How HRM contributes to organizational objectives

How HRM contributes to organizational objectives Human Resource Management is the effective use of people to achieve both the organization and individual goals. It is actually effective recruitment, selection, development, compensation, and utilization of human resource by organization Human Resource Planning and Development is the framework for helping employees to plan and develop their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, succession planning, and organization development. I have worked for Masood Textile Mills Ltd  [1]  . and completed my assignment in perspective of this organization as assigned by the Dr.Helen Ford A short and snappy foreword of organization is given as under Masood Textile Mills Ltd is striving to lead in creating, developing and manufacturing of knitted apparel products right from basic to highly fashioned garments thus responding to emerging trends in the industry. MTM translates conceptual ideas of its customers into reality and shape them through its technical bent and professional acumen. MTM establish on 1998 and now has a recognized name in the textile industry. MTM is one of the biggest exporters of apparels. Competent professional staff, a team of talented merchandisers, excellent supplies support services, and state-of-the-art technology is the driving force behind MTM phenomenal growth in the past years. MTM has the technology with expertise, products with knowledge and most importantly the right mindset to achieve total customer satisfaction. The HR manager of Masood Textile Mills Ltd. is continuously striving for making parallel the needs of the changing organization so that it can become more adaptable, resilient, quick to change directions, and customer-centered. Within this environment, the HR professional are learning how to manage effectively through planning, organizing, leading and controlling the human resource and knowledge of emerging trends in training and employee development. Objectives of Organisation (MTM) Objectives are pre-determined goals to which individual or group activity in an organization is directed. MTM respect for the individual, integrity, speed, simplicity, self-assuredness, and a 100% commitment, values are non-negotiable; they are never to be jettisoned. Objectives of mtm can be defined as: To provide market leadership and brand coverage To pursue technological innovation To partner with operators for their maximum productivity HRM Contribution to achieve objective Objectives of human resource management are influenced by organizational objectives and individual and social goals. MTM is not just satisfied with this goal, further the goal of MTM is growth and / or profits. Institutions procure and manage various resources including human to attain the specified objectives. Thus, human resources are managed to divert and utilize their resources towards and for the accomplishment of organizational objectives. Therefore, basically the objectives of HRM are drawn from and to contribute to the accomplishment of the organizational objectives. For the MTM, its ability to attract and retain human capital will depend on its reputation as an employer. The reputation about the organization says something about who you are, what you stand for, and how you relate to others including yours employees. All this is partially formed through the organizations commitment to the employees. To gain their commitment, MTM is trying to smooth communication channels with the employees, assess their capacity to engage in various initiates, give honest feedback, and invest in aligning its objectives with employees aspirations. The goal of HRD is to improve the performance of MTM by maximizing the efficiency and performance of people. HRM has a critical role to play in the achievement of organizational goals and helping the organization to achieve and maintain excellence. MTM believe that good people and a good culture make good organization to achieve and maintain excellence. HRM has the responsibility of getting the right kind of people, creating and maintaining a culture that nurtures and rewards talent. In MTM, human resource management give tools that need to manage and operate in organizations. HRM develop strategies relating to everything production, management, marketing, sales, research development for more productive. MTM have made its known recognition in the last 12 years of its establishment .It has been possible only for the factor of recruiting right people in the right number and right time. They recruit highly qualified and experienced individuals-both at entry level and for vacancies arising at various levels-who would prove to be assets for the organization. They provide opportunities for improving personal capability to enable staff to take on greater responsibility. HUMAN RESOURCE PLANNING AND DEVELOPMENT HRD predicts its future employment needs even if they dont estimate their sources of supply. The challenges that determine this demand and method of forecasting it merits are given below: Cause Of Demand: Employees need in the MTM, for whole organization or in specific department need when some sort of external Challenges, extension of project or department, turnover exist in the department, Lay off are temporary loss of employment Forecasting Techniques: Forecasting techniques is consist of following techniques Expert forecasts Trend Projection Forecasts Staffing Table Recruitment Employees are selected or hired as