Reflective Paper on Human Resource Management and the Role of Strategic Planning

Reflective Paper on Human Resource Management and the Role of Strategic Planning

Human Resource Management has the responsibility of an array of essential business practices, which has tremendous impact on the organization; but its most essential assets are its human capital. Effective HRM is vital to strategic planning in an organization. According to Ivancevich:

When HRM strategies are integrated within the organization, HRM plays a major role in clarifying the firm's human resource problems and develops solutions to them. It is oriented toward action, the individual, worldwide interdependence, and the future (Ivancevich, 2010, p. 26).

In addition, Ivancevich states: "In a strategic approach the main responsibility for people management rests with any individual that is in direct contact with them or line managers" (Ivancevich, 2010, p. 26). The focus in a strategic planning for HRM is recruiting, employee development or retention, compensation, and equal employment opportunity.

To devise an effective recruiting strategy, one must understand the mission of equal employment opportunity (EEO), the purpose of affirmative action plans and the management and value of diversity initiatives. Because the most valuable incentive for motivating and retaining talent is compensation; whether you choose to pay performance or use incentives to drive desired behavior, a comprehensive system to manage the process is an important asset. Human Resource Development is the framework for helping employees develops their personal and organizational skills, knowledge, and abilities. Effectively, selection is 'buying' an employee (the price being the wage or salary multiplied by probable years of service) hence; bad buys can be very expensive.

First, to devise an effective recruiting strategy, one must understand the mission of equal employment opportunity (EEO), the purpose of affirmative action plans and the management and value of diversity initiatives. EEO programs are implemented by employers to prevent employment discrimination in the workplace or to take remedial action to offset employment discrimination (Ivancevich, 2010, p. 84). HR and managers of every department has to be involved in EEO programs. The impact affects every aspect of the organization from hiring, recruiting, training, terminating, compensating, evaluating, planning, disciplining, and collective bargaining. The three main factors that led to the development of EEO were (1) changes in societal values; (2) the economic status of women and minorities; and (3) the emerging role of government regulation (Ivancevich, 2010, p. 85).

What Is Affirmative Action?

Affirmative action is "those actions appropriate to overcome the effects of past or present practices, policies, or other barriers to equal employment opportunity". The most controversial interpretation of affirmative action is that it grants special treatment to some individuals to the detriment of others (Ivancevich, 2010, p. 99). Working as a minority in my current position as supervisor, places me in a position of the being the only African-America in a management position. In a company of over 100 people, there are only five African-Americans. I have mentioned this to the HR manager and she has indicated that the company is attempting to diversify in hiring. I believe that I was hired on the bases of years of experience and not as a means of complying with affirmative hiring laws.

What is Diversity?

Diversity looks at the differences and similarities that people bring to the company. It includes dimensions beyond legal issues in equal opportunity and affirmative action, but includes the identities and work perspectives people bring, such as profession, education, parental status, work experience, and geographic location. Workplace diversity is a people issue, focused on the differences and similarities that people bring to an organization.

Because the most valuable incentive for motivating and retaining talent is compensation; whether you choose to pay performance or use incentives to drive desired behavior, a comprehensive system to manage the process is an important asset. According to Ivancevich:

Compensation is the human resource management function that deals with every type of reward individuals receive in exchange for performing organizational tasks. It is the major cost of doing business for many organizations at the start of the 21st century. It is the chief reason why most individuals seek employment (Ivancevich, 2010, p. 313).

The goal of HRM is to design a compensation system of rewards and benefits that is equitable to the organization and the employee. The desire is to attract those qualify individuals to work for the company and be motivated to do an excellent job for the company. It is an exchange relationship. Employees trade labor and loyalty for financial and nonfinancial compensation--pay, benefits, services, recognition, etc. (Ivancevich, 2010, p. 313). David Mote suggests the following reasons why benefits are offer:

Benefits are an important means of meeting employees' needs and wants. Employers frequently use optional or supplementary benefits as incentives to promote employee longevity, by attracting and keeping good workers. However, the primary role of employee benefits is to provide various types of income protection to groups of workers lacking income. Such income protection offers individual security and societal economic stability. Five principal types of income protection delivered by benefits are: (1) disability income replacement, (2) medical expense reimbursement, (3) retirement income replacement, (4) involuntary unemployment income replacement, and (5) replacement income for survivors. Different mandatory and voluntary elements of each of these categories are often combined to deliver a benefit package to a group of workers that complements the resources and goals of the organization supplying the benefits" (Mote).

When potential candidates consider the job offer, he or she takes into account the total compensation package. This would include the direct and indirect portion of the employee package. Financial compensation is either direct or indirect. Direct financial compensation consists of the pay an employee receives in the form of wages, salaries, bonuses, or commissions. Indirect financial compensation, or benefits, consists of all financial rewards that are not included in direct financial compensation (Ivancevich, 2010, p. 314). The indirect compensation could consist of vacation, health coverage, special services for children, retirement plans, etc." In addition to a salary, employees may receive a range of benefits and services from their employers. Benefits