Effect of Employee Resourcing Strategies on the Performance of Organizations
Human Resource Management Strategy
According to Torrington et al, 2005 and Armstrong, 2009, strategic
human resource management has three theoretical approaches
1. The concept that there is one best way of managing human resource in order to improve business performance.
2. The need to align employment policies and practices with the requirements of the business strategy in order that the later will be achieved and the business will be successful.
3.The resource based view of the firm and the perceived value of the human capital. This approach is grounded in the nature of the reward–effort exchange and, more specifically, the degree to which managers view their human resources as an asset as opposed to a variable cost.
Employee resourcing strategies
According to Noe (2008) staffing strategy refers to a company’s decision regarding where to find employees, how to select them, and the mix of employee skills and statuses (temporary, full time e.t.c). Employee resourcing strategies exist to provide the people and skills required to support the business strategy; it is concerned with any means available to meet the needs of the firm for certain skills and behavior (Armstrong, 2010). This role has long been regarded as part of the domain of personnel management and personnel textbooks conventionally describe resourcing as a passive, technical procedure - a matching of available candidates to the requirements of the organization. The objective of HRM resourcing strategies is to obtain the right basic material in the form of a workforce endowed with the appropriate qualities, skills, knowledge, and potential for future training (Armstrong, 2010). The selection, recruitment of workers best suited to meeting the needs of the organization ought to form a core activity upon which most other HRM policies geared towards development and motivation should be built (Armstrong, 2010).
Organizations can take one of three actions to fulfill their employee resourcing:
1. Reallocate tasks between employees, so that existing staff take on more or different work.
2. Reallocate people within the company.
3. Recruit new staff from the external job market.
Gaining competent employees at all levels of the organization is more than a matter of training. It stems from changes in recruitment and selection philosophy (Huselid, 1995). Staffing the most competent employees, staff and managers is a continuous challenge for the human resource management department. It influences training. Somenfeld and Peiper (1988) as quoted in Noe (2008) say that two aspects of a company’s staffing strategy influence training: the criteria used to make promotions and assignment decisions (assignment flow) and the places where the company prefers to obtain the human resource to fill open positions (supply flow). According to Johnson et al. (2006) recruitment is a key method of improving the strategic capability of an organization. Redeployment and redundancy planning are also important in organizations facing change.
To successfully face the increasing uncertainty and competitiveness what is required is performing employees to build performing organizations (Pattanayak, 2008). In order to ensure the on-going delivery of government programs and services, all sectors require a continuous supply of fully qualified people in the right positions at the right time. According to Noe (2008) deciding what skills new employees will be selected on and what skills the company will develop is another staffing strategy. The companies also need to motivate good employees to remain and work with the organization. Faced with this rapid change organizations need to develop a more focused and coherent approach to managing people. According to William and Kinicki (2008) when employment rates are high companies are desperate to attract, retain, and motivate key people. They further mention that “even in tough economic times there are always industries and occupations in which employers feel they need to bend backward to retain their human capital”. Organizational behavior studies suggest that employee retention is dependent upon levels of organizational commitment. Research has established a direct link between employee retention rates and employee performance, for example, Noe et al (2006). Thus there is a need to generate satisfaction and loyalty among employees. Their study focused on the potential influence that human resources management (HRM) strategies have on organizational commitment levels among employees.
Researchers and scholars argue that excellent management of people is crucial to maintain a foothold in the market. According to Hitt, Ireland and Hoskisson (2001) people should be placed in positions that fit them best, this is based on the belief that failure to properly allocate employees would result in forfeiture of the company’s competitive position. Successful firms have the ability and willingness to dismiss employees who engage in counterproductive behavior. This ensures that productive employees are not made miserable by supervisors or co-workers who engage in unproductive, disruptive , or dangerous behavior. Thus as explained by Noe et al (2006) job satisfaction and retention are related to organizational performance.
References:
Armstrong, M. (2010). Strategic Human Resource Management. (1st Ed.). London: Kogan Page Limited.
Hitt, M.A., Ireland, R.D., & Hoskin, R.E. (2001). Strategic Management Competitiveness and Globalization, (4th Ed.). Boston: South Western College Publishing.
