Human Resource Management

Human Resource Management

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The workforce of any organization tends to be insecure due to the gloomy impact of a slow economy caused by a number of factors one prominent example being the coronavirus outbreak with no signs of improvement. Companies are struggling to remain relevant as more market entrant mean poor prices and increased alternatives for the consumer. Staff salary and satisfaction levels are jeopardized as entrants compete for deals, as all service providers want to make the lowest bid. Employee turnover and retention are only two of the many aspects of a firm that are directly impacted by an economic recession. In the case study, Hangarau Tech is battling talent management issues and low productivity. For the case of Hangarau Tech, among the problems that affect the organization is sluggish productivity, gaining new talent, lack of motivation which has resulted in increase of absenteeism and employee retention. However, the two main problems are reduced productivity and attracting new talent in the organization.

Three causes of the current issues

In the context of human resource management (HRM), employees hold particular skills, abilities, expertise, and desirable work attitudes, and whose services are needed for the purpose of carrying out particular specified activities that are needed to achieve corporate objectives. Kang & Lee (2021) define HRM in terms of the workforce, noting that employees are the most important asset in a firm. This translates to having superior quality services, better skills, better interaction with consumers, and so on. For Hangarau Tech, several reasons can be seen as the root cause of the problems that are currently experienced in the organization but the most probable ones are: complacency from the management leading to low morale and job dissatisfaction, resistance to change in the management evidenced by poor employee compensation strategies, and poor managerial strategies leading to a reluctance and complete lack of career development opportunities for employees

Assessment of how the Causes Drive Organizational Problems

Managerial Complacency

Complacency by the management is an issue that has created a monotonous environment for the employees. One of the immediate consequences of a complacent management practice has been a lack of motivation practices for the workforce leading to job dissatisfaction. Job satisfaction is an outcome of an assessment of work attributes and a perception that is positive in relation to work. Job dissatisfaction means that a majority of the employees are not happy with the current position of the firm and their own contribution. Employees are required to interact with co-workers and managers, adhering to corporate rules and policies, fulfilling performance criteria, and putting up with difficult working conditions (Davidescu et al., 2020), elements that can be measured in terms of good or poor quality. It has been discovered that an individual’s job satisfaction level and the retaining of positive thoughts about the same job have a positive association, whereas an individual unsatisfied with his job has unpleasant feelings and perception about the job and company (Reddy, 2020). When people are unsatisfied with their work, they are less likely to get involved with their work, and have poor loyalty to the company, a slew of negative repercussions ensue.

Employees who are dissatisfied may disengage psychologically, physically, or even behave aggressively in reprisal for perceived wrongdoings. On the other hand, satisfied personnel may go above and beyond the call of duty for their organizations, have spotless work records, and strive for excellence in all aspects of their careers. The long-term repercussions of work dissatisfaction are numerous. Cost increases in recruiting, selecting, and training new recruits, demoralization of existing staff, an adverse public picture of the institution, interruption of day-to-day operations, and reduced corporate opportunities to pursue future objectives and growth strategies are some of the negative impacts of job turnover on companies (Arifin, Nirwanto, & Manan, 2019). As a result, it is critical to have a complete grasp of the elements that contribute to job satisfaction and discontent in order to prevent the harmful repercussions of job dissatisfaction.

Slow Adaptation to Change and Resisting Change Attitude

The other problem that exists in Hangarau Tech is resistance to change in the management evidenced by poor employee compensation strategies. The organization increased the cost of living pay although this did not amount to increased productivity levels and attrition (Reddy, 2020). Compensation issues relate to the perception of value from employees and how they think they are needed at Hangarau Tech. Bana and Kessy (2017) report that there exists a positive correlation between compensation strategies and employee productivity.  Prior studies have associated a company’s potential to recruit, motivate, and keep top talent through competitive wages and suitable rewards to its profitability and achievement (Khalid & Nawab, 2018). As a result, numerous businesses around the world are trying to identify revolutionary compensation strategies that are tightly correlated to enhancing performance among employees while retaining top in an ever-competitive business environment. As per Long (2017), corporates in Canada are increasingly implementing compensation strategies that include direct and indirect financial compensation, along with perks that motivate employees and ultimately enhance employee motivation while ensuring that top talent is retained.

Numerous organizations clearly conform to financial compensation like wages, pay rates, or performance-related payments in order to keep employees and outsmart their competitors (Kang & Lee, 2021). Worker benefits in the nation are created to safeguard individuals and their families from losing income for example, as a result of health-related problems or other job-related financial disruptions, as well as to enhance employees’ overall quality of life via special workplace programs and services. Healthcare, prescription, vision, and dental plans, group disability, workforce development plans, retirement pension benefits, and so forth are examples of extra health coverage not included in the provincial plan. The implementation of different compensation mechanisms has boosted employee productivity in the short and long term, creating a competitive advantage over corporates that trail behind in terms of compensation strategies (Khudhair, et al., 2020). A firm’s staff members must be rewarded for creating an effective competitive environment. This is among the most important factors that companies must consider in order to attain high levels of productivity. Extrinsic rewards like raises in pay, promotions, and bonuses motivate some workers, while intrinsic rewards like appreciation, compliments, and acknowledgement on the job motivate others people (Bana and Kessy, 2017). If employees feel that their input towards the attainment of organizational objectives are not squarely compensated, they tend to get demotivated and disengaged and eventually this will result in other or exacerbate the problems that an organization may be currently facing.

