The Importance of the Human Resource Function

The Importance of the Human Resource Function
Human resource is the backbone of any business. It deals with the most important resource in the business ? people. For any business to achieve its objectives they must plan their resources and one of their key resources is people. They need to get the right people and develop them well in order to meet the organisation?s aims successfully. As an organisation grows and expands, the human resource department will know that the organisation needs to recruit more staff and they plan carefully. Recruiting staff in an organisation is very expensive and costly, so the human resource function helps the organisation to get recruitment right. The main elements of Human resource are:
Recruitment & Selection
Training & Development
Performance Measurement.
planning Planning is a process of determining the goals and objectives of a business for a future period of time, developing the strategies guiding the firm?s operations and utilizing resources towards achieving the set goals and objectives. A human resource manager needs to plan ahead and know what is going on in and outside the company (labour market). He needs to be aware of the past, present and future trends of employment in a particular area of specialisation. He needs to know if there are available skills needed or if there are few people with the type of skill needed by the company. He also needs to be aware for competition for employees? i.e. if the company?s employees are increasing the demand for labour or whether labour is available due to redundancies. The HR planning is all about getting the right people and developing them to meet the company?s objectives. recruitment & selection The HR manager needs to know when, why and how to recruit staff. Businesses recruit staff so as to expand the business objectives and change job roles within the business due to new skills and new technology. New staffs are also recruited because the company needs to fill vacancies due to dismissal, death or resignation of a member of staff, or to fill vacancies due to internal promotion of a member of staff. A business has to get recruitment right because it is very expensive. The HR manager will have to select the right people into jobs because there is the probability of rejecting the best ones and getting the wrong ones. training & development -?????????- The HR manager needs to be aware of the importance of training and developing their employees as it adds to the competitive success of the business. Training could be described as a learning experience or activity aimed at making a positive change on the performance of employees which will in turn lead to the success of the company. Training could be in various forms such as education, induction, apprenticeship or management training. Training enables an employee to contribute in meeting the aims and objectives of a business while development on the other hand enables an employee to develop himself / herself as a person. This aspect of the human resource responsibility helps employees to develop themselves and contribute in meeting the organisation?s goals and objectives. To achieve its objectives, an organisation has to train and develop its people so they could support the organisation by working towards meeting the company?s objectives. performance management In order to be competitive, a business needs to monitor the performance of its employees effectively. Some of the methods businesses use to monitor the performance of their employees include: Ø Performance Reviews: a business will have to set out a mission statement identifying its aims and objectives and also create value statement on how these aims will be accomplished. The success of the company as well as the performance of employees can be monitored and evaluated for improvement using the set objectives of the company. A feedback known as performance appraisal is then given to evaluate the performance of the company and give room for performance adjustments. Ø Self Evaluation: employees are encouraged to make goals and evaluate their own performance in meeting these goals. This enables employees to take responsibility and monitor their own performance. It helps employees to develop inter ? personal relations and let them know what exactly their job is all about. Ø Peer Evaluation: checks the result of a team work and helps the team to work together effectively and efficiently. This helps employees to value each other?s contributions on matters affecting the success of the company. Ø Target Setting for Individual / Groups: this is a process where targets are set in alignment with the department goals, which are set to meet the company?s goals. Ø Measuring Individual / Group Output: most companies use how competent an employee or group is to measure their performance. An employee could either be rewarded in form of bonuses or increments in salaries based on his performance. task two Importance of Understanding Trends in the Labour Market The Labour Market A human resource manager needs to be aware and understand the labour market as well as its effect on the company. The labour market is a combination of individuals with the right qualification or skill (supply) and jobs created by employers (demand). The human resource manager needs to know the number of supply and demand trends for the past, present and the future because it guides the human resource manager to understand the conditions of the market and predict what he might expect. For instance, if the government decides to increase the salary for teachers, more people will be willing to teach; thereby there will be more supply of teachers. On the other hand, there could be more demand for teachers by the government than the actual supply of teachers and those willing to come into teaching and that is the more reason why the Government would increase the salary for teachers. Supply and demand makes up the backbone of any market. The human resource manager therefore needs to allocate resources in the most efficient way possible. To do this, the human resource manager needs to match demand and supply, then the economy will be in equilibrium and everyone (the firm, staff and prospective employees) will be satisfied. At the given price, teachers will be more willing to work and the government will be willing to employ them. A point where demand and supply meet [image] There are more people willing to teach because the government had increased the salaries for teachers. [image] From the nomis report, Kingston upon Thames has a population of about 160, 000, about 100,000 people are of working age. 39.8% of these people are degree owners (nvq 4 and above). This is a very good opportunity for hsbc bank to open a new branch in Kingston because they will require people with degrees to hold managerial positions in the bank. Also, more individuals within age 25 ? 34 are employed in professional and managerial jobs, which are required by hsbc bank. Advise for hsbc bank Kingston is a very suitable location for hsbc bank to staff their new branch. Since over 39% of those who live in Kingston are degree holders, it will be advisable for hsbc bank to have a branch in Kingston so that they could employ these people with degrees so as for them to hold managerial positions. Kingston is also a very large town with a population of about 150 000 people. If there is a banking service from hsbc bank located in Kingston, majority of these population will come to the bank for all their banking services which will bring about a large demand for banking services by people. Kingston has a very large shopping centre (Bentalls) where thousands of people come in everyday to shop. Majority of these people will require a banking service before or after shopping, which will increase the demand for banking services. Students from Kingston university and Kingston College will also need a banking service around the area to meet up with their financial demands as a student such as loans, student accounts etc. How To Monitor Sickness and Wastage Rates: Internal staffing Internal Staffing Wastage Rates: The rate at which staff are leaving a company can be calculated as a percentage of those who were there in the previous year. The formula to calculate this is: 100 (No of staff leaving in time period [image] average number of staff employed in time period) * This formula will help hsbc bank to know what the wastage rate is in a given time period as well as to predict likely turnover in future. Monitoring the wastage rate will also help hsbc bank to see if there is the need to find out the reasons for the high turnover and to know if they have to recruit new staff. Monitoring wastage rates will also help hsbc bank to make comparisons with other hsbc bank branches so as to know if that branch is functioning well or not. Monitoring Wastage Rates For hsbc bank to monitor its wastage rate, the human resource manager needs to always predict future turnover by using the past trends, so that he / she could have an idea of what to expect. The human resource manager also needs to find out the main reasons why employees are leaving if it is something to worry about or not. To do this, the human resource manager has to do what is known as an exit interview where the staff leaving would be asked to attend an interview and give the reason why he / she is leaving. This will help the manager to know the reasons why staff are leaving. At a certain time, the human resource manager will have to recruit new staff to replace those that are leaving. This is important to the organisation so that they do not lose the most experiences people. Sickness Rates: Sickness rate is measured as a percentage of total time. This will enable the human resource manager of hsbc bank to keep an eye on the problems been faced by the employees or the bank as a whole. If more people are calling in sick every time, it could be a problem of motivation or that staff are not happy in their jobs. Comparisons can then be made with other employees and other hsbc bank branches in UK. If there are a high number of absentees, it means there is a problem somewhere, so the company needs to find out why staff are leaving, and recruit new staff or part timers. task three The recruitment process is a very costly one and it is very time consuming therefore, it is important to get it right. It involves tasks such as: Job Description: this involves what the jobs that are to be recruited for will entail. Person Specification: this involves identifying those people with the right qualities to fit the job role. Advertising: this involves the choice of media and publication that will be adopted by the organisation so that job vacancies could reach the target audience. Short listing: this involves identifying the strength and weaknesses of job applications, curriculum vitae and letters of application. Also, check which applications best meet the required vacancy, interview candidates and select the best candidate for the job post. An organisation needs to get recruitment right so as not to eliminate the best candidates and employ the unsuitable candidate, because if they do, they will have a less motivated employee in their workforce who might have to leave the organisation, leaving the organisation with no choice but to spend money on the recruitment process again. Job Advert == hsbc logo The world?s local bank HR Manager ? Real Estate / Property Management Job Title: HR Manager Job Type: Human Resources Company: hsbc Bank Location: United Kingdom ? Kingston Base Pay: £55,000 ? £70,000 / yr Employee Type: Full Time Required Education: a degree or have at least 5 years in HR gained only within a similar environment. contact information: hsbc Bank 44 Kingswood Road Gillingham. ME7 1DZ OR Contact: Linda Welfson Phone: 0208 549 3704 Fax: 0208 549 3701 Job Description: HR Manager? beautiful office, excellent benefit package, attractive salary, training and professional development. The individual in this position is responsible for the planning and execution of the support staffing functions for all departments. Person Specification: Should possess a minimum of 3 ? 5 years of broad staffing experience especially in areas such as recruitment and selection, hsbc is an Employer Committed To Equal Opportunity Job Description: HR Manager? beautiful office, excellent benefit package, attractive salary, training and professional development. The individual in this position is responsible for the planning and execution of the support staffing functions for all departments. This position requires focus on new and innovative ways to identify, recruit, manage workforce planning and introducing new selection techniques to attract exceptional talent. The manager will develop and implement processes for identifying, attracting and hiring diverse talented, high performance support staff that will work within a team with the company?s directors and leaders, maintain relationship with key sources for recruiting the best. role ? Ø Provides guidance to all members of the recruiting team. Ø Administrate a long-term recruitment program. Ø Day to day oversight of personnel, policy and compliance. Ø Provides professional HR support and leadership to all departments. Person Specification:
The manager will be part of the senior management team.
The successful candidate should possess a minimum of 3 ? 5
years of broad staffing experience especially areas such as recruitment and selection, personnel record keeping, salary bench marking and administration, etc
The candidate should also possess a certificate in personnel
The candidate should bring knowledge of recruiting best
practices across various industries.
The candidate should also possess outstanding HR
abilities combined with a proven capacity to plan and execute so as to achieve the required staffing.
There are several additional aspects to this job requirement
and will be explained to each and every candidate. To apply for this job, please contact Linda Welfson and request for an application form. Application Deadline:22 April 2005 I looked at the Chartered Institute of Personnel and Development(cipd) website ( and found out that there are different types of qualifications available to human resource manager. The successful candidate is expected to have this qualification and be able to lead in the development and promotion of good practice in the field of the management and development of people. hsbc is an employer committed to equal opportunity and always display this on all their job advertisements. This is because they want the public to know that the do not discriminate in any form as it is illegal to discriminate at all stages of the selection process. The job advertisement will be aimed at both internal and external labour. It will be placed in the staff bulletin for each week for four weeks so as to give people time to be aware of the vacancy. The job advert will also be placed in newspapers like The Guardian, The Financial Times and The Times 100 because they are mainly business and financial newspapers, which most people in this sector read a lot. task four Ø Identification of the features of key recruitment documents and ability to describe the factors to be considered in planning to fill a vacancy and carrying out interviews: How The Interview Will Be Run The interview will be run as a panel consisting of the following members of the company: a. An existing cashier: an existing cashier will be present at the interview because he / she already works as a cashier in the bank. The existing cashier knows all about the job role and what personal qualities the interviewee should possess, especially having gone through the same process. This will give the interviewee a chance to get information about the job. b. The customer service officer: the customer service officer should be present at the interview because the successful candidate will be required to work under the supervision of the customer service officer. The new cashier and all other cashiers will be responsible to the customer service officer. (Source: organisation chart) c. The regional human resource manager: the human resource manager should be present at the interview because he has specific HR skills and knows the legislation in practice by the company. He is responsible for the recruitment and selection of successful candidates who will work with the company to achieve the company?s aim and objectives. The interviewee and all members of the panel will have to sit for the interview in a meeting room. The interviewers should make sure that the interviewee is comfortable and relaxed all through the interview process. When people are relaxed, they are at their best and can make better judgement of skills and temperament. The customer service officer will welcome the interviewee and introduce other members of the panel. The interview will be chaired by the human resource manager, who will ask the interviewee a few questions and tell them what to do after the interview e.g. inform each candidate when and how the panel will get in touch with them if successful or not. The interview will be held in one day. Assuming ten candidates were short-listed for the interview and hsbc bank will be recruiting only four counter staff. The interview will last for about 25 minutes for each candidate and an hour break for the interviewers making overall hours of 5hours ten minutes. The interviewees will not be allowed to meet each other and because of this, each candidate will be interviewed individually so as to protect confidentiality and not allow the candidates to chat about the questions they were asked. Protecting Confidentiality: hsbc bank is an equal opportunity employer. The panel will not discriminate any candidate for whatsoever reason and the candidate?s data will not be shared outside the interview. Documents Needed: each member of the panel should have the following set of documents ready for the interview: 1. Application form or Curriculum Vitae: this entails a few information from the interviewee such as their names, the job role they have applied for, previous experience, why they want to work for the company, qualification achieved, etc. The application form is prepared by the company in order to know some more things by the prospective employee while the curriculum vitae is prepared by the person seeking the job and may not always write everything about themselves. 2. Job description: this entails what the job role to fill is all about and the duties required of the successful candidate. 3. Person Specification: this helps the interviewers to check if the candidate has the right qualities for the job. 4. Questions: interviewers must make notes of the questions they want to ask the interviewees. The questions must relate to job description and person specification. The panel should know who will ask what questions and when the questions are to be asked. 5. Agenda: a well-typed agenda should be sent to each candidate before the day of the interview. This helps each candidate to know what time the interview is scheduled for, where they should be and what is expected of them. 6. Checklist: interviewers should make notes of questions they need to ask the interviewees so that they do not forget. They also need to make notes on how each candidate meets the job requirements. The checklist also helps the interviewers to compare each candidate?s reactions after the interview. Questions for Interviewees Some of the questions the panel could ask the interviewees include: ü Why do you want the job? ü How did you hear about this job opening? ü How do you handle stress? What would you do if you were at work and feel ill while there are customers waiting on a queue? ü What kind of people do you find it most difficult to work with? Why? ü Starting with your last job, tell me about any of your achievements that were recognized by your superiors. ü Everyone has strengths & weaknesses as workers. What are your strong points for this job? ü Why do you think we should employ you at hsbc bank? ü Give me a few examples of how you have adapted your own communicating style to deal with different people and situation? ü What things give you the greatest satisfaction at work? ü Can you think of a problem you have encountered when the old solutions didn?t work & when you came up with new solutions? ü How do you go about making an important decision affecting your career? ü What special aspects of your education or training have prepared you for this job? ü Where do you intend to be in about ten to fifteen years time and how do you intend to achieve your goals? ü How does this job fit in with your overall career goals? ü What do you feel you need to develop in terms of skill & knowledge in order to be ready for that opportunity? Further Assessments An aptitude test will further be recommended especially when the job role is a cashier dealing with arithmetic. This helps the employer to know more about the candidate as the interview do not say everything about that person. task 5 Purpose of Performance Management ========= An important part of the performance management process is development of employees? work-related skills, knowledge and experience. The development process gives the managers and their employees the opportunity to work collaboratively to improve each employee?s performance and to contribute to organisational goals and objectives. In order for the organisation to remain competitive and to retain its reputation for excellence, employees should have up-to-date information and the ability to use new technologies, adapt to organisational change, and work effectively as a team. Employees, too, recognise that it is essential for them to continue to learn so that they will be effective in their current jobs and able to move into other positions or accept new responsibilities as circumstances demand. hsbc bank needs to manage the performance of its employees effectively in order to remain competitive, as there are other high street banks in Kingston. For an organisation to work successfully and achieve its aims and objectives, they need to develop, train and motivate their employees so that these employees will work hard towards achieving the objectives of the company. To develop their employees, hsbc bank has to provide a system for managing its workforce effectively. Development of employee skills, knowledge and experience is essential in today?s rapidly changing workplace as there are new changes in technology e.g. a cashier needs to know how to use a computer effectively when attending to customers. Employees such as cashiers / personal bankers need to be trained and developed well. They need to know what they are doing rather than be told what to do as they communicate with the customers on a daily basis. The following performance systems can be used by hsbc bank to monitor the performance of their employees:
Performance reviews: hsbc bank has to set out a mission statement
and values identifying the overall aims of the organisation. The
company will then use the mission statement to create
organisational objectives and personal objectives for their
These objectives are always evaluated and monitored as it shows how successful the organisation is and how employees are meeting their personal objectives. This system will help hsbc to judge employee performance against the set objectives and reward them if organisational objectives are achieved. How hsbc reward success A fair pay is paid to an employee for his / her contribution to the organisation based on individual performance. Promotion is based on competence, performance and adherence to values and ethical standards. The benefits of organisational success are shared through performance-related bonuses in most regions of hsbc bank branches and the extension of share ownership. About half of all hsbc employees now participate in one or more of HSBC?s employee share plans. (
Self Evaluation: an employee needs to be able to identify
meaningful goals and then work out ways of meeting these goals. An
employee needs to be able to evaluate his / her own performance in
carrying out these goals.
This approach helps employees to take responsibility for their own work and monitor their own performance. This also helps an employee to have an in-depth understanding of their job and a clearer picture of what their job is and how well they are doing it. It is cost effective and time saving.
Peer Evaluation: Without this approach, there could be a danger
that some employees might work hard while others get the rewards.
Peer evaluation helps organisation to know how effectively the
team is working as a whole and how much effort team members are
contributing to work done.
This helps employees to do their very best in jobs, as they do not feel they are been judged. There is a chance of individual?s helping each other to improve performance. The downside to this approach is that the team could justify their own performance rather than look at things from the organisation?s set objectives. ? Target setting for individual / groups: This approach allow individual employees / group to participate with their departmental managers or any other superior to set their own performance targets. These targets are always in alignment with unit or departmental goals that the employee works in and hence, aligns with organisational objectives. ? Measuring Individual / group output: Training and Development in hsbc bank The human resource manager of hsbc bank needs to plan ahead before deciding what training the company will require. The HR manager has to know what job roles are needed by the company over the coming year, the skills and qualification required to do the job. After doing this, the human resource manager has to find out what skills or qualifications each employee in the company has. This is called skills audit. By finding out the training needs of the company and the skills audit, the human resource manager will know the training gap needed by the company. The company will have to fill these gaps by recruiting staff or train existing and develop them into the right positions needed by the company at that time. But the gap cannot be filled totally because people keep changing jobs due to different reasons such as change in technology, new skills, new regulations, retirement etc. Employee satisfaction is a vital measure of the effectiveness of people strategies and the impact it has on customer satisfaction. Even more useful, however, is to measure ?employee engagement?, which is made up of three components: job satisfaction, intention to stay at hsbc, and a willingness to recommend hsbc as a great place to work. We find that colleagues who exhibit high levels of engagement also provide better service to customers and are more likely to stay with us. (Source: Training Training is when a company train its employees to meet the aims and objectives of the company. It includes all forms of planned learning experiences and activities designed to make a positive change to the performance of a company. Companies see recruitment as a very expensive venture so they try to avoid recruiting new staff by training their current employees and retain them for a longer period. hsbc bank equips their employees with the skills they need to operate successfully by using the following training methods: In house training is where an organisation uses its own training method to train its staff. hsbc bank uses a variety of training mechanisms, including e-learning, which is a cost-effective way of enabling more employees to work on programmes at their own pace. hsbc bank also has more than 1,100 in-house training staff worldwide as well as links with external trainers. hsbc bank also offers regional training centres provide training, education and guidance in a local branch for local people in their own language and respecting cultural, religious and ethnic values. ( Benefits of Training to hsbc bank Training is important as businesses are changing from industrial to high tech. Communication and Technology is changing and improving so people needs to be kept up to date. Training improves competitiveness, skilled and better motivated workforce work harder and this improves productivity. Training helps staff to become customer focused and effectively meet customer needs. This will help hsbc bank to keep its customers. Training is going to improve customer service in the bank. The service level given to customers e.g. how quickly customers wait in the queue before seeing a cashier will help hsbc to keep customers. Training provides formal product knowledge that can be immediately applied to day-to-day activities in the bank. E.g. hsbc bank provides a general training for all staff on all the type of banking services available to customers and how to use them. Development Personal development is where an individual takes responsibility for a skillful or academic learning in achieving his or her own personal goals and career aspirations, which also enhance the effectiveness of the organisation. Development approaches the individual and his or her motivation from a different angle from that of training. While training is typically concerned with enabling the individual to contribute to meeting the objectives of hsbc bank better, personal development is more concerned with enabling individuals to develop themselves in the way that best suits individual needs. The two, it is hope, will come together. By helping individuals to develop themselves, they will be more inclined and better able to contribute to helping hsbc bank meet its objectives. If an organisation should focus on developing its people, it will increase loyalty and motivation amongst workforce. Motivation Motivation is a concept used to describe the factors within an individual which arouse, maintain and channel behaviour towards achieving a goal. Since it is part of a manager?s job to get their work done through others, managers need to understand why people do things (that is, what motivates them?) so that s/he can convince their employees to work towards the goals of the organisation. Managers need to be aware that the things that motivate them may not necessarily motivate their employees. Managers need to provide the right organisational climate to ensure that their employees can see that by working towards the organisational goals they are also achieving some of their own goals. These goals could be such things as financial rewards or personal rewards such as the respect of their colleagues or job satisfaction or a combination of any number of things that the employee considers to be important. Yvonne McLaughlin suggests that there is an equation, which gives a good model of the basic requirements, and how they relate to each other in order to achieve the best staff performance in an organisation. (Source: Performance = Ability x Effort x Organisational support The performance of an organisation?s staff is an equation of their ability to do the job (what they can do) multiplied by the effort that they are actually willing to put into the job multiplied by the amount that the organisation helps them to achieve their tasks. Over the years a number of management theories have been put forward in an attempt to explain the nature of motivation and suggest ways in which it may be improved. Frederick Taylor?s Principles of scientific management Theory. Taylor was an American engineer who studied production methods in the steel industry. He was interested in job design and his theory suggested a production-line approach (conveyor belt). Taylor believed that complex jobs would be most efficiently performed if they were broken down into separate operations so that very little could go wrong. Each operation would be performed by a separate employee. The whole job could then be completed in a series of stages by a number of employees working together. Taylor believed monetary reward was an important motivating factor that would drive the system. Higher rates of pay could be offered as an inducement for increased rates of output. Today, you still find relics of scientific management- for example in banks where the personal banker simply follows the instructions given by a computer that tells him or her what steps to carry out in opening a bank account, details of a customer?s account/ balance without asking the customer etc. This makes the process quick and customers are satisfied with the service they have received. Although, the motivation theory by WF Taylor will increase productivity and efficiency in hsbc bank by reducing the number of minutes customers wait on the queue before seeing an advisor or a cashier, limited number of time cashiers deal with customers, division of labour etc, it will not work very well in the bank. When people get treated like machines, they get tired and dehumanise in the job. They will not want to work and become less motivated. Abraham Maslow?s ?Hierarchy of Needs? Theory Maslow developed his ?Theory of Human Motivation? since 1943 and has been popular since the 1950?s. It is based on meeting people?s needs in the workplace. This theory suggests that unsatisfied needs can lead to dissatisfaction. Maslow identified a range of needs that were largely hierarchical in nature: ? Physiological needs- are for reasonable standards of food, shelter and clothing in order to survive. This level of need will typically be met in hsbc by the receipt of money in exchange for work done. ? Safety needs- are also concerned with physical survival. In the workplace these security needs could include physical safety, security of employment, adequate rest periods, pension and sick schemes. hsbc ensures the safety of everyone at the workplace including customers and so it uses cameras to not only prevent crime but to also ensure that everyone is safe from harm. ? Social/love needs- are concerned with an individual?s need for affection and love. Most people want to belong to a group. As organisations grow, individuals can lose their identity, becoming just another number or face in the crowd. Organisations therefore need to find ways of building individuals into groups and teams. Banks like hsbc generally have a very strong reputation of socialising among themselves. ? Esteem Needs- a stable high self evaluation based on capability and respect from others e.g. prestige job titles. ? Self actualisation needs- fullest potential e.g. challenging job assignments, promotion opportunities. Self-Actualization [image] Esteem Needs [image] Social Needs [image] Safety Needs [image] Physiological Needs [image] Douglas McGregor?s theory of X and Y Douglas McGregor?s theory of the x and y managers was published in a book called ?The Human Side of Enterprise?, in 1960. His theory divided all managers into two groups; group x and group y. Theory X managers work on the assumption that all human beings have an inherent dislike of work and will avoid it if they can. Due to this they work on the principle of reward and punishment, or stick and carrot. McGregor believed that Theory X managers are lazy, obtuse, dislike responsibility and need to use control factors to motivate employees, such as pay. Theory Y managers are creative and aim to develop potential. They work under the assumption that control and punishment are not the only way to get people to work. People will be more productive if they are committed to the aims of the organisation. The manager needs to be aware and understand when to use theory X and when theory Y is better. As in the case of hsbc opening a new branch in Kingston, they are employing new staff who might have not worked for hsbc or know very little about their job roles, in this case theory X should be used to lead and direct these new employees and then develop theory Y with time as they learn to do their jobs well without supervision. Frederick Herzberg?s motivation Theory Herzberg was the first to show that dissatisfaction at work nearly always arose from different factors such as unfair treatment of employees, unfair management practices, low pay, poor working conditions etc. Herzberg suggested that the existence of any form of dissatisfaction will lead to absenteeism, poor levels of output, resistance to changes and negativity in the work place. According to Herzberg, Man has two sets of needs; one as an animal to avoid pain, and two as a human being to grow psychologically. If staff are not well motivated and developed, there are chances that they would not do their job well or they might even leave the job and go elsewhere. This will result to a number of absentees, which will in turn increase staff turnover. A survey by Development Dimensions International published in the UK Times newspaper in 2004 interviewed 1,000 staff from companies employing more than 500 workers, and found many to be bored, lacking commitment and looking for a new job. Pay actually came fifth in the reasons people gave for leaving their jobs. The main reasons were lack of stimulus jobs and no opportunity for advancement ? classic Herzberg motivators ? 43% left for better promotion chances, 28% for more challenging work; 23% for a more exciting place to work; and 21% and more varied work. Employees will not do their job well if they are not encouraged or challenged to progress further in their jobs and careers, and this might lead to high number of absentees or high turnover. An organisation should recognise the efforts of their employees and reward them. A motivated employee produces good work, enjoy their work and achieve good success in their work. If hsbc spends a lot of money recruiting new staff, they will not want to lose those employees. They will have to motivate them so that they could stay in the job.

The Importance of the Human Resource Function 9 of 10 on the basis of 2761 Review.