Managing Human Capital Essay Example

Managing Human Capital Essay I certify the content of the assignment to be my own and original work and hat all sources have been accurately reported and acknowledge, and that this document has not previously been submitted in it’s entirely or in part of any educational establishment. RAVIKUMAR P RATHOD. STUDENT ID: 0076LHLH0609 TASK 01: A. 1) abstract: From this report reader will able to understand HR managers role take in to consideration when there is change in external environment factors, and what human resource strategies will helps to became more competitive and how an organisation can take competitive advantage with various human resource practice within organisation. This part of the report will guide you around human resource strategies. A. 2 Key words: Role of human resource managers, organisational change, human resource practices, competition, benefits and drawbacks, communication channel, information technology and system, market, societal norms, external environment. (Words, -191) A. 3 INTRODUCTION: Human resource managers and leaders constant make efforts to accomplish successful and necessary change within the organisation. During this process, HR managers and leaders must follow certain approach to fulfil the necessary requirement to the organisation. Internal and external change can able to switch business environment. Moreover, organisational change and other development have become rife in communication for organisational leadership and management itself. However, the most important factor which affects the majority of the organisation is the competition. How accurately and fast organisation can compete with their product and services that another organisation supply. This will also analyse the organisations external environmental factors. Likewise, consumers uncertain demands and wants, and a new competitor enters into market. We will write a custom essay sample on Managing Human Capital specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Managing Human Capital specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Managing Human Capital specifically for you FOR ONLY $16.38 $13.9/page Hire Writer In the following paragraphs, this report will analyse, organisations human resource practises and role of human managers during the external change in organisations with relevant examples. For example 01, Virgin Corporation plans to enter in cold drinks business in USA. They want to launch their own brand virgin cola. As a result, many companies in US such as, coca cola and PEPSI may face more competition and they needs to do more efforts to remain their products more competitive and their share prices remain stable in the market. Moreover, new technology and information system plays vital role, because advance technology means, new products and services can be improve. Nevertheless, natural disaster or dynamic situation can made change in to organisation. Such as, gulf war or swine flu virus. John bra ton and Jeffery gold, 1999 human resource management: theory and practice, London, Mc Millen publication house. * â€Å"Market is uncertain, it change every time. It is always depend on the variety of products and consumer behaviour. As results, an organisation needs to react or lose customers. A. 4 Organisation and competition: The amount of varied competition relies on the market the organisation operates in. For example 02, Small businesses like, High street mall, city centre mall, Large size of businesses likes, Cock, PEPSI, wall mart, M amp; S. And a constant moving market where the technology is being invent fast like, cell phone market. These types of organisation and situations may boost competition externally like, * Decrease in product price * Better quality but increase in product price Large amount of investment in advertisement to increase brand loyalty and publicity. A. 4 Human resource practices at external change: The most vital part for human resource managers is planning for the external change is scanning means to examine the environmental situation to recognise scopes or potential dangers to an organisation. To ignore the external change can have divesting effect on a business. For example 03, Easter Island: misunderstanding their natural resources, the jungle in this issue; left the place unable to sustain life. Nobody knows what happen to the inhabitants. But we know why their presence became extinct. The same thing can happen to any organisation, which neglect (ignore) the external environment changes. A. 5 Information system and technology: Joseph martocchio, 2009, research in personnel and human resource management, Howard house, emeralds group publishing limited. Many organisation senior executive and mangers don’t know how technology can affect the organisation and can bring change in to organisation. So, organisation must upgrade their production firm, machinery and administration within the organisation. HR managers needs to consider regularly briefing about technology, as a result, the technology which they are using, is it right for them. This can helps to make their position more competitive in the market. For example 04, A mobile manufacture company must know about what types design, software and style are in demand in market. So, they can make their hand set more demanding and they can make their product different t han other producers. This can increase the selling ratio and company’s total revenue Moreover, having advanced and right technology can improve organisation standard and profits. This will also give opportunity to HR managers to make their organisation more challenging for their competitors. â€Å"Technology is queer thing, it brings