Huselid, M.A., (1995). The impact of human resource management practices on turnover, productivity and corporate financial performance. Academy of Management Journal, 38 (4), 635-670.
Johnson, G., Scholes K., & Whittington, R. (2006). Exploring Corporate Strategy, (7th Ed.). London: Prentice Hall.
Noe, R.A., HollenBeck, C., Gerhart, B., & Wright, G. (2006). Human Resources Management- Gaining a Competitive Advantage (5th Ed.). New York: McGraw-Hill.
Noe, R.A., (2008). Training and Development, (4th Ed.). New York: McGraw-Hill.
Pattananayak, H. (2008). Human Resource Management. (3rd Ed.). New Dehli: Prentice –Hall.
Pearce, J., & Robinson, R., (2007). Strategic Management Formulation, Implementation and Control, (10th Ed). New York: McGraw Hill.
William, B.K., & Kinicki, A. (2008). Management A Practical introduction. London: McGraw- Hill Irwin.
Keep in mind that effective employee engagement strategies require you to think globally. Remember, your business is a community – for you, your team, your managers and your employees. And communities thrive best when everyone in it feels they are included, valued and trusted. The more engaged your employees are, the more productive they become, and you get something money just can’t buy – a happy workplace! (Andriotis N. 2017)
ReplyDeleteCompletely agreed. Adding to what you mentioned, Storey et al (2009) implies, community affects employee engagement in two ways. First, a community represents cohorts of teams with whom the employee works. Peer pressure and social networks encourage employees to commit to their job. Gallup’s finding of having a friend at work as a source of engagement implies a reciprocal relationship between the employee and his/her peers. Because of personal relationships, employees have goodwill towards their peers and will try to not let them down, and to make sure that they are not the weak link on the team. Richard Hackman’s (2002) research on high-performing teams shows that when employees feel like they are part of a social network,or community, they allocate more effort to supporting the goals of the team.
DeleteArmstrong (2014, p.391) define Performance Management as “A systematic process for improving individual, team and organizational performance” and “The continuous process of improving performance by setting individual teams and goals which are aligned to the strategic goals of the organization, planning performance to achieve the goals, reviewing progress, and developing the knowledge, skills and abilities of the people”
ReplyDeleteIn contrast, Storey et al (2009) argues that, employee engagement increases when employees receive financial benefits from their engagement. Remuneration sends communication signals about what matters, serves as a scorecard for performance, and also meets the needs of some employees. Profit sharing and share ownership can be very useful in sensitizing employees to the state of the business. It is a moot point, however, whether they do a great deal for involvement and participation on a day-today basis. Arguably, they need to be raised to the levels available to senior managers to have a serious impact in this respect.
DeleteHuman resource planning (HRP) is described as the process of identifying current and future
ReplyDeleteneeds of the human resource so that an organization may achieve its goals (Reilly, 2003).
Human resource planning (HRP) is a crucial process in every organization. It is essential to
conduct human resource planning (HRP) since hiring the wrong employees or failure to
anticipate fluctuations in hiring needs could be costly in the long run. The process of HRP
ensures that, an organization’s employees have the requisite skills and competencies an
enterprise needs for it to succeed (Ghazala & Habib, 2012). Gupta (2008) adds that, HRP
prepares appropriately employees for potential rationalization. It further enables a firm to make
adequate preparations for recruitment and strategic hiring.
I agree with you on this. An effective staffing strategy requires in-depth planning for the recruiting process to ensure efficiency and generation of a qualified applicant pool and also ensure an optimal fit between employees and the strategic needs of the organization (Mello, 2006).
DeleteIn present, a competitive business environment has created recruitment and selection of employees as a critical function in any organization (Collins and ↠, 2018). Failteireland.ie, (2018) has identified that many policies have developed regarding the recruitment and selection of employees in most organizations all the information that was required for the recruitment and selection process included in those policy outlines.
ReplyDeleteAccording to Johnson et al. (2006) recruitment is a key method of improving the strategic capability of an organization.
