Managing Human Resources in the Manufacturing Industry

Running Head: MANAGING HUMAN RESOURCES 1
Managing Human Resources
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MANAGING HUMAN RESOURCES 2
Managing Human Resources
Introduction
In this activity, I have selected the manufacturing industry as the basis of my study. The
general idea, in this case, is obtained from one particular article by TOG (2018). The same article
has been instrumental in cementing my understanding for the topic. However, I have used four
more articles to support the general argument provided in this case. Of the four, one article
mainly demonstrates the impacts of developing HR in the manufacturing sector. The other deals
with managing workforce diversity in the Australian manufacturing sector while the other two
deals with HR issues in general with regards to the Australian manufacturing industry.
According to my observation, small and micro-enterprises that deal in manufacturing are
becoming increasingly aware of the amount of impact that an effective Human Resource
manager can provide in the organizations, thus, leading to success. An effective HR Manager
with proper HR functions has the ability to help bottom line of a manufacturing company by
developing a work environment that is engaging and positive.
TOG. (2018). 6 HR Functions That Drive Results in Manufacturing. Retrieved April 13,
2018, from http://www.theoverturegroup.com/blog/6-hr-functions-that-drive-results-in-
manufacturing/
Keywords: HR Functions, Manufacturing, Administration, Evaluation.
According to this article, there are six main HR functions that are important with regards to
driving success within the manufacturing industry globally. Such functions are compensation
management, evaluation and administration of benefits, recruitment, training or development,
performance appraisal, and employee or labor relations. Regarding compensation management,
the article elaborates that expenses relating to compensation form the second largest expense in

MANAGING HUMAN RESOURCES 3
business after purchasing or raw materials. HR managers are required to determine the most
appropriate mix for base and variable pay alongside benefits that retain or motivate high
performers in an organization. Under evaluation of benefits as a function, balancing employee
requirements alongside managing the increasing employee benefits costs is an issue that is
sensitive with regards to health insurance. In such a case, HR managers are left to answer several
questions like if to offer different benefit options.
Regarding recruitment, the article claims that the interest of younger generations is reducing with
regards to going for manufacturing career opportunities. Such is because of the current
perception that the manufacturing industry lacks the cutting edge compared to other industries.
Such a case is an industry-wide challenge which requires the skills of an HR manager that is
well-connected and imaginative to give its organization an advantage over others. IN this case,
the most crucial obligation of the HR manager is to effectively recruit individuals that are
talented in a manner that is timely and cost-effective. Regarding training, leaders of HR
departments are required to effectively manage development and training areas within the
organization. Also, regarding performance appraisal as a different function, HR needs to design
as well as implement formal programs of employee appraisal to ensure that tools and processes
are in line with the goals of the organization. Also, HR will provide line managers with the skills
and support they need to engage such processes effectively to ensure that the organization
achieve the results that are desired. The last function described in this article is labor relations.
Under this topic, the argument is that HR leadership with regards to employee and labor relations
is vital in the manufacturing industry. For non-union companies, sustaining such a status would
take much time and effort. However, for those organizations that are unionized, on-going
relations and labor negotiations would have significance on the financials of companies.