• Home
  • Business
  • How does Human Resource management relate to other functional areas such as marketing, finance and operations management? Explain.

How does Human Resource management relate to other functional areas such as marketing, finance and operations management? Explain. Essay Example

  • Category:
    Business
  • Document type:
    Essay
  • Level:
    Masters
  • Page:
    2
  • Words:
    1165

How Does Human Resource Management Relate to Other Functional Areas Such as Marketing, Finance and Operations Management? Explain

How Does Human Resource Management Relate to Other Functional Areas Such as Marketing, Finance and Operations Management? Explain

Over time, human resource management has risen to be one of the most important practices in an organization. Precisely put, human resources are considered as main source of an organization’s competitiveness and have a huge impact on its performance (Society For Human Resource Management 2008, p. 2). Therefore, it is imperative for human resource management to relate well with other functional areas in the organization; such as marketing, finance and operations management among other function areas in an organization. The following essay will give an insight of how human resource management relates with these functional areas in various ways.

One of the ways in which an organization is able to relate with other functional areas is by executing its fundamental functions that includes recruitment, selection and HR development & retention effectively (Clark 2011, p. 166). Human resource management aims at getting the most competent people to work at specific areas/ positions in an organization. Therefore, human resource management is responsible for providing the functional areas in an organization with the skills, knowledge and experience needed to execute specific functions and processes in individual departments. Therefore, there is a need for a close relationship between individual departments and the human resource management department.

The human resource management department is also able to relate with other functional areas in an organization by cultivating and developing an appropriate organizational culture. An organizational culture is a set of beliefs, values and practices that are upheld in an organization (Sun 2008, p. 138). An organization culture dictates the conduct of the relevant stakeholders and the manner in which things are carried out. Basically, an organizational culture cuts across all the functional areas in an organization. For this reason, it creates harmony and shared visions and goals in an organization that is crucial to its productivity. When the human resource management is able to develop and maintain a good culture in the employees, it is able to relate with other functional areas; hence contributing to its success.

From a systems management perception to an organization, it can be acknowledged that an organization is made up of many departments, all of which are dependent on each other. The general success of an organization is influenced by the ability to coordinate the activities in the various departments. This much-needed coordination is provided by the human resource management department via teamwork. On this point, it can be acknowledged that teamwork is one of the core values in the modern organizations (Stevens & Campion 1994, p.505). With the shift in organizational management approaches, it can be appreciated that focus is shifting from vertical to horizontal organizations that require an increased team activity. With human resource management encouraging teamwork in an organization, it is able to relate with other functional areas in an organization more effectively.

Human resource management is also able to relate with other functional areas in an organization through the organizational strategy. An organizational strategy is a document that indicates the current situation of an organization and the specific situation that it desires to be in a specific period of time. Key to the organizational strategy is the human resource element that gives a means (mission) in which the objectives and goals of the strategy will be achieved. The human resource management strategy is normally part of the broader organization strategy that indicates how the human resources available to the organization will be used by the various functional areas in an organization. Therefore, the human resource strategy and the organizational strategy enables human resource management are able to relate with other functional areas in an organization.

Employee branding provides another way in which human resource management is able to relate with other functional areas in an organization. On this point, it is important to acknowledge that modern human resources are not meant to provide work force to an organization, but to paint its image. For this reason, an organization normally focuses on branding its employees in a bid of creating an appropriate market image. This approach is widely used to relate with functional areas such as marketing and sales. A good example of this is Wal-Mart’s employee branding via the environmental ambassador program. In the human resource approach, the organization is able to brand its employees as environmental ambassadors, hence painting a good image for the organization.

Lastly, human resource management is able to relate with other functional areas in an organization by coming up with appropriate human resource management policies that empower employees in various departments in order to increase their productivity. Key to this point is the relationship between human resource management and the performance of an organization (Ahmad & Schroeder 2000, p. 19). Employee benefits schemes and human resource development practices are some of the policies in human resource management that enable human resource management to relate with other departments. Taking an example of a commission based remuneration policy used by human resource managers to reward employees in the marketing and sales departments hence increasing organizational performance. It can be appreciated that human resource policies are important tool that enable human resource managers to relate with other functional areas.

In conclusion, it can be acknowledged from this essay that human resource management is important in enabling an organization to meet its goals and objectives. Therefore, it is imperative that the department relate with other functional areas in the organization effectively. The essay has discussed about several ways in which human resource management is able to relate with these areas. An organizational culture enables all the functional areas to have a shared vision, teamwork that enables the organization to increase the internal coordination in an organization. A human resource strategy and organizational strategy dictate how the available human resources are shared among all the functional areas. Recruitment, selection and retention enable individual functional areas to have a supply of competent human resources. From the essay, it can be concluded that it is important that human resource management relate well with other functional areas.

References

Ahmad, S., & Schroeder, R., 2000. The Impact Of Human Resource Management Practices On Operational Performance: Recognizing Country And Industry Differences, Journal of Operations Management, Vol. 21, no. 1. pp. 19-43

Clark, P., 2011. Recruitment And Selection Practices In A Selected Organization, Journal of Management Practice, Vol. 4, no. 1, pp. 166 — 177

Society For Human Resource Management, 2008. HR’s Evolving Role in Organizations and Its Impact on Business Strategy, Society For Human Resource Management, pp. 1- 60

Stevens, M., & Campion, M., 1994. The Knowledge, Skill, and Ability Requirements for Teamwork: Implications for Human Resource Management, Journal of Management, Vol. 20, no. 2, pp. 503 — 530

Sun, S., 2008. Organizational Culture and Its Themes, International Journal of Business and Management, Vol. 3, no. 12, pp. 137 – 143