Human Resource Management Implications

Human Resource Management Implications
Human Resource Management Implications

Human Resource Management Implications

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The influence that customers have on business activity has increased in recent years. What HRM implications does this have for workers and managers?

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Human Resource Management (HRM) Implications

Human resource remains one of the most important assets in an organization. Having the right people contributes to the achievement of an entity’s objectives and goals. It is the duty of HRM to put in place appropriate strategies and execute their functions well to ensure that an organization achieves its objectives. In the current world, the influence of customers on business activities has increased, which requires HRM to change strategy to meet the customers’ needs and expectations. The author delineates on HRM implications on employees and managers due to increased customer influence on business activities.

Customers form an important part of any business stakeholders, as they are the consumers of products and services. Organizations must consider the needs and the interest of customers in making any decisions. Meeting customers’ needs may define or differentiate between a successful and a failed business venture (Francis & Keegan, 2006). Satisfied customers often return to purchase the products and services of the company and vice versa. Business dynamics has continued to change in the recent past as new technologies come into existence. These changes have significant consequences on HRM practices if a business wants to compete favorably (Graf, 2007). Nowadays, customers have gained power as they comment, provide their opinions and even criticize products and services that various entities provide. Social platforms such as facebook, twitter, blogs and internet have necessitated the increased customer power on business activities. Therefore, with such changes, business must align themselves in such a way that they can incorporate these views to offer products and services that the customers require.

One of the HRM implications of increased influence of customers on business activities on employees and managers is change of strategies of recruitment and selection of their workers (Graf, 2007). Selection is one of the most important initiatives and function of HRM which can have positive or negative impact on an entity.  Attracting and retaining competent workers is very critical in this era. Employees must have better customer care skills for them to strategize their businesses. Appointing people with right expertise and capabilities is one of the strategies that will enable them win and meet the demand of the customers. An entity will be in a position to survive in this era if it has an effective team of employees and managers that are able to make decisive decisions that will have a positive impact on customers (Graf, 2007). Workers and managers will have to take time to understand the philosophies and aims of the entity to impact on customer satisfaction, production and build relationship with suppliers. Satisfying employees’ need thorough financial rewards as well as providing other incentives will as well help to improve the employees and managers performance and commitment making them to provide better services to customers hence creating positive working relationship.

In this era, HRM will as well be required to invest in training and development initiatives of their employees and managers. Training allows an individual to advance their levels of self-awareness, enhance talent, improves skills and knowledge and motivates employees (Ullah & Yasmin, 2013).  Employees and managers will have to undergo training on technology advancement and their use in businesses. For instance, use of social media and internet has become a major channel where consumers engage companies. Employees must therefore understand how these platforms work so that they meet the expectations of the customers.

In such an environment, managers are required to create a conducive working condition for their employees. They should allow employees to take part in the decision making process. Employees have ideas and views that managers can buy to help them meet their achievements and objectives (Bowen, 1986). This feedback should be provided in various forums and through suggestion boxes in the organizations. Information sharing will enable the company to function effectively as employees may provide essential information on strategies.  Flexibility on designs is also critical in ensuring that the entity compete effectively and meets the goals and objectives of the customers. Job design will include embracing of job rotation, job enrichment, increase of autonomy at work, and job enrichment design that broadens job definitions. Employees must take responsibility upon themselves to ensure that they meet the needs of the customers.

Management should empower employees to help aid in customer satisfaction.  Employees also get an opportunity to exercise control over their jobs and make decisions by delegating power and authority.  Graf (2007) revealed  a number of benefits accruing from employee empowerment including, quick reaction to customer demands and issues, affectionate and excited customer dealings, more satisfied employees, and employees are able to pioneer ideas. In this era where customers have greater influence, therefore, through empowerment of employees, they will engage customers in professional way to address and render appropriate services.  It is, therefore, very critical that this is taken with seriousness as it affects delivery of better services to the customers.