the requirements of departments. These requirements can be reached out from the database, which is name as HCM (Human Capability Management) software. When any change occurs in above mentioned conditions, this program informs to the Human resource Department. This department hires new employees as the requirement of the specific department. Recruitment Resources of the MTM can be defined as under. Internal Resources The organization motivates and upgrades their employees when the organization feels to hire the services of the particular person for the particular job within the organization. Because employees are familiar with the environment of the organization. It saves the cost of time, recruiters time and trainees time. Communication with Other Department Other departments inform to the Human Resource Manager by the internal E-mail system about the need of the employees. That specific department tells the only designation the number of employees required. Next, the Human Resource Management starts his work, they see the requirements of the job from the H.C.M (Human Capability Management) program that require the followings Experience, Education, Age Limit, Personality, Intelligence External Resources For the post of Management Trainee MTMs web site is the biggest source of recruitment also Advertisement is another source of recruiting the highly qualified people. When MTM needs highly skilled, energetic, and qualified personnel for a specific job, then it uses the external resources. Selection HR InterviewMasood Textile Mills Ltd follows the following steps for selecting the Management Trainee: Management Interview Written Test Realistic Job Previews Medical Test Reference Check Written Tests: At the first step of selection written test is taken by the HR department of the selected applicant who fulfill the basic requirements of the job description. If applicant passes this test then he/she forward to the next step of selection which is HR Interview HR Interview: At this step the HR manager and Ht deputy Manager conduct the interview of the selected candidates. Management Level Interview: At this step the HR manager, General Manager and other panel team from the senior level management evaluate the applicants. Both types of questions are asked by the panel for assessing his/her capabilities to perform the job. Reference Checks: Reference is checked by the Human Resource Manager for the position of the Management Trainee. These include: Personal Ex- Employer During the selection criteria for Management Trainee, Human Resource Department gives importance to reference checks about 30% to 40% weight age out of total selection marks. Medical Test: Medical test from the Allied Hospital and Civil Hospital is must for checking the ability to perform the job having physical fitness. Realistic Job Review: Realistic job review is also conducted in MTM when Management Trainee is going to be appointed for new job. The HRD working environment is shown to employees where they are expected to be after selection. Hiring Decision: The final authority which takes the decision about the hiring of the Trainee Officer is the director of operation named as Mr. Arif Ali. At the end this authority will take decision about the hiring or not hiring because there is a centralize environment in Masood Textile Mills Ltd. HUMAN RESOURCE DEVELOPMENT IN AN ORGANIZATION Professionalism and Human Resources The management of MTM has continued its policy to arrange in house training programs and to send the employees to management courses arranged by reputed management institutes and universities to further to further improve and update their professional knowledge. In order to develop and groom their management skills, employees are encouraged to attend and participate in top management meetings. Fresh qualified professionals are being employee on regular basis and a pre designed career path in given to them to encourage each person to develop his potential and consistently improve his performance. Human Resource Development The management of Masood Textile Mills Ltd. has a firm belief that their continuing success is dependent upon the quality of each individual associated with the Company and how well their knowledge and creativity is being utilized. In this regard, on the job training programs are being regularly arranged to develop and groom their talent. During the year under review more than 120 employees have also attended various management courses to improve and update their knowledge in their respective fields held at Pakistan Institute of Management (PIM), Lahore University of Management Sciences (LUMS), Pakistan Institute of Quality Control (PIQC), etc. TRAINING AND DEVELOPMENT Training of Management Trainee In Masood Textile Mills Ltd. on the job training is given for the post of Management Trainee. It is vertical integrated organization where A to Z processes are performed by MTM itself. All expenses of training programs are beard by MTM. Criterion for Training MTM not only train the employees of the job but also focus on the development of the employees so, providing the employees competency for fulfilling the potential requirements of the organization as well as their career development. This period is called probation period in which no increment is given to the MT. Types of Training: The training of Management Trainee consists of two phases which are given below: Management Level training Production Level Training Management Level Training This type of training