you great advantages with one hand and it stabs you in the back with the other. † C. P. SHOW, 15 march 1971. New your times, NY Ecological and environmental issues plays vital role within organisation. Change in government’s policy for the industries can also bring major changes within organisation. Change in legislation can affect the organisation selling and purchasing policy. Robert l Mathis, john H Jackson, 2008. Human resource management, 9 Thomas learning Inc. US For example 05, * Changes in national minimum wage for the workers or inflation. * Increase in corporation and other national insurance taxes. * In addition, external trading policy and funds, grants, and initiatives. This is the sources of income for the organisation but they can bring change internally within organisation from changing trading policy. * Organisations often fundamentally challenge invited societal norms. Because organisation can suffers from support, financial and public as well. This are the sources can make major changes into organisation. Change in lifestyle and fashion can bring change. Likewise, various types of age group buy various types of products. So, change in the population affects the demand for the product. As a results, HR manager needs to considered external factors which may bring change in business, such as fashion and trend. For example 06, Change in taste, businesses must react quickly as possible. Like, * Mc Donald, offering more healthy food. Consumers are more aware about environment and are against exploitation. A. Human resource strategies and dynamic situations: Majority of entrepreneurs have gone to invest and efforts to define human resource policies, practices and procedures that comply with government legislation and consistent with their organisational culture and ethic. â€Å"John Bretton and Jeffrey gold, 1999. â€Å" Human resource management: theory and prentices â€Å"London, mac Milan press ltd p 152-70 * Major Service markets such as, fast food outlets, supermarket like ASDA and TESCO, Sainsbury’s. Majority of organisations work design are typically involve the two types of framework, mostly is Hertzberg. And some firms adopt Taylor’s. While, others are irrationalised practices. in both frameworks cost ,and labour cost are in competition due to consumers are very price sensitive. A. 7 Cost based competitive strategy : This strategy HR managers allows to sustain paying only the market – clearing wage and minimally with labour law. Most organisations pay their workers and employees as a government law. However, to take competitive advantage organisations can pay slightly more than minimum wage for workers. For example 07, In UK, for student or contingent workers minimum wage is ? . 93 per hour. However, many organisations pay six to seven pound per hour. This is higher than minimum wage. From paying more, organisation can keep contingent means part time workers who can work with flexibility and organisation can also get benefits from hiring part time workers. This helps to reduce corporate taxes. * The only firm which sustain their presence in the pressurised market condit ions that built outstanding brand identity. They can dominant market share and enjoy reputational benefits in labour market. A. 8 mix market and greater customer service strategy: Certain types of service markets such as, older care centre, hotels and BPO, where different types of customers and higher valued added customers can be targeted. There is a clear potential for job enrichment competitive dynamics than based around a mix of cost and quality based competition. * Human resource takes into count as a higher value added segments. Organisation can higher highly skilled employees with experience and or can provide necessary training to their employees, and it is simply necessary that there are profitable higher value segment and it is cost effective to invest employee training and development programmes. For example 08, Telecommunication company, when customer call to buy contract phone from the company , sales executive not only offers what customer ask but also offers many packages as per customer budget. And evermore, they also offer cheap and affordable bundle and other services such as next day delivery or in case hand set faulty or if you’re Not happy with the hand set. As results, company can keep customer for longer period and take competitive advantage by providing excellent customer service. A. 9 Expertise – driven: In today’s world, high level professional services and other knowledge intensive services, work organisation is always dealt with high level of employee discretion. High performance work system in the service sector, like, management consulting energises, banking sector, organisation typically invest to build employee skills, enhancing motivation and providing opportunities to participate. * According to Michal losey, 2005. â€Å"Resource management â€Å", Alexandria, Virginia, john Wiley amp; sons, Inc. â€Å"Committing to hiring experts, in other word, bring them into partnership. This will leads to emergent competitive strategies in their field of expertise. They plays vital role within the organisation. † For example 09, When founder of Walt Disney past away, Roy became owner of the Walt Disney, but in his hand, Disney not performing well, then Disney’s board of directors and shareholders decided to hire new chief executive officer for Disney. And Disney comes with new CEO Robert Eger. He is expert in his profession. And he increases the Walt Disney total revenue and establish new picture studio name touchstone. According to box all and steeneveld, 1999; greenwood el al, 1990; literature. It is essential to measures competitive