Research various Fortune 500 companies and identity their best HRM practices. Identify and discuss the pros and cons of each functional area and state whether or not this practice will be one of your recommendations.
Managing Human Resource (HR) is a major concern for companies irrespective of their size and area of operations. In any organization, it is performed through constructing a functional group known as Human Resource Department. The main function of this department is to manage human resource, as it is considered to be the major asset for the company. In this context, we will discuss how managing human resource has long term impact on fortune 500 companies success.
Fortune 500 companies and HR practices
Fortune 500 companies are listed and ranked by "Fortune" magazine according to their market share and market growth. Fortune 500 ranking includes all the companies whether public or private and from all industries viz. mining, production, retail, hotel, etc. Having salient HR practices is considered mandatory for these companies, as they employ a large number of people. A slight drift in HR practices can cause a huge loss for companies. These companies spend more resources on procuring new talent and retaining existing talent, as they consider human resource as a major factor in steering future growth.
There are various functional areas in HRM that forms basic structure of HRM, such as staffing, rewards, training, insurance and safety. In this context the following discussion will shed light on various HR functions that constitutes these HR practices.
Functional areas of Human Resource:
There are various functional groups in an organization and among all HR is given top priority, as it comprises of talent pool. Human resource management has its own functional areas in which it operates. The major functional areas are:
Staffing: It includes all the activities from recruitment to selection. Posting jobs on various portals in order to invite applications, screening of those applications, scrutinizing the appropriate applications, selection procedures, such as personal interviews or aptitude make the staffing possible (White, 2013).
Total Rewards: This is also known as compensation and benefit. It includes remuneration and various perks, such as based on performance in the form of performance bonus.
Employees' development through conducting various training programs.
Maintain healthy relationship among the employees. It also includes managing employees' morale through positive motivation, ...
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