All Managers Are Hr Managers Essay Example

one system being superior to the other, but rather a result of growth. Consequently, HR practices in SMEs are neither better nor worse than those in larger corporations; they simply operate under a different framework [3]. According to Raymond J. Stone's book "Management and HRM: Human Resource Management" (2008, pp. 3), it refers to effectively utilizing individuals to achieve strategic objectives and meet employee needs within an organization. Companies that have a dedicated HR department usually employ experts in this field to handle related tasks. For companies with 50 or more employees, it is typically necessary to have a specialized manager or department for HR matters.

Clearly, as mentioned previously, the complexity of the company would grow with its size. [3. 2] According to Cronje, Du Toit, Marais, and Motlatla (2003, pp. 122), management is defined as "The Process whereby Human, Financial, Physical and Information Resources are employed in order to reach the goals of the organisation." There are typically two types of managers: Functional managers who specialize in different departmental functions within the organization, and General managers who integrate all the functional aspects.

In a small company, these functions can be combined under a single manager. However, in a larger firm, these functions would require more detail and specialized skills. According to Ap Eigenhuis, a former senior vice-president of human resources at Unilever, talent management and development are essential at all levels of an organization. In small companies, this responsibility falls on the business leader, while as the company grows, it becomes the line manager's responsibility. When done properly, talent management secures future talent and improves a company's performance. Research has demonstrated a positive

relationship between HRM practices and important organizational outcomes like productivity, turnover, and firm performance. This indicates that HR is not only crucial for employee relations but also serves as a strategic tool for managers to lead an organization to success. Surveys reveal that less than 40% of SMEs have formal HR systems in place for recruitment, training, development, and employee rewards.

It is concerning to see a decrease in managers seeking help from external HR advisors, as it implies a lack of commitment to their responsibilities. While some may believe that having a dedicated HR department is only necessary for organizations with over 50 employees, it is crucial for smaller companies to have efficient and regulated HR systems in order to prosper. [3. 4] The significance of effective management cannot be overstated, as it plays a vital role in guiding the organization towards its goals and objectives. The overall performance and success of any organization greatly depend on the quality of its management.

Management establishes a balance among four basic resources: HR, Financial, Physical, and information. This balance is achieved through the tasks of planning, organizing, leading, and controlling. These tasks are present in all management styles throughout the organization. Regardless of the management style, leadership capabilities and knowledge of human resource management are essential since other people are involved. Figure A depicts the skills required at different managerial levels. [pic] Source: Pg. 129, chp 5, Introduction to Business management, 6th edition, Cronje, Du Toit, Marais, Motlatla.

In smaller organizations, the hierarchical structure is more linear, making this diagram more applicable to a SME. Conversely, larger organizations typically have a more lateral structure, which is associated

with complexity. Despite the variation in skills needed at various management levels, interpersonal skills remain consistent throughout the organization. According to Kotley and Slade (2005), as organizations grow in size, there is a transition from informal procedures to a more formal HR structure, making HR practices significant for management.

According to Hornsby and Kuratko's (1990) research, companies with 20 or more employees experience an increase in formality. This is evidenced by the absence of informal networks, stretched informal communication styles, and the need for the owner to delegate responsibilities due to being overwhelmed. Less than 40% of SMEs have implemented formal HR plans for recruitment, selection, and training and development. As a result, this decision should be seen as strategic by management, rather than solely an HR or managerial issue in SMEs.

The text emphasizes the evolving nature of HR practices as organizations become more complex. One such practice is recruitment, which involves seeking and attracting qualified applicants for job vacancies (Raymond J. Stone, 2008, pp. 197). Recruitment is crucial in all organizations and requires effective procedures and systems to hire new staff. Larger organizations usually have more formal recruitment systems in place. It is essential to maintain efficient and current HR records throughout the recruitment process.

The responsibility of conducting performance appraisals usually lies with the HR department in large firms. However, in SMEs, it is the responsibility of management. Therefore, SME managers must have a thorough understanding of the process and involve it as an interactive practice in building the right team. [4. 2] Performance appraisal is essential as it identifies areas where employees excel, where they meet job requirements, and areas where

they fall short. It also provides feedback for learning and improvement. This practice is implemented in all departments and affects everyone in the company.

Regardless of size, every organization must have a feedback process in place for managers to assess their employees' performance. This applies even to SMEs. Feedback is vital for organizational success as it promotes learning. It is crucial for SME management to establish appraisal systems throughout the entire organization and offer genuine and sincere feedback. Although HR may oversee the organization and structure of these processes, responsibility extends beyond HR alone.

The organization utilizes appraisal systems to communicate expectations and emphasize desired employee behavior, thus maintaining its business culture. Managers make this decision, considering factors like cost and time to determine the process's extent and the importance of these activities. [4. 3]

Compensation and benefits include financial returns, tangible services, and other rewards given to employees as part of their employment. Compensation serves as a significant motivator for job seekers. There are two types: direct (monetary rewards) and indirect (leave benefits). Both types should be strategically offered to ensure motivation. In small and medium-sized enterprises (SMEs), managers have the responsibility of establishing suitable compensation options, serving as an incentive for employees' job commitment and active engagement.

Research studies indicate that small and medium-sized enterprises (SMEs) encounter difficulties in employee retention, particularly when compared to larger organizations. Graham Smith (2007) reported that approximately 50% of new hires in SMEs depart within the initial month, with 8% making this choice on their very first day. Unlike larger companies, smaller ones face challenges in matching the compensation packages offered by their counterparts. Nevertheless, SMEs have the

flexibility to tailor benefits according to individual employees' requirements, placing emphasis on indirect compensation - a dimension frequently disregarded by bigger firms.

The text emphasizes the significance of managing HR practices strategically in SMEs due to their high staff turnover rate and the reluctance of bosses to invest in employee retention strategies. It also highlights the importance of training and development in providing employees with the necessary knowledge and skills for their current tasks and preparing them for future work responsibilities.

Small businesses often are reluctant to invest additional funds in strategies aimed at retaining employees, especially for their growth. Consequently, this often causes employees to leave these small and medium-sized enterprises (SMEs) due to a perceived lack of training opportunities or clear career advancement paths. It is vital that all employees receive consistent training and development initiatives, regardless of their position within the company. Moreover, these initiatives should be adaptable as the company expands. Efficient training and development not only enable management to offer enhanced job enrichment and motivation for employees but also foster overall company expansion.

Increasing employee engagement and retention rates is a challenge for SMEs, making it a strategic tool for performance and a managerial responsibility. SME management must prioritize these programs, continuously monitor them, and undergo their own training and development. Concerning HR practices, it is important for management to seek out individuals with the necessary skills, enlist HR specialists to aid in hiring and retaining employees, and create an HR plan to manage staff turnover and foster professional growth.

In SME's, it is crucial for management to possess a comprehensive understanding of HR and utilize it as a strategic tool

for achieving organizational success. The statement "All managers are HR managers!" is dependent on various circumstances and was evaluated in this paper based on definitions, complexity, and a selection of HR practices. Taking these factors into consideration, the statement can be both true and false.

In SMEs and the early stages of company life cycles, there is less complexity and a lesser need for detailed systems. However, it is crucial for management to have knowledge of HR practices and implement HR systems, albeit on a smaller scale. Figure A confirms this finding, as HR skills are equally necessary across all managerial levels. This highlights the significance of human interaction and emphasizes the role of Human Resources, implying that all managers also have responsibilities in HR.

Managers in small and medium-sized enterprises (SMEs) have the task of implementing the HR practices mentioned in section [5]. Given their simpler company structures and absence of distinct departments, it is vital for management to acknowledge the importance of these systems and strategically implement them. Ap Eigenhuis also reinforces this viewpoint in section [4.3], emphasizing the significance of talent management at every level within an organization, particularly in SMEs where managers and leaders hold a substantial role. Therefore, based on this evidence, one can deduce that all managers are HR managers.

As the company grows and delegates more tasks, HR responsibilities can become more specialized. This increased complexity results in the creation of dedicated HR departments, shifting the focus away from all managers. While all managers still require HR skills, it is not their primary concern. Due to this increasing complexity, the HR process becomes more specialized and strategic. As

a result, not all managers are classified as HR managers. [6] In summary, we can deduce that managers in small and medium-sized enterprises (SMEs) fulfill HR managerial roles while those in larger corporations do not.

The statement "All managers are HR managers" has been supported by clear evidence, showing that its accuracy varies depending on complexity and business layout. Therefore, ultimately, the statement is both correct and incorrect.