is given to the MT in the HR department, which is located at Sarghodha Road Faisalabad. The Consultants, Experts and immediate officers of the MTM conduct this training. In management level training following training programs are conducted. Cross Functional Training is given for the purpose that when there is any person absent and no other employee available then Management Trainee can do his/her job. Un-parallel training is given to employees. Human Resource department of MTM offers numerous programs and activities of interest that are related to diversity. The Human Resource Development (HRD) Group offers courses to employees that are targeted to public sector managers, supervisors, administrative support specialists, Human Resources professionals, and employees who want to increase their knowledge and improve their skills to be more productive and effective. HR offers a variety of personal and professional skill development courses such as: Conflict Resolution, Negotiation, Interpersonal Communication, Behavioral-Based interviewing to faculty and staff. Production Level Training As the MTM is vertical integrated organization therefore production level training is also given to the Management Trainee. This training is given in the Production department of MTM which is located at sheikhupura road. The purposes for the training are given below. To enhance the performance of employees. To emphasize expertise in the production sector. To enhance the productivity and efficiency of employees. Execution of Training At Masood textile Mills Ltd. for the job of management training officer the following method is adopted: First of all lectures are delivered to management trainee in which the most important issues discussed are how to improve the communication skills, how to evaluate the employees, how increments are provided, what benefits would be given to employees working under their supervision. Secondly the management trainees are given 1-month training at training centre 15 kilometer away from the main office branch of MTM at Sargodha Road. After 1 month the management trainees are given the training at Human resource department for 2 months. This 3 month period is called the probation period in MTM. During these 3 months management trainees are paid Rs. 7,000 per month. Career Planning Development Masood Textile Mills Ltd. provides opportunities for improving personal capability to enable staff to take on responsibility. Having a rich and diverse history, the firm encourages its employees to venture forth in new and dynamic areas leading to organizational progress along with individual growth. Career Counseling The firm provides best opportunities for its employees to develop their career through the conduction of training programs. Career Counselor: The career counselors at MTM try to explain those points to management training officers which are not known to them and can help their career development. Also career counselor points out the steps needed for MT officer to become qualified for next job opportunity. Mentors: Mentors are provided by MTM to counsel the employees their career development. Mentors help employees to make progress through exposure in such a way that management trainees become known to their supervisors who are the ultimate deciders of their promotions. Methods of Career Assessment: Two types of assessment methods are used for the trainee officer. These are as follows: Self assessment: Self assessment is taken by MT officers themselves in order to overview their own activities. In this process, personality and personal behavior is assessed by him. They want to know if theyre making any mistakes and if so how they should correct them. Self Assessment is done in evaluation forms in which they are able to answer themselves the following questions: How am I doing? I need to know where I am, so I can plan how to get ahead. Organizational assessment: Organizational assessment is also done by HR manager and supervisor of MT officer for the purpose that employee work is in accordance with the organization or not. Ways for Organizational Assessment: Human resource department of Masood textile Mills Ltd. uses evaluation forms to assess the performance of MT officers. IMPROVEMENT IN HR PERFORMANCE First we will talked about the challenges and problems faced by mTm then solution to that problems and challenges. The HR manager of Masood Textile Mills Ltd. is continuously striving for making parallel the needs of the changing organization so that it can become more adaptable, resilient, quick to change directions, and customer-centered. Within this environment, the HR professional are learning how to manage effectively through planning, organizing, leading and controlling the human resource and knowledge of emerging trends in training and employee development. Followings are the human resource challenges in Masood Textile Mills Ltd.: 1) Rapid Change: The internal environment of the organization is changing very rapidly because of noise of the machines, high temperature where product is produced, quality control and cultural environment of the organization. The external environment of the organization is change in the technology, economic factors and industry based products. 2) Work Force Diversity: The values, norms and attitudes of the workers are not homogeneous so the workers have to be trained by the different kinds of courses which relate to the work force diversity. The dimensions of workplace diversity include: age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation, educational background, geographic location, income, marital status, military experience, religious beliefs, parental status, and work experience. 