Section 1
The role of a human resource manager in an organization is vital for the success of the company’s functions and its image that it portrays to the public. Baklava IT Solutions is a reputable organization that strives to provide the best solution to its customers. The company’s interest in satisfying the customers' needs has its foundation on its vision statement that looks to design and deliver the highest quality IT solutions utilized by 75% of the market while maintaining a 98% customer satisfaction rating. The company has made some positive moves as it aims to achieve its corporate goals, which include increasing profits, enhancing customer satisfaction, and out-competing its close rivals in the market.
Despite such tremendous positive steps the company has made, its decentralized human resource management approach poses a considerable threat to its success in the competitive IT industry. The basis of the decentralized human resource approach the company currently uses is the fact that human resource activities in the company spread over the five areas where it has its offices in the United States. Creating a decentralized human resource system means that each of these offices has its human resource management team and policies that define how it operates. Such operations are not necessarily similar across the entire five offices under the company’s name. Therefore, this approach is costly, inconsistent, and varies from one office to another. Therefore, it creates a situation where the company's human resource activities cannot be the same, and this results in inflexibility, which may not be good for this company in the dynamic business environment.
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Therefore, this report aims to recommend the creation of centralized human resource management under HR Business partners who will oversee all the human resource functions in the organization. The centralized human resource system will be critical for an organization of this nature that looks forward to providing the best for its diversified customers. It is the centralized human resource management system that will meet the demands of the organization to reach various customers, have the right image in the industry, and also align its purpose mission and objectives with the type of employees it hires. Therefore, a centralized human resource will address the following. The centralized system of human resource management will create a centralized Human Resources function located at the main corporate office that inventories and supports individual needs and their use of locally assigned Human Resources contract.
Additionally, the centralized human resource management system will reduce the inconsistencies that currently exist in HR policies. It will further eliminate unnecessary duplication of procedures and services in the HR functions and ensure that HR personnel receives the training and experiences they need to develop their expertise and cultivate opportunities for career advancement in the HR field. Lastly, centralized Improve communications and information sharing among all areas to ensure consistent application of the HR function .
Section 2
The Centralized HR Function And the Department’s Purpose Statement
The primary role of the HR department in this organization is to enhance the recruitment of the top talents. One of the reasons that make the decentralized approach to human resource management dissatisfying is the fact that it limits the organization’s ability to recruit top talents in the market. At the department, the purpose statement mentions the prevision of the quality product and hiring of quality employees to ensure that the company stays competitive ( Weixler, Lincove&Gerry, 2019). When the organization has a centralized human resource approach, quality among its recruitment will be a guarantee. The flexibility rate that comes with a centralized human resource approach will allow the department to have a quick and uniform decision making on critical issues such as recruitment strategies and systems. Also, having a central unit of human resource managers will enable the department to meet its purpose statement by hiring a quality team with expertise. Such people have qualities that allow them to identify and recruit top talents quickly for an organization ( Lee, Kim, Lee & Moon, 2019). Therefore, by creating a centralized human resource system, the department is likely to hire quality managers, save cost, consolidate all its HR function at one point. Such benefits are likely to enable the company to come up with the best selection strategies and resources that will give it a chance to meet its statement of purpose.
Recommendation For Consistency
For human resource productivity, the consistency of its services, programs, and tools is critical. With decentralized human resource management, the problem is that the five offices will have different approaches, facilities, and also programs that they will use to analyze come up with a selection of the employees for recruitment purposes ( Guo & Li, 2019). Therefore, the centralized human resource approach will rectify this idea by introducing uniformity in all the recruitment programs, tools, strategies, and also services for both employees and the managers.
For human resource managers, their role is to enhance a better recruitment strategy, motivate workers, have succession programs, and have a matrix or tool for recruitment. The best recommendation for consistency for such HR programs, services, and tools is to have uniform policies and goals for the human resource managers to unify their thinking towards deciding for recruitment purposes. For instance, HR should have programs for succession in the company. However, each unit is likely to have different succession programs if the company operates under a decentralized approach ( Guo & Li, 2019). Therefore, the firm should have the same policies for all the human resource managers for them to observe operations uniformly. It will improve managers' consistency with their programs and strategies. Further, a centralized approach to human resources allows the company to have a similar vision, and by creating a healthy vision for both human resource managers and employees, they are likely to have some strategies, policies and programs, and tools for meeting the uniform goal.
Focusing on employee treatment and attempting to change the philosophy the employees and human resource managers use while handling human resource management decisions can be an excellent way to introduce consistency ( Roscoe, Subramanian, Jabbour & Chong, 2019). For instance, understanding the employees' feelings about the human resource philosophies, plans, procedures, and tools from each of the five units in the organization could be the right way of understanding the philosophies from each of the five units. It can, therefore, help in creating consistency in such practice by changing the human resource philosophies, principles, and policies to create uniformity in the human resource functions in the department and the organization as a whole.
