The Importance of HRM

This assignment delves into the significance of Human Resource Management (HRM) within organizations. It analyzes various aspects of HRM, including its influence on organizational outcomes, the mediating mechanisms involved, and the challenges faced by HR professionals. The discussion draws upon a selection of academic sources, highlighting key research findings and perspectives on HRM's strategic role in contemporary business environments.

HUMAN
RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
ELEMENT 1....................................................................................................................................1
How HRM problems impact upon organisational effectiveness.................................................1
ELEMENT 2....................................................................................................................................5
Critical discussion on how organisational change, corporate culture and conflict have had an
impact on HRM problem............................................................................................................5
ELEMENT 3....................................................................................................................................9
Recommendations for the improvement on all issues and preparation of action plan which
accepted by the key stakeholders................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is an important part of business organisation. It is the
process of hiring employees and developing them as a valuable asset for firm. It associates with
conducting job analysis, recruiting people for vacant posts, regulating training and development
sessions, providing rewards and incentives, monitoring performance, identifying personnel
needs, reducing conflicts, implementation of flexible communication at all levels, etc. Human
resource management is liable in managing the quality of workforce so that employees can
match company's criteria (Hendry, 2012). Apart from this, it is also helpful in improving the
relationship among workers and employers so that both the parties can share their ideas and
thoughts. Hotel Four Seasons is the chosen organisation in this present report that is an
international hospitality organisation. It operates in 110 countries worldwide and found on 21st
March’ 1961. Overall revenue of the hotel is $4 billion and there are almost 34500 employees
that are currently working in it. Apart from this, the present report will be discussing various
HRM problems and how they impact upon organisational effectiveness. It consists that managers
needs make some awareness programmes so as to reduce these problems and issues. There is a
critical discussion upon how organisational change and corporate cultural put an impact upon
such problems and issues. At last, some recommendations will be given in order to reduce these
problems and issues, for a that an action plan is made which helps in improving organisational
cultural and working environment.
ELEMENT 1
How HRM problems impact upon organisational effectiveness
In an organisational structure there are various problems and issues which impact on
human resource department of the company. Its not only affect organisational performance but
also impact upon employees interests and choices towards a business organisation. Sometimes,
this can become generate misunderstanding among all people within the entity. Some problems
and issues of HRM are stated as below: - Managerial expectations- A persons who is working from long term period in a
company so as he or she expects something more from it. Employees always tries to
achieve expectation of their employers but due to some misunderstandings in anticipation
disputes can arises. This can also impact on their relationship, i.e. managers as well as
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staff members (Purce, 2014). In order to reduce all of this, business owners have to
clearly convey about their future plans and growth so as employees can work
accordingly. They needs to encouraging all workers in order to achieve goals and
objectives of the firm. Poor communication – Due to lack of communication, conflicts are also generated. Poor
communication determines misunderstandings among staff members. For example- if
managers tell something important to an employee in order to rely the information to
another. In this, many people fails to convey right messages to right person. In Hotel Four
seasons, these information may be related with important projects and tasks, if they are
communicated incorrectly then it affects entire business activities of projects. Then a
company will be failed in order to perform effectively in target market. Lack of accountability – another source of conflicts is lack of accountability. In Four
Season if no one takes responsibilities to handle all activities then it would generate
disputes and battles among all people of the company. There is always needed is person
in companies who is able to manage all operations and practices of the company (Ho,
Wang and Vitell, 2012). But employees don't want to follow all rules and regulations;
this can generate conflicts and battles between employers and staff members. Different values and opposing interest – There are different type of people are working
in an organisation; all of them have different values and beliefs. It is too difficult for
managers to coordinate these persons, so as this could be also a reason of conflict at
workplace. For example- in Four Seasons, some times employees are failed to understand
each other's feelings and personalities, this can develop battles and jealously among all of
employees. Apart from this, workers' opposite interests and choices also be a cause of
conflicts. Therefore, these people are able to work together within a company. Unresolved issues - In Four seasons, there are many unresolved issues of employees
which are not solved in given time period. Such issues are related with salary, working
environmental, training, development, promotion transfers etc. Due to this, situations of
strikes and lockouts are occurred which is very general because they does get full
satisfaction from job (Ahern, Daminelli and Fracassi, 2015). Lack of training – due to hactic time schedule managers are not able to provide proper
training and development assistance to their employees. In other words, top management
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cannot properly invest in their proper assets; they think that human expanses can be
reduced. In modern era, organisations emphasis on development of bottom line and short
term payback. But due to lack of continuous training, employees cannot perform well in
target market. There is large competition among different business entities as they all are
trying to compete with each other in order to gain more market share.