3) Legislation: The rules and regulation, government policies, contract act, services act and taxation laws are being changed every year so MTM must be updated with them. 4) Competitive Challenge: The competitive edge of the organization is Cost, Quality and Availability of the goods. So, MTM has to be updated according to customer preferences and competitors technologies for improving qualities and reducing costs. Human Resource Problems Although there are many HR problems in MTM as we have visited the human resource department yet the most identifiable was that of downsizing of employees. Masood Textile Mills have been using the downsizing strategy in order to cover its budget and to cut down the costs that become high due to increase in the pays of operational level employees. MTM has increased the salaries of low level production workers from Rs. 3,000 to Rs.4,000. In this way the budget increases and MTM has to cover up so, it used to downsize the employees. Downsizing Impacts Overall: It is effecting the overall economy as more people are downsized the un-employment persist in the economy. Mixed effects on firm performance: some short-term costs savings, but long-term profitability valuation not strongly affected. Firms reputation as a good employer is suffering. Downsizing Effects on Employee Morale: Employee motivation disrupted: increase in political behaviors, anger, fear which is likely to negatively impact quality of customer service Violation of psychological contract, leads to cynicism, lowered work commitment, fewer random acts of good will Survivors experience more stress due to longer work hours with re-designed jobs, and increased uncertainty regarding future downsizings. Solutions to Downsizing: Employment  Changes in  Pay/Benefits can be an effective alternative to downsizing. Outplacements can be another good alternative to downsizing in which organization help present employees find new jobs with other firms. Attritions which mean the voluntary departures of employees must be encouraged in this situation. Voluntary Quits  by employees must be appreciated. Offer voluntary early retirement or other packages to people within a certain category, such as particular position or years of service. If this offer does not result in enough savings, it is extended to a broader pool. Offer early retirement incentives to pension-eligible employees in a specific area. If that doesnt get sufficient response, expand the pool and so on. Hiring freeze can be done by not allowing job openings fill with external employees. Internal job recruitment by succession planning can be done in order to fill new job opening.    Relocation  can be done by sending the employees overseas to another branch of MTM where there is HR shortage instead of hiring new employees there. It would definitely cut costs. Voluntary  Pay cuts of employees can be done by making sure that they will get the accumulated pay at the end of year with some increment in it. Involuntary Separation policies must be strict enough to maintain employee commitment to organizational policies and in case of dis-obey must be separated.   Early Retirements can be granted to employees. Organization may include the golden handshake benefit. Temporary Layoffs  can be done. This will help organization to maintain its employee loyalty and also cut down its work force for some period. Other implications to improve HR performance: Successful organizations have a focus on the performance of their employees. Here employees are rewarded based purely on their performance on set criteria. Their performance goals and targets are clearly defined and communicated to them in a formal way. The employees feel motivated and accountable for their performance and strive to achieve/exceed the targets set for them. The only thing that pleases the managers and leadership is higher achievements and performance delivery. Regular Feedback to Employees. Supervisors must have to get feedback on regular basis from workers.This feedback should be on day to day basis to improve the current targets rather than to to rectify the errors / mistakes of past.This approach needs to observe and evaluate the efficiency of employees.This is also ensure that the manager also involved to give positive feedback for the job well done. Authoized overtime payment: The surest way to aggravate a wage and hourly claim is not to pay overtime to those employees who have worked. The Department of Labor (DOL) regulations has been clearly mad that if you know that an employee had worked more time than is scheduled, you must paid him, even if you did not depute him for additional work. Exempted employees treat properly: Employers expects that their exempt employees (those exempt from the overtime provisions of the Fair Labor Standards Act (FLSA)) to worked as long as the job done.Some of the employers also punish their exempted employees to do work for paid vacation or sick time. Review HR policies and procedures. There should be clearly written policies can be both effective employee relationship.The policies that are out of date applied improperly should have opposite effect.There should be regular review of policies that should be matched with new laws,rules regulations.Experts suggest that a thorough review of policies should be made once a year.