Why is Human resource a significant aspect of any business? In deed there is no other important asset as employees of a given company or business. Their overall performance and attitude towards what they do on a daily basis is directly proportional to expected results. In other words, employees determine the success or failure of a company. Many companies have hit the peak of production as a result of well managed human resources. Similarly, millions of businesses and companies have crumbled due to poor management of employees. As a result, the job of managing people has been rated as the most challenging and determining task in the business world. Mangers are supposed to do among other things, inspire, lead, encourage, train and motivate the entire workforce without favor or any form of unfairness. On the other hand, those in the management department are required to hire, fire, discipline and evaluate employees for the purpose of augmenting growth and profit making (Kroon, 1995). Although these two classes of roles seem to be in conflict, managers are expected to integrate the two aspects of their task in order to realize set goals and objectives. This paper explores how the management theory may help in managing human resources at Harouge Oil Company.
People management is also referred to as Human Resource management and it encompasses almost every activity that affects the running of a company or business. It mainly entails giving support and necessary direction to employees, management and recruitment of employees. It’s usually the mandate of the Human Resource mangers to ensure a stable workforce that is able to steer its agenda to pinnacle levels of production. It is however worth noting that the welfare of employers has to be highly considered even as profit maximization is targeted. Managerial tasks further include: organizational development, compensation, employee motivation, training, communication, hiring and administration (Kroon, 1995). There is no way a business can thrive without proper management of its human resources.
Notably, hiring of qualified and skilled is quite essential in setting the right pace for the company. Accordingly, managers have to aim at hiring the right people for the right job and making good use of them without necessarily exploiting them. Utilizing employees has been misinterpreted by several companies and organizations as stretching the power of its workforce beyond its limit. As a sensitive sector of any organization, hiring of employees should be best on merit to ensure that the needs of the organization are met (Bohlander & Snell, 2009). Focus has to be laid on the best way of utilizing employees with regard to future demands and needs of the organization which may rise with time. Nevertheless, for employees to be fully utilized there has to be practices and policies put in place to promote training and general development of every member of the entire workforce. Partnership among employees may also be considered in order to maximize their potential through consultations. Interactions among employees help them learn from their mistakes and turn their weaknesses into strength.
It has been noted that bringing out the best out of employees can be the hardest hurdle towards business prosperity. There are thousands of organizations which have failed because of having good workforce which could not be used well. Since every hired employee has specific and unique potential, it is the role of the management to avail necessary conditions and requirements for maximum production. A manager who is able to unlock the potential his or her employers has the secret of realizing business success. When the potential of an employee is not properly used, many of them tend to adopt behaviors which compromise the victory of the business. Underutilized employees portray traits which include among others procrastination, bullying and gossiping (Bohlander & Snell, 2009). This in turn haunts the entire business leading unrealized goals at the end of the year. It has to be noted that identifying what dissatisfies employees can be the hardest task for any human resource manager. Many people have found this to be impossible since it may be hidden within the true character of a person. Nevertheless, managers are encouraged to create an environment that will bring out the best of a person’s capability other than weaknesses.
As mentioned above human resource management is the key to business success. The purpose and success of any business always lies in the hands of the entire workforce. As a result double emphasis has to be laid upon support, training, organizing and motivation of employees at any given moment. Nevertheless, disciplinary matters also have to be treated with extra conscience to maintain good conduct and integrity (Kupfer, 1990). Many business experts and human resource mangers have always described people management by use of the management theory which is quite significant in the understanding the best approach in handling company employees.
What is management theory? Do managers have to understand it? Does it have any impact on the running of a business? These and many others are the questions which accompany any discussion revolving around human resource management. It has been described as the study getting the best out of ones employees. It involves all the practices that are aimed at maximizing productivity among employees. Finding qualified people for some tasks may be quite involving (Kupfer, 1990). It is therefore of need to make good use of the available workforce through learning of different characters and personalities among individuals. These principles apply to every company or organization in the world regardless of the nature of goods or services being produced.
