Introduction
Human Resources Management is a rather important function of every company. One can even say that this very function is basic and all other are built on its basis, as far as the work of any company depends greatly upon its workers. That is why every ambitious organization has to follow the needs of its staff because the efficiency of the work of this organization depends much upon the satisfaction of the staff with the conditions of work and payment for this work.
Drawing from this, human resource management is the basis of every company, and only around this basis, all other activities of the company must be built (Greenlaw, p. 27). Moreover, the companies that have the highest level of the development of the Human Resources Management Sphere are proved to be the most successful on the market and their production is proved to be the most competitive (Greenlaw, p. 27).
Problem
In a contrast, some organizations neglect the important role of the Human Resources Management Department and say that the work of this department is reduced to “tea and sympathy” (Brown, p. 1). The wrongfulness of this argument can not be doubted, as far as the success of any organization depends on the people that work for it.
The current essay is dedicated to the discussion of the letter to the editor of the Financial Times sent by Duncan Brown. Our aim in this paper is to discuss the evidence of the importance of Human Resource Management in the organization that is given in the letter, as well as to explain, using the economic model of the Strategic Human Resources Management, how it can contribute to the success of every company (Ozaki, p. 37).
Brown’s Arguments
Staff Shortages
To start with, let us consider the first argument given by Duncan Brown in his letter to the editor of the British newspaper Financial Times. This argument touches upon the topic of instability in companies in case if not enough attention is being paid to the work of the Human Resources Management Department (Brown, p. 1).
Brown, referring to Stern and Drucker, expresses a supposition that such a situation will result in staff shortages that will occur because the staff will not be satisfied with the recruitment conditions and payment terms in the firm they work or plan to work for for for (Brown, p. 1).
This very argument seems to be quite reasonable as far as the management should be well aware of the opinion of the staff of them and of the company they work for. In case, if the opinion is not the best, there will be a need to improve it using certain positive changes in the working conditions, like for example the access to free snacks, cutting of the working hours or increasing the salaries of the workers.
Special attention must also be paid to the working conditions of women that are engaged in the work developed for men. The care about pregnant women workers and financial aid to them is another important assignment for every company, and only the properly organized Human Resources Management Department can cope with this task.
But it is impossible to do when the Human Resources Department is not working and there is no connection between the levels in the hierarchy of a certain company (Capelli, p. 205). In every ambitious organization, where the contact between the high ranking officials and ordinary workers is a usual thing, the productivity of the work is at a much higher level than in the companies where there is a strict distinction between the levels of their hierarchy (Shortt, p. 29).
Statistics
Duncan Brown exemplifies his argument with specific references to the statistic data, according to which the rate of staff shortages in the United Kingdom of Great Britain and Northern Ireland grew 15% between 2001 and 2004 and was connected with the deficiency of skilled workers.
Furthermore, this situation was the cause of the increase in the rates of unemployment in the United Kingdom and affected not only the activities of certain business companies but the economy of the whole country which can not be left without special attention. Besides, Brown says that the staff shortages may affect such important branches of industry like oil and gas production which will later influence negatively the state of things with fuel in the whole world (Brown, p. 1).
One can not ignore this very argument with all its proofs as far as the scientific data can be trusted. The situation when the improper attitude of several people to the organization of their companies leads to the issues of the national, and in the future of the global, character, is a very strange phenomenon in the country that is widely acknowledged to be highly developed in all respect.
People, both concerned with business and ordinary workers who are deprived of working places as the result of the situation, should look for ways to solve the issues and one of the possible solutions is offered by Duncan Brown in his letter to the editor of the Financial Times (Brown, p. 1).
Possible Solution
One of the proposed ways to change the situation is, according to Duncan Brown, developed by Dave Ulrich and is called “The Pathway to Salvation”. This is a special model of self-training and Human Resources Management which, if it will be supported by the employers, allows the employees to feel influential and satisfied by the job they do in their working places (Sikula, p. 419). According to the survey carried out by the Chartered Institute of Personnel and Development, more than 1,000 members of this establishment were satisfied with the model and with the results it brought.
Moreover, the researchers were strongly convinced that the same results could be received if the same research were carried out in any other field of work and based on any other company that implements the model developed by Dave Ulrich. Also, the researchers found out, as Duncan Brown argues, that the success of the model is not dependant upon the specifics of the work, but is dependant only upon the efficiency of the operation of the Human Resources Management Department in this or that company.
As for this model, one can not assess it only based on what another person said without implementing it him/herself, but it is undoubtedly effective at least if it brings positive changes in the work of some people, that is why I consider this argument to be very convincing (Brown, p. 1).
Role of HRM in Company Development
Another proof of the HRM importance for every company is given by Brown in his letter based on the survey conducted by the Said Business School for CIPD (Chartered Institute of Personnel and Development). The survey resulted in the fact that managers and chief executives of the companies studied valued the significance of their Human Resource Departments in the success of their organizations more than the significance of any other department and emphasized that Human Resources Management was of crucial importance for their firms.