Section 3
Programs, Services, And Tools Consistency Recommendation
Performance management (PM) is a process of ensuring that a set of activities and outputs meets an organization's goals effectively and efficiently. Performance management can focus on the performance of an organization, a department, an employee, or the processes in place to manage particular tasks( Guo & Li, 2019). For human resource managers, performance management is the degree to which the department organizes its resources to achieve the goals within the department and the entire organization. Improving consistent performance among human resource management is critical, but remains to be a big challenge among the current human resource managers.
The first approach to improve the consistency in HR performance is to set both long term and short term goals for the human resource team so that at all the time, they are guided towards specific directions and activities that allow them to remain consistent. Both the long and short term goals will enable them to stay on track. Another means of improving consistency in performance among HR is to build teams and bind them with uniform targets. Such a strategy can increase the rate of return from each employee so that they jointly contribute towards achieving a specific goal in the department. A constant supply of resources to human resource departments as well as motivating the team and incorporating the right technology among the human resource activities in the organization could be the best way of increasing consistency in its performance.
Qualitative Matrix Analysis
There are many qualitative matrices that an organization can use to understand whether the human resource department or manager is performing as per the standards of the organization. An excellent example of such a matrix is the Time to Productivity matrix that measures the time the human resource manager takes to perform a specific recruitment plan or conduct a particular function of HR in the organizations ( Weixler, Lincove & Gerry, 2019). The matrix is an HR metric that is calculated as a time frame: number of days, weeks, or months. While using this matrix to assess the HR management performance, the organization can use a performance tool such as Zoho Perform and then track how long it takes for the human resource manager to complete a specific role. The formula for performing using this matrix is as follows: Time to productivity =The date the HR personal gets to the target set by the organization or department – the time the goal was set for the human resource department or management.
Section 4
The Centralized HR Function And HR Department Purpose Statement
Training and development is another essential function and purpose of the existence of the human resource management team and department in the organization. The centralized human resource management approach is critical for training and development because it reduces the cost of training and development in the organization, thereby allowing the department to achieve the reason for its existence or the statement of the purpose. The purpose of the HR department is to develop employees by training them so that they understand their role and perform as per the standard ( Weixler, Lincove& Gerry, 2019). However, decentralize human resource management system allow the organization to use more resource in different units or offices and thereby may limit the extent of training and development.
A centralized human resource management system reduces the cost of training and development by consolidating all the human resource activities concerning training and development into one point ( Guo & Li, 2019). In this sense, it enhances proper resource allocation for appropriate training and development. Therefore, it boasts the department's performance towards developing a better workforce for the organizations.
Consistency Recommendations
The organization can have programs that look forwards to train employees after a specific period. They may also have tools such as competency tools, the online tool, and even learning management tools, all of which are critical in improving the states of employees’ skills while handling different tasks in the company ( Weixler, Lincove & Gerry, 2019). However, improving the consistency of these tools program or services are essential in ensuring that the human resource management performs to its best. Therefore, there are different ways to improve them. The first recommendation towards improving consistency is having in place experts to take charge of the training and employee development in the organization ( Guo & Li, 2019). The centralized human resource management approach is critical in this case because it allows the organization to consolidate its resources. With such resources, the company can hire experts who are qualified in training and development, as this will enable it to perform better in this case. Another recommendation is to incorporate external training experts when the necessity arises. The external training experts can be critical when the organization needs to facilitate specific skills that the individual department trainees may not understand better. They can help improve the skills of the employees possess, and this can be critical in enhancing their consistency in training and development.
HR Matrix Analysis
The effectiveness of training and development can be understood from the perspective of the employees' involvement in the training process. Therefore, the Training Participation Rate matrix can be critical to understanding the rate at which the HR training and development activities are productive. Effective training is likely to increase or have a significant number of participants. However, a training that is likely to fail does not gather many participants. To calculate Training Participation Rate , a person should tally the number of employees who participated in the training and divide it by the number of employees who were eligible for the practice. Then multiply the result by 100 to get the percentage. A simple formula for calculating it is as follows: Training Participation Rate = (the number of employees that took training / the number of employees eligible) x 100.
Section 5
The Centralized HR Function And Organization’s Purpose Statement.
One of the best ways a human resource manager can motivate the employees is to have excellent benefits and compensation package for them. Financial motivation is critical because most employees work to get money to settle the bills. However, issues such as health benefits can also be crucial as they encourage the employees and make them understand the organization has its interest at heart. The organization, in this case, exists to fulfill the following, increasing shareholder values, increasing customer satisfaction, and also developing a workforce that is innovative and adaptive. The company must develop a strong workforce to achieve such purpose and objectives ( Khan et al., 2019). Therefore creating a good strategy for compensating the employees and also availing excellent benefits for them can be a good boost towards building a strong workforce that will enable the company to achieve its mission.
