Human resource management refers to the process of managing the workforce of organizations, and all its related functions (Williamson & Rasmussen, 2019). All organizations have to undertake some form of human resource management to operate effectively and remain competitive. In New Zealand, the place of organizational human resource management cannot be stressed enough. As such, this essay examines the contribution that human resource management makes to the performance of organizations in New Zealand. It then delves further into the five functions of human resource management in the context of New Zealand businesses. Finally, the essay focuses on the requirement of human resource management within New Zealand organizations, and where the firms can source for such personnel.
Human Resource Management and its Place in Organizations within New Zealand
Human resource management plays a crucial role in firms in New Zealand. It forms a critical part of organizational operational strategies. For one, the undertaking is useful in the recruitment of talent for organizations. Chang (2019) notes that human resource management allows firms to effectively bring on board the personnel that would be most desirable to them. Similarly, human resource management aids firms in the acquisition of suitable talent for the achievement of organizational goals and objectives. During the process of sourcing employees, the human resource management function ensures that organization’s escape legal headwinds. Organizations such as SBS Bank avoid legal issues associated with recruitment by screening applicants in a non-discriminatory manner. The prospective employees from the applicant pool, are trained by the human resource department in their onboarding process (Du Plessis, 2016). Also, human resource management enables firms like the Marine Biological Laboratory (MBL) in the preparation of a suitable labor force to achieve their organizational goals.
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Human resource management is also useful to organizations because it enhances employee satisfaction. For many organizations in New Zealand like Deloitte New Zealand, human resource management is critical in enhancing employees' satisfaction. Through the roles played by the human resource management function, organizations can stay mindful of their employees' welfare. Human resource management enhances employee satisfaction by championing for employees' to content in working for the organization (Michailova et al., 2019). Contentment at work results in greater employee performance and better organizational outcomes.
Additionally, human resource departments are useful for organizations because they enforce continuity of operations. For instance, as with firms in the fast-food industry like McDonald’s New Zealand, human resource management is useful in reducing employee attrition. It properly manages the welfare of the employees, and also improves their productivity (Ott & Michailova, 2018). The human resource function also helps to replace the employees that leave the firms. Overall, human resource management helps firms to ensure operational continuity and realize better performance.
Finally, human resource management contributes to organizational performance by ensuring that there exists a desirable environment. For instance, in the case of Deloitte New Zealand, human resource management has enabled the creation of a desirable work environment. Chang (2019) notes that proper human resource management is meant to ensure that organizations develop employee-friendly cultures. As such, organizations can attract and retain competent talent thus realizing better operational outcomes. Organizational human resource amendment also improves performance by ensuring that there exists a safe working environment for employees (Nolan et al., 2018). Thus, the function aids in reducing costs of operations that would otherwise prevail in its absence. Summarily, human resource management helps firms in New Zealand achieve higher performance by minimizing risks to the personnel and enhancing benefits for the organizations.
Functions of Human Resource Management in Organizations
New Zealand firms just like firms in the rest of the world, domicile critical aspects in the human resource management function. These may include planning of human resources, induction, and the management of talent. Further, the human resource management function also includes the management of performance and remuneration of staff.
Planning in human resource management is crucial for the operations of firms in New Zealand. As a function of HR, planning involves the anticipation of the needs of an organization. For instance, McDonald’s New Zealand has a human resource department that maps out the labor force needs of the firm, and crafts a plan for meeting such demand. As such, departments outline the workers needed for the organization, and the role they will play in the organizations. Further, human resource management also maps out the resources that may be spent in trying to recruit employees and bring them on board. Williamson et al. (2017) note that HR planning also incorporates the identification of the mannerisms in which desirable employees would be brought on board the firm. For example, at Accor Hotels, the planning function of human resource management is responsible for creating the modalities through which new members are recruited into the firm . The HR planning function involves mapping out necessary resources and steps necessary in managing human resources.
Induction refers to the process of helping a new member familiarize themselves with an organization. With the mismatch between the theoretical and practical aspects of job training, employees must be familiarized with organizations. At the garment manufacturer Icebreaker New Zealand, for instance, each new employee goes through a two-week induction course (Ott & Michailova, 2018: Williamson et al., 2017). Through such training, the employees get familiarized with the functioning of the organization. Thus induction is critical in the faster adaptation of employees to their work environment. In Accor Hotels, for example, induction involves the orientation of employees and their acculturation (Haworth, 2013). Similarly, induction is related to the training of new employees on firm management structures, and job expectations. Through the process, the new employees of the firm are made members of an organization. They can then adopt the reigning practices at the firm and truly be members of the firms. At Oceana Gold, the process of induction involves employees welcoming their new colleagues through assignment sharing. In essence, induction allows firms to ensure that new employees are ready to effectively operate within the culture of such a firm.
