The companies’ leaders can improve their business by investing in development new products or services, improvement product or service quality, and enhancement marketing and sales. Another possible investment is improving the way a company manages its people – tends to receive less attention. Human Resource Management is very important for business as it involves a variety of activities that deal with the ‘human side of organisation’ (Griffiths and Wall, 2005).
Armstrong claims (1999) that “HRM can be regarded as… a strategic and cohered approach to the management of an organization’s most values assets – the people working there who individually and collectively contribute to the achievements to this goals” (in Griffiths and Wall, 2005). The low workforce motivation and poor workforce productivity can create essential problems for a company, as the human resource is not only key asset, but also the major cost taking up over 75 per cent.
Thus as an asset it is very important to take possible return from these expenditure by finding the best ways to meet the needs of people in order to help them to develop themselves to the full. In these essay will be examined HRM policies, supported with theories of motivation, which are used to find possible weakness in HRM and improve workforce motivation and productivity. Productivity It is very important to look at different factors that impact productivity. For instance, the Ryanair air company has serious HRM problems.
Ryan air is Irish low-cost airlines. Staff complained of poor wages, bad working conditions and even having to pay for their water during flights (Amble, 2005). These problems may affect productivity and motivation seriously. There are same ways to improve productivity. Firstly, trough investing in people by training and investing in equipment that employees use, for instance through purchasing more high-tech equipment, such as advanced computers, robot technology systems etc. Training Training has an important dual function of productivity and motivation.
By improving employees’ ability to perform the task required by the company, training allows better use to be made of human resources, by giving employees a feeling mastery over their work and of recognition by management their job satisfaction is increased. When circumstances are unfavorable, these results may not be obtained, for example when the trainee sees no purpose in his training, when it is regarded as punishment or sign of displeasure or when the training seems irrelevant to the trainee’s needs.
Training should be well planed, thus is must not be routine and traditional, as routine and traditional training sometimes becomes out of date, irrelevant or inadequate. Motivation There is no difference is company big or small, having workface hardworking and responsible is crucial to business success. When employees lose their motivation their job performance suffers, hence they become less productive and less of an asset to the company. So the best way to increase the productivity is to improve employees’ motivation.
Motivation is the desire to achieve beyond expectations, being driven by internal rather then external factors, and to be involved in a continuous striving for improvement (Torrington, et al, p. 335). The poor motivation can be fatal for business, as with poor motivation productivity also suffers. Poor quality work, failure to meet deadlines, high absenteeism, high labour turnover, disciplinary problems and attitude problems can be seen as the symptoms of poor motivation.
The causes of poor motivation can be different, such as job insecurity, poor wage and working conditions, repetitive and monotonous work, poor communication, social croups and changes to work groups. Theories have value for all leaders as well as for human resources specialists for an obvious reason: “enhancing motivation can lead to improved performance and greater organization success (French, p 107)”. To improve motivational and productivity can be used McGregor’s (1960) model and his argument that main idea is if you treat people as responsible and self-motivated then they will act in a responsible and motivated manner.
McGregor believed that people want to learn and that work is their natural activity to the extent that they develop self-discipline and self-development (Accel-Team, 2008). They see their reward not so much in cash payments as in the freedom to do difficult and challenging work by themselves (ibid). The main job is to follow the human wish for self-development into the organisations need for maximum productive efficiency (ibid). The basic objectives of both are therefore met and with mind and honesty, the enormous potential can be tapped.