BABM1004 Human Resource and People Management

Title: Portfolio
Submission date/time: 12:00 noon (GMT/BST) on 09th June 2023
By Barcelone Bita
DMU ID: 2779209
LSST ID: H2210273
Word count: 1928
Table of Contents

Introduction................................................................................................................. 3
The Function of Human Resource Management (HRM) in Business Organizations
and its Contribution to Organizational Success...........................................................4
Role of HRM in Business Organizations:.................................................................4
HRM’s Integration into the Business Organization...................................................4
HRM’s Contribution to Organizational Success.......................................................5
Business management and human resource management intersections...................5
Basic Organisational Behaviour Principles and Theories............................................7
Conclusion.................................................................................................................. 8
References................................................................................................................10
Introduction

HRM plays a critical role in corporate organizations by efficiently managing human resources
and coordinating HR procedures with organizational objectives. HRM supports
organizational success by enhancing talent acquisition, performance and productivity,
employee engagement and retention, and mitigating risk. It also fosters collaboration,
communication, and employee engagement. Human resource management and business
management are intricately entwined and mutually dependent. Key areas where these fields
interact include strategic alignment, organizational structure and design, talent management
and workforce planning, performance management, and employee development, and
change management and employee engagement.

Organizations can successfully manage their human capital, connect HR practices with
business objectives, and promote organizational success by recognizing and utilizing these
intersections. Effective management of people, teams, and organizations requires
understanding the fundamental concepts and theories underlying organizational behavior.
Motivation, group dynamics, leadership, organizational culture, and decision-making are
some concepts that offer valuable insights into how people behave in organizational settings.
Organizations can improve employee motivation, teamwork, leadership effectiveness,
organizational culture, and decision-making processes, which will improve overall
performance by implementing these ideas and theories.

This essay will focus on the following points:

 The Function of Human Resource Management (HRM) in Business Organizations

and its Contribution to Organizational Success.
 Business management and human resource management intersections.
 Basic Organisational Behaviour Principles and Theories
 1. The Function of Human Resource Management (HRM) in Business
Organizations and its Contribution to Organizational Success.

Role of HRM in Business Organizations

1. Tactical Manpower Strategy: HRM plays a crucial part in strategic workforce planning by
coordinating human resources with organizational objectives. HRM assists organizations in
identifying skills gaps, creating succession plans, and putting in place strategies to draw in
and keep top talent by analyzing future talent needs (Armstrong & Taylor, 2014).

2. Hiring and choosing: HRM is in charge of luring in and choosing competent people who
fulfill organizational needs regarding skills and competencies. Employing the best candidates
for each position is ensured through efficient recruiting and selection procedures, which
leads to improved performance and productivity (Cascio & Aguinis, 2019).

3. Development and Training: To improve the knowledge, skills, and talents of employees,
HRM develops and implements training and development programs. As a result of these
programs, which create continuous learning, support career development, and boost
employee performance, organizations become more effective (Noe et al., 2017).

4. Management of Performance: To clearly define performance expectations, offer feedback,

and assess employee performance, HRM builds performance management systems. HRM
ensures that employees' activities contribute to the success of the organization as a whole
by coordinating personal goals with organizational goals (Latham & Wexley, 2019).

5. Remuneration and Benefits: HRM creates and manages compensation and benefits plans
that draw in new hires and encourage them to stay on the job. Fair and competitive
remuneration systems positively impact the success and performance of an organization
because they increase employee happiness, engagement, and loyalty (Milkovich et al.,
2021).

HRM’s Integration into the Business Organization

HRM ought to be incorporated into the overarching company plan. These aspects are
included in this integration:
1. Strategic Alignment: HRM should coordinate its efforts with the company's strategic goals.
To ensure that HR practices assist in attaining organizational goals, HR managers must be
aware of the company strategy and collaborate closely with other departments (Wright &
McMahan, 2011).

2. Working with Line Managers: HRM should work with line managers when making
decisions involving human resources. HRM may guarantee that human resources
successfully satisfy business goals by including line managers in HR activities like recruiting,
performance management, and training (Guest et al., 2013).

3. Communication and Employee Involvement: HRM should encourage efficient

communication channels and employee involvement. HRM may address employee
problems, offer support, and foster a healthy work environment by keeping lines of
communication open. This increases employee happiness, productivity, and commitment
(Saks, 2017).

