Human Resource Management refers to the manpower that an organization requires in order to realize its goals and uphold its mission. Human resource is the greatest asset in a company and contributes the most to an organization’s output. Every organization aims at maximizing their profits while ensuring that the stakeholders that form the human resource of the company; offer the required skills and effectively contribute to the realization of the organization’s goals.
Delivery of Human Resource in organizations
Organizations have several options in obtaining human resource. Depending on the cost, human resource managers may opt for outsourcing, In-house, centralized or decentralized human resource. This depends on the needs of the company and the nature of duties. According to Griendling, a contributor for the Human Resources IQ “the most optimal methodology for recruitment delivery is very much dependent upon each organization’s unique business, work style and staffing needs, the most important” (Griendling 2008).
In-house Human Resource is managed in totality by the organization. The Human Resource department is charged with role of identifying the need, getting the right talent and handling the recruitment process. Both big and small companies utilize this while others use this for some positions within the company while outsourcing the rest. In many cases, this is usually costly.
Human Resource Outsourcing is used by both small and large organizations. This is done where there is lack f expertise within a small organization and to reduce operational costs for bigger organizations. The move is cost effective as the recruitment and Human Resource management issues are delegated to an outside source that specializes in these services. It also allows The Human Resource department of a company to focus n other issues and the company to concentrate n its core business. However outsourcing also has its setbacks. In the case of complex organizations, the outsourcing company may fail to understand the issues and needs of the company, thereby failing to provide quality service (FSN, 2011). The responsibility of ensuring that good work relations are maintained remains with the organization.
Offshore Outsourcing obtains services in a different country. This is usually due to better operational costs in the outsourced country this in terms f cheap labor and availability of materials. Offshore outsourcing works well for big companies in major economies like the US where wages and labor laws are high and strict.
Human Resource Stakeholders
Human resource stakeholders are the employees, customers, shareholders and suppliers. Employees are usually the most visible factor in human resource. Different countries have labor laws that govern the treatment of employees and their working conditions. Employees directly affect the output in a company and their contribution is felt the most. Every organization should come up with an effective system for hiring and maintaining employees, based n the company’s needs.
Customers give the company its profits. Human Resource should be customer oriented as the company’s core business is to satisfy the customers’ needs as well as realize its goals. Human Resource management strategies should therefore work towards this. Shareholders on the other hand benefit from good Human Resource management. Their major interest is the profitability of the company. Effective Human Resource management reflects n the output of an organization. Suppliers act like partners with the organization. Services obtained from suppliers directly contribute to the output in the company.
While all four stakeholders make major contributions to the organization, they have their negative influences on Human Resource decisions. Employees may demand conditions that a company might not be able to meet. This poses a challenge to an organization. The labor laws that a country places may also be hard to meet or may strain the organization. Customers influence Human Resource management as every strategy has to reflect the client’s needs. Organizations are often placed in difficult scenarios where they need to decide between satisfying customer’s needs and maintaining their Human Resource policies. Shareholders also put pressure on an organization’s Human Resource human Resource through demands that seek to maximize their profits. This may be issues like layoffs, pay cuts and other unwelcome interventions. Suppliers on the other hand may not understand the issues in the company and may not supplier the need of the company as required.
References
FSN., 2011. In-house Human Resource V Human Resource Outsourcing. Available http://www.fsn.co.uk/channel_outsourcing/in_house_Human Resource_v_Human Resource_outsourcing (6 January 2012).
Griendling, H., 2008. Centralize or Decentralize Hiring, Human Resource IQ, [online]. Available at: http://www.humanresourcesiq.com/talent-management/articles/centralize-or-decentralize-recruiting-the-answer-i/ [6 January 2012].