Impact of HRM problems upon business organisations: -
If managers of human resource department are not able to resolve these problems and
issues on time then it could affects overall growth and success of the company. In addition, due
to lack of poor communication employees are not able to communicate with each other. Through
which, such people cannot share their ideas and issues with top management. In addition, in this
global environment there are so many competitors of a company are available which have
effective innovative assets and qualities (Albrech, 2011). Therefore, it is too difficult for Four
Seasons to compete with its rivals and gain competitive advantage. Apart from this, if a business
entity is able to fulfil expectations of its existing employees than it would affect employees'
interests and their choices towards a company.
Companies needs to generate some awareness programmes and activities in order to
demonstrate issues and further problems, such are stated as below: - Clearly define common language and standards – This method helps a company in
reducing above mentioned problems and issues among staff members as well as
managers. In Four Seasons, employers requires that all employees must follow a common
language with each so as they can easily understand what others wants to say. So as the
chances of misunderstanding would be also diminished among both parties. Apart from,
common values and standards are also assistive it forces employees as they can work for
a commons goal and objectives. In cited hotel, corporate standards and values aids in
establishing co-ordination and co-operation between all workers. Be truthful - If a company wants to develop effective and working environment within
workplace as it needs to be truthful among all members (Wright and McMahan, 2011).
Apart from this, being a part of leadership a person must truthful, in order to retain
employees for a long term period. Knowing employees needs – In order to develop effective communication, managers
have to know needs and demands of their employees. Happy and satisfied staff members
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are the key factor of success for a business organisation. Managers requires to involve
their employees in decision making process of the company. In Four Seasons, top level
management can generate training sessions and groups where employees can freely share
their issues regarding job role. After that, higher authorities make strategies and policies
to resolve such problems and provide an healthy working environmental to all
employees. Focus on working as a team – Managers of Four Seasons always have to focuses on how
to encourage employees also includes that employers have to emphasis on creating
teams. In addition, it helps in developing personal as well as professional relations among
employees, it is the method to extend productivity at workplace (Lengnick-Hall, Beck
and Lengnick-Hall, 2011). Team building also helps in resolving day to day to issues of
companies and implementing cordial relationship within all staff members. Always focus on purpose – If a company always focuses on its purpose and aims; it will
make an effective organisational cultural in company. In Four seasons, managers are
always trying to deliver good services to their customers, it helps in enhancing market
share as well as growth of the firm.
 Discrimination and diversity: Team is a unit in which various number of person work
together for a common objective. But several time it get analyse that team get affected
due to bad coordination between them. As managers do not treat all employees equally so
that lack of team working get arise. Discrimination is a major problem through which
conflicts and issues arise between a team.
 Employees queries: A major task which have to perform by HRM of an organisation is
working on problems and issues which arise in an entity. Another major thing from
which problem lead arise is employees queries which further arise lack of satisfy
employees in a company. According to HRM issues unresolved problem arise due to lack
of focus on employees queries (Becker-Olsen and et. al., 2011).
Organisation effectiveness get decline due to many problems on which HRM do not keep
more focus. Productivity as well as profitability of business get affected from this. Hotel Four
season quality services are everything for them in relation to generating more and more profit.
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But if issues get arise then they will not become able to operate activities adequately. Above
mention are the problems of HRM which adversely affect the effectiveness of a company.
Hence, management have to conduct some awareness programmes on all the issues which are the
major problem for arising such problems. This aid in regaining the effectiveness and operating
work properly.
