by Isidora Grays
The purpose of any human resource department is to effectively combine the various inner workings of a firm, in relation to the most efficient usages of people resources. This is to say that the HR departments main tasks involve recruiting, managing, and releasing individuals from the company structure. As the entirety of the commercial sector becomes less dependent upon the company per se, and more in tune with the individuality of the employee, the role of the human resource management team has been diminished as well.
No longer is the retention of an employee dependent upon only a paycheck and possibly employer-paid or at least partially contributed benefits. The self aspect of the modern commercial sector has devalued the role of the HRM realm and positioned the bulk of the employee to employer contact within the scope of the line manager (Batt, 2002).
Line managers can be defined as the direct supervisors of employees and no longer are there actual human resource departments in the interior structure of a modernized organization. The impact of a global, high-technologically based commercial sector is that the need for massive human resource departments has been considerably minimized. The line manager is now the point of contact for an ever-increasing percentage of companies throughout the world.
The impact of the human resource organization, in terms of how the major tasks of employee contact and employee interactioning are being immediately affected by the shifting paradigm of human resource management, can best be seen in an example of a current corporation in the United States. The firm that will be examined is the small engine manufacturer Kohler Engines. The company manufactures small engines for a variety of applications and is headquartered in New York City. The company has seen a rise in the retention of the employee base only after it initiated a massive redeployment and transitioning of the human resource departmental aptitudes and accepted the transfer to the line manager with open arms.
Kohler Engine recognized, almost as soon as this shifting from actual human resource tasks to the line managers of the commercial sector began, that the firm needed to address the factors of increased employee comfortability (Bjцrkman & Park, 2007 ). The company allocated vast economic resources to better the working conditions of the employees and has accepted the fact that the employee base no longer was going to be satisfied with just earning a paycheck. The employees of Kohler Engine created the need for better office areas, increased and improved lunchroom facilities, and aspects that were seen as gratitudious benefits only and not requirements for employee retention.
The devolution of HR activities to line managers was accepted and initiated by Kohler Engines but for many firms, all across the world, this has not been such an easy transfer of accountability. One must understand that for the better part of a third of a century, there has been active and all-encompassing HRM policies and departments that were created just for the allocation of effective people resources.
As the corporate world continues to address the needs of the employee, in terms of employee retention and continue worker performance levels, the transfer of accountability from various and longstanding at times human resource departments to line managers will continue to be a big part of the overall business environment ( Khatri, 2006 ). This transference of accountability and task demands from HR departments to line managers will have and does have a strong impact on the human resource management facility of every company that conducts business in the world. In summation, the role of the human resource management structure is ever-changing and it is within the range and the success or failure of a firm to either go with the flow or be swept up in archaic and diminishing people resource returns. A company that embraces the change from old ways to the new methods for employee retention and worker satisfaction factors will be the one that strikes a stronger positioning in the market.
Batt, Rosemary. (2002). Managing Customer Services: Human Resource Practices, Quit Rates, and Sales Growth. The Academy of Management Journal. Vol. 45, No. 3 (Jun., 2002), pp. 587-597.
Bjцrkman, I, and Park, H, Jeong. (2007). Institutional theory and MNC subsidiary HRM practices: evidence from a three-country study. Journal of International Business Studies. (2007) 38, 430–446. doi:10.1057/palgrave.jibs.8400267.
Khatri, Naresh. (2006). Building HR Capability in Health Care Organizations. Health Care Management Review: January/March 2006. Volume 31. Issue 1. pp 45-54.
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