HRM’s Contribution to Organizational Success

The appropriate integration of HRM within the corporate organization has several effects on
organizational success.

1. Improved Talent Acquisition: HRM guarantees that highly qualified people are hired and
chosen, creating a skilled workforce that can spur innovation and competition.

2. Enhanced employee skills, motivation, and performance increase productivity and

organizational effectiveness. HRM's focus on training, development, and performance
management also improves employees' skills, motivation, and performance.

3. Higher Employee Satisfaction, Commitment, and Retention Rates: HRM's emphasis on

employee engagement, communication, and fair compensation generates a great work
environment. As a result, employee satisfaction, commitment, and retention rates are raised.

4. Reduced Risks and Legal Compliance: HRM is essential in reducing the risks related to
employment-related rules and regulations. Legal and financial hazards to the organization
are reduced when legal requirements are complied with.

2. Business management and human resource management intersections.

Since both are essential to an organization's success, business management and human
resource management (HRM) are closely related subjects. In order to better understand how
business management and HRM interact and how they support efficient organizational
performance, this article will highlight these intersections.

1. Tactical Alignment: Regarding strategic alignment, business management, and HRM

overlap. In order to translate the business strategy into HR practices and policies that
support organizational goals, HRM is essential (Guest et al., 2013). By ensuring that HRM
activities align with the larger business goals, an organization can better use its people
resources to achieve strategic success.

2. Organisational Design and Structure: The intersection of business management and HRM
is organizational structure and design. Business managers work with HRM experts to
develop organizational structures that support effective staff coordination, decision-making,
and communication (Noe et al., 2017). HRM gives organizations insights into human
resource requirements, ensuring that the organizational structure supports efficient
performance and employee engagement.

3. Staff Planning and Talent Management: Business management and HRM come together
in workforce planning and talent management. Business managers collaborate closely with
HRM to assess the organization's present and future personnel needs (Armstrong & Taylor,
2014). Then, HRM creates plans to draw in, pick out, nurture, and keep the best talent to
meet organizational needs. By working together, the organization is guaranteed to have the
people resources required to boost performance and accomplish its strategic goals.

4. Performance Control and Staff Growth: HRM and business management are involved in
performance management and employee development. The construction of performance
management systems, feedback mechanisms, and training programmes is facilitated by
HRM, while business managers set performance objectives and targets (Latham & Wexley,
2019). Through this partnership, it is ensured that staff members have the direction,
assistance, and opportunities for growth they need to improve their performance and
contribute to the success of the organization.

5. Managing Change and Staff Participation: Business management and HRM come into
contact when implementing change management strategies. HRM supports the process by
managing employee resistance, communication, and engagement, while business managers
lead change initiatives (Cascio & Aguinis, 2019). HRM is crucial in helping employees adjust
to organizational changes by ensuring they comprehend the reasons behind them and are
interested in their work.
 3. Basic Organisational Behaviour Principles and Theories

The study of organizational behavior (OB) looks at how people and organizational structures
affect how well an organization functions. The following demonstrates an understanding of
organizational behavior’s fundamental theories and principles by emphasizing essential
ideas and their practical applications.

1. Individual Behaviour and Drive: Personality, attitudes, values, and drive are just a few
variables that affect an individual's organizational behavior. According to Vroom's (1964)
expectation theory, people are driven to work hard if they think their efforts will result in the
desired outcomes. In order to understand and forecast employee motivation, the theory
emphasizes the significance of valence, anticipation, and instrumentality.

2. Group Dynamics and Teamwork: The basic building blocks of organizational behavior are
groups and teams. Four stages of group formation are described in Tuckman's theory of
group development (1965): forming, storming, norming, and performing. This idea
emphasizes how handling disagreements and establishing roles and norms are crucial for
fostering successful teamwork and collaboration.

3. Leadership and Power: Leadership is essential in determining an organization's behavior.

According to Fiedler's (1967) contingency theory of leadership, a leader's success depends
on how well their leadership style complements the moment's needs. This idea places a
strong emphasis on the necessity of adapting leadership styles to particular contexts in order
to maximize results.