ELEMENT 2
Critical discussion on how organisational change, corporate culture and conflict have had an
impact on HRM problem
Organisational change consists with modifying the overall structure of company
as well as its working process in order to achieve specific goals and objectives in certain time
period. It involves competitive environment, buyers' demand, economic conditions, new
technologies, government policies etc. In modern era, there are various techniques that must be
adopt by business entities for their growth and development in competitive market. Apart from
this, corporate cultural consists with attitudes and behaviour which helps in determining how a
company will interact with employees as well as handle external business transaction. A firm's
corporate cultural impact on their dress code, working atmosphere, business schedule, customer
satisfaction, employees benefits and further many aspects of business organisations (Jiang and
et. al., 2012).
Organisational conflicts are occurred due to an agreement or disagreement on a particular
topic at workplace. In a firm, when two or more employees are interacting with each other, this
may generate conflicts or disputes among because of their different viewpoints and opinions.
There are given some major areas of human resources which are influenced by organisational
changes, corporate cultural and conflicts such are described as below: - Staffing – Organisational changes also impact upon staffing procedure of the company. It
means, it helps in reducing issues and problems among staff members. Effective
organisational change and corporate cultural forces HR managers to hire more
employees, this could reduce their staffing complications and issues. In addition,
employers of human resource department may also have altered job descriptions to their
remaining workers as they can work in meaningful manner.
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 Setting values and morals for same – Attitude, beliefs, values, morale etc. are the
important part of corporate cultural and organisational changes which is liable in
accomplishing vision and mission of the firm. These elements also impact on employees'
mind-set and their behaviours as they can perform well. For example- Four Seasons has
an articulated set of values and beliefs which has to prominently conveyed to all staff
members. It involves how a company serve its customers, preserve professional standards
and treat with co-partners (Meredith Belbin, 2011). Values also consists that the way of
production should be legal and fulfil all laws. Therefore, they are liable in order to
minimise cultural differences among people and engaged them for a particular goal and
objective of company. Establishing organisational structure – Organisational structure also effect on its
cultural values and beliefs. Hence, employers have to ensure that their company's
framework is able to achieve goals and objectives, it should be created with an aim of
enhancing performance level of staff members. Apart from this, organisational structure
also helps managers as they can direct all working activities and operations. Improving communication pattern – Organisational changes are also including effective
communication pattern. If all employees of the company are capable to communicate
effectively so as they can share their all ideas and thoughts regarding growth and
development of business organisation. Along with this, Four Seasons is using top to
bottom level approach of communication so as employees can quickly and fast convey
their messages to managers, this could also reduce gap between both parties (Choi,
2011). apart from this, sometimes organisational changes also put an adverse impact on
communication pattern of the company. Corporation and coordination among employees – Employees are the an essential part
of corporate cultural, they are liable in producing quality goods and services so as it can
attract many customers in target market. Along with this, if people within organisation
provide attractive products to their buyers and treated them in well mannered then they
can tend towards it. In order to manage employees effectively so that Four Seasons needs
to provide training and development assistance to them; it will generate their current
skills and abilities. A wide range of consumers helps a company in achieving its aims and
targets in impressive manner.
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 Managing risks – Effective organisational changes and corporate cultural are responsible
in managing future risks and uncertainties of the company. In addition, it dictates that
how much risk is taken by a firm. All this can be done through research and development
processes (Cascio, 2012). Sometimes it is very difficult for managers to manage their
risks, so as they adopt the concept of organisational changes. It would help them to
identify those negative factors which impact upon growth and development of business
organisation. Education and growth of staff members – It is essential for managers to measure
effectiveness of their employees and identify the area in which training is required. A
company can adopt organisational changes in order to provide training and development
assistance for improving performance of employees. Along with this, leaders staff
members can encourage by education because it provides them career growth and
success. Therefore, staff members can more dedicated towards achieving goals and
objectives of the firm. Organisational effectiveness also is also related with company's
growth, thus, HRM needs to built effective teams with innovative skills and abilities. But
due to conflicts or disputes among staff members a training session would be completed
effectively.
 Achieving competitive advantage – An adequate change in a company is also helpful in
accomplishing competitive advantage. It is liable in evaluating the strength and power of
other competitors of the cited company therefore it can adopt strategies and policies in
order to gain more competitive advantage from target market. Apart from this, conflicts
or personal issues between workers can reduces their productivity, hence a company
cannot attain its competitive advantages.