Poor Managerial Strategies Leading to a Reluctance and Complete Lack of Career Development Opportunities

Employee attrition has been linked to a lack of prospective career advancement in previous study on workforce activity. A dearth of career development and progress is cited by over 40% of outgoing workers as a dissatisfying aspect of their work. Simultaneously, 28% of workers are actively looking for work, while 42% are passively interested in new chances (Dik, Sargent, and Steger, 2008). According to study, over two-thirds of workers feel a lack of professional growth with their present workplace is more than sufficient to make them hunt for a new job. Many people’s professional ambitions include the desire to enhance their careers. When a present employment has some possibilities to look forward to, it will spark one’s interest. Whenever workers’ possibilities for advancement stop or disappear, on the other side, it might lead to job dissatisfaction (De Winne et al., 2019). Feeling stuck can drive employees out the door in search of greater opportunities. When a company exhibits a caring environment for professional growth and success, employees are more motivated.

A lack of development opportunities is a morale reduction issue because then the employee perceives that he/she is not as important to Hangarau Tech as they would wish. Managers need to set aside some time and resources with their employees to learn about their goals and aspirations for their careers. They must also assist in the development of a strategy for achieving their objectives. Several individuals look for jobs with companies that are prepared to invest in their employees’ growth and development. Helping employees develop their skills might inspire them to produce better work and spend more time to the company (Al Amri & Pandey, 2019). Workers may also be more content with their current position if they are supported and set up for career progression. Companies have traditionally paid a high price for employee turnover, but due to tight job markets and the progressively collaborative nature of occupations, the cost of losing staff is rising in several sectors.

Strategic HRM theories to the organisation’s management approach

SHRM is a sequence of scheduled human resource (HR) engagements and initiatives designed to help a business accomplish its objectives. The emphasis of this description has been on how firms build and integrate HRM strategies in order to complement their business goal (Mohammed, 2019). The acknowledgement that companies can be more efficacious if their human resources are well managed with HR policies and practices that produce the right number of employees with the desired behaviour, skillsets, expertise, and motivation to the institution underpins strategic human resource management. To put it another way, strategic human resource management is a combination of a firm’s overall strategic goals with its human resource strategy and execution.

Universalistic or best practices approach

In the case of Hangarau Tech, the HR could implement professional training systems to keep employees motivated and reduce the turnover levels. Whereas the ‘best practices’ and ‘contingency’ approaches focus more on how Human Resources (HR) can help Hangarau Tech ensure long-term competitive edge, the resource-based-view strategy to coordinating HR activities with corporate strategy presents the conceptual and theoretical foundation for SHRM (Hamadamin & Atan, 2019). According to this concept, certain Human Resource Management (HRM) operations are superior than others, and Hangarau Tech could perhaps point out and implement these operations. This implies that studies have suggested that when firms adopt a best-practices strategy, their overall performance will indeed improve (Mohammed, 2019). Internal career prospects (employing mainly from within), professional training systems (rigorous training opportunities for staff members to acquire skills needed), outcome-oriented appraisal methods (outcome-based performance ranking), job security (feeling safe regarding continued employment), involvement (participation in decision making and problem solving), and revenue sharing (consideration for organisational effectiveness on a long-term basis) are all examples of HR practices (Dastmalchian et al., 2020).

Fit or contingency approach

This strategy is founded on the fact that some HRM practices have a synergistic effect on corporate performance. The consistency between Human resource management practices indicates a horizontal fit, whereas the alignment between these practices indicates a vertical fit (Mohammed, 2019). The contingency method is supported by a large body of research that shows a link between internally consistent human resource initiative and the effectiveness of an organization. The contingency method is founded on the idea that when human resource management practices are in sync with one another and with the firm’s strategic goals, they can improve performance of the firm. This approach is applicable to Hangarau Tech’s position in order to create a fit between its HRM practices and the general effectiveness of the organization.

Resource-Based-View Approach

As per the Resource-Based-View theory, for a firm’s assets (that is, capital equipment, human resources, and organizational capital) to offer an organization with a sustainable competitive edge, four factors pertaining to the resource should be fulfilled: (a) the resource have to add positive value to the company, (b) the resource has to be distinctive or scarce among rivals, (c) the resource has to be difficult to imitate (d) the resource has to be hard to substitute (Dionysus & Arifin, 2020).  Human resource management practices or strategies that match these requirements can boost corporate performance and create long-term competitive edge for Hangarau Tech. The company is well positioned to leverage these four factors in order to ensure more effectiveness and overall improved performance.

Three evidence-based recommendations

Employee satisfaction can be described as psychological attitudes on the part of workers toward the duty that they carry out, which has a considerable effect on motivation, which in turn has an effect on productivity and, as a consequence, overall corporate success. Numerous researches have shown that employee motivation affects job happiness, and that the motivation level affects productivity and, as a result, corporate effectiveness.

Employees’ perceptions of their work have a substantial effect on job satisfaction, with monetary pay having a major effect on overall employee contentment (Boon et al., 2019). To improve the current situation at the organization, the HRM can incorporate flexibility within the workplace which will help the employees with work-life balance. An outcome of this recommendation is that there will be, to a certain degree, job satisfaction among employees since a control over the professional life and private life has been associated with job satisfaction.

The second recommendation will be incorporating different compensation strategies other than the direct compensation strategies. The human resource management can implement the intrinsic and indirect compensation strategies in order to keep employees motivated and in turn increase productivity within the organization. As stated earlier some individuals are motivated not just by the extrinsic compensation strategies but also the intrinsic strategies which makes use of recognition, feedback and growth. This will lead workers more towards performance as well as motivation in comparison to the extrinsic.

Lastly, the HRM department can increase the career development opportunities for the employees. As aforementioned, lack of career development has been found to be among the reasons for employee turnover in organizations. The expected results of this strategy is that employees will be more engaged as they will have the desired opportunities for career growth and advancement.


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