Customers, even though are outside an organization’s boundaries, remain relevant references and or extension on HRM, meaning that they cannot be left out in the equation. They influence the success or failure of an entity. For instance, if customers lack an opportunity to express their concerns about the products they purchase and services, they use may not be confident enough to trust such products and services. This means that the company may not manage to achieve their dreams. However, those that listen to what the customers say and engage them constructively increase their public image and increase their customer base since customer feel a sense of belonging and feel appreciated and part of the larger organization community. Therefore, these are the implications that managers and customers must consider in their strategy. Managers must be concerned more on the level of competition as well as on avenues to ensure that employees are well prepared to provide appropriate services to their customers.

It has also become essential for managers to increase their level of customer orientation about the company and employees and reduce role conflicts and ambiguity to create a benefit for the customers (Chiu & Luk, 2002). This complex era requires customers to access appropriate and sufficient information on the company services and products to remain knowledgeable and to avoid controversies or conflicts likely to affect the image of an entity.  Customers should receive information from the company on various aspects to alleviate any misunderstanding. This means that managers and employees would be required to embrace codes of ethics and ensure that they render their services with highest professionalism.

Training employees is essential in ensuring that they become competent enough to address the ever changing and challenges arising from increased consumer influence.  For example, Kodak   resorted to a global learning management system in 2000 in delivering e learning to its employees across the world (Friedman, 2007). This opportunity enabled the employees to be equipped with relevant skills and knowledge to execute their duties diligently. The training as well enabled them to understand the impact of culture and globalization hence being in a position to offer their services well (Hofstede, 2001). With technology, customers come across the world and have different cultural values, which require companies HRM to factor and to consider them in their strategies. Another company that has taken an initiative of appreciating and aligning its strategies to remain competitive even with increased customer influence is Apple Inc. The company has managed to remain innovative and to produce products that meet consumer expectations by allowing customers to take part in their decision-making. Customers have been involved through opinions, comments and criticisms, on various social media platform contributing to the companies’ achievement of its goals over the recent years.

Entities should invest their resources in research and development. Through research, organizations stand a better chance of understanding the needs and interests of customers. They will therefore be in a better position to render quality services to them.

It is true that customer influence on businesses has increased to greater magnitude in the recent past. This scenario has had a number of HRM implications. Organizations must change their strategies to be able to produce products and offer services that meet the consumer needs. Consumers are essential in any company’s success strategy and, therefore, by adopting appropriate and tactical strategies, the companies have higher chances of succeeding. Empowering employees through training and  development, providing sufficient information to the customers and ensuring that competent staffs are recruited will ensure that entities remain competitive to achieve their goals.

Reference list

Bowen, D 1986, ‘Managing Customers as Human Resources in Service Organizations,’ Human    Resource Management, Vol. 25 no. 3, pp. 371-383.

Chiu, R, & Luk, V 2002, ‘Retaining and motivating employees: Compensation preferences in       Hong Kong and China,’ Personnel Review, vol. 31 no. 4, pp. 402–431.

Francis, H, & Keegan, A 2006, ‘The changing face of HRM: in search of balance,’ Human Resource Management Journal, vol. 16 no. 3, pp. 231-249.

Friedman, B 2007, ‘Globalization Implications for Human Resource

Management Roles,’ Employ responses Rights Journal, vol. 19, pp. 157-171. Available at             http://runebergendorff.dk/opendir/Globalization%20Implications%20for%20HRM%20R   oles,%20Friedman.pdf
 Graf, A 2007, ‘Changing roles of customers: consequences for HRM,’ International Journal of    Service Industry Management, Vol. 18 no. 5, pp. 491 – 509.

Hofstede, G 2001, Culture’s consequences: Comparing values, behaviors, institutions and organizations across nations (2nd edition). Sage: Thousand Oaks, CA.

Ullah, I, &Yasmin, R 2013, ‘The Influence of Human Resource Practices on Internal Customer    Satisfaction and Organizational Effectiveness,’ Journal of Internet Banking &     Commerce, Vol. 18 no. 2, pp. 1-28.

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