There are given some methods through which managers can reduce the impact of
organisational changes, corporate culture and conflicts as well, such are described as below: - Create consequences – It is an important way that is liable in order to reduce conflicts
effectively in workplace. Those employees who are involved in group meetings and
productive conversation are not seem as to create conflicts. So as managers needs to
forces their staff members as to participate in group meeting and discussions. It can also
helps employees that how to work in a team (Becker-Olsen and et. al., 2011). Apart from
this, managers of Four Seasons needs to implement some rules and regulation; they have
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to make some punishments i.e. 2 days loss of pay of employees who are liable to create
such situations. Listening – This is key factor if a company really wants to reduce conflicts and disputes.
Employers should listen needs and wants to their workers and trying to provide them. For
example- if Four Seasons listen problems of their service providers; it can easily
decreases conflicts. Apart from this, implementing a training session is also methods, in
which higher authorities listen as well as communicate with their staff members
(Chelladurai and Kerwin 2017). Open up communication – Effective and efficient communication helps managers as
they can interact with their subordinates in an adequate manner. People within
organisation starts disputes cause they wants to heard. So as flexible flow of
communication can open door of effective communication with which both parties
convey their messages in a meaningful manner. Implement team building activities – Team building is responsible in establishing
cooperation between all employees; it forces them to work together. If all persons are
worked for a particular goals then it will definitely provide growth and success to firm
(Ahern, Daminelli and Fracassi,2015). Collaborating – collaboration helps in integrating various ideas that are sets by people
within company. A company can collaborate with its employees by phone calls or by face
to face interactions. It would helps managers as they can regulate various strategies and
policies. In addition, collaboration also assists Four Seasons as it can make decisions
regrading equal time spent on all affairs of the business enterprise.
 Make effective use of resources – Effective and efficient use of human as well as
physical resources helps a firm by increasing its market growth and development.
Employees has a vital role in a business organisation as they are responsible in designing
adequate strategies for it. HRM is liable in hiring new employees which can impact upon
goals and objectives of firm. Apart from this, implementation of these strategies and
changes helps in improving organisational affairs or functions in a systematic manner.
 Create fairness and transparency – HRM department of business enterprise also
emphasis on creating fairness and transparency in its production process. If all customers
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are aware about the manufacturing process of the company then they can attract towards
it. It involves that which kind of material is by firm in its production (Meredith Belbin,
2011). Apart from this, staff members also wants that business cultural is always honest
and fair for them, it means employees are also involved in decision making process of the
company, i.e. changes in salary or wages.
ELEMENT 3
Recommendations for the improvement on all issues and preparation of action plan which
accepted by the key stakeholders
There are many issues arise in the business which have to overcome by an organisation in
an adequate manner. Improvements are required for the business so that they can sustain at
market for long term. In such relation, there are many issues identified which are related with the
organisation change, culture and conflicts. Problems work as major weakness for a company in
relation to attain effectiveness. These issues made an adverse impact on the business through
which management have to bear heavy loss. Hotel Four season is suffering from some HRM
problems on which they have to work. Thus, several problems which are already discussed are
defined as below in relation with proper recommendations for them:
 Every individual have several personal goals which they want to attain. But apart from
them, management have to create a common goal also on which they have to work
properly. As this is helpful in reducing the conflict in an organisation because all people
will lead to work on a common thing as compared to personal interest. One of a major drawback for a company is poor communication. The information do not
flow properly thus conflicts leads to get arise between various staff members. Human
resource manager have a direct relation with every employee of a company and they are
very well know about problems of each other as well as problems with the management
(Choi, 2011). Hence, if there is any sort of barrier find out in practice of HRM then
company effectiveness have to suffer. HR manager have to made a direct interaction with
every employee and identify their problems which are related with management or in
between employees. In present world, people are less concern and active to take the responsibility fir any
thing which get done wrong. It is consider as one of a major issue and problem which
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arise in an organisation. HRM is a practice who lead to facilitate the work of recruiting
and selecting the employees and trained them. Thus, management have to make their
employees more responsible so that they can take action on many things which are not
appropriate in nature. The nature if accountability have to inbuilt in the employees by
providing proper training to all people who get selected for performing a project or task.
