A Human Resource Philosophy Propels the Organization

A Human Resource Philosophy Propels the Organization

As an organization develops, it is critical for that organization to implement a human resource philosophy as a human resource philosophy will ultimately have a dramatic affect on strategy for managing people and success of that organization. French and colleagues (2005) note that it is evident that most, if not, organizations either lack an explicit human resource philosophy or ignore the one they espouse. According to these researchers, the success of the organizations hinges on a thoughtful, explicit strategy for managing people.

Kohnen (2007) claims that the world's shipping giant "FedEx" strives on a brilliant human resource-oriented philosophy typified by three words which are "People, Service, and Profit." According to Kohnen, in its manager's guide, FedEx declares explicitly and vehemently that the organization shall take care of its people. These people in turn will deliver impeccable and endless service that is demanded by its customers. These customers will reward FedEx with profitability which is necessary to secure its future. The label "People-Service-Profit," forms the three words on which the foundation of FedEx's effective human resource philosophy for managing people is based on. FedEx's human resource philosophy might appear to be more than words, but FedEx ensures that managers are rated on leadership index by subordinate employees on an annual basis. Leaders with a subpar score lose their bonuses and have to retraining on gaining skills and knowledge for effective human relation procedure. This is an indication of how seriously FedEx implements and values its human resource philosophy. It commitment to employees and providing effective and efficient services to its customers has assured it success in the marketplace.

Effective organizations build and implement a human resource philosophy based on hiring the right people. A study conducted by William and Randall (2002) interviewed employees of several companies in leadership positions as an attempt to understand how "loyalty" among employees who are regarded as the right people boosted the profits of an organization in the marketplace. The study showed that loyal employees were capable of influencing customers to trust their respective companies, which resulted in increase of 5% in customer retention. The study also cites examples of successful companies such as Enterprise Rent-A-Car, Cisco, and Dell. These organizations realized success because they hire the right people. The study concluded that organizations that foster loyalty of its employees experience a competitive edge on the marketplace that is sustainable. These organizations ensure that a wholesome link is established with employees, customers and suppliers based on trust. It is evident from the study that organizations that build and implement a human resource philosophy that encourages loyalty among employees experience the most invaluable differentiator for success.

Pfeffer (1999) notes that an organization that treats employees with respect because it believes in their competencies has a better chance of experiencing profitability than an organization that neglects to recognize the humanity, dignity and potentials of humans at the workplace. According to Pfeffer, common sense is only organization's weapon for realizing the contributions of good people it hires. Empirical studies have demonstrated that the culture and capabilities of an organization propel events forward that promote the sustainability of its success as a business entity through utilization of common sense. Competitive advantage is the weapon that penetrate the marketplace in a very enduring manner to keep the profitability of the organization intact because employees are respected. The employees are at the heart of organization's profitability because of an enduring human resource philosophy.

Manjoo (2011) demonstrates that companies hire the right people based on a number of criteria such as "Intelligence or People Skills." According to Manjoo, Microsoft hires employees based on "intelligence." To the contrary, Enterprise Rent-A-Car hires its cadre of employees based on "people skills." Kuper (2004) claims that Microsoft is attracted to brilliant minds and "people skills" have least significant value to the organization. Despite the parallelism in their hiring practices, these organizations have adopted a human resource philosophy that engineers the profitability of business and ensures that the employees are respected and content to aid in promoting their durability and sustainability in the marketplace environments.

Human resource-oriented organization adopt a philosophy of "keeping employees" and propelled by providing employees attractive pay and benefits; and respecting their dignity and humanity. This strategy incorporates rewards, protecting jobs, and promoting from within the organization. Marques (2010) claims that effective human resource philosophy enables an organization to promote from within because workers have gained knowledge and skills essential to promote the mission of the organization. These employees strive on seeing that they are rewarded handsomely with attractive benefits and pay. These employees demonstrate talents and skills which are complimentary and facilitate effective and efficient performance and productivity in the organization. Tuggle (2010) support the concept of "keeping employee" as an effective human resources philosophy by claiming that when an organization attempts to build and maintain its "soul," it places emphasis on treating employees with respect and dignity. According to Tuggle, an organization touches the employees with its soul by treating them with respect and civility. These values transmit trust, genuineness, openness; and encourage employees to want to feel at home in the organization's environment. Tuggle coins the phrase "Soul-ful Organizations" to portray organizations as entities that foster values that create conducive workplace and produce a workforce that is content and loyal to the organizations. Tuggle believes that organizations with a "Soul" treat employees with dignity, which keeps the employees on the workplace to manifest productivity and profitability for the organizations. Tsui and Wu (2005) note that successful organization adopt a human resource philosophy with the practice of forming long-lasting relationship with employees and customers. Employees are kept on their jobs because they bring experience and loyalty to the organization. Spence and Kale (2008) claim that organizations adopt a human resource philosophy that promotes retention of employees as a strategy to promote productivity.