managing human capital(MHC) mba 2 semester


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managing human capital(MHC) mba 2 semester

  1. 1. Managing Human Capital SUJAN MAHARJAN ID No: B0154BABA0812 SCHOOL OF BUSINESS AND LAW FEB 19 2013
  4. 4. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW4 1. Abstract Aside from cash or other valuable material needed in organization, employees are also one of the asset that the company worth for it. So we can say that employees are the human capital of the organization. Human capitals are those who can perform the task with their skills, knowledge and ability to achieve the goal of the organization. Human capital should be prepared for the future challenges to stay competitive in the market. Human capital management (HCM) helps organization to develop their resources plans. As we knew that everything is changing and only constant in life is change, so organization also need to change the employee behaviour, style and the expectation, which helps to motivate them to work. With the helps of these changes employee can developed their career with the age, job requirement and other material. This essay consider the concept of the human capital with their benefit, challenges, models and the best practice and best fit concept in term of human resources management. Using this model we can restructure the failure organization by managing the human capital. It considers the detail process of human capital from the recruitment process to their career development. By using all these information we can suggest human resources manager to restructure the organization be managing human capital and using the optimum utilization of resources, which result the cost saving. Proper planning and managing human capital within the organization is essential to increase the capability, motivation, effectiveness and efficiency of employees. To fulfil this organization need to do job analysis, job specification, recruitment and selection, training, performance appraisal, rewards and incentives, career developments that increase the quality of work life and organization development.
  5. 5. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW5 2. Introduction Employees are the backbone of an organization without which organization cannot survive in the competitive market. Because of the employee contribution toward there work which help to achieve the goal and objective of the organization. Therefore organization needs to motivate their employee to acquire some set of skills and knowledge through their experience, exposure, training and so on that increase the productivity of the organization. Human capital is define as the collective stock of skills, attributes, knowledge, expertise of employees which further plays and integral role in increasing the productivity of the organization. Therefore human capital management refers to managing the employees of an organization to contribute significantly in the productivity of an organization need to treat the employees as an asset where organization need to invest for the long term benefit. According to the Bontis et al (1999), “ human capital represent the human factors in the organization that combined intelligence, skills and expertise that give the organization its distinct characters. The human elements of the organization are those that are capable of learning, challenging, innovating and providing the creative trust which probably motivated can ensure the long term survival of the organization”. Benefit of human capital management Help organization to build and shape the resources pool to prepare and achieve strategic objective. Allow the utilization of more effective and efficient use of resources Provide realistic staffing projection for budget purposes. Helps to maintain and improve a diversification human capital. Helps an organization to prepare for restructuring, reducing or expanding its human capital. To write this essay I had consider the secondary sources like books, journals and Google on Internet. Therefore this essay mainly focus on the seven dimension of human capital management i.e. recruitment and selection, training and development, used of performance, performance appraisal, reward, job rotation, and career development. It also covers the best fit, best practice and other models and theory to manage the human capital and discuss on that which method to accept to manage the human capital for the betterment of the organization.
  6. 6. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW6 In the review of collins I had consider the current challenges that organization are facing to manage their workforce to compete in market. Organization are facing a lot of challenges in term of human capital, globalization, technology and the legal and political instability. 3. Challenges of HRM Human capitals are the assets of an organization where the organization successes are depend on them. The main challenge of HRM are facing in present business scenario are globalization, work diversification, technology advances and changes in political and legal. All these challenges make an HR manager to recruit, select, retain and attract talented employees. Because of this external environment challenges HR manager need to design and innovative mechanism of developing skills and competencies of human resources to accept those challenges. The challenges that HR manager are facing are as followed 3.1. Globalization It is the process of denationalization of market by using the global economy. It refers an extension beyond national borders of the market. Growing market of business effect HRM in term of language, practices, competition, management styles, ethics, attitude of employee. HR manager need to deal with these challenges more effectively to compete in market. Due to the globalization international organization can get the talented employees that helps in the organization growth. 3.2. Workforce diversity There is no limit of workforce diversity that include age, ethnicity, gender, physical abilities/qualities, race, education background, location and experience. HR manager need to bring an innovative ideas, perspective and view to the work for the development of organization by turning these diversity into strategic organization assets. Diversity affects the multinational companies who operate their business on a global scale and employ people from different countries. Therefore HR manager need to act like „think global and act local approach‟. 3.3. Technological advances Most challenging task of HR manager is to adopt the rapid changing technology, which affect the nature of work. New technology has reduce the number of jobs and created the scarcity of skill manpower. As the technological changes increase the expenses of the organization. Only adopting the technology is not the solution we need to hire an expertise to operate that technology also as well as provide training to other staff about the uses and benefit of the technology so that there is no delay in the work.
