Trends and Challenges, Research Paper Example

Trends and Challenges in Human Resources Management

“The competitive forces that managers face today and will continue to confront in the future demand organizational excellence. To state it plainly: achieving organizational excellence must be the work of HR” (Ulrich, 1998). Human Resources in the 21^st century have transition from a traditional silent or dormant part of organizational development to one that is a strategic partner in day to day operations. With the recent economic challenges and the impact of global and domestic competition, organizations today must determine approaches that will increase employee retention and create performance management systems that are equally beneficial for the organization and the employee.

Performance Management Systems versus Annual Performance Appraisals

Employees are hired primarily based on skills and experience. These credentials are matched against the role and responsibilities for the position in which they were hired. The job description versus the expectations and accomplishments of the employee determines the outcome of his or her Annual Performance Appraisal. The leadership and resources provided to the employee to assist in his or her performance development is the Performance Management System. There are specific functions that employers can implement in order to provide a successful Performance Management System. Some of these steps include:

• Hire the right people – Employers must ensure that the job expectations match candidates who are hired for the position.
• Training and Orientation – Immediately upon hire, employees should have an opportunity to understand organizational goals, expectations, mission and values. Employees are more likely to perform their jobs effectively when they have an understanding of what the organization expects.
• Communicating clear expectations – Employees should have a clear understanding of what is expected of them in addition to duty exceptions and modifications.
• Appraisal Process Training – Training and development on the appraisal process increases employee knowledge of what to expect and the measurements used for ratings
• Continuous Development and Recognition – Employees should not have to wait until the performance appraisal to get feedback. Consistent critiques and recognition from management can increase employee performance and productivity (Wilton, 2010).

Advantages of Managing Turnover in Organizations

While there may be a number of different reasons as to why managing employee turnover can be beneficial to an organization, the primary benefit is cost. Employers begin spending corporate dollars on employee retention as soon as the employee begins new hire orientation and training. The cost of training materials, trainers, facility cost and absenteeism are all elements that generate expenditures for the organization. Other expenditures relates to employee retention includes employee recruitment (i.e. background checks), payroll processing, compensation and compensation incentives and increased IT security. When employers can maintain employees, performance, productivity, quality and consumer satisfaction increases – all of which enhances organizational profitability (Wilton, 2010).

Conclusion

There is an incredible amount of pressure on today’s organizations and employees to meet and exceed job performance. In the process of doing so, Human Resources departments must ensure that the Performance Management System provides employees with the necessary training and development for success. Failure to meet this expectation can result in a loss in organizational longevity and employee satisfaction. Each of which can affect the earnings and rewards for the organization.

References

Wilton, N. (2010). An Introduction to Human Resource Management. Thousand Oaks, CA: Sage Publications

Ulrich, D. (1998). A New Mandate for Human Resources. Retrieved July 6, 2011 from web: http://www.vta.vic.edu.au/docs/strategic/New%20Mandate%20Ulrich%201998.pdf