good or evil, and forgot about. Largely the success
of an organization depends on the performance of its human resources. To determine the
contributions of each individual, it is necessary to have a formal appraisal program with
clearly stated objectives. Carefully designed performance standards that are reliable,
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