  7. 7. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW7 3.4. Political and legal environment With the change in the government, different rule and regulation also apply which organization need to follow during the operation of business. HR manager need to implement all those changes and adjust the work in organization by utilizing the human capital effectively without facing any problem in the performance of organization. We can overcome those challenges by 1. By providing cross-culture training so that they understand other people culture 2. Motivate and reward the employee so that they do not change their job. 3. Need to adopt the latest technology with the professional skill manpower to provide training to other members 4. HR manager need to change the strategy that is flexible and adaptive to the change in environment 5. Need to measure the performance of employee and proper career development plans to reduce the employee turnover. Therefore we can say that HR practices are becoming more challenging task for HR manager because of retention, attraction of employees dealing with different culture people. HR manager need to motivate the employee through the monetary and non- monetary techniques like encouragement, training, job satisfaction etc. 4. HR Strategy To manage the human capital HR manager need to follow the internal and external environment to change in organization strategy. D.stace and D. Dunphy purposed four HR strategy that fit for different organization situation. Task focus HR strategy Development strategy Turnover HR strategy Paternalistic HR strategy 4.1. Task focus HR strategy In this strategy HR manager mainly focus on the bottom line of the organization by emphasizing workforce planning, job redesign and work practice. It focuses on tangible reward system by recruiting internal and external employee. This strategy is used when market are facing major changes at that time HR manager need to focus on the structure, skill, system and outsourcing of employees.
  8. 8. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW8 4.2. Development HR strategy Hr manager need to carry out the operation jointly with cooperate HR unit and the business units. It emphasize on developing the individual career as well as the team of organization. It focus on the internal employees by emphasizing corporate culture and develop the organization with intrinsic rewards. HR manager follow this strategy at the time of new product development in market to create the desire. HR manager need to create cross culture organization synergy and a market leader culture by developing internal individual career. 4.3. Turnover HR strategy When the organization structure and methodologies are changed affecting the total organization and career by downsizing the employees. At that time HR manager need to build the team and create new strategy to overcome the situation by breaking old culture. This strategy is adopted when organization cannot compete with the external market and when business strategy of organization completely changed. 4.4. Paternalistic HR strategy HR practices are a centralized personnel orientation, which emphasize on procedures, precedent and uniformity. HR manager used this strategy when the production is limited and organization has a monopoly on market. The department and HR have to change in many ways so we need to attract talented people who will be committed and involved in their work with the high level of performance and deliver excellent value of money. With this strategy HR manager set a new direction to the organization. Organization should involve their staff for the changes and improvement of business. When we implement a new HR strategy we need to involve our staff that are fully involved with organization. HR strategy should be change with confidence to challenge the „fit for purpose‟ by working in partnership with all our purpose and stakeholder to deliver our business obligation effectively. Today‟s business world the most difficult task of an organization is to select the right person for right place who can tackle the problem. Recruiters must know the organization future plan so that they recruit the correct number of human capital supply and demand. They should select human capital with their experience, knowledge and ability required for the particular job, which is based on job specification, job analysis and description. Due to the rapid change in market, organization management realized that the employees are considering as an asset and resources of organization. Therefore many
  9. 9. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW9 organizations are focusing on planning and implementation of different strategies on human capital for the success of business with a certain mission, vision and goals. Human capital is one of the primary factors that help to improve the performance of business (Armstrong and baron, 2002). Organization need to focuses on long term about their employee and concern the macro economic factors regarding its structure, quality, culture, and value with the organization future needs. Best-fit approach is important for human resources management so that HR strategies are suitable in different circumstances for the organization. It needs to focus on the idea that different HR strategies have to focus on a given need of both the organization and people (Armstrong, 2006). Due to this best fit is more prefer than best practices in any organization. Best fit and best practice are described further. In this competitive world many organization are dealing with changing environment by various labour market, deregulation, globalization, information technology and many factors. To be in the market organization should improve its performance by solving these problems through reducing its operational cost creation of new product, increasing quality, productivity and speed. To do these organizations need to manage its human capital effectively to enhance the performance, synergy and motivation that sustain the organization in competitive market. The organization performance and the human capital are based on two approaches 1. Best practice (universal) 2. Best fit (contingency) Both best fit and best practice explain the manner in which human resource policies generally and rewards policies particularly can lead to better organization need to work with both approach. The difference between best fit and best practice are Best fit Best practice Firms reward system should be aligned to support the organization business strategy. One bundle of HR policies incluing the reward system Result in achievement of competitive advantage Lead to highly motivated and committed employees who are key to an organization competitive advantage. Source: 5. Practices Best practice approach specify that organization follow the exact set of HR practices that are applied to increase the performance of organization which deliver the best outcome which are value able for the stakeholders, employees and the organization future. Best practice suggest that the greater use of the same practices obviously pursued collectively and consistently gives an organization a better result and create positive synergies between them. Organization needs to