strategy in professional services firms in federalists rather than top down kind of way. * There are much more opportunities for human resource advantage in these expertise era. Experts can perform well and trained employees while there is external change within the organisation. A. 10 Conclusion: To sum up, it is clear that, HR managers and HR practices can transform due to uncertain market and government policies. HR must parallel the needs of his or her changing organisation and with the right HR strategy. Organisation can became more adaptive and resilient, fast to change in direction and customer centred. Moreover, HR managers can promote overall success of organisation from their practises and identify the organisations goal, mission, vision, values and action plans and they can measures how well it is succeeding in all this , how organisation gain sustainable competitive advantage. (Words: 1589 excluding abstract, keywords) A. 11 Recommendations: In my opinion, organisation must invest in employee development programmes, so they can gain knowledge about organisations product and services. Furthermore, organisation should hire a young graduates who are willing to work in challenging environment with flexibility, this allows organisation to become more competitive for their competitors in market. Moreover, businesses should have advance technology which becomes more competitive and helps to take competitive advantage. PART-02: discussion on compensation packages negotiated through collective bargaining agreements are a major cause of our inability to compete in many sector of the international market. B. 1 Abstract: From this part of report, reader will able to understand how organisations employers and trade union negotiate their agreement through collective bargaining and what are the factor affecting to compete many sector of the international market for the entrepreneurs. How types of agreements will affect the organisation and their employees. B. 2 Keywords: Human resource management , competitive advantages, compensation package, collective bargaining, international market, trade union, total revenue, union representative, negotiations, small and large scale businesses, wages and hours, promoters, agreements. Words – 135 excluding) B. 3 Introduction: According to Clive Jenkins, Barrie Sharman, 1977 collective bargaining P-156-8 Mc grew hill publication Inc. â€Å"Collective bargaining is a process whereby workers representative, employees and investors, and trade union through their representatives, treat and negotiate with a view to the conclusion of a collective agreement or rene wal there of the resolution of internal or external disputes within the organisation. † In the following paragraphs this report will analyse situation in for and against of collective bargaining in organisation and give recommendations and my opinion. In addition, a collective agreement normally in written agreement between employer and organisations union. On behalf of workers employed by the owner of the organisation, it also refers to organisations terms and condition of employment of the workers. And their right, privilege, and responsibilities within the organisation. * When employer hires workers, they can demand labour, and agree on a price for that labour. Moreover, the agreement accepted, consideration and intension to create legal relationship constitutes a bargain to which compliance can be sought in law. B. 4 INTERNATIONAL MARKET: Clive Jenkins, berry Sherman, 1977, â€Å"collective bargaining† p 156 Mc grew hill publishing Inc. During the process of negotiation between trade union and employers, employers almost always offer less than what they are willing to pay. They expect that there will be a negotiation of salary and other benefits. In international markets, there is no business without two different parties. Each may relate to different countries. Due to high demand of trade union especially when it’s higher value added segments, management’s authority and freedom are became much more restricted by negotiation rules in case of business is new to country. If trade union representatives are miss placed by the union, it can be irrational for the organisation and workers. Because during the process of agreement between employer and representatives disputes or unsuccessful negotiation can be resulted into union strike. This creates dynamic situation for the business and workers itself. * Compensation package negotiated through collective bargaining may create significant potential for polarization between workers and managers of the organisation. Furthermore, mostly negotiation in workers’ wages and salary can be became major cause for organisation in international market. For example 10, Recently, Subsidiary company of Wal-Mart, ASDA is paying some its Bangladeshi workers just ? 6. 70 for a 48 hour week. The proper living wage in the country would be ? 25. 