Management of Creativity
Introduction
Organizations operate effectively through a number of significant elements. In a business for instance, the organization would need the capital, strategies and market to function. However, one of the essentials of an effective organization is human resource. Through the talent, knowledge and skills of the employees, organizations are able to produce products and deliver services. In addition, employees are also the main sources for organizational changes, which in turn allow growth and development. As people are important organizational resources, it is imperative that the right approaches of human resource management should be implemented.
Accordingly, managing human resources is concerned with the earning and management of people. In addition, HRM is concerned with change of behaviour, as can be seen in the manifestation of innovative or improved skills, implementation of new knowledge and understanding, and employing new attitude (2003). Further, HRM emphasises both the intentional and accidental learning. Human Resource Management covers the organisation as a whole, and adheres to the needs of individual functions. Some authors that HRM includes different activities and processes implemented by the organisation with the intention of developing or enhancing the performance of both organisation and individual (1996). This definition stresses that a certain organisation can become a learning entity, and that the learning procedures of both the individual and organisation are capable of influencing organizational outcomes.
Primarily, the main objective of this case study is to conduct a critical analysis of the management style of a specific organisation and identify some management issues faced by the human resource management. It also aims on providing some alternative solutions for the identified issues as well as recommendations for the management of the company. In this regards, the company that would be given emphasis is the Wing Hang Bank in Hong Kong.
Human Resource Management Issues
Wing Hang Bank is the 5th largest bank in Hong Kong with an interesting history of how the bank started in 1937 with only 19 staffs to the nowadays 50 branches and representative offices throughout Hong Kong, Macau and Mainland China ( Bank, 2006) historical background is the affiliation with the Bank of New York, which has become the 10th largest bank in the United States. Yet, Wing Hang Bank in Hong Kong is only regarded as a medium sized bank offering competitive banking products and services as the others. Interesting enough, Wing Hang Bank has the ability to attract customer deposits along the years with a comparatively small branch network and minimal advertising if not nothing. Wing Hang Bank has rights to believe that its success is based on the rewarding experience offered to its customers.
The management of WEB gives emphasis to the notion that efficient Human Resource Management (HRM) is a strategic approach to managing employee relations which emphasizes that leveraging people’s capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices (Bratton & Gold 2003:3). Personnel policies, including welfare programs, sports, and recreational activities, are initiated by management unilaterally or in consultation with plant or works committees which are usually separate from the union (McGovern, 1998). However, because of different expansions made by the company, it resulted inevitable organizational change not just in terms of the organizational structure of the company but most specifically in the current issues on cultural integration among the employees and staff of the banks. There are various management issues facing the company and that include complaints about the employees working environment particularly the employees’ excessive hours of work, salary levels that are below the standards of the industry and their lack of motivation in performing their daily duties and responsibilities.
Leaders of the banking unions are urging the management of the Wing Hang Bank to take into account the working conditions of the members of the company by analysing the current business environment experienced by the staff. The members of the labour unions specifically want the management to address their need to create a balance between their working conditions as well as the demands of their household in order to minimize stress as well as absenteeism among the members of the company’s workforce. The staff and employees of the bank are likewise worried regarding rumours behind the expansion of the bank. Accordingly, the banks aim to reduce the number of employees by 15% once the expansion is in place so as to generate savings trough the reduction of expenditures on wages and salaries.
The inability of the human resource director to resolve the issues confronting the banking organization has resulted to his termination. The COE of WEB believes the current staff and employees of the company are not capable and qualified for the new organizational and business demands that the company faces as a result of their business expansion strategy that has been made. The company is at present undertaking a corporation-wide review in order to assess and evaluate the bank’s needs relative to the capabilities of the members of the workforce, thus measuring the competencies of the individual staff and employee. One of the objectives of the comprehensive company assessment initiative is to determine if all the employees can be absorbed by the new WEB. In which case, employees and staff who are characterized with similar knowledge, skills and functions have the possibility of being retained or replaced depending on their capabilities and competencies.
In this regard, there is a need for a new Human resource management approach and policies so as to solve the issues and problems encountered by the company.
Essentialities of Human Resource Policies
The role of the Human Resource Management policies and practices relative to the strategies, goals and financial stability rests on the core philosophy of human capital resource utilization highlighting the importance of the members of the workforce for the overall operation and function of the business company. The discipline and guiding principle of the Human Resource Management are grounded on the belief that successful business endeavours depend on the productivity of the human resource. Since the ability of the staff and employees to efficiently and effectively attend to their duties and responsibilities depend on the workability of the working environment they are situated in, which is the main responsibility of the Human Resource Management, proper Human Resource policies and practices directly influence the level of satisfaction among employees as well as the quantity and quality of their work output.