DeleteSerasinghe and Opatha (2007),Socio-economic development of Sri Lanka heavily depends on success and progress of success of organizations including listed firms. Human Resource Management (HRM),which is one of the most important functional fields of Organizational Management.socio-economic development of Sri Lanka in a competitive world market at the macro level. The term ‘HRM’ is concerned with human resources; functions; and goals. It
ReplyDeleterefers to efficient and effective utilization of human resources to achieve organizational
goals through the functions of human resource planning, staffing, human resource development, rewards, health and safety, employee relations and so on. Quality of HRM in an organization depends heavily on systematic use of HRM practices. As far as Sri Lanka is concerned, there is a serious need of systematizing HRM functions of organizations so as to realize the potential impact on achieving organizational success.
Employer brand targeted, the long term strategy to manage the awareness and perception of employees, potential employees, and related stakeholders with regards to a particular firm (Backhaus & Tikoo, 2004). Similarly, Arachchige & Robertson, (2013) mentioned that employer brand as the wholesome picture created within the employees and respective future employees’ mind of the package of psychological, economic and functional benefits provided by employment and identified within a particular employer. As cited by Sokro (2012) the employer brand does provide economic and social benefits to the employees. It helps to attract the potentials and shapes their expectations about their employment. Also, it does align the existing employees to the organizational culture and strategy.
DeleteAgree with you. However employee resourcing involves ‘the range of methods and approaches used by employers in resourcing their organizations in such a way as to enable them to meet their key goals’ (Taylor,1998: 2). Employee resourcing therefore involves staffing (i.e. Recruitment, selection, retention and dismissal), performance (i.e. Appraisal and management of performance),administration (policy development, procedural development, documentation) and change management (the importance of the resourcing function as a change agent).
ReplyDeleteEmployee resourcing strategies exist to provide the people and skills required to support the business strategy; it is concerned with any means available to meet the needs of the firm for certain skills and behaviour (Armstrong, 2010).
DeleteEmployee resourcing effectiveness has primarily been assessed by examining the rates of turnover, job survival and job performance along with organizational issues such as referrals by current personnel, in-house job postings, and the rehiring of former employees (Zottoli & Wanous, 2000).
ReplyDeleteAgreed. HR managers need to monitor the effectiveness of recruitment methods. First, to ensure the value for money and, second, to ensure that the pool of applicants produced by various methods (either internal or external) is suitable. Breaugh & Starke, (2000) outline many possible recruitment criteria against which recruitment activity can be measured. They included: (i) the number of applicants recruited; (ii) quality and diversity of applicants; (iii) cost per vacancy; (iv) speed of recruitment; (v)number of vacancies filled, (vi) ratio of offers to acceptances (Torrington et al., 2014).
DeleteRecruitment and selection have seven processes to identify suitable person and qualified them for the job, which enables the organization to get the maximum output from each and every individual employee to maximize the performance. The first and the basic method for recruiting employee are to have a interview with him or her and it ban be conducted as telephone interview, personal interview, behavioral interview, group or panel interview, video conference interview (Ullah 2010). This will enable you to identify the best for the best position and to gain added advantage in this competitive market.
ReplyDeleteMoreover, it has been found that through the job interviews and site visits have significant impact on subsequent employment decision as it does help the applicant to get an idea about the organization environment and evaluate whether it does match with their personality (Alshathry, Clarke & Goodman, 2016). Hence, it is concluded that the employer brand depicts the various aspects of the organization indicating the person organization fit to the potential job seekers (Weerawardane & Weerasinghe, 2018).
DeleteHi Mihiran, Employee development and training, just like resourcing, is fundamental to every organization in need of better performance (Egraft et al, 2004). This is because organizational support groups learn through employee training and development programs to reduce scratch work, make employees more efficient, increase customer satisfaction and give the organization a higher profit margin (Malik, 2010).
ReplyDeleteHi Eranga. Agreed. With the help of Assessment center the firm can use the data to scrutinize expected patterns and areas of deficiencies of employees within the organization. Thus, the top management can conduct and arrange the more useful and appropriate training programs to overcome the weak areas. This will enhance the performance of different departments in the organization and subsequently, the overall performance of the firm goes up. It’s an efficient way for big companies to quickly sort the wheat from the chaff and that’s why assessment centers have become so widely used (Tripathi, 2016).