  10. 10. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW10 take advantages by adopting best practice that helps an organization performance. Best practice cover different perspective model of HRM such as high commitment, high performance, involvement in work system and mutual gains models (shield, 2007). According to Johnson, 2000 “ best practice is a high performance work practice which are described as HR methods and system that have universal, addictive, and positive effects on organization performance”. Best practice is nothing more than desperate group of methodologies, processes, rules, concept and theories that have previously generate success in certain areas. Best practice model Hrm policies hrm outcomes organization outcomes Organization job design strategies high job performance Recruitment integration problem solving Selection commitment changes Socialization flexibility innovation Appraisal adaptability cost effectiveness Training and development low turnover Reward system grievances communication HR strategies Best practise cover different element to maintain the organization structure and helps to increase the performance of the organization. They are: Recruitment and selection Training and development
  11. 11. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW11 Extensive use of performance Involvement of decision making Performance appraisal Reward Job rotation Career development 5.1. Recruitment and selection As every organization have an responsibility to recruit the best employee to the changing business environment. The recruitment and selection of employee are fundamental to the effective function of an organization and these activities are important to HRM in practices. Most people recruit the best people and then place them into specific position. Organization used two major source of recruitment, from outside and within inside. Organization that recruit from within a job positing program and consider first before recruiting from outside. Recruitment and selection is done by the need of the organization and select according to the job specification. Fig: steps-in-recruitment-and-selection source:
  12. 12. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW12 Before recruitment and selection organization need to identify job analysis: what has to be done, number and types od position and responsibility. Then we need to summarise the responsibilities i.e. job description and specification. After that HR mnager need to identify the knowledge, skills and ability person who can perform the task that are identified in job desciption. Organization needs to follow these steps for selecting best employee. o Interviews o Biographical interview o Competency interview o Situational interview o Test Psychometric test Aptitude test Personality test o Reference o Examination o Job offer o Contract with employees 5.2. Training and development Training is a learning process that involves the acquistion of skills, concept, rules or attitude to enhance employee performance (Stephanie, 2005). It is an effort initiated by an organization to their employee for the better performance. Training aims to improve the employees skill and behaviour. Similarly, development is important in current business environment because of increasing importance of product and service quality, new technology, skill and labour shortage and employee commitment. Some of the steps involves in training and development (casico, 1998) are: 1. Determining training needs 2. Organization analysis 3. Demographic
  13. 13. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW13 4. Knowledge, skills and attitude analysis 5. Personal analysis Organization can trained their employee by using on the job training (OJT) i.e. training are given hand on by experience instructor. By providing training organization can increase the production, reduce employee turnover, ability to use new technology and change in employee attitude. 5.3. Used of performance Performance is the procedure to set an objective, appraisal and reward. Performances in HR consider the ability, motivation and opportunities for an employee. Performance of an employee focus on direction, intensity and persistence of work to generate productive outcomes. Managing performance is about individual, groups and organization achieving something that is desirable as a consequence of their action, which lead to improvement and is invariable associated with effectiveness and efficiency (sarah Gilmore and steve williams, 2009). Guest (1989) theory of HRM, with its four HR policy goal of strategic integration, commitment, flexibility, and quality describe how HR policy implementation can lead to certain organization outcomes including job performance and other outcomes that can effect organization performance. HRM focus on certain areas that help to implement these policies to get the outcome for long term including organization performance. The performance of employee is depend on how they behave and there choice influence the performance of organization (Purcell et al 2003). These models describe how HR practices implement the strategies that affect the three keys variable in the performance of the organization. 5.4. Involvement in decision-making Organization needs to involve their employee when making a decision for the organization. It helps to creates and impact on decision and affect in the employees job. It is not compulsory tools or practices but it helps to encourage the employees and contribute to continuous improvement on the success of their work n organization. As the participation of employee in decision-making is still a matter of debate because some believe that worker union should participate and some believe that the limited number of employee should involve in decision-making. We can involve an employee participation in various ways like: total quality management (TQM), by empowered teams and joint committees and council through which they can share their views and ideas in making decision. The benefits of employee involvement in decision-making are enhancing morale, more productivity, healthier co-workers relationship and creative thinking.
