Human Resource Management (HRM) Implications
The influence that customers have on business activity has increased in recent years. What HRM
implications does this have for workers and managers?
The following conditions must met in the paper
1) I want a typical and a quality answer which should have about 1400 words.
2) The answer must raise appropriate critical questions.
3) The answer must include examples from experience or the web with references from
relevant examples from real companies.
4) Do include all your references, as per the Harvard Referencing System,
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Human Resource Management (HRM) Implications
Human resource remains one of the most important assets in an organization. Having the
right people contributes to the achievement of an entity’s objectives and goals. It is the duty of
HRM to put in place appropriate strategies and execute their functions well to ensure that an
organization achieves its objectives. In the current world, the influence of customers on business
activities has increased, which requires HRM to change strategy to meet the customers’ needs
and expectations. The author delineates on HRM implications on employees and managers due
to increased customer influence on business activities.
Customers form an important part of any business stakeholders, as they are the
consumers of products and services. Organizations must consider the needs and the interest of
customers in making any decisions. Meeting customers’ needs may define or differentiate
between a successful and a failed business venture (Francis & Keegan, 2006). Satisfied
customers often return to purchase the products and services of the company and vice versa.
Business dynamics has continued to change in the recent past as new technologies come into
existence. These changes have significant consequences on HRM practices if a business wants to
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compete favorably ( Graf , 2007). Nowadays, customers have gained power as they comment,
provide their opinions and even criticize products and services that various entities provide.
Social platforms such as facebook, twitter, blogs and internet have necessitated the increased
customer power on business activities. Therefore, with such changes, business must align
themselves in such a way that they can incorporate these views to offer products and services
that the customers require.
One of the HRM implications of increased influence of customers on business activities
on employees and managers is change of strategies of recruitment and selection of their workers
( Graf , 2007). Selection is one of the most important initiatives and function of HRM which can
have positive or negative impact on an entity. Attracting and retaining competent workers is
very critical in this era. Employees must have better customer care skills for them to strategize
their businesses. Appointing people with right expertise and capabilities is one of the strategies
that will enable them win and meet the demand of the customers. An entity will be in a position
to survive in this era if it has an effective team of employees and managers that are able to make
decisive decisions that will have a positive impact on customers ( Graf , 2007). Workers and
managers will have to take time to understand the philosophies and aims of the entity to impact
on customer satisfaction, production and build relationship with suppliers. Satisfying employees’
need thorough financial rewards as well as providing other incentives will as well help to
improve the employees and managers performance and commitment making them to provide
better services to customers hence creating positive working relationship.
In this era, HRM will as well be required to invest in training and development initiatives
of their employees and managers. Training allows an individual to advance their levels of self-
awareness, enhance talent, improves skills and knowledge and motivates employees (Ullah &
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Yasmin, 2013). Employees and managers will have to undergo training on technology
advancement and their use in businesses. For instance, use of social media and internet has
become a major channel where consumers engage companies. Employees must therefore
understand how these platforms work so that they meet the expectations of the customers.
In such an environment, managers are required to create a conducive working condition
for their employees. They should allow employees to take part in the decision making process.
Employees have ideas and views that managers can buy to help them meet their achievements
and objectives (Bowen, 1986). This feedback should be provided in various forums and through
suggestion boxes in the organizations. Information sharing will enable the company to function
effectively as employees may provide essential information on strategies. Flexibility on designs
is also critical in ensuring that the entity compete effectively and meets the goals and objectives
of the customers. Job design will include embracing of job rotation, job enrichment, increase of
autonomy at work, and job enrichment design that broadens job definitions. Employees must
take responsibility upon themselves to ensure that they meet the needs of the customers.
Management should empower employees to help aid in customer satisfaction.
Employees also get an opportunity to exercise control over their jobs and make decisions by
delegating power and authority. Graf (2007) revealed a number of benefits accruing from
employee empowerment including, quick reaction to customer demands and issues, affectionate
and excited customer dealings, more satisfied employees, and employees are able to pioneer
ideas. In this era where customers have greater influence, therefore, through empowerment of
employees, they will engage customers in professional way to address and render appropriate
services. It is, therefore, very critical that this is taken with seriousness as it affects delivery of
better services to the customers.
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Customers, even though are outside an organization’s boundaries, remain relevant
references and or extension on HRM, meaning that they cannot be left out in the equation. They
influence the success or failure of an entity. For instance, if customers lack an opportunity to
express their concerns about the products they purchase and services, they use may not be
confident enough to trust such products and services. This means that the company may not
manage to achieve their dreams. However, those that listen to what the customers say and engage
them constructively increase their public image and increase their customer base since customer
feel a sense of belonging and feel appreciated and part of the larger organization community.
Therefore, these are the implications that managers and customers must consider in their
strategy. Managers must be concerned more on the level of competition as well as on avenues to
ensure that employees are well prepared to provide appropriate services to their customers.
It has also become essential for managers to increase their level of customer orientation
about the company and employees and reduce role conflicts and ambiguity to create a benefit for
the customers (Chiu & Luk, 2002). This complex era requires customers to access appropriate
and sufficient information on the company services and products to remain knowledgeable and
to avoid controversies or conflicts likely to affect the image of an entity. Customers should
receive information from the company on various aspects to alleviate any misunderstanding.
This means that managers and employees would be required to embrace codes of ethics and
ensure that they render their services with highest professionalism.
Training employees is essential in ensuring that they become competent enough to
address the ever changing and challenges arising from increased consumer influence. For
example, Kodak resorted to a global learning management system in 2000 in delivering e
learning to its employees across the world (Friedman, 2007). This opportunity enabled the
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employees to be equipped with relevant skills and knowledge to execute their duties diligently.
The training as well enabled them to understand the impact of culture and globalization hence
being in a position to offer their services well (Hofstede, 2001). With technology, customers
come across the world and have different cultural values, which require companies HRM to
factor and to consider them in their strategies. Another company that has taken an initiative of
appreciating and aligning its strategies to remain competitive even with increased customer
influence is Apple Inc. The company has managed to remain innovative and to produce products
that meet consumer expectations by allowing customers to take part in their decision-making.
Customers have been involved through opinions, comments and criticisms, on various social
media platform contributing to the companies’ achievement of its goals over the recent years.
Entities should invest their resources in research and development. Through research,
organizations stand a better chance of understanding the needs and interests of customers. They
will therefore be in a better position to render quality services to them.
It is true that customer influence on businesses has increased to greater magnitude in the
recent past. This scenario has had a number of HRM implications. Organizations must change
their strategies to be able to produce products and offer services that meet the consumer needs.
Consumers are essential in any company’s success strategy and, therefore, by adopting
appropriate and tactical strategies, the companies have higher chances of succeeding.
Empowering employees through training and development, providing sufficient information to
the customers and ensuring that competent staffs are recruited will ensure that entities remain
competitive to achieve their goals.
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Reference list
Bowen, D 1986, ‘Managing Customers as Human Resources in Service Organizations,’ Human
Resource Management, Vol. 25 no. 3, pp. 371-383.
Chiu, R, & Luk, V 2002, ‘Retaining and motivating employees: Compensation preferences in
Hong Kong and China,’ Personnel Review, vol. 31 no. 4, pp. 402–431.
Francis, H, & Keegan, A 2006, ‘The changing face of HRM: in search of balance,’ Human
Resource Management Journal, vol. 16 no. 3, pp. 231-249.