According to Beer and colleagues (1984) the human resource management covers the administration of people of a particular business organization that is mainly responsible in creating management decisions that affect the welfare of the employees of the company. As such, management actions and decisions that directly influence the nature of the social networks and relationship between and among the members of the company are within the bounds of the responsibilities of the Human Resource Management as a management department that coordinates the human resources of the organization to meet the set goals and objectives (Beer, et al., 1984). In effect, Human Resource Management policies and practices drive the entire business organization to success depending on the effectiveness of the mangers to motivate the employees and be productive members of the company.
The tasks of the people in the Human Resources Management are highly complex because it involves all issues that encompass the relationship between the employees and business organization as a single working unit. The core philosophy of Human Resource Management revolves around the notion that the most important resource of an organization is the workforce who makes possible the achievement of a sustained business success, growth and development. According to Lippie (2001) such belief, if common among business organizations, will lead to the strategic use of the human capital to maximize and fully utilize its potential, thus contributing to the overall success of the company. As the driving force behind the creation of Human Resource Management, organizations are at present taking strategic approaches to the management of their people in which human resource professionals deal with areas such as employee handling, recruitment and training, evaluation and assessment of performance goals and achievements, salary, wages and other legal benefits of the employees, professional development, and labour relations as well as safety and health of the human capital (Lippie, 2001).
Human Resource Alternative Solution
At present, the duties and responsibilities of the contemporary Human Resources Management is incomparable with the traditional human resource practices. According to (2005) traditional Human Resource Management puts the Human Resources managers as the sole members of the organization that are fully responsible in handling issues and problems that concerns the employees. In this respect, the function of people management is a general manager’s responsibility as the person who implements the encompassing managerial duties of the organization. Representatives of the Human Resource department only coordinate with each other and administer the policies and practices that the manager deems most appropriate (2005). Modern Human Resources Management today highlights the role and participation of line managers in the likes of the functions of the general manager. In this regard, the implementation of change within an organization has been successfully applied through the reemphasized roles of the line managers.
The complexity of people management has increased which is evident in the different management approaches that are available at present for the use of the Human Resources departments. Contemporary business organizations implement modern management approaches like Just-in-Time, Total Quality Management, Six Sigma, Kaizen, Business Process Reengineering and other measures and indictors of job performance in order to improve the human relations within corporations (Costa & McCrae, 1992; 1992). The implementation of these Human Resources practices intends to illustrate the new people management approach of involving the line mangers to decision making. In such case, the role of the line managers and the responsibilities of the Human Resources head are at present highly similar in nature both in terms of theory and practice (1993).
In the case of WEB, the application of Business Process Reengineering techniques and methods will add responsibility to Human Resources practitioners particularly to resolve the issues as well as to meet the objectives of the company to collapse and centralize decisions regarding employee relationships, hiring procedures, and the implementation of new organizational policies. Meanwhile, continuous management approaches in handling the concerns of the labour force will need the involvement of the Human Resource personnel to ensure that the employees are enthusiastic and dedicated about their jobs. New Human Resource practices should be administered within WEB for the development of values and morale of the employees as the main responsibility of line managers.
Effective Workplace Industrial Relations
In the case of WEB, the Human Resource Management Model of the company should be defined in terms of the goals of the company that contains the necessary elements of creating better organizational foundation. There is a considered chain reaction when change is introduced. The decisions of the executives are imitated by the entire organization particularly the employees in which positive inputs lead to the betterment of the company. Since the work force is the most important resource of the business organization, their grievances and concerns should be properly handled and attended to. Failure to do so will result to consequent downturn of the entire company. As such, the human relations of the company should meet the demands and needs of the labour unit because they have the capacity to paralyse the operations of the company. The company should be able to absorb all the previous employees of the company because if not, social issues will confront the organization.
In terms of employees that do not meet the standards of the company and the entire international banking industry, proper assessment of their skills and knowledge as well as their previous contributions to the company should be facilitated and reviewed. Training should be provided for such employees particularly those who are willing to learn and be trained not just for the employment but for individual professional growth. Such organization members, if properly educated will be the future assets of the company. Proper communication with union leaders should be considered and taken into account in which the company must employ certain measures in order to ensure its good relationship with the labour units. Moreover, there should be increased formality in terms of recruitment and selection procedures for more systematic and objective hiring as well as to avoid wasted labour costs and employee turnover. Strategic training and learning approaches meanwhile should be able to create staff and employees that are dependable and flexible. In this regard, contemporary Human Resources approaches should be integrated to optimize the employment outcomes of the company.