  14. 14. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW14 5.5. Performance appraisal After the job placement, HR manager need to review the performance of the employees that had assigned to them. The performance appraisal is based on the employee job and responsibilities rather than the personality and characters. By doing the performance appraisal it helps an HR manager to identify the job enhancement and promote professional growth. To evaluate the performance we should use the open line communication to build the relationship with all the employees. HR manager need to appraise the employee on the basis of the employee‟s willingness to work for the achievement of the future goal. Performance appraisal is done to recognize the achievement, to evaluate the job progress by which we can know whether to trained the employee for the further development of their skills, ability, knowledge and the strength. Organization should do performance appraisal on annual basis with the review of employee, supervisor HR manager and the chairman of the organization. 5.6. Reward management Reward is essential factors within the human capital management, which motivate an employee in their performance. Reward may be financial or non-financial or intrinsic reward that influence on the recruitment and retention of employee. The political and economical forces affect current trends of reward system. Therefore UK reward system is based on the performance of the employee rather than the time served with the firms. According to Armstrong 2001, “ rewards strategy involves the thinking ahead to set a strategic course that aligns the reward practices with its business goal, its culture, and the environment in which it operate. To get the reward there need to balance between three perspectives i.e. employer, the employee and the cost perspective”. 5.7. Job rotation Job rotation is the movement of the employee job from one position to another. It involved the particular work, duties; function, which is assigned to an individual employee or the group. In job rotation may last for three months to two years as per the requirement and the nature of the work, duties and responsibilities of the job. According to Prof. A.M. Sarna,” job rotation involves periodic assignment of an employee to completely different sets of jobs activity. One way to tackle work routine is to use job rotation when activity is no longer challenging the employee rotated to another job at the same level that has similar skill requirement” The advantage of job rotation helps to understand the other activities in another department to gain knowledge that increase the performance, reduced boredom and monotony as well as promote inter-departmental cooperation. There is some
  15. 15. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW15 disadvantages like it cost more in training as well as create disruption with other employees. 5.8. Career development Career development is important in recent time to retain skilled, competent and result oriented people for the organization. To retain the employees management should assist individual plan their career with realistic information about career opportunity that exit within a particular organization. Due to the technology and competition organization need to select the right staff as well as need to retain them in organization to reduce the turnover of employee which lead a great loss to organization in term of cost, quality and productivity. Dougles T.Hall said that career development refers to both attitude and behaviour that are directly related to work performance of an employee. Each employee developed their career with making more money, responsibility and acquiring more status and power. Best practice is all about the recruiting the people to their career development. Different organization follows different means to their employee because there is no one specific rule for the development of an employee. After the above discussion, we came to know that there is no any particular way to treat the employee for the increase in the performance of employee for the benefit of organization. Problems with best practices are: According to capelli and crocker-hefter(1996), committed that “the notice of a single set of best practice has been overstated”. There are examples in virtually every industry of firms that have very distinctive management system. It is belived that the best practice has an inconsistency between the belief and the resources which focus on intangible assets including HR manager that allow the organization to do better than their competitors. The practices that work in one organization will not necessarily wok in another organization because it may not fit its strategy, culture, management style and technology or working practices. 6. Best fit Organization want to have best employee, who can tackle the problem at a right time with their knowledge, skills and ability. But this is the most challenging for an HR manager to select the right person for right department. Before selecting the employees, organization must know the future plan of an organization so that they can select the employee with their knowledge, ability and skills required for an organization. Best fit approach the performance of the firm is maximized when the human capital are constant and delegated to the organization business strategy.
  16. 16. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW16 Best fit (or contingency) approach of HRM are closely linked between strategic management and HRM, which is vertical integration between an organization business strategy and HRM policies and practices. Best-fit approach is the relationship to strategic management through contingency and configuration approach. Best-fit approach assumes a classical, rational planning model of strategic management. Best-fit approach links the business strategy and its human capital strategy for providing both fit and flexibility with each other‟s. HR manager must fit with other aspect of the organization, which is effective. There is no any certain best fit that organization follow to achieve the goal and objectives. It is determined by the position of the organization in the market that, which practice to adopt as changes in the environment. Best fit approach focus the HR strategies that should be contingent on the contect, circumstance of the organization and its types. Best fit is viewed as a virtical integration between the organization business and HR strategies. Best fit model Best fit model is more realistic than best practice. It follow the method if it is successful then follow that method to achieve the goal until it fail due to the internal and external environment. There is some limitation of best fit model are It is factual and static and doesn‟t have account of processes of change It is necessary to avoid falling into the trap of contingent determination. There should be the alternative for making strategies. It reliance on the classical rational planning approach to strategy making It reliance on determinism and the resulting lack of sophistication in its description of generic competitive strategies. The firm control the completed with its own HRM Best fit model ignore employee interest in the process to increase economic performance.
  17. 17. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW17 Best fit model Structural changes cultural changes Job/role profiling individual attitude Behaviour Competence-base HR policies and practices Different types of best-fit model that fit in HRM are: Normative model Critical perspective Descriptive behavioural Descriptive functional 6.1. Normative Models Strategic integration Environment triggers Strategic objectives HR strategies External integration
  18. 18. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW18 This model is base on the concept of the hard HRM and soft HRM. Hard HRM is the traditional approach toward managing the human capital. It link between the workforce management and organization strategy. It focus on the HR planning, job analysis, recruitment, benefit and compensation, performance appraisal. Hard HRM view the human capital as passive resources that the organisation used and dispose after its used. Soft HRM is the modern approach to HRM. It is the synonymous of Michigan model of HRM. This model consider human capital as the “assets” of the organisation rather than “resources” and lays stress on organisation development, conflict management, leadership development, organisation culture and relationship building as a means of increasing trust and ensuring performance through collaboration. This model considers that what is good for the organisation is also good for the employees. ( 6.2. Critical perspective This model is the reaction against the normative model. This perspectiveespouses a gap between rhetoric as organisation claims to follow soft HRM policies when they actually enforce hard HRM.(storey and sisson etal 1993). Vaughan (1994) observes that whilst organisation mission statements espouse that employees are their most important assets, organisation reality is characterized by impersonal economic rationalism. Most organisation claim that employees are the asset of organisation for their benefit and welfare but in reality organisation follow the hard HRM approach and organisation always focus on the individual employees. 6.3. Descriptive Behavioural This model is based on the contingency theory where employee behaviour are measured between strategy and organisation performance. Its main purpose is to control the employee attitude and behaviour with the various HR strategies to increase the performance of the organisation. This model focus on the behaviour of employee rather that their skills, knowledge and ability. 6.4. Descriptive -functional Functional model is the process of input- process and output, which involve the internal and external environment. The performances of an employee consider as input, the transformation as the work conduct within the organisation process and the result or service are output. This model is interrelating with separate elements that work together towards a common goal by communicating with each other‟s.
  19. 19. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW19 7. Discussion After the study of the best practice and best fit approach, HR manager need to know how to used those in a particular situation as the market is changing day by day. To be in the market organization not only select the high qualified employee but also need to motivate them so that they perform well and organization can retain them for long time. There are some of the suggestion that I would like to suggest the director about how they can restructure the failing organization. They are: Change nature of business Downsizing New work method New management method Total quality management Technology Merger and Acquisition Finance related issues Buy outs Statutory and legal compliance 7.1.Change nature of business As we know that there is nothing constant except the change that happening in the market. Therefore organization needs to change with the market otherwise they need to face risk and cannot survive in the competitive market. Organization change the nature of the business by diversifying into new areas, increasing their capacity and conversely shed off their division that do not add too much value. For example, to start a new product in market organization needs to change in the nature of their doing business by hiring new expert, using new strategies to compete and choosing different product line.
  20. 20. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW20 7.2.Downsizing The reason to restructure the organization is because of downsizing the workforce. The changing market forced to adopt the new strategies, product mix, and staff redundant to cut the internal cost and achieve process efficiency. Downsizing makes an organization to make new job description, make new team, change organization structure and need to make good communication with remaining employee to perform the task well. Downsizing induced restructuring which leads to a flatter organization structure and boarder job description and duties. Downsizing occurs when organization cannot compete in the market. 7.3.New work method After the restructuring the organization need to adopt newer method of work, outsourcing, system, policies and structure. The new staff and old need to work together to make a drastic change in performance so overcome the problem. The newer work method may required placing emphasis on the result rather than the method flexible reporting, relationship and a strong communication policy. 7.4.New management method The reason of restructuring an organization is because of centralized operation and top down approach where all the power are taken by the top-level management. Therefore organization need to follow the behaviour approach where employees are consider as assets and focus on employee and decentralized the power to conduct the work smoothly. For that organization needs to adopt job flexibility, enlargement and enrichment for the new structure organization. The new management start with new paradigms, so organization has to use best practices to remain competitive in market. 7.5.Total quality management Organization needs to compete in market with their quality of product and services by using six sigma and total quality management (TQM). Six-sigma focus on the quality and output by identifying the problem and removing them by minimizing variability in manufacturing and business processes. In TQM organization participate in improving the process, services, product and the culture in which they need to perform. Organization needs to focus on the quality and the services rather than maintaining a separate quality control department to accept or reject the quality specification. 7.6. Technology
  21. 21. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW21 Innovation of new technology influences the business that required restructuring to compete in market. As technology is changing day by day so change in technology helps in business process that involve redesigning the business by maximizing potential value added and minimizing administration cost. 7.7. Merger and Acquisition When single organization cannot compete in the market, the better option in market is to get merger and acquisition with another organization. After the merger and acquisition organization need to restructure them by forming matrix team, special task force and a new subsidiary. 7.8.Finance related issue When business cannot handle financial problem organization need to restructure them by selling the part of organization assets, downsizing, changing structure etc. when small companies grow then venture capitalist might demand high for setting a new business structure, company may restructure to improve its efficiency and increase profit to attract more investor. Company may try to restructure to avoid the high cost of a formal bankruptcy. 7.9.Buy out If any of the option doesn‟t work then company will be sell our and the change in the ownership will change the structure of the organization. Restructuring allow new owner to provide power to implement new control, new management system in micro level. 7.10. Statutory and legal compliance Restructuring may be done due to the legal and statutory requirement. As the government charge more tax, increase in inflation force the organization to restructure.
  22. 22. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW22 8. Conclusion As the statement cited by Beardwell about the current challenges that HR manager are facing in current situation are the major problem for HR manager. Therefore they HR manager and the management team need to work together to face the challenge. The change should be done because of public demand and political instability. Even though organization need to continue to attract talented people who perform well and committed involved in their work with high level of performance that result in the greater value of money. When the organization is restructure, they need to set a new objective and direction to overcome and compete with the competitors. HR manager need to adopt best-fit or best practices according to the changing situation to improve the system with the skill, ability and experiences employee to provide the better public services. We need to treats an employee as an assets by involving and motivation them for more production and get more benefit. The senior employee and other member are involves in decision making to evaluate their value and contribution in an organization.
  23. 23. Managing Human Capital February 19, 2013 SCHOOL OF BUSINESS AND LAW23 9. References 1. Armstrong, M. (1991) : “ Personnel and the Bottom Line ” : London : Kogan Page. 2. Beardwell, Ian. and Holder, Len. (1997): “ HRM - A Contemporary Perspective ” (2nd ED.) : Pitman Publishing. 3. Beer, M. and Spector, B. (1995) : “ Corporate wide transformation in HRM ” , in R. E. Walton and P. R. Lawrence (eds.), “ HRM : Trends and Challenges ”. Boston : Harvard Business Review. 4. Guest, D. (1991) : Personnel Management : The end of orthodoxy? : “ British Journal of Industrial Relations ”, 29 (2): 149-76. 5. Sisson, Keith. (1996): “ Personnel Management A comprehensive guide to theory and practice in Britain ” : Blackwell Publishers. 6. Gilson, Stuart C. “How To Make Restructuring Work for Your Company.” Retrieved August 02, 2011. 7. William, B.W. and Keith Davis. 1993. Human Resource and Personnel Management. New York: MC Grow - Hill.