Question

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Using the human resource department for recruitment, training, development and retaining employees can give any organization a competitive advantage. Some organizations became very successful in their markets by establishing an employee centered culture.

Discuss how HRM activities enable organizations to become more competitive in their markets. Use an example of a well known organization that had been successful. In your essay make sure to cover the following main points:

Recruitment and selection

Training and development

Reward structure and motivation

Retention

Answer 1

Recruitment and selection

Most of the organizations uses their major portion of the effort and money in order to manage the employees as a result they may not able to fulfill the organization hiring needs and the company will end up in recruiting too many people to fill the vacancies. if the number of the employees in the company exceeds the limits then the company will suffer from the loss as the cost of maintaining the different departments increases as compared with the company earnings. on the other hand if the most important position is left vacant then this will also cause loss to the organization as it will directly impact the corporate revenue reduction. The HR needs to shift from the traditional mode of the recruiting process that will treat all job vacancies equally to the one prioritize the each vacancy based on the criticality of the position and its needs. A perfect balance of the work and employees is necessary to maintain in the work place.  And also it is the responsibility of the HRM to make sure most skillful person is selected for the vacant position.

For example let me consider the most successful company "Google". It is successful because of its high quality of the human resources. the organization generally emphasize excellence and smartness among the employees, The company uses the strategies most carefully in order to recruit and select the employee. This company uses the mixture of internal and external recruitment sources in order to maintain the adequacy of its human resources. The organization also uses promotions advertisement,transfers, interns as the main internal recruitment resources. Google also includes the educational institutions, respondent to the job advertisement as external recruitment resources.Most of the advertisements are available from the career site of the google website. the google selects the employees based on their creativity smartness, drive for excellence ans also the alignment with the organization. this organization does not chose work experience as the major criteria for the selection. in general company selection process involves background verification, preliminary screening, on job test interviews etc.

Training and development

The market is becoming competitive day by day, business are growing with improvement in the technologies, new innovations etc. Along with this even employees needs to develop their skills. Most of the organizations are giving training for their employees in order to better utilization of their skills. training and development is a part of performance management in the company. which is carried out when the new technology comes or technology changes in the market or when new software or hardware is used in the project or when new resources or new manpower. This will have the many advantages such as it increase the organization flexibility and stability , increase the productivity and adherence to the quality standards, economic use of the high ended morale and resources, reduction of the supervision and direction, better industrial relations, reduce the learning time, role and career flexibility. future manpower needs, speed of changes and globalization, reduce the accidents at the work place,reduce the turnover etc. it also helps to feel confident to do work when the technology changes

most of the people are chasing the dream of working at the google because working there will be most rewarding experience in the life. their HR policies will provide the employee empowerment and satisfaction. Google has created the work environment that gives the stage to continue learning, staffs in the company gets the opportunity to learn and grow. Google provides the special training programs in order to develop the management and leadership skill, content development and presentation skills. Free classes for the foreign culture and their language is also provided at the Google. The team of engineers at this company is paid special attention for this role. they are provided with the training, orientation and monitoring by the special group of the company called engEDU. these programs are developed by the engineers for the engineers.

Reward structure and motivation

Sometimes simply getting the paycheck is not enough for an employee to keep dedicated and focused. HR department or manager should look for the new way in order to hold the employees interest and attention on the project. Many company uses reward system and motivational tactics. Personal reorganization is the powerful factor in building motivation and morale within employees. Providing encouragement and giving rewards for employees for their valuable contribution for the organization can also motivates the employees to give their full effort to the organization. The employees will reduce to seek for new job and they will concentrate on business growth. A management can identify and evaluate the employees dedication and hard work in the organization in order to provide the rewards and recognition for them.Paying employees based on their performance is to motivate staff to work even more efficient and effective manner.A pay performance system use the powerful incentives in order to make the staff motivated and to keep the behavior from veering unethical, pay performance plan includes variable pay, incentives, compensation at risk, success sharing, earning at risk and risk sharing and many more.There are many type of incentives are used by the organization, some are given for the individual performance some are given with company wide performance. The most powerful incentive plan is individual spot award, this incentive is given for individual for the exceptional performance, like the performance on some project exceed the expectation level then the person is deserve to get add on bonus. Individual incentive plan is differ from lump sum and merit payment, because such pays are offered for promise that made to achieve some objective or Pre-established level of performance.Piece rate incentives is employees are paid based on the individual output which they produce. This is best used when individuals output is easily quantifiable also the output is related with the employees effort.Individual Bonuses, Bonuses are the one type of incentive, which is one time reward paid to the employee for the accomplishment of certain work. the motivation results from bonus is depends on the degree of knowledge regarding the bonus specifics.In contrast to bonuses, other type of incentive called merit pay, it includes permanent salary raise based on the past performance of the employee. Here the system will be evaluated by supervisor , so there won't be any cheating on given evaluation. The unethical behavior will be prevented due to the request from supervisor on staff performance.In many organization , the salary of the sales employee is the combination of the basic salary and commission . sales commission includes rewarding the employee based on the percentage of the sales volume or the amount of profit obtained.

Google also motivates the employees by providing excellent rewards and benefits. They will provide the peer bonus,Spot bonus, Even manager also gives the small bonus for employees dedication, Standard practice of annual review increase the annual package. In most of the companies employees need to submit for nominate them self for promotions but in the Google during the one on one meeting with the manager they may be given the encouragement to do so. In order to motivate the employees they even provides the holiday gifts and team outing or team lunch kind of events.

Retention

Google's compensation package is the main HRM tool used to retain the high quality employees in the organization. Google's compensation package is above average and competitive. For example the company will provides the high wages and high package as compared with the other company. And also the employees of this company gets the free meals and other incentives and benefits. the design of the company office emphasize creativity and fun, which attract the employees and retains the innovative and creative employees. Googles HRM uses the monitoring and coaching in order to retain and improve the leadership qualities of the employees.

There are many reasons why retention is important for an organization. Hiring is not an easy task it follows some procedure which includes many HR departments effort and time as well as include companies budgets. Replacing the new employee will cost 3 times more than the employees salary. when the professional or most critical resource plans to leave the organization it will be loss to the organization. they will not get immediate replacement for that position and also again they have recruit the new employee and give them training. these all procedure will need more time and money.So the retention of the employee in an organization is very important.