Why Organization need to use best Human Resource Practices within the Manufacturing Companies?

 

Human resource management (HRM) can be defined as “planning, implementing, and evaluating programs for the people in an organization, in a fashion consistent with the organization's strategies and values.” (Chai, 2019)

When we discuss about the importance of developing best HR practices in manufacturing sector, is something different from other sectors according to the Sri Lankan context.

HRM has recently been recognized as an important source of sustained competitive advantage for a firm, a source of advantage through the people, unlike other resources such as technology etc. Developing talented team is a precious asset to the company’s balance sheet. And also, human equation can be done through the best HRM practices among the employees in the company. In today’s world HR accounting is more important in the firms which can be denoted how the employees in the company are performed well to earn values or profit according to the investments that the company put them to training and development and other practices.

We can mention few best practices in HRM in the manufacturing sector as below and discuss few points more.

• Providing security to employees
• Hiring the right people
• Self-managed and effective teams
• Fair and performance-based compensation
• Training in relevant skills
• Grievances handling
• Making information easily accessible to those who need it
• Best employee relationships among the boss and the below staff (low power distance)
• Good relationships among Trade Unions.

The first Human Resource best practice is employment security. Life is unpredictable and work is a stable factor that is very important to most people. Having an employer who enables the employee to provide for themselves and their family is, in essence, the number one reason why people come to work. Employment security also benefits organizations because it helps them retain their people. When employees are laid off, for example, it’s usually the organization that pays the price. They are the ones who have invested in the selection, training, and development of these employees. This is a costly process. If the organization doesn’t work on retaining its people, they are more likely to leave and work for the competition. So, in the manufacturing sector employee security should be increased to achieve organization’s goals.

The second HR best practice is selective hiring. This enables an organization to bring in employees who add value specially in manufacturing sector. We can’t hire disqualified people. We want people who are fit for the job. Companies do their utmost best to hire exceptional people because they add the most value to the business.

We all know that teamwork is crucial in achieving goals in manufacturing sector. High-performance teams are crucial for any company when it comes to achieving success. Teams provide value because they consist of people who are, and think differently but are working towards a common goal.

When discuss about the fair and performance-based compensation, you hire the right people, you want to compensate them above average. These are the people that will add the most value to your company so you want to retain them and pay them fairly. Paying people above the norm also has some potential disadvantages. For instance, it discourages bad employees to leave. However, if you’re consistently hiring world-class performers, an above-average compensation is a must in the sector like manufacturing.

Likewise, we can highlight the advantages of practicing best HR strategies in the companies like manufacture sector.

List of References

Chai, W. (2019). What is human resource management (HRM)? - Definition from WhatIs.com. [online] Search HR Software. Available at: https://searchhrsoftware.techtarget.com/definition/human-resource-management-HRM [Accessed 2021].