This report analyzes the current human resource systems and practices of XYZ Limited, a company incorporated in the United States. Collectively, the interplay of these systems and practices form the underlying backbone of the company`s human resource management system. According to Bratton (2012), the human resource management system of a company refers to the conscience strategies, applications, practices and systems that the company has implemented at a particular point in time to facilitate the oversight of its talent management or human resource division. This paper presents the outcomes of a project which was undertaken to analyze these functions in the context of XYZ Limited`s operations.
The analysis of the XYZ Limited`s human resource structure will be conducted based entirely on the policies and reports that were submitted by the company. This policies and strategies will be closely scrutinized to establish the underlying framework behind the company`s human resource policies and determine the core foundation of this framework. This will form the basis of the analysis and from here; this report has been duly generated based on this analysis.
The analysis has also been conducted on the basis of 7 key pillars that have been singled out as the most important in the evaluation of a company`s human resource system. These seven pillars are the level of employee motivation and commitment; the application of high commitment human resource practices; the methods and strategies that have been used in identifying employee competencies; the use of varying competencies in the employees` development programs; how well the company has aligned its management system to its strategic objectives; continuous performance improvement and approval systems; and finally, XYZ Limited`s culture of innovation. The report concludes by giving recommendations on how best the company can improve its human resource system and any other unique observations that may have been made in the course of the analysis.
Human Resource Practices Assessment
- Level of Employee Motivation and Commitment
According to Kumar (2010), there are two main types of employee motivation which a company can use in boosting its employees` morale. These are intrinsic motivation, which entails the inspiring of employees to do things that they inherently enjoy; and extrinsic motivation, which entails the inspiring of employees to do things so as to gain a particular prize such as money or fame. XYZ Limited has adopted a motivational approach that combines both the extrinsic and intrinsic employee motivation types.
Through the extrinsic motivational form, XYZ Limited has implemented the Maslow Hierarchy of Needs motivational theory which is meant to inspire employees to attain their various work-related personal objectives and goals, while at the same time meeting the requirements and set targets of their specific job descriptions. This approach has enabled the company to proverbially hit two birds with one stone by improving the employees` individual output through an approach that results in benefits for both the company and the employees.
Through the intrinsic motivational approach, the company has adopted the Theory X and Theory Y motivational theory with the underlying intention being to place employees in the job roles that they are best suited for based on their character, abilities, talents and most importantly, passions. Through this approach, the company has realized that the most productive and effective output from employees is attained when they are given roles that best resonate with their passions. Through the use of this theory, the company has succeeded in in placing the employees where they belong accordingly. This has greatly improved the employee morale and more importantly, their output and it has also helped in meeting and exceeding the company`s targets, goals and objectives.
- High Commitment Human Resource Practices
According to Amos (2009), high commitment human resource practices are intended at extracting the most out of employees by giving them more resources, freedoms and flexibilities. This practice thus, entails the availing of numerous work-related resources at the employees` disposal with the hope that such resources will be used in yielding an equivalent or significantly higher level of output and employee effectiveness.
Some of the specific practices that the company has implemented under this framework include the enlargement of the job descriptions of the employees with a corresponding increase in their pay based on their average performance. This means that the employees have the freedom to go the extra mile in ensuring customer satisfaction and as a reward; they receive a compensation rate that matches their individual and proactive efforts.
The company has also implemented open communication channels as part of its high commitment human resource practices. These channels are intended at ensuring that employee grievances, views and opinions are expressed with minimal bureaucracy and in a space that guarantees mutuality, rationality and impartiality. This approach has not only boosted the morale of the employees, but it has also resulted in new ideas on how to add value to the company`s proposition through the employees interactions and experiences with the customers on a one-on-one grass root level basis.
- Employee Competencies
An employee competency level refers to the sum total of the employee`s attitude, abilities and experiences in relation to a specific job role assigned to him/her, measured over a specified period of time (Bratton, 2012). It is a measure of how well an employee is able to handle a particular role assigned to them and is used as a foundation stone in employee performance and appraisal reports.
Strategic thinking entails the measurement and development of the strategic thought processes of the employees with the intention of deepening and expanding this core faculty of an employee`s competency level. In this regard, XYZ Limited continually engages in training programs and tests that are aimed at instilling strategic thought patterns in its employees` psyche and overall thought processes. This is because the company has realized that by having its employees think strategically, they will be able to bolster the work place-related creativity and consequently engineer solutions to common job-related issues. Due to their continuous interaction with the customers, the employees will also be able to proposes strategies that the company can adopt in growing its overall business and expanding its market share. The end result of this strategic thought process among the employees is an overall reduction of the operational costs due to the associated employee rationality and an increase in company sales and net profits.
- Use of competencies in employee development programs
A key component of the competencies used by XYZ Limited in its employee development programs is the inclusion of the employee empowerment or talent management courses. The overall objective of these courses is to identify the specific talents of the employees and to hone them in a manner that is mutually beneficial to both the company and the employees. Through these courses, the company is able to determine and accordingly place employees in the roles that they are best suited for thereby increasing their productivity. The process does not stop here, but it continues with the overall objective being to develop these talents to a professional level of proficiency and application.
