Capstone Paper Since we're about half-way through the course, it's time that you can start thinking about the capstone paper. The paper will involve examining a situation through the lens of the...

Human Resource Management – Three Legged Stool 1
Human Resource Management – Three Legged Stool
Human Resource Management – Three Legged Stool 2
Human Resource Management – Three Legged Stool
Introduction:
“HR should be defined not by what it does, but by what it delivers” (David Ulrich, 2000)
Human Resource Management helps in ensuring the efficient and effective use of the
personnel for accomplishing the organizational goals. It deals with several policies and practices
which are followed which includes recruiting training, compensation, motivation and the overall
development of the human resource. The main focus of the Human resource management should
e the success and enhanced performance and productivity of the organization.
Human Resource is governed by great retention, high pay scale and strong training which
helps in the growth of the business as the productivity is governed by these factors.
The productivity of an organization can be seen on how effectively the product and
services are delivered to the customers. Human resource are the people who designs, produces
and deliver these services to the customers, thus we can say that the productivity of the firm is
depended on the human factor of the organization.
It is very essential to judge the way through which the policies and practices of human
esource management helps enhancing in the productivity and performance of the firm. There is
a strong link between the human resource policies and practices, the contribution by an
individual and the productivity and the performance of the organization is one of the most
important aspects to understand as it is an important aspect which is relevant to the employers for
the modernization with the help of the approach i.e. ‘Best value approach’.
As per the article there are three main aspects in the HR which includes the assignment of
decision rights, an appropriate reward system and effective performance evaluation for
Human Resource Management – Three Legged Stool 3
individuals and divisions. These are the aspects that are required in the HR perspective and are
considered important for the growth of the organization.
HR practices and Policies:
There are different practices and policies that are used by the organizations so as to
accomplish different goals. These practices include human resource planning, motivation of the
employees, compensation and reward policies, training and development of the employees and
the performance evaluation of the employees.
Decision Making:
Considering the decision making power, it is important for the company to focus on a
person who has strong decision making power and who can make decisions promptly, the
decision made should be for the benefit of the organization and should align to the strategic goals
and objectives of the organization.
Appropriate reward system:
The organizational reward system consists of the types of rewards to be offered and their
distribution. Organizational rewards include all types of rewards, both intrinsic and extrinsic, that
are received as a result of employment by the organization. Intrinsic rewards are internal to the
individual and are normally derived from involvement in certain activities or tasks. Job
satisfaction and feelings of accomplishment are examples of intrinsic rewards.
The compensation and the pay package of the employees of the organization should be on
the job, skills inherited by the employee.
The human resource department also focuses on providing benefits to employees.
Employee benefits, sometimes called fringe benefits, are those rewards that employees receive
for being members of the organization and for their positions in the organization. Unlike wages,
Human Resource Management – Three Legged Stool 4
salaries, and incentives, benefits are usually not related to employee performance. For designing
the compensation for the employees the company should focus on adopting the going rate
approach in which the company needs to focus on designing the pay scale on the basis of the
local market rates, the compensation should be based on the selected survey comparison. As the
company is focusing on cutting out its expenses the company can also focus on adopting balance
sheet approach in which the company need to focus on designing the compensation plan as per
the cost of the international assignment.
Designing appropriate reward system helps the organization in different perspectives.
The compensation strategy works in various ways such as:
Increases employee motivation: Anybody who is working with an...