Human Resource Management System Outcomes

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Human Resource Management System Outcomes

HRM System Outcomes 

The nine areas of HRM have been termed spokes of the wheel in that each area impacts on the HR outputs: QWL, readiness for change, profits, goal attainment, job satisfaction, and commitment, etc. those nine areas continually process the HR inputs. It is through them the HRM outputs are produced. Short explanations of HR outputs are given below. 
1. Productivity 
     a.External factors 
     b.Internal factors 
2. Quality of Work Life (QWL) 
3. Readiness for Change 
4. Higher Profits 
5. Job Satisfaction and OC 
     a. Job satisfaction 
     b. Organizational commitment 
1. Productivity of HR 
It refers to the relationship between inputs and outputs – that is means used and outcomes derived. HR productivity stands for the elimination of waste of resources by way of frustration, dissatisfaction low morale, etc. productivity helps to promote efficiency and effectiveness, and performance of HR. high productivity leads an organization towards competitiveness and success. Productivity is related to efficiency. Following are the factors which affect productivity. They can be classified into two categories: 
a. External factors: They include the infrastructure; availability of funds, energy, water, and political, social, and economic conditions of the country. These factors together affect the productivity of an organization’s HR and other resources. 
b. Internal factors: They can be classified into four major categories. 
  • Capital investment: HR productivity can be improved through capital investment. If an organization can acquire the best possible machinery available in the world that will help to improve the efficiency of the workers. The logic behind more capital investment is to offer the latest “state-of-the-art” equipment. This will help the employees to work smarter, not harder. 
  • Innovation: innovation is the process of taking a creative idea and turning it into a useful product, service, or method of operation. People with innovative ideas should get chances to create new things for the organization. Three sets of variables have been found to stimulate innovation. They are: 
  • Organization’s structure: Organizations that stimulate innovation will have flexible structures, easy access to resources, and open communication. 
  • Culture: A culture that is relaxed, supportive of new ideas, and encourages monitoring of the environment. 
  • HR practices: Utilizing creative people who are well trained, up to date in their fields, and secure in their jobs. 
  • Learning (Training and Development – T & D): Employees can do better if they are provided with training and development programs. T & D programs can be made successful only through the use of learning elements. HR managers can improve productivity through the use of learning components (for details see learning). 
  • Motivation: the level of productivity is also dependent on motivation or the level of an employee’s motivation. Productivity is the function of: P = f(Ability + Motivation + Opportunity to do). 
So, without motivation, even the best machines, innovative ideas, and learning can not produce good results (for further details see motivation). 
2. Quality of Work Life (QWL) 
It refers to the favourableness or unfavourableness of a job environment for people. The basic purpose of QWL is to develop work environments that are excellent for people as well as for the economic health of the organization. The elements in a typical QWL program include many items: 
  • Open communication 
  • Equitable reward systems 
  • Concern for employee job security 
  • Participation in job design, etc. 
They make the job(s)/ employees: 
  • More interesting, 
  • Challenging and satisfying through the development of efficient working relationship, and 
  • It makes employees psychologically satisfied with their work. 
In short, HR managers can use the following five procedures and policies to make the work less structured and more rewarding to the employees. They are autonomy, recognition, belongingness, progress, and external rewards. 
3. Readiness for Change 
Change is an alteration of an organization’s environment, structure, technology, or people. Readiness for change (of employees) is concerned with the ability to adjust to the changing environment. Organizations live in the age of transition. In fact, ‘change or die’ is the present-day reality. Organizational change can be costly and difficult for the employees. It is the general tendency of human beings to resist change – no matter how much beneficial the program is. There are a number of reasons why people resist change. Some of them are habit, the challenge to job security, economic factors, fear of the unknown among others. 
To make the change programs effective, HR managers need to overcome those resistances to change successfully. To overcome resistance to change, HR managers can use the following tactics. 
  • Education and communication 
  • Participation and involvement 
  • Facilitation and support 
  • Negotiation/agreement with employees 
  • Manipulation and cooption 
  • Coercion (either accepts change or leaves the organization option to the employees). 
It employees are ready to accept change – which leads to – organizational effectiveness and goal achievement. 
4. Higher Profits 
Proper management of the HRM system helps to achieve a targeted level of profits. Without profits, business organizations can not sustain themselves in a competitive environment. It is one of the highly important outcomes of the HRM System. 
5. Job satisfaction and organizational commitment 
They are the last but not the least important outcomes of the HRM system. We discuss them separately in the following way. 
a. Job Satisfaction: it is an important element in management – employee relationships. It is important from the managerial and employees’ point of view because: 
  • it has some relationship with the mental and physical health of employees, 
  • it spreads goodwill about the organization, 
  • employees can stay long with the organization, and 
  • it helps to reduce absenteeism and turnover, etc. 
Research findings: indicate that highly satisfied employees tend to have better physical and mental health, learn new job-related skills more quickly, accept change easily, have fewer on-the-job accidents, and fewer grievances. 
b. Organizational commitment: It is employees’ attitude toward the organization. It binds employees with their organizations – they stay longer in the organization. Committed employees are believed to attend work regularly, protect organizational assets and share organizational goals. Ways to enhance employee commitment are: 
  • commit to people-first values 
  • clarify and communicate the organizational mission 
  • guarantee organizational justice 
  • create a sense of community 
  • support employee development, etc. 

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6 thoughts on “Human Resource Management System Outcomes”

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