- Performance management system and strategic organizations goals
The first of the three phases that XYZ Limited has adopted as part of its operational strategy is the organizational-wide strategic planning. This phase entails the formulation of operational strategies and goals for the entire organization. The company`s human resource department has ensured that as part of its employee management plan, all employees are aware and must conform to these laid down goals and objectives.
The second phase of the company`s strategic planning is the business unit or division`s strategic goals and objectives. This phase entails the laying down of targets at a business unit level. In this regard, these goals and objectives are more specific in nature as they relate to a particular business unit in comparison to the organizational-wide corporate objectives of the company. The final phase is the departmental strategic planning phase. This entails the laying down of goals and objectives at a departmental level which resonates most significantly with the employees. The human resource practices and systems of XYZ Limited have ensured that these goals are clearly articulated and matched with the overall performance of all its employees.
- Appraisal systems and continuous performance improvement
The first indicator is the time frame. This is simply a measure of the ability of the employees to meet their deadlines in the execution of their tasks. The second key performance indicator is the emphasis on the objective rather than subjective evaluation of employee results so as to yield a professional appraisal. This is closely related to the third performance indicator whose emphasis is on the absolute rather than relative performance of employees. The fourth key performance indicator is the multisource performance as opposed to the single-source basis of a performance evaluation. Finally, the fifth key performance indicator is the multi-criteria as opposed to the single-criteria basis of evaluation. This has helped the company to create and maintain a professional outlook in its appraisal and employee performance evaluation functions.
- Innovation Culture
According to Amos (2009), innovation refers to the conversion of creative activities and processes into useful goods and services that can be used to address specific pre-identified social needs and requirements. Innovation is a crucial factor in determining the competitiveness and sustainability level of modern-day business organizations such as XYZ Limited, given the dynamic nature of the preexisting competition that has been buoyed by the growth and advancement of information technology and communication platforms.
A company`s organizational culture plays a significant role in advancing the innovation characteristics of its operations. This implies that companies directly determine how effective they are able to innovate by implanting this culture as part of the very roots of its corporate DNA. This has been witnessed within the XYZ Limited`s operations. The company has gone a step further and implemented the six blocks of innovation as part of its human resource programs.
The first of the six blocks of innovation is the allocation of adequate resources to support the innovation initiatives. XYZ Limited has significantly invested in this regard so as to attain its desired results. The second block is the development of processes aimed at supporting innovation. As was the case previously, the company has duly conformed to this proposition. The third block entails the measurement and rewarding of successful innovative initiatives among the employees. The fourth block is the emphasis on values such as the company`s priorities through the decisions that it makes. The fifth block is the overall behavior of its employees and the sixth block entails the creation of an adequate climate and culture that will enable innovation to thrive.
Secondly, the company should include the application of more high commitment human resource practices. This will enable the human resource department to fully tap into the benefits of having a broad and deepened application of high commitment systems within its ranks. This is expected to yield efficiency in the operations of the department in both the short and long runs.
Thirdly, the company should re-evaluate the employee competency identification methods that it uses so as to ensure that it only applies methods that best resonate with its core business, overall goals and laid down objectives. Through this re-evaluation, the company will be able to ensure that its competency programme is not only relevant, but that it is also able to yield the desired results for the company.
In relation to the competencies that the company uses in its employee development programs, the company should also seek to understand the most relevant competencies based on the current organizational best practice and apply these competencies to its human resource systems and practices. This will yield a significant improvement in this overall function.
It is recommended that more initiatives need to be undertaken by XYZ Limited to ensure that the company aligns strategic organizational objectives with the performance management process of the employees. The human resource department should therefore; revise the current performance management system to ensure that it aligns as best as it possibly can with the overall goals and objectives of the company.
In general, XYZ Limited`s employee appraisal system is significantly relevant and compliant to the company`s specific needs in this regard. However, there is always room for improvement. For instance, the company should adjust this appraisal system so as to ensure that it yields a higher average employee performance percentage than the one which is currently in play.
Finally, it is recommended that the human resource department of XYZ Limited should incorporate within the company`s organizational culture a deeper perspective in regards to the innovation dynamics of the company. This will ensure that the company remains competitive especially in the face of fierce competition from its rivals and during times of economic downturns.
In closing, this report sought to analyze and investigate the human resource practices and systems at XYZ Limited. The analysis contained in this report has been broken down into seven key assessment platforms that have been identified as being the most relevant and significant to the human resource operations of the company.
Overall, the current human resource systems and practices at the company are relatively effective and efficient, and they have assisted the company to meet its corporate goals and objective to a large extent. However, several recommendations aimed at improving this systems have been advanced with the hope that they will yield a higher efficiency level both in the short and long runs.
Amos, T. 2009. Human Resource Management. NJ: Juta and Company.
Bratton, J. 2012. Human Resource Management: Theory and Practice. London: Macmillan.
Kumar, R. 2010. Human Resource Management: Strategic Analysis Text and Cases. New Delhi:
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