Firms can only operate effectively if the systems in place therein are guided by the right personnel. Du Plessis (2016) notes that organizations need to continuously invest in the management of their talent. As such, firms need to hire new employees that would meet the organizational objectives. Sometimes it is also necessary for the firm to let go of employees that may not be effective in the achievement of objectives. Just as much, organizations may also need to realign the competencies of employees with organizational goals. All these are undertaken through talent management wherein employees are sourced and prepared for the available job duties. Talent management also involves the continuous updating of the workforce's knowledge and competence through training. Further, talent management would also involve letting go of employees that no longer meet the needs of the firm (Johnson, 2019). The human resource department at Icebreaker Inc. actively recruits and trains employees for work therein. The department may also fire those deemed unfit for the operations of the organization. Talent management for firms involves ensuring that only the right employees are working for the organization at any given time.
Organizations are led to bring employees on board because they need personnel to apply their competency in meeting organizational goals. That is, the outcome that employees realize versus that which they ought to realize. Marler and Perry (2016) note that performance management involves questioning the extent to which work objectives are met by employees. At Matakauri Lodge, the management has high expectations of employees and those that fail to meet the threshold are let go. Performance management, therefore, involves the creation of goals for employees, and the provision of desirable conditions for the achievement of such (Johnson & Szamosi, 2018). Besides, the function involves the actualization of sanctions to ensure compliance or punish non-conformity.
Remuneration is defined as the provision of due compensation to employees. In some instances, however, remuneration may involve the offering of incentives to spur achievement among employees (Paauwe & Boon, 2018). Within New Zealand, retail firms such as Fresh Choice have HR departments that determine the realistic structures of compensation of employees. Thus, the firm cannot only pay the employees their due compensation but also inspire them to work better. As a function, remuneration involves ensuring that employees are not exploited. Thus the departments ensure the wages and salaries are fair as per industry standards (Collings et al., 2018). Incentives such as performance bonuses and different types of allowances are also part of remuneration.
H.R Requirements and Sources of Personnel
Concerning the recruitment and selection of employees, there are certain requirements that firms need to consider. For one, organizations need to ensure that they recruit suitable employees for available duties. For instance, at Accor Hotels a rigorous process of selection ensures that new employees are a perfect fit for the organization. Secondly, HR requirements also include a shared vision. Thus new employees selected should be willing to embrace the direction a firm is taking and offer their best in such regard. Just as much, firms in New Zealand could also identify its human resource requirements based on prevailing market changes. For instance, in competitive industries like pharmaceutical production, firms may at times need more microbiologists and biochemists. At other times, such firms may need more pharmacists, depending on the phase of operations. Finally, human resource requirements could also be influenced by growth and development in firms (Paauwe & Boon, 2018). For instance, as law firms grow, they may require not just more lawyers, but also accountants, administrators, and even human resource personnel.
Desirable employees can be sourced from many places including institutions. For example, firms could opt to source their human resource from schools and colleges directly. In other scenarios, organizations would seek the input of human resource management firms to select and recruit employees from among the labor force. In other instances, organizations such as intelligence bodies would source their employees from discipline services. The sourcing from a specific pool of potentials is also common in the retail and financial services sector of the economy. Finally, organizations such as Matakauri Lodge draw their employees exclusively from their institutions. These employees are thus pre-screened before entering the institutions from whence they are drafted (Johnson, 2020). Whichever source that organizations draw their employees from, such personnel should be ready to internalize the culture of the organization. Besides, such personnel must meet the bare minimum criteria for recruitment, and stand out above the competition. Personnel recruited by firms should also be able to impress the selection panel during screening, interviewing, and testing phases of the recruitment process.
References
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Collings, D. G., Wood, G. T., & Szamosi, L. T. (2018). Human Resource Management: A Critical Approach. In Human Resource Management (pp. 1-23). Routledge.
Du Plessis, A. (2016). Suggestion System as an HRM tool to be Successful in Organisations: some Empirical Evidence in New Zealand . Springer International
Haworth, N. (2013). Commentary: Reflections on High Performance, Partnership, and the HR Function in New Zealand. New Zealand Journal of Employment Relations , 37 (3), 65.
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Nolan, P., Fraser, H., & Conway, P. (2018). Moving on from New Zealand’s Productivity Paradox. Policy Quarterly , 14 (3). https://doi.org/10.26686/pq.v14i3.5080
Ott, D. L., & Michailova, S. (2018). Talent Management Challenges and Possible Solutions for New Zealand businesses. New Zealand Journal of Human Resources Management , 18 (2), 19-32.
Paauwe, J., & Boon, C. (2018). Strategic HRM: A Critical Review. In Human Resource Management (pp. 49-73). Routledge.
Williamson, D. D., & Rasmussen, E. (2019). The Big Bang: The Birth of Human Resource Management in New Zealand Hotel Sector. Journal of Management History . https://doi/10.1108/JMH-04-2019-0028
Williamson, D., Rasmussen, E., & Ravenswood, K. (2017). Power in the Darkness: Taking a Historical and Critical Employment Relations Approach in Hospitality. Journal of Hospitality and Tourism Management , 33 , 134-141. https://doi.org/10.1016/j.jhtm.2017.10.014