This argument, as well as all other ideas expressed by Duncan Brown in the letter considered here, is also credible to a great extent as far as it operates with the official data and with the evidence provided by the managers and chief executives themselves (Al-Rajhi, p. 15).
However, that this argument can be put in doubt as far as the kinds of companies’ work can be different and consequently, the role of Human Resources Management may vary in them, but even if so I think that one can not deny the importance of Human Resources Management without an attempt to see how it will help his or her organization. The usual trait of character of many people is to judge a phenomenon when they have never experienced it and this very trait is not acceptable when people take up business activities (Greenlaw, p. 27).
HRM and British Economy
The most persuasive argument is given in the pre-last paragraph of the letter by Duncan Brown. It touches upon the importance of the HRM sphere for the whole education and service-based economy of the United Kingdom (Brown, p. 1). Brown stresses the point that the area that demands attention but is deprived of it is the place where HRM and performance of companies.
Brown operates with specific data again and demonstrates the direct connection between the HRP and the growth of profitability or productivity of a company. This is a very strong argument because, if the importance of Human Resources Management for a certain company can be doubted, its significance for the whole economy of the country, which is moreover factually proven, is the matter that leaves no space for the debate.
Furthermore, Brown proves that, according to the McKinsey/LSE international comparative research, the companies of the United Kingdom have the poorest level of management quality in the whole Europe, and to a big extent this became a fact due to the ignoring attitude of many chief executives towards this issue (Brown, p. 1).
The British companies, thus, can not stand the competition with the companies from the United States of America, European countries, and China, and are left behind the most important events that take place in the international market (Capelli, p. 205). This point can not be left without attention, and in this case, special attention to it should be paid by the state authorities as far as the issue of Human Resources Management acquires national importance.
HRM Economic Model
Essence
After all the arguments from the letter by Duncan Brown to the editor of the Financial Times are considered, let us now consider how the successful Human Resources Management can provide for the development of the company and add value to it (Al-Rajhi, p. 15). To make the analysis as specific as possible, let us make use of an economic model of Strategic Human Resource Management which will allow us to examine all the strong and all the weak points of this phenomenon.
To begin with, let us say that every ambitious company must have several models of Human Resources Management that will allow it to develop all the spheres of its activities. If we take, for example, a company that deals in the production of gas and oil, the necessity of the Human Resources Management will be evident and, if properly conducted, the Human Resources Management will bring wealth and success to such a company (Howes, p. 53).
For example, if an oil or gas producing company experiences difficulties in the competitiveness of its production and shortages of staff, the Human Resources Management Plan will be of great help to it. If the Economic model of the Strategic Human Resources Management will be used, the firm can attract new employees by offering them acceptable conditions of work and establishing its trading policies in respect of its financial interests (Niehaus, p. 53).
This will be achieved due to the essence of the economic model which lies in the ability of the management of the company to utilize and develop the sources that are accessible for this very company only. Usage of these sources allows the company to move forward in its development as far as other companies do not have access to them and can fail to be ready for the new standards of work that this very company may offer.
Special Sources of HRM
These sources may include, besides all others, the useful economic and partnership ties and connections of this organization with other companies, both on the domestic market and abroad, as well as the access to the highly-qualified staff and innovative decisions that are developed by the workers of this company (Capelli, p. 205).
Using the economic model of the Strategic Human Resources Management, a company can quickly overcome the possible stagnations or crises in its development and, implementing its specific sources, reach the higher level of its development when its goods will be competitive on the market and the efficiency of the production process will permanently grow (Teo, p. 1).
Conclusions
All the above-considered arguments by Duncan Brown and the examination of the Economic Model of Human Resources Management allow us to make a logical conclusion to this paper. It would not be out of place to say that the issue of Human Resources Management is rather significant for every ambitious organization in the world. If it is properly carried out, it can allow the organization to become one of the leaders in the international and domestic markets.
In this essay, we managed to fulfill all the assignments that were set as the purposes of the paper in the thesis statement. First of all, we managed to see where the vital importance of Human Resources Management lies and how it can be beneficial for every organization if enough attention is paid to its development.
We also considered the arguments given by Duncan Brown in his letter to the editor of the Financial Times to support his point of view in respect of the importance of Human Resources Management and attempted to see how the usage of the economic model of the Strategic Human Resources Management can be beneficial for an organization.
The results of the work carried out are the following: according to the statistic data from the surveys and researches conducted by numerous British agencies and institutes, the importance of Human Resources Management is accepted worldwide and is the decisive factor for the success of a company.
British companies that pay little attention to this fact are considered nowadays to be the worst managed companies in Europe that harm their activities as well as to the international image of the United Kingdom on the whole.
There are certain programs and models of the operation of the Human Resources Management, like for example the “Pathway to Salvation” developed by Dave Ulrich, that can change the situation in the British companies, and the only obstacle on their way is the lack of attention to the problem by the managerial staff of the companies (Brown, p. 1).
References
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