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Critically analyse the challenges and opportunities of effectively and efficiently managing productivity and performance to increase profit, alongside a commitment to appropriate management of the human resource and with consideration for the sustainability of the planet.

Companies that exists today function in a versatile space inhibited by scarce resources and business uncertainty. Therefore, there must implement Operations Management functions and measure against benchmark efficiency standards or face marginalization. Additionally, if these companies can optimize its internal resources, design and develop its business processes, it can be sustainable and achieve a competitive advantage. Battistoni et al. (2013).

When internal resources are properly managed it reduces wastage and it inherently runs an effective operation resulting in creating a greater efficiency in production. Peinado et al. (2018)

Flores et al. (2017) recognizes that companies must also be prepared to manage its resources in response to evolving global environmental and labour concerns being advocated by its stakeholders. This level of operations management with have a direct relationship with the triple bottom line of the company.

The most important resource of any company is its human resource. Companies must employ Human Resource Management to deal with harnessing the talent of its employees and committing to their safety and well-being not as an effort but a core operating principle geared towards accomplishing its goals. Richman (2015).

Strategic Human Resource Management (SHRM) was derived to empower organizations to achieve its mandate. It propels productivity and efficiency by implementing practices that are central to the human resource of the company such as training, vertical career opportunities, result-based compensation and most importantly valuing their thoughts and encouraging participation. (Adresi and Darun, 2017).

Initially, managing human resources was prioritized to improve the financial performance of the organization. However, over time HRM strategically focuses on stakeholder innovation, flexibility, their welfare and happiness to not only reap financial profitability but social equity and ecological preservation. This creates a net positive relationship between SHRM and sustainability. (Lopez-Cabrales and Valle-Cabrera, 2020).

Al-Khaled et al. (2020) identifies every aspect of management has an impact on the performance of an organization. SHRM is essential to achieving productivity by:

-       Understanding the skill and knowledge required to meet the organizational needs of the company.

-       Attracting new staff or developing existing staff to match these needs.

-       Aligning staff with the organization culture to obtain high performance and efficiency

-       Facilitating a healthy work-life balance that will further propagate performance.

Operation strategies are interconnected to business strategies and operations, however creating an operation strategy to align with the company’s business strategy is quite challenging when sustainability is involved primarily due to it being a relatively new phenomenon. (Opresnik and Taisch, 2015).

Demir (2019) listed operations management strategies which includes:

-       Product and Service Designs

-       Location

-       Layout

-       Quality Management

-       Capacity Design

-       Human Resources and Job Design

-       Supply-chain Management

-       Inventory Management

-       Scheduling

-       Maintenance

If the stakeholders in the aforementioned Operational Management areas are doing well, then naturally the productivity of the organisation will increase.

Phan et al. (2019) states that Sustainability requires companies to be flexible and to be prepared to respond to changes and unplanned situations. A strategy that can accommodate this propels competitive edge and better organizational performance. There are two (2) potent tools that can agitate sustainable operations management:

-       Total Quality Management (TQM) which specifically looks at improving the process to deliver sustainable and high-end products that meets and/or surpasses the expectation of the customer

-       Just-in-time (JIT) which focuses on removing all elements of inefficiency in the manufacturing process by waste reduction and optimizing the work-place.

One of the most important principles of Operation Management is uninterrupted improvement. It allows organizational systems to identify flaws along the entire supply chain cycle and optimize them for better performance. Morell-Santandreu et al. (2020). The following strategies should be implemented to achieve the sustainability mandate:

Abbas (2020) delineates that TQM is a long-term strategy that will contribute to sustainability since a quality product will have a high value, it will efficiently utilize resources during its manufacturing and reduce wastage and it will be as a result of a well-trained staff that is motivated and the customer is satisfied. Additionally, research indicates the intersection between TQM and HRM influences leadership, loyalty, employee co-operation and employee satisfaction. (Özlen and Hadžiahmetović, 2013).

Environmental Stewardship is the umbrella for all eco-friendly activities that will preserve the environment and restore nature in an attempt to undo the on-going degradation. It also includes the manufacturing of eco-friendly products which may be costlier but the return on the investment far outweighs the cost to restore the environment. Additionally, these activities foster sustainable practices and proper utilization of resources. Bennett et al. (2018).

Process Safety Management has been revolutionized to a preventative approach to raise awareness of potential risks and accidents. It also creates a culture of safety and security amongst stakeholders through a policy path and enhances the company’s productivity and performance for as long as it does not record a safety incident. However, in its absence, it can result in litigation or downtime affecting the productivity of the company. When an organization can manage and reduce its risks and embed process safety management in its culture, it can be said that it is on a sustainable path. Lee (2018).

Business Process Reengineering is a value-based concept that eliminates every form of redundancy and unproductivity. It is heavily aligned to utilizing technology and data to make decisions all in an effort to minimize output cost and time. Organizations are reformed to create cross-functional units which diminishes errors and revision but accelerates the flow of information. Additionally, it drives improved quality by removing fragmented work processes and identifying distinct ownership in