The centralized human resource management, therefore, is critical in this case because it reduces the cost of human resource activities. It consolidates all the human resource activities into one office, thereby allowing the organization to have surplus money, which it can use to design an excellent compensation package for the employees. Also, it brings consistency in the human resource role, thereby enhancing the consistent performance of different HR programs that target the compensation and benefits packages for the employees. In this sense, it increases the high rate of employee retention as the organization strives to build a team that is innovative and flexible, as reflected in its purpose statements ( Weixler, Lincove & Gerry, 2019). Finally, the centralized human resource approach brings in strategic involvement. In such cases, HR, get involved in different organization board discussion where they get a chance to present their compensation and benefits issues and make a recommendation on the best way the organizations can handle the compensation and benefits matters.
Consistency Recommendations
The consistency of the compensation and benefits packages’ services, programs, and tools are essential for an organization's overall success in the technology industry. Compensation is the amount of money the company offers to its employees. At the same time, benefits are packages such as health insurance that the company provides to the workers as a way to motivate them and care for their welfare. A company’s decision to use a specific tool for compensation or to design a benefits package depends on the performance of the employees and the financial status of the company. However, there are many ways that a company can use to improve benefits and compensation as an HR function in the organization.
The first recommendable action is to have a consistent and comprehensive program that caters to all the employees' needs. The best effort to achieve such consistency is to come up with comprehensive benefits programs that allow the company to bundle these needs into a single package that provides to the employees' welfare. The organization can come up with a comprehensive benefits package that brings together health insurance, paid time off such as sick days and vacations, dental insurance, vision insurance, retirement benefits, and also healthcare spending reimbursements ( Weixler, Lincove& Gerry, 2019). By introducing such benefits and assessing its effectiveness, the company will be in a position to have a consistent benefits program and services for all employees.
Another recommendation is to incorporate technology and keep the records for results assessment to ensure consistency with the previous compensation and benefits for all employees. One of the most critical steps is to modernize the organization’s interests and compensation packages by investing in modern technology. A good example is a cloud-based software that will allow the organization to have the right track of the past compensation and benefits packages. Technology such as a cloud-based software can store, manage, and distribute this data in the organization and sort based on the years and keep the data in the best form that makes it easy to read, compare and understand. With such a technology in place, the company is in a position to have records on the compensation and benefits packages it used in the past years ( Ko & Ma, 2019). Such documents are critical since the company can use them to assess the previous benefits and compensation packages and use them to ensure that the current compensation packages that the company chose are consistent with the past ones. Further, it can use the data from the past and the present compensation programs and services to define regular future benefits and compensation package for the employees.
Matrix Analysis
The effectiveness of the company’s benefits and compensation packages can be understood by analyzing employees turn over, and Health Care Costs per Employee. There are different HR qualitative matrices that an organization can assess to understand whether the HR role in enhancing consistent and adequate compensation and benefits packages in the company are fruitful. The employee turnover matrix is used to determine whether the employees are happy with the employee's operations ( Ko& Ma, 2019). The formulais Turnover rate = Number of employee terminations ÷ Average number of employees. It indicates the effectiveness of the companies' programs, including issues such as compensation and reward packages. Another matrix is the healthcare benefits matrix that aims to understand the budget the company spends on the employees' health benefits. Its formula is Health care costs per employee = Total health care costs ÷ Number of employees signed up for health care. The matrix is essential as it helps to calculate the sum up of what the company contributes to the employees’ health care premiums over a time frame.
References
Guo, M., & Li, B. (2019). Human Resource Allocation Management Based on Network Data Quality. Journal of Computers , 30 (3), 243-251.
Khan, Z., Rao-Nicholson, R., Akhtar, P., Tarba, S. Y., Ahammad, M. F., &Vorley, T. (2019). The role of HR practices in developing employee resilience: A case study from the Pakistani telecommunications sector. The international journal of human resource management , 30 (8), 1342-1369.
Ko, Y. J., & Ma, L. (2019). Forming a firm innovation strategy through commitment-based human resource management. The International Journal of Human Resource Management , 30 (12), 1931-1955.
Lee, J., Kim, S., Lee, J., & Moon, S. (2019). Enhancing employee creativity for a sustainable competitive advantage through perceived human resource management practices and trust in management: s ustainability , 11 (8), 2305.
Roscoe, S., Subramanian, N., Jabbour, C. J., & Chong, T. (2019). Green human resource management and the enablers of green organisational culture: Enhancing a firm's environmental performance for sustainable development. Business Strategy and the Environment , 28 (5), 737-749.
Weixler, L. B., Lincove, J. A., & Gerry, A. (2019). The Provision of Public Pre-K in the Absence of Centralized School Management. American Educational Research Journal , 56 (6), 2439-2473.