The employees certainly want good working conditions, equitable compensation, and job security. The managers wish to meet the objectives set by the organization. Consumer's interests want economically priced quality goods and/or services. Stockholders are looking for return on their investments. Unions and regulatory agencies strive to protect the interests of the workers and neighbors are concerned with pollution/toxic issues and traffic control.
It is easy to see how the interests of these groups may come into conflict. For example, stockholders may advocate reduction in labor costs through reduction in the total workforce and/or wages and benefits. This will conflict with the interests of the workers. The managers' desire to meet organizational objects may conflict with the workers' desire for higher wages and better benefits. It is the HRM function to balance these needs in the rapidly changing world of organizations.
Although the ultimate responsibility for HR management belongs to the operating managers, the human resource professional is in the unique role to advise and counsel in order to ensure that decisions are tailored to the circumstances.
Friday, May 6, 2011
Equity and Efficiency 2
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