Role of Hrm in Manufacturing Company

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ASSESSMENT 2: ESSAY

This essay will evaluate the role of Human Resource Management in a manufacturing company. This will include a critical assessment of three functions being Recruitment, Selection and Employee Turnover function which are vital to the achievement of estimated goals. Being appointed as the Head of HRM by the General Manager of ABC company, certain problems are to be addressed such as poor matching of new personnel to their job and rising levels of staff turnover. This essay will also point out certain aspects and changes which may be required by the company to retain employees reduce cost and increase profitability if considered. The main aim of recruitment is to ensure that the organization is adequately and effectively staffed at all times. The next step involves matching the suitable applicants to the jobs in the organization followed by the selection function. “It is mandatory for Organizations to make the best of their recruiting practices because, in today’s increasingly market-based human resource management (HRM), effective recruitment is likely to be the ‘most critical human resource function for organizational success and survival’ “(Taylor and Collins 2000: 304). Another definition that throws light on the essence of Recruitment can be quoted as ‘those practices and activities carried out by the organization with the primary purpose of identifying and attracting potential employees’(Barber 1998: 5). This definition highlights the important difference between two HR functions that are difficult to distinguish, namely recruitment and selection.

An Overall recruitment policy and a number of processes need to be in place to determine overall outcomes for the organization before effective recruiting can take place. Recruiting should always involve analyzing the position to be filled, the person to fill it, writing a job description and person specification, and analyzing the organization’s short, medium and long term needs and goals. It is essential that the requirements of the job are thoroughly understood through the process of job analysis. The success of recruitment can be measured in terms of diversity. For example, Bola M. Ogun (2004) examined the positive effect of encouraging diversity in the workplace wherein the best would be recruited not only to complete the task in hand but also add to the competitive advantage of the firm. In order to sustain long term profitability and growth, the firm should invest in assessment and retention of personnel. Authors have argued that organization-employee fit is a two-way street and thereby understanding, effective communication and rewards are the important issues to be addressed here. Another type of explanation is the positive effect of recruitment on the profitability of a firm. For example, Terpstra and Rozell (1993) argues that the firms that analyzed recruiting sources for their effectiveness in generating high-performance applicants had greater annual profitability especially in manufacturing industries. They suggest that this in depth analysis has a positive effect with generating profit in the industry. It would appear that Terpstra and Rozell’s explanation cannot be accounted for the cost involved in taking a decision to choose among the recruiting sources in consideration of the performance, culture and diversity. There is however, a positive relation between the annual profit and the budgetary cost to be incurred in the analysis.

Another type of explanation is one that produces no connection between recruitment function and a Profitable organization. For example, Rynes and Cable( cited in Recruitment Strategy,2007) argues the absence of any studies investigating the effect of the fit between recruitment and organizational effectiveness and descriptive research can be used to speculate about the possibly strategic imperative of such context-aligned recruitment practices. The problem with this argument however, is that it does not...
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