4. Organisational Culture and Change: The collective ideals, presumptions, and beliefs that
shape behavior within a company are referred to as organizational culture. The clan,
adhocracy, market, and hierarchy are four different organizational cultures that Cameron and
Quinn's (2011) Competing Values Framework suggests. This framework aids organizations
in comprehending their current culture and bringing it in line with their strategic objectives.
Managing opposition and promoting the adoption of new behaviors are crucial throughout
change initiatives, according to Lewin's three-stage model of organizational change
(unfreeze, change, refreeze).

5. Decision-Making and Communication: For an organization to be effective, communication

and decision-making must be effective. According to March and Simon's information
processing theory from 1958, making a decision entail obtaining, analyzing, and integrating
information. This theory emphasizes the significance of information accessibility and
individual biases while highlighting the cognitive processes that underlie decision-making.

4. Conclusion

Human Resource Management (HRM) is paramount in today's modern commercial

companies. This is because HRM plays a vital role in the overall success and efficiency of
the firm. The Human Resource Management department manages the organization's human
capital and ensures that the appropriate individuals with the appropriate abilities are working
in the appropriate positions at the appropriate times. Several important contributions can be
uncovered due to HRM being well integrated into the corporate organization.

Firstly, Human Resource Management is essential to attracting and retaining top personnel.
HRM ensures the organization can attract and hire top talent by implementing effective
recruiting and selection techniques. This requires identifying the skills and competencies
required for each position, establishing thorough job descriptions, carrying out rigorous
screening processes, and making intelligent hiring decisions. In addition, HRM is
accountable for the creation of a work environment that is conducive to the engagement,
contentment, and motivation of employees. This contributes to the development of a culture
of high performance while simultaneously lowering employee turnover.

Secondly, human resources management plays a significant role in the organization's ability
to encourage the growth and learning of its workforce. HRM assists employees in enhancing
their skills, knowledge, and talents by assisting them in participating in various training and
development programs. This, in turn, leads to enhanced job performance and career
advancement. In addition, HRM plays an essential role in succession planning, which entails
identifying high-potential employees and providing opportunities for growth and leadership
development. This assures the availability of qualified and effective personnel, both now and
in the future, and contributes to the organization's continued success over the long term.

Thirdly, it is the responsibility of human resource management to create and administer

systems of compensation and benefits that are equitable and efficient. By performing market
research, HRM is responsible for ensuring that employees are paid properly for their work.
This research considers various elements, including job requirements, industry standards,
and individual performance. In addition, HRM is responsible for managing employee
benefits, including health insurance, retirement plans, and other perks, all of which contribute
to employees' overall pleasure and well-being.
In addition, HRM is an essential component in the development of fruitful employee
interactions and the upkeep of a favorable atmosphere at the workplace. The Human
Resources and Management department addresses complaints from staff members,
mediates disputes, and fosters an inclusive and diverse environment within the company.
Human Resource Management (HRM) creates a peaceful and productive work environment
by encouraging open communication channels and establishing rules and procedures that
promote justice and equity.
 5. References

Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice.
Kogan Page Publishers.

Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the
competing values framework. John Wiley & Sons

Cascio, W. F., & Aguinis, H. (2019). Applied psychology in human resource management (8th ed.).
Pearson.

Fiedler, F. E. (1967). A theory of leadership effectiveness. McGraw-Hill.

Guest, D. E., Conway, N., & Dewe, P. (2013). Employee well-being and the psychological contract. In
Employee well-being support: A workplace resource (pp. 15–35). Palgrave Macmillan.

Latham, G. P., & Wexley, K. N. (2019). Organizational behavior: Linking individuals and groups to
organizational contexts. McGraw-Hill Education.

March, J. G., & Simon, H. A. (1958). Organizations. John Wiley & Sons.

Milkovich, G. T., Newman, J. M., & Gerhart, B. (2021). Compensation (13th ed.). McGraw-Hill
Education.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management:
Gaining a competitive advantage (10th ed.). McGraw-Hill Education.

Saks, A. M. (2017). Managing performance through training and development. Sage Publications.

Tuckman, B. W. (1965). Developmental sequence in small groups. Psychological Bulletin, 63(6), pp.
384–399.

Vroom, V. H. (1964). Work and motivation. Wiley.

Wright, P. M., & McMahan, G. C. (2011). Exploring human capital: Putting 'human' back into strategic
human resource management. Human Resource Management Journal, 21(2), pp. 93–104