90 per week. As a result, workers went to strike in Bangladesh their production firm, workers stop making products for ASDA. Due to this it affects international trade and organisations revenue. Source: METRO newspaper, 22 July 10. P 09 * However, collective bargaining agreements may cause disproportionate effect of relatively few active employees on the many in the bargaining unit. This is particularly the case when process involves a system wide structure of election. * It also increase bureaucratization and consume more time for making decisions. When trade union demand is high and varied it also leads to management obelised more control on organisation. And consume time to give respond to agreement. * Moreover, it also creates more difficulties for employers at small companies to have their voices heard. And it also increase management expense relates to negotiation and administration agreements. Furthermore, collective bargaining restricts organisation top management’s ability to deal directly with individual employees within organisation. This will affect the communication channel between managers and workers. It also increase dependence on the small scale businesses for particularly those requiring technological competence, they may be compromise. B. 5 employment policy: * Compensation packages through negotiated through collective bargaining agreements may became cumbersome and time consuming, requiring flexibility during negotiation process. As results, there will be increase burden on the employers to solve or define flexible plans to solve as the basic of negotiations with a trade union representative. * On the other hand, collective bargaining promotes fairness and consistency in organisations employment policies and personnel decisions within and across organisation. However, compensation packages negotiated through collective bargaining agreements eliminate ability of management to make unilateral change in workers’ wages, working hours and other terms and condition of the organisation employments policy. According to Randall Schuler, peter j doling, 1994, international dimensions of the HR management, second edition, wad worth publishing Inc. â€Å"compensation packages negotiated through collective bargaining agreement can make employee and employer relations worsened rather than improved under such an agreement. For instance, workers within organisation will resist innovation due to time motion study. Hig hly demand compensation packages by trade union, generally unfair and less motivating for the big investors. According to Carlos Diaz – Moreno 2002, university of Minnesota, Spain. â€Å"Negotiation between workers and entrepreneurs is major bargaining game in economics. In majority of cases, agreements are delay as the parties continue negotiations or agreements are never reached. † For example 11, Automobile Manufacture Company called TATA wants to introduce world cheapest car in India. There for they decided to build their production plat where land and taxes are in favour. They built their plant in SINGUR, WEST BENGAL. But increasingly violent protest by local workers and government forced to TATA to move their plant somewhere else. This is the major case of failure in negotiation between workers and employers at international market. As results, organisation has to face huge amount of loss and they have to stop their production plant and local workers lose their employment. * According to Merlo and Wilson, 1995. Literature review, â€Å"Delays in bargaining are the results of the uncertainty about the size of cake, and the identity of compensation packages through collective bargaining. During the process of collective bargaining agreements, trade union and board of director’s utility is not transferable. This factor captures an essential issue for the labour market negotiation. Generally, predict that workers are less patient than investors giving the firms more negotiation authority. * Negotiation process between workers and employers basically considered two factors, workers minimum wag e and working hour’s regulation. Employer must meet the requirement what government minimum wage policy law for the international market. As a result, collective bargaining agreements are major cause to our inability to compete international market because it is not necessary, workers and employers are agree to with their demand every time. In some cases, organisational external factor also make negotiation processes slow down. * In addition, during the process of compensation packages negotiated through collective bargaining workers always depend on their wages and specially, in some cases, when organisation is expanding along with total revenue of the organisation, workers demand will also increase. As results, workers and trade union realise their role and importance within organisation. Therefore, workers demand to increase their compensation packages or they may threaten organisation to gone into strike. This creates dynamic situation in many sector in international market. B. 6 CONCLUSION: To sum up, it is clear from the data, that union and employers played significant role during the process of collective bargaining agreement. It may discourage to investors at international market and encourage to seeking to creates attractive work situation prevent unionization at workplace. Therefore, I agree with this statement, that compensation packages negotiated through collective bargaining agreements are major cause of our inability to compete in many sectors of the international market. Each negotiator is searching for advantage and one has to down, as a result, inverse relationship between two parties. Compensation packages negotiated through collective bargaining process can create high impact situation at international market. Total package proposal is placed on the desk with an agreement of all elements crucial for settlement from trade union and employers in many sector of international market. B. 7 RECOMMANDATION: In my opinion, during the process of compensation packages negotiated through collective bargaining agreement, trade union must aware of the organisations profit and loss account, cash inflow ant out flow, and other balance shits and information provided in the financial reports of particular organisation with whom they negotiating. This can reduce burden from both parties and agreement in international market. Words-1538, excluding part01 and abstract, keywords and recommendation.