DeleteRecruitment strategy is a concrete reflection of the recruitment plan, which aims to achieve the recruitment plan as a specific strategy. It includes the number of recruits, requirements for personnel, means to attract talents, recruitment channels, selection model and recruitment time. Undoubtedly, a successful recruitment strategy will help companies quickly find suitable talents and drive their sustainable development (Liang ,2020).
ReplyDeleteTo succeed in a competitive global marketplace, businesses are looking for the best and the brightest employees, regardless of their geographical settings. Shortages of high-skilled workers in areas such as computer science and engineering have created a strong demand for international recruiting (Laabs, 1998). However, searching for the talent in the international marketplace is an expensive enterprise. Many organizations are discouraged by the costs involved and others are forced to pay rather than risk losing business as a result of a shortage of skilled workers. The use of IT in screening and selecting applicants has the potential to significantly reduce costs while simultaneously expanding applicant pool (Cummings, 1993; Thronburg, 1998).
DeleteHi Mihiran, This is additional for you. Recruitment and selection are important operations in human resource management and are designed to maximize the use of manpower to meet the strategic goals and objectives of employers and the organization as a whole. It is a process of selecting, obtaining, shortlisting and selecting suitable candidates for vacant posts (Kapur, 2018).
ReplyDeleteMoreover, personnel selection includes three key steps: recruitment, selection and implementation for work (Listwan 2010, p.80). Well-conducted recruitment and selection process is extremely important for the organization, because it permits for in-depth and objective verification of candidates in terms of meeting their employer's expectations and leads to their employment. The main task and purpose of the personnel selection team is not the process itself, but the final choice of a person who meets all criteria and is unambiguously suitable for a given position (Sołek-Borowska and Wilczewska, 2018).
DeleteRobinson et al (2004) define employee engagement as “a positive attitude held by the employee towards the organization and its value. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee.”
ReplyDeleteAccording to CIPD Research Report (2010), drivers of engagement are; meaningfulness of work, voice, being able to feed your views upwards, senior management communication and vision, supportive work environment, person–job fit, line management.
DeleteWhen looking into the effectiveness of recruitment strategies, leaders have to think about motivation, new opportunities they bring for current employees, creating a learning environment for employees, productivity and time and money consumption as well (Senyucel, 2009)
ReplyDeleteAs per Behnaz (2013), motivation can be defined as a psychological process that can drive and stimulate an individual which can be either to attain the top list in the sales target or else to be a goof team player. Motivation can also be a strength of an individual’s behaviour to drive him/her to attain their targets and thereby improving their productivity (U.S, 2013). When an employee’s needs and requirements are met by the organization/management, that create an enthusiasm and interest among the employees to work for the collective goals and objectives of the organization either at group or individual level (Haque et al, 2014).
DeleteOnce the job analysis phase is completed and the job specification or behavioural competencies are identified, the next stage is to consider how to attract people who meet the requirements. Effective recruitment is crucial to organizational success (Barber 1998). A key decision is about whether to recruit internally or externally. Internal recruitment may have a number of potential advantages. Recruits will already understand something about how the organization operates and so socialization and learning may be significantly reduced; it will be cheaper because expensive advertising and recruitment consultancy fees are avoided; it may provide an opportunity to relieve an organizational problem of too many employees in another area; and it may provide motivation to existing employees who can see new opportunities available within the wider organization. Given this motivational advantage, internal recruitment is more common among organizations that are keen to develop and nurture their own internal talent, along the lines advocated by proponents of a ‘soft’ human resource management approach. For these reasons it is not surprising that many employers routinely attempt to fill vacancies from internal sources before seeking external applicants. There are disadvantages, however, of relying on internal recruitment because it prevents the organization bringing in ‘new blood’ with outside experience and it may leave a gap elsewhere in the organization. In addition, internal recruitment can be potentially unfair and discriminatory, since it tends to perpetuate the existing workforce, reinforcing existing organizational inequalities. Internal recruitment is therefore less common in the public sector, where concerns about discrimination tend to be a higher priority than in the private sector (Harris 2000).
ReplyDelete