The Facts Influencing Performance of a Business Organization

Introduction 

Human resource is a fundamental department that is so critical in pushing every organization’s management strategies and development goals. However, business every environment is usually not driven by internal activities taking place, but rather is subject to influence by activities transpiring in the macro environment such as the policies made by federal governments. Generally, there exist factors both micro and macro whose actions have a great impact on the overall operation of the business. As the objective of any organization remains to improve performance, the human resource department, therefore, claims a pronounced role in steering aligning the organization toward such expectations. 

Functional areas of Human resource Management 

Human resource is the most valuable asset at disposal of any organization; its functions have tremendous implication on the general course of the organization. Of it’s widely spread tentacles; the department has its duties ranging from hiring and recruitment, performance management, training and development and compensation and benefits. First, the performance of any organization is based on the quality and qualification of its employees, it is, therefore, a very fundamental responsibility of the human resource department to always consider merit as the prerequisite for hiring and recruiting of its staff. In the process of admitting staff into the organization, the HRM (Human resource management) must always put into cognizant the current market trends and their selection must, therefore, be based on achieving the long-term objective of the business. The ability of the organization to attract the best talents and skills in the in the field strategically places it in the path of success, this is because, “the skills essential achievement factor is about sourcing assisting feature to deliver the great capacity candidates to rent to the guide unit assisting to become aware of the gaps inside the agency” (Pavan CS, 2016). 

The business environment is that which is always volatile and dynamic such that without continuously exposing the staff to the new trends in the society, the organization may end being outdated and obsolete. To keep the staffs always informed and aware of such changes, it is therefore, the role of the human resource management to invest in the training and continuous development of their staff, in that respect, Pavan (2016) asserts that “the HRM approach needs to be a public file freely available to all of the HRM personnel to allow them to discover their own role inside the method.” The advantage of such exposure to new strategies allows the company to continuously grow and realize its objective. In addition to these roles, the HRM also considers performance management as a crucial factor in the general issues affecting the organization. Guided by the fact that performance appraisal is based on the performance of the employee and a strategic tool for motivation and encouraging good performance. “The coolest performance is ok, but the HRM feature must be visible inside the employer to have the impact on strategic decisions and results” (Pavan, 2016). The ability of the HRM to persuade to employee, therefore, lies in its ability to be meritorious in its performance management. 

All the issues touching on the employees usually tend to revolve around issues of compensation and benefits, generally, the well-compensated staff will always give their best in the helping the organization achieve its objectives. Well laid strategic plans compensation and benefits plan will encourage high overall performance tradition, nonetheless, the department must put into cognizant the prevailing market rates and trends. 

Equal employment opportunity laws 

The government is an important player in the general operation and course of the business organization; its roles include the protection of the employees as well as the creation of enabling an environment where such businesses may be able to adequately exploit their potentials. The Federal government has been very critical in promoting equal employment opportunity as a key driver to achieve social equity and improving the way of life across the country. First, the Age Discrimination in Employment Act of 1967 brings into force the need to enable every person with the right qualification to be employed and that those of older age should not be discriminated upon, the law provides surety of continuous employment to the people as it stipulates that it is unlawful “to exclude or to expel from its membership, or otherwise to discriminate against, any individual because of his age” (eeoc.gov, section 623, 1). The criminalization of such discrimination makes the organizations be able to enjoy a wider pool of human resource to serve in their organization. Secondly, the Americans with Disabilities Act of 1990, is guided by the belief that physical disability has no relationship with the ability of the person, and therefore, it should not be used as a basis for selecting employees. The impact of such laws has made it possible for the employers to enjoy a lot of advantages of a plethora of experience and skills in the field. 

The welfare of the employees is a basic requisite that falls under the general mandate of the government thus it is their role to ensure their safety; this is achievable through varied means among them the legal acts such as Genetic Information Nondiscrimination Act of 2008, the act was designed “to prohibit discrimination on the basis of genetic information with respect to health insurance and employment” (eeoc.gov). Organizations such as Coca-Cola understands such and considers people of all genetic conditions enjoy equal chances of being employed and enjoying the same health insurance irrespective. Another legal statue put in place by the federal government is the Employee Retirement Income Security Act of 1974. This act is guided by the belief that employees need to continue living a better life long after they retired from their places of work, and therefore, needs to be properly taken care of and such practice protected by law. Organizations such as Coca-Cola have, therefore, unveiled internal plans to be able to attract skilled employees and enable them to compete favorably in the market. 

Impact of the dominant trends in the operation of the organization 

The current businesses have had to grapple with the ever complicated dynamics set by the market trends such as the aging workforce, diversity and skills deficiencies in the workplace. First, organizations today are constantly facing the increase of employee pulling from different academic fields; cultures and making the workplace double as a socializing arena. However, if organizations do not put into account the diversity, it could be immersed into a conflict of interest and disagreement with its workforce. The diversity comes in multiple dimensions of race, ethnicity, gender, age, religion, disability, and sexual orientation and Thomas Kochan (2003) therefore, asserts that understanding the nature of diversity increases “awareness of cultural differences and how people’s perceptions, biases, and stereotypes of others influence their behavior and teach skills for addressing conflicts.” While previously working as Coca-Cola Company, the issue of diversity was fundamental and the HRM was firm on respect and appreciation of the uniqueness that comes with differences. 

An aging workforce is both a blessing and curse to the business, while on the good side is essential for quality output as the workforce enjoy prolonged time of experience and knowledge of the company and work bonds and teams have been formed thus allowing maximum exploitation of their potentials, furthermore, having been with the company for extended period of time, the organization spends very in capacity building or other forms of training as their knowledge is exemplary. On the other hand, the cost of salaries of such an aging workforce is quite high as most of them are specialized in their own rights. Equally, the aging working can be disturbed by the social problems such as diseases, family responsibility and fatigue thus hampering their ability to give their best to the company. In other instances, skill deficiencies have been a recent trend that the HRM is yet to find the best approach to handle, this all because the “future returns depend on the employee’s skills and abilities” (Hamid et al, 2017). While the paperwork of the applicants may seem quite attractive, most of them leave their school quite immature with lack of adequate industrial knowledge and skills to discharge responsibilities and compete favorably in the market. 

Workplace Flexibility 

Workplace flexibility is an essential influencer of the general performance of the organization, the greatest benefit that comes with it is that it bolsters productivity, this because one is able to have time for self-development and assessment thus be able to improve their performance, furthermore, is allows the employees to do what they like the most. Another advantage that comes to the organizations that do embrace the need for flexibility in the workplace is that trust and loyalty are nurtured, this is because “effect of employees’ development and organizational citizenship behavior are also measures of the organizational performance” (Hamid, 2017). 

In conclusion, the workplace is a complicated area that requires good management skills to converge the advantages of the diversity and the new trends to produce good results. 

References 

Hamid M, Maheen S, Cheem A, Yaseen R (2017) Impact of Human Resource Management on Organizational Performance. J Account Mark 6: 213. doi:10.4172/2168-9601.1000213 

Kochan, T., Bezrukova, K., Ely, R., Jackson, S., Joshi, A., Jehn, K., . . . Thomas, D. (2003). The effects of diversity on business performance: Report of the diversity research network. Human Resource Management, 42 (1), 3-21. doi:10.1002/hrm.10061 

Pavan CS (2016) Strategy, Human Resource Management and Performance: Stroke Line of Ken. Int J Econ Manag Sci 5: 379. doi: 10.4172/2162-6359.1000379 

The Age Discrimination in Employment Act of 1967. (n.d.). Retrieved January 20, 2018, from https://www.eeoc.gov/laws/statutes/adea.cfm