Human resource manager have to provide proper training which is their major duty. Another major issue which is related with an organisation is regarded as different values
and opposing interest of people. This is a reason under which all employees work in
different direction except from one. According to organisation context, there are vast
number of people work together who belong to different perspective and interest. Human
resource management is define as the process who recruit and select only such employees
who contribute more in attaining goals and work together (Gomes and et. al., 2012). For
this, they have to improve their recruitment and selection process for taking only such
people whom have potential to work together and in interest of a firm. Apart from
individual interest and values all of them have to work together.
 Many problems arise due to lack of coordination between each of the employee and
management. HR manager have to use proper framework through which they can resolve
all the problems. For this improvement in interaction process or taking feedback from
employees is must. Most of the it get measure in Hotel Four season hotel that HR
department not showing concern towards the issues which arise in an organisation.
 For maintaining the effectiveness in an organisation, management have to provide proper
training to their employees so that they can work properly. HR department is responsible
in relation to trained their employees. As if they will not lead to trained all employees
properly then management productivity have to bear heavy loss. Unskilled workers will
lead to work in different direction and organisation interest will get affected.
 Four season also adopt the incentive system in order to improve performance of their
employees. Employees are only attain and retain in a business entity if they are paid high
wages. In addition, incentive systems are developed for individuals but for achieving
collective goals; it moves employees as they can give better outcomes to the company
(Greenwood, 2013). In HRM, also motivates individual's attitudes as well as teamwork.
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An appropriate action plan is one in which all the goals and objectives are defined just for
the purpose to reach them properly. As this is helpful in resolve all issues as well as
implementing any new project properly. For appropriate conducting a action plan there are
several number of goals are required, resources have to determine as well as proper time period
is also demanded. Hotel Four season require a action plan in which they want to get rid from the
HRM problems which are taking place. The key stakeholders which affect from these facts are
internal one in which employees and the CEO, BOD are included. A feasible action plan is one
which aid in resolving all issues in an appropriate manner. For the hotel four season appropriate
action plan for the concerning issues are as follow:
 Keep a record of everything: A proper record of everything is must for making the
work appropriate and effective. Proper record aid in taking beneficial decision which
are beneficial for the further development. Hotel four season have to take this fact in
account and identify all the issues like poor communication, unresolved issues and
lack of training in account. This support them in identify the resource through which
they can resolve this HRM issue.
 Know what you want to do: On the basis of record, objective and goals have to
formulate for the issue and project which management want to implement. HRM
problems are the major issues in which various facts and things are identified
(Greenwood, 2013). Hence, Hotel Four season frame their objectives in which they
will lead to work on them by resolve them and gain effectiveness.
 Be specific and realistic in planning: Specific goal is necessary with realistic facts
and things. Management have to set a time period in which they will lead to get done
such thing in their organisation. Hotel Four season have to work on these issues
within 2 months otherwise they have to suffer heavy loss from issues and crises.
 Setting of milestone: The targets should have to be attainable in nature in which
milestones have to frame. Milestone always aid in motivating the senior authority or
person who work on them. Hotel four season have to prepare their milestone so that
they can identify and analyse their performance.
 Break large facts into smaller one: If the issue is large in nature, then manager have
to break them in measurable one and then work on them. This aid in working on such
problems properly and get attain in specified time period. Hotel Four season facts are
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not large and small in nature. Thus, HR department have to consider such crises and
take proper steps to resolve them.
 Make a list: Prepare a list in which all things which want to accomplish have to
include. Managers and leaders who work on these issues have to prepare a list
through which they can identify the areas which already get improved and which
really required for modification.
 Work in an adequate direction: Work on all the things in an appropriate manner is
not everything but direction is essential. This is defined as the relevant function of
SMART objective so that all team can work in a single direction.
CONCLUSION
From the above refereed report it has been founded that human resource department of
the company plays a vital role in its growth and success. The report consists various problems
and issues that are facing by an organisation; such problems also impact upon company's
performance and productivity. In this assignment, some methods are explained as how to
overcome with these barriers. Apart from this, the project has also described impact of
organisational changes, corporate cultural and conflicts in a business organisation. In order to
adopt various ways and methods, managers can reduce the impact of all these aspects in an
adequate manner. At last, some recommendations and suggestions are given as how to reduce
problems of human resource departments in order to make appropriate actions. For that, fictional
plan is made up that helps in
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