Improving Human Resources Management to Maintain Cost Balance and Human Capital through Economic Crisis

Topics: Human resource management, Human resources, Management Pages: 8 (2667 words) Published: August 30, 2013
Title Page

CRISIS CONTROL

Student Name:Eugene Ng

Subject Code:HRMT11011
Subject Name:Human Recourses in Organizations

Assignment Number: Assignment item 1 – Essay
Assignment Name: Crisis Control
Due Date:Thursday 01:00 PM 30th March 2012 (Week 5)

Lecture’s Name:Douglas Foster
Tutor’s Name:Douglas Foster

Word Count: 2644 words

Improve Human Resources Management to Maintain Cost Balance and Human Capital though Economic Crisis Introduction:
Economic conditions have forced many organizations to review its Human Resource Management (HRM) policies, in order to stay profitable and competitive in the marketplace. Likewise, the Consolidated Global Mining Services (CGMS) is the strong company in mining services and manufacturing custom-built equipment department; however, CGMS is currently faced with economic hardship. CGMS situation is critical, the organization must develop a HRM strategy to create the company’s roles in medium- and long-term development, and this solution will lead to productivity, growth, and profits. One element of the problems with CGMS is employee allocation within the organization. Senior management has two perspectives to resolve this issue, downsizing its workforce or restructure the organization’s HR policies. Thus, HRM will be a part of business orientation and strategy formulation by four basic functions: strategic partner, administrative expert, and employee champion and change agent. Once the HRM is applied effectively into the organization, it contributes to identify strategy objectives, to design HRM planning to achieve organization goals, to build the strong relationship between executive staffs and the upper managers, to assist the employees adapt to changes in the company quickly. Moreover, ’Human Resource Information System Management (HRIMS) has thus become a critical tool for the integrating HR information into the organization’s business strategy and for demonstrating the positive contribution that HR can make to the bottom line through the more effective and efficient management of the organization’s human resource ’ (Stone, 2010, p. 82). Improving HR management is the solution for CGMS; it will help in reducing cost while meeting the strategic objects of the organization and sustain the organization’s professional human capital for long-term development. All four functions of HRM would support CGMS in developing both a medium- and long- term strategy to accomplish its goals of reducing the cost and maintaining its human capital. Stone (2010, p. 9) believes that ‘HR managers will be the essential part of the management team and contributing to the achievement of the organization’s objectives by translating business strategy to action’. Therefore, HR managers a strategic partner should understand the organization, especially its goals, to have appropriate HR policies and practices for supporting the line managers to accomplish the organization objectives effectively. It highlights that the companies, which recognizes and applies HR practices have more than 50% market value than other those not (Florea, Goldbach & Goldbach, 2011). On the other hand, HR managers have to evaluate performance to readjust the HRM plan to adapt the internal and external changes, which is considered as a competitive advantage. Stacey, the HR Director of CGMS, believes that HRM is a strategic partner with the organization, the HRM is important to help the organization focus on achieving the goals. Moreover, HRM responsibility are to avoid trouble situations among different departments, aligning each department goal to the general purpose, and aids with reducing waste resources of the organization and gain productivity of workforce. Administrative expert function of HRM focuses on the efficiency and effectiveness within the organization (Stone, 2010, p. 10). Now the role of HR managers based on their ability in HRM activities: analyze jobs, allocate employee with suitable...
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