Human Resource Management Essay Example | Topics and Well Written Essays - 3000 words

Human Resource Management - Essay Example Conclusion 14 Reference 15 Bibliography 17 Introduction The project seeks to bring forth the human resource management strategies in the organization and its alignment with the short and long term business objectives of the firm. Changing business environments coupled with increase in competitive pressures have caused the company’s difficulty in sustaining in the market. Comprising of a total of 200 employees the company is faced with difficulty in managing its workforce efficiently. The main areas of human resource management strategies which have been falling short of meeting the company’s present and future business needs are explored in the project. This includes exploring its recruitment strategies, compensation strategies, training and development programs, performance management programs etc. This is followed by the explanation of how the key human resource management strategies need to be changed in the light of appropriate theories and practices. Based on the shortcomings of the strategies suitable changed have been recommended for the organization. Task 1 Current human resource management practices and linkage with the present and future needs of the business It is crucial that human resource management practices are linked with organizational goals and objectives both for the present as well as the future. The following section would analyze the HR practices followed in ABC Engine Components and identify their relevance in the context of meeting the present and future business demands in the organization. Firstly, the current recruitment strategies seem to be falling short of the future business needs and requirements in the organization. Because of the existence of a highly demanding and competitive environment, it was important that the skill requirements were changed and the current productivity level of the staffs were heightened. However, Gordon Watson, who was the Chief Executive, was found stating that the staffs would not be swapped for anyone else. This is found to be a shortcoming because with the changed in business requirements, skill requirements must also change which means that new staffs need to be employed while older on es must be either retrained or the workforce must be downsized. The retention strategies of the organization also seem inadequate as the employee turnover rate in the technical and management remain remains as high as 35-40%. The company seems to have little effective strategies for retaining employees where management and technical skills remain short in the market and are often poached by the competitors who offer them with better terms and conditions (Brown, 2011, p.102). The fact that ABC was unable to attract or retain employees to other competitors reveals its poor compensation program and structure. Despite that fact that there was little discontentment among employees there was high attrition rates in the organization which shows shortfall in the compensation structures which happens to be the key factor towards attracting and retaining employees. Also the compensation structures and policies must be such as to enhance performance and productivity. In this case there was no form of incentive in the organization which could improve employees’ productivity or employee involvement. The lack of variable pay can be regarded as a shortfall in the compensation structures to meet productivity goals in future (Graham & Roth, 2008, p.12). A proper performance management system is a prerequisite for ensuring high performance of employees. In the highly competitive environment in which the company operates, it is important that high performance of employees is maintained so as to ensure that quality standards are maintained and the company does not lose to competitors. The lack