Aside from the above mentioned solutions, WEB should also considered Employee Reward Policy in order to motivate and encourage the workers and employees to render their performances to the very best they can and to make a difference individually or by group or teams. The policy should also be able to give recognition to those employees whose works is exemplary or that employee who has contributes to outstanding achievements and accomplishments of the mission and objectives of an organisation as a whole. The incentives may be monetary or non-monetary. Rewards and recognition go a long way to keeping employees motivated, satisfied, and committed. Management should recognize employees for both their progress toward and achievement of desired performance goals. It should show appreciation for small accomplishment as well as big ones. The recognition must be ongoing to reinforce employees’ need to feel that they’re doing a good job. Moreover, the best forms of recognition typically have little or no cost (Nelson, 1998).
Human beings have needs which can be classified as physiological, safety and security, social, esteem and status, and self-actualization. Hence, the HRM must establish an Employee Rewards Policy that would be able to satisfy the demands of the employees. If any of the needs is unmet, or unsatisfied a person, the individual can be motivated if provided with an opportunity to satisfy the unmet need or needs.
Wages, Benefits and Proper Work Compensation
The hallmark of successful management strategy particularly when it comes to handling people is to keep moving despite evident drawbacks in the current work environment. Excellent management practice at present should be characterized with positive attitude, optimism, and innovative ideas to sustain the drive towards development of the entire organization. In this light, industry leaders should have the capability to treat mistakes as learning experiences to further show strength of character as well as good moral qualities. In the case of Human Resources Management, practitioners should be able to provide motivation as well as control over the members and staff of the organization in order to fulfil the demands of the work environment. Such traits will enable Human Resource managers to function efficiently as decision-makers of the company.
According to Williams (1995) members of the executive committee of business organizations should be capable of handling initiated changes within the company in which the Human Resources Management function should be able to reflect the new organizational structure and functions. Problems on employment status and conditions brought about by globalization trends dealing in particular the geographically diverse workforce addressed the need to create an understanding regarding various cultures, customs and laws particularly when it comes to issue on the salary, wages, compensation and benefits of the employees. In the case of impending problems and issues of WEB regarding the wages and benefits of its human resources, the Human Resources manager most specifically the line managers, should be able to explain to the employees the real situation and condition of the company in the hope of gaining their respect and sympathy towards the management. In addition, the company should also implement compensation programme to meet the needs of their employees. Employee Compensation Policy must adhere to the existing law of HK government. Primarily, the main purpose of the Employee Compensation Policy is to provide the employees their deserve payment to the quality service that they have rendered for the company. The Employee Compensation Policy is considered today is “no-fault” nature of law (Gallia, 1998).
Since the Employee Compensation nowadays is based in the concept of insurance, no-fault means that it does not matter who is a fault, and recognizes that no one is at fault. Herein, the only thing that matter is that provision in the policy will be made for the employee’s medical care and loss of earning power. In return for predetermined and certain benefits, employee gives up the right to sue their employers (Ulrich, 1998). In return for certain limitations on the amount of the benefits, the employer provide for all injured employees, even when the injuries could not necessarily have been prevented. In this manner, it can be noticed that both the employees and the employers “gave-up” certain rights when the laws were enacted. With this regard, the International HRM practice that WEB should imposed must be able to create an Employee Compensation Policy that would certainly not neglect the right of each of any members of the organisation like the employee and the employers. Moreover, the HRM should be ready for changes and policy amendments to adapt to a constantly changing environment.
Employee Compensation Policy must also include other benefits like medical expenses and “wage-loss of injured employees. Herein, the international HRM practice that should be implemented by Wing Hang Bank must include medical benefits in Employee Compensation Policy. This may cover doctor, hospitalization, drugs and medicines, medical testing and additional therapy if necessary. In addition, the medical benefits should also include rehabilitation which may or may not include vocational rehabilitation. Vocational rehabilitation comprises a service that assists the employees in returning to gainful employment (Henderson, 1996). On the other hand, the Wage Loss benefits (also termed as indemnity benefits) are generally of two types; the temporary and the permanent. Both temporary and permanent categorizes: partial and total. Hence, the HRM must be able to cover these types of wage-loss benefits within the Employee Compensation Policy (See Appendix 1).
In addition, HRM should be able to include “death benefits” in the content of Employee Compensation Policy which is paid to the employees’ immediate family when death results from on-the-job accidents. Benefits of the employee may not only comprise in terms of benefits and medical terms. In this manner, the HRM practice of WEB must also includes leaves, bonuses, overtime, retirement plans, salary and wages to the Employee Compensation Policy and that the HRM must ensure that the Policy is fully understood by the employees to avoid problems and conflicts.
The Human Resources Manager should be able to communicate to the members of the company in order to efficiently deliver explanations regarding the current payroll system of the organisation. They should be able to present to the employees how their salaries are computed by taking into account the factors that determine their wage rates. These factors include the internal and external market environment considerations of the company as supported by the laws and policies that protect the rights of the employees. Be specific and detailed in presenting figures and invite the presence of a lawyer to represent the interest of the unions. Aside from clearing the conflicts regarding the wages and salaries of the staff and employees of the company, incentives in terms of financial support like bonuses as well as intrapersonal rewards such as positive critical feedbacks and recognition should be endorsed by the company through the line managers in order to increase the competence and self-esteem of the employees. Such human relation practices will generate benefits for the company in the long run since it will result to better work attitude that will boost the productive capacity of the members of the organization.
The Ideal Workplace Environment
In the case of WEB, expectations regarding workloads and task requirements exceed among the employees as multi-taking is now the definition of current work environments particularly those operating at the international level. According to Champion-Hughes (2001) the importance of good work life environment in terms of quality should be made evident through excellent supervisory skills from the management, ideal workplace conditions for the employees, and highly satisfying careers that meet the professional fulfilment of the workforce. If WEB will be able to provide rewarding working conditions for the benefit of the employees of the company and the entire business organization, opportunities will be realized that will contribute to the success of the firm. Employees will become motivated and productive which will result to the company’s attainment of its performance goals and corporate objectives (Champion-Hughes, 2001).
The present function of the Human Resources Management highlights the emphasis on quality people handling approaches characterized with control in which competence and flexibility among the skills and knowledge of the work force has taken over the traditional quantity and passive involvement of the employees. Modern administrative approaches of managing the human capital of business organizations centre on the active participation of the employees through wider dissemination of tasks and responsibilities. Such approaches initiate the sense of accountability across the staff and members of the company for them to feel important in the daily operations of the organization. Competition is likewise enhanced through these practices which minimize the possibility of the feel of burn out among the employees (Bach & Sisson, 2000). These workplace conditions should be characterized within the WEB work environment.
Despite the drive of WEB towards global competitiveness, quality work outputs, innovation, and cost reduction measures, the workplace environment of the company should foster good working conditions that place importance on its human resources and capital. The cross-cultural background and differing cultural orientation among the members of the organization should be addressed by the company through equal opportunities. This will facilitate sound working relationships among the employees. Moreover, the hierarchy within the company should be overly emphasized so that the staff may work comfortably within the presence of the supervisors. Subordinates should not feel of less importance in order to foster equality between and among the members of the organization.
Conclusion
Every employee in a business organization attends to duties and responsibilities that will hopefully bring the company to success and corporate competitiveness. From the presented discussions of this working paper, it can be assumed that the discipline of Human Resource Management will increase in complexity as future demands and needs in workplace likewise increase. In this light, the duties of top management executives who are directly in control of the working conditions of the employees of the organization can expect greater work responsibilities in the future. The trends toward globalization strategies among business companies will bring changes in the corporate environments which will directly impact the human resources of international companies and firms. Adapting to such changes will be foremost concern of the people in the Human Resources profession.
All these have been evident in the presented case of WEB as a result of the expansion strategy of the company. The current business environment of the company is far from being ideal. But with the suggestions and recommendations forwarded by this paper, the management of the company will be hopefully given sound solutions to the problems and issues that confront the business organization. It is highly recommended that the management will exhibit clear leadership, integration capabilities, good communication and relationship with the employees, flexibility in handling conflicts as well as intensive commitments to the rights and welfare of the members of the workforce.
Appendix
Appendix 1
The Legal Nature of Disability
Partial
Total
Temporary
TAD
TTS
Permanent
TAD
TTS
Permanent total disability exists when the employee has been rendered completely and permanently incapable of engaging in any type of substantial and gainful employment and/or has essentially lost all functional capability.
Temporary total disability exists when the employee, on account of the injury, has been rendered completely, but temporarily, incapable of engaging in any type of substantial and gainful employment.
Permanent partial disability exists when the employee is disabled in a manner which involves part of the body or partially interferes with an individual’s ability to
engage in gainful employment permanently.
Temporary partial disability exists when the employee is disabled in a manner which involves part of the body or partially interferes with an individual’s ability to
engage in gainful employment, but only temporarily.
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