Management theory is a set of various guidelines which define the manner in which human resources have to be managed in order to realize maximum productivity. For instance, the contingency theory defines the manner in which decisions are made by the management depending on prevailing situations. It calls for participation of every member of the company through consultations which has to involve the entire work force. Which company doesn’t need consultation? As a processing firm, Harouge oil needs to understand the entire process of making decisions. For instance, the shortage of drilling equipment can only be realized if employees are consulted. This is because employees get exposed to the problems affecting a company or business more than the management (Bohlander & Snell, 2009).
On the other hand, the systems theory emphasizes the need for proper functioning and coordination of all sectors of any organization. According to this theory, all the departments of a company are dependent. The understanding of this concept would go along way in helping the management team of Harouge oil in realizing a harmonized company. For example, drilling and transportation of oil are two different sectors but within the same system. Failure in transport would definitely imply inefficiency in drilling. The management therefore has to ensure that the workforce in the two different departments is well managed to allow efficiency of the entire company. This theory allows those in managerial positions to be able to interpret events and patterns occurring at work place (Harris & Hartman, 2001). This would help Harouge oil management to realize the interrelationship between various parts of the company and how their proper functioning would signify the success of the entire company. This would include the operations in various fields and drilling stations where petroleum is processed. This would help in the understanding of the connection among various departments like maintenance of drilling machines, supervision of the drilling process and transportation of oil among others.
Another aspect of the management theory is good communication between employers and employees. Many companies have collapsed around the world due to breakdown in communication. Communication is a tool which is necessary throughout the entire lifetime of an organization. This is because employees need to be corrected when something goes wrong and have to be commended when they excel. Although many managers concentrate on communication during problem solving, it has been found to be an all season tool. With its workforce of around 2,000 employees, Harouge oil managers will find it useful in solving disputes among workers. This would augment a cohesive working environment. Poor communication is a major cause of organizational disintegration throughout the business world (Harris & Hartman, 2001). How would managers know that oil drilling machines needs replacement or maintenance if there is no communication? How would employees know that they are producing excess petroleum of almost one thousand barrels per day if they are not informed? It would be hard for any successful activities to take place without proper communication.
Additionally, the understanding of the management theory would help Harouge oil mangers in motivating its employees. Human beings feel appreciated when their efforts are recognized. Many employees loose track simply because of lack of encouragement and a hand of appreciation. Motivation would make the management of Harouge oil workers quite easy and simplified since every employee would feel as part of the company because of their efforts and good performance. Motivation of employees comes in different ways including but not limited salary increment, promotions, rewards and good working conditions (Jackson, Schuler & Werner, 2008). Consequently, the entire workforce would have the passion and desire of not only working but performing better than they did before.
Apart from inspiring workers, the management theory would also train Harouge oil managers to deal with different issues existing work place. It emphasizes the fact that companies, organizations and even businesses usually have workers from different culture who have to work together for a common goal (Alvesson, 2002). This would help the managers at Harouge oil since the firm specializes in international activities. A well established management theory would create a fair working environment which identifies every employee as an equal asset of the company. The ability to integrate several cultures from different backgrounds would widen recruitment pool leading to more experts being available for hire.
The safety of workers at Harouge Oil Company is also very important having in mind that there are extreme risks associated with oil companies. The establishment of the management theory would promote healthy and safety working conditions. Although the company has a First Aid course for the entire Harouge oil workforce, the theory would encourage adoption of other healthy activities which promote safety of the working environment. Besides this, company managers would be able to use the theory in dealing with ethical issues which may arise in the company during its operations (Jackson, Schuler & Werner, 2008). Being familiar with the theory would be essential in instilling morality among employees. Business ethics are significant tools in management of human resources since they define what is wrong and what is right. With this understanding, the entire workforce of Harouge oil would be able to embrace good habits and behavior which would promote maximum productivity.
It is clear that management theory is quite fundamental in promoting business productivity. There is no single company in the world or business which has reached peak performance levels without embracing management theory. It encompasses all the principles of human resource management with an aim of making good use of the entire workforce. An established management theory would augment maximum production at Harouge oil Company. It would be a milestone in promoting the welfare of its employees and in empowering every member of the workforce. However, managers have to be at the fore front in establishing this theory since its mainstream emanates from the managerial department.