Strategic and Administrative Role of Human Resources
Introduction and Purpose of paper
As disclosed by to Weiskopf and Munro (2012), the importance of human resources (HR) in a business is that it provides perspective to the direction the firm intends to move towards by utilizing the workforce in its disposal. Human resources department is a critical component in business since its purpose is to provide a sustainable working environment for the well-being of their employees. Human resources department is responsible for ensuring that its employees are well versed in their area of expertise to ensure that the objectives of the business or organization are achieved (Keegan, Huemann, & Turner, 2012). By understanding the challenges, weaknesses, and threats affecting a company, the HR department can tap into the opportunities and strengths of the business to solve the problems affecting a business’ productivity. It is vital to identify the importance of HR in a company by looking at its strategic and administrative roles, relating to the challenges and opportunities of business.
Recap from previous presentation
A case study of Reyes Fitness Centers highlights the crucial role that HR plays in business by providing perspective on the objectives it intends to achieve by utilizing qualified personnel in its activities. Challenges that face a business such as RFC are linked to the functions of the HR department, and the proposed remedies need to address the workforce problems to operate efficiently. The problems of increased expenses, customer retentions, and customer relations are deep-rooted to the HR functions and can be solved by a proper HR approach. These HR approaches are determined by analyzing the business’ Strengths, Weakness, Opportunities, and Threats (SWOT) that assist the HR department to align their goals with the objectives of RFC. Anyadike (2013) notes that SWOT analysis is a study used by a business entity in identifying its internal strengths and weaknesses, as well as its external opportunities and threats that help the business in the realization of their operational goals and making a profit.
Summary of the recommended action plan of major tasks, persons or departments
Through the analysis of the strengths, weaknesses, opportunities, and threats that affect a business, HR departments can find the desired employees to assist in ensuring that the company works towards meeting its goals and the overall organizational objectives. For the case of RFC, the HR department has the mandate to provide sound recommendations to address the challenges affecting its operations. Some of the practical proposals include; decreasing its operation costs and workforce, training its employees, and formulating policies to guide the recruitments and hiring process of the business. These recommendations will provide value to the business by improving the client relationships with the staff, reduce the operational costs, increase RFC’s revenue and profits, and improve the skills and expertise of its employees to serve its clients better. These efforts by the HR department also ensure that the employees are motivated and empowered through training and capacity building, which serve to improve their overall performances and help the business achieve its objectives.
Metrics of evaluating the results of the transformation
According to Mukerjee (2013), the need to improve the activities of business by involving the human resources works towards ensuring fluid customer service is achieved since the customer is key to any organization’s development. The proposed HR department recommendations support the business’ mission to provide excellent customer services and sustain its growth while doing business. The success of a business is determined by its growth, its ability to meet its set objectives, generate profits, and satisfy its employees and shareholders (Christensen &Raynor, 2013). The recruitment and hiring of new employees through sound policies will ensure a skilled and competent workforce is present at all time in the business to provide the customers with excellent services. Training of employees will improve their interactions with clients and improve their service delivery, which will give rise to the number of customers retained. Reducing the operational costs will be achieved by letting off some of the employees and decreasing the number of functional branches of the business, which will help in increasing the revenue of the business while reducing its expenditure.
Risks of not implementing the changes
Failure to implement the proposed recommendations by the HR department has damaging consequences to the business, as most of the operations that brought up the challenges will fail to be addressed. The difficulties highlighted had affected the operational capacity of RFC and its ability to retain clients, and generate sufficient revenue and profits. An incompetent workforce will also affect the company’s ability to meet its objective and consequently suffer losses in its activities. Additionally, its competitors who adopt sound HR policies in their operations will outperform RFC and will attract RFC’s clients to their centers. In the long run, the business will not be viable for RFC and may lead to its closure or bankruptcy, which will affect its owners and shareholders’ investment, and render its employees jobless.
Description of the significance of both the strategic and administrative role of human resources needed for the transformation
In ensuring that the recommendations for RFC by the HR department are adopted, there is the need to align the recommended actions to the strategic and administrative activities of the HR to achieve sound results. Jackson, Schuler, and Jiang (2014) claim that the HR is useful by being strategically involved in the functions of the company to ensure the workforce schemes increase the human capital, which will aid in providing a distinct competitive advantage. Dedicated, motivated, experienced, skilled and well-trained employees often increase the productivity and efficiency of the organization’s operations, while improving the quality of service and customer experience (Mohanty, 2018). Moreover, a productive workforce provides the business with labor cost-efficiency, whereby the employees’ compensation is reflective of their input in the company in its efforts to accomplish its objectives.
Summary and conclusion
In closing, having an active HR in a company aids in promoting its success by addressing the challenges the business faces and maximizes the opportunities it has in realizing its goals. Through sound HR policies, a business can increase its productivity by generating more revenue and expanding its profit margins, which will satisfy the investors. Furthermore, HR recommendations serve to improve the skill and competency levels of its employees that aids in having a workforce that is motivated, dedicated and adequately trained. A skilled labor force will ensure that the objectives of the organization are met, including improving the quality of service delivery and elevate the customer experience in the organization. Consequently, clients will be retained successfully and the client-employee relations will be improved significantly. Since the customer is the vital component in the success of a business, it is paramount to ensure that the HR administrative and strategic functions work towards providing customer satisfaction.
References
Anyadike, N. O. (2013). Human resource planning and employee productivity in Nigeria public organization.Global Journal of Human Resource Management, 1(4), 56-68.
Christensen, C., &Raynor, M. (2013).The innovator’s solution: Creating and sustaining successful growth. Harvard Business Review Press.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014).An aspirational framework for strategic human resource management.The Academy of Management Annals, 8(1), 1-56.
Keegan, A., Huemann, M., & Turner, J. R. (2012). Beyond the line: exploring the HRM responsibilities of line managers, project managers and the HRM department in four project-oriented companies in the Netherlands, Austria, the UK and the USA. The International Journal of Human Resource Management, 23(15), 3085-3104.
Mohanty, S. (2018). Driving Employee Engagement Through Data Analytics: Helping Leaders Make Better People Decisions. In Statistical Tools and Analysis in Human Resources Management (pp. 197-219). IGI Global.
Mukerjee, K. (2013). Customer-oriented organizations: a framework for innovation.Journal of Business Strategy, 34(3), 49-56.
Weiskopf, R., & Munro, I. (2012).Management of human capital: Discipline, security and controlled circulation in HRM.Organization, 19(6), 685-702.
Appendices
Action Plan
Reyes Fitness Centers
Action Plan
Objectives Task Success Criteria Time Frame Resources
Decreasing operation costs and workforce Cut on unnecessary expenses in the Budget Cost savings and improved productivity 6 months to One Year Human resources- Accountants and HR personnel
Train employees Develop quarterly training programs for different departments Improvement in productivity, satisfaction, performance and motivation 6 months Financial resources
Qualified trainers
Efficient recruitment and hiring process Formulate policies to guide the process Competent candidates and employees 6 months to one year HR personnel
Organizational Chart
SWOT Assessment Chart