Human resources (HR): Philosophy

By Taslim Ahammad:

Many companies view HR as merely administrative process, with little or no strategic impact based on HR philosophy. While in a few organisations, it has shaped up reasonably followed by the philosophy. Most of them do not understand the HR philosophy and those few who do are unable to push the matter as they are caught up with administrative activities that demand immediate attention. However, of course, the best HR leaders bridle at this philosophical perception and regularly seek ways to have a seat at the table, if necessary with HR expert/consultant.

On the surface, this HR philosophical approach seems to meet an organization’s needs: management moves away from areas it views as unrewarding (and perhaps uncomfortable). When HR philosophical moves in, takes on responsibilities, solves problems, and gains some glory in the process. On the other hand this approach is based on erroneous thinking. Hence, the HR philosophical advice given here is to hold authority to be accountable for doing the right thing, such as: Keep it simple – When people come to HR with an issue, look and deal the problem firmly. Help dig up all of the potential pitfalls and problems. Ask good questions (be curious, not demanding or accusatory). Pay for performance – In support of this principle, the merit program is designed to reward employees for meritorious job performance. Merit increases reflect how well an employee performs and are not automatically granted. In addition to the merit program, the staff appreciation and recognition plan need to develop to recognise exceptional individual or team performance, recognising those behaviours most important to organisational success. Develop leader – Make sure that the leadership style business teach is really its own, company involve managers heavily in assessing the needs of the company, designing and building curricula, and teaching. Not all managers are born to play that role, of course, but business need to train those teaching skills and facilitate where appropriate. Business should make it clear to everybody that their leadership values are specific to the company, they are the rules others live by. Letting management manage – As often as possible, business strive to ensure that managers make the critical HR decisions. Managers have to live with the results the people on their teams produce, so managers should be empowered to make relevant decisions and held responsible for outcomes. Compensation – As with performance, so with compensation; the people and organization development team consults rather than controls. Departments need to make compensation decisions because they are responsible for hiring the right people and managing how those people perform. Department heads should have an incentive to be conservative with pay packages because senior management’s compensation depends on the company’s profitability. At times, indeed, business need to encourage departments to pay more than they first proposed to do. In addition, authority need to review all annual compensation, providing a company-wide check and balance. If conclude that an employee’s contribution will justify his or her cost, business may compensate at levels higher than industry norms. While this approach may lead to inconsistencies in the pay of employees who are nominally at the same level, organisation need to willing for accept this outcome. Business need to believe that the resulting improvement in company performance benefits all of our employees. People – Most importantly, business need to take a somewhat systematic approach to hiring into people and organization development itself. Organisation nee to test candidates and make sure they are interviewed extensively, both by senior members of the department. International education, high test scores, emotional intelligence, and commitment matter more to business than résumés that check the HR boxes. Creating a different kind of people function requires a shift in perspective from the department and company management alike. Business need to believe that HR best serves the company’s interest by analysing and sharing data, building skills, and developing leaders. The company’s management, for its part, must take real responsibility for hiring, evaluating performance, determining compensation, and releasing underperformers. Total compensation – Total compensation for staff employees include all forms of cash (such as, salary and wages, shift differential, and on-call payments and awards) as well as health and welfare benefits, retirement and savings plans, and employee programs and services.

Salary survey and comparison – Each salary survey should contain different mix of organizations, industries and geographic locations. Then determine to use salary data from national, state, regional or local surveys is made based on the type and level of position as well as recruitment data. To the extent possible, jobs and/or classifications are matched to the salary survey based on responsibilities, not merely classified job title. Role of supervisor: Supervisors need to involve in communicating the compensation program to their employees. The role of the supervisor encompasses the following – (i) Understand the components of the compensation program and how it works. (ii) Communicate the program parameters to staff and ensure that employees know their job titles, salary range, and responsibilities. (iii) Ensure positions are appropriately classified, review positions periodically, and initiate a position review through Human Resources when significant changes to the position have occurred (iv) Maintain an ongoing dialogue about performance expectations and objectives and conduct formal performance appraisals annually. (v) Make salary adjustments within the business guidelines and procedures to recognize meritorious performance, correct salary inequities, or compensate for temporary tasks. Dealing conflict – Another philosophy to help managers to manage plays an important role when people problems arise. Traditional HR departments often find themselves or put themselves in the position of mediator between managers and employees. Business goal must be to empower both managers and employees with the skills, information, and best practices to resolve problems together. Hence, organisation need to train people-management skills not only to managers but also to employees, who need to know that they are responsible for helping to resolve problems by having difficult conversations and managing up. This belief reflects HR philosophy that leadership skills are critical for everyone in the company.

Yet to come, HR philosophy and function will become a fundamental part of the mind-set, actions and activities of good leaders. HR will get integrated into business and it will take new forms. Most current HR managers doing jobs that can be outsourced will either end up as outsourcing agents or administrative consultants. In the future, there will be no business without an in-house HR. However, HR is not a career, it is a philosophy and necessity and a way of life within business.

Taslim Ahammad, Assistant Professor

Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Gopalganj, Bangladesh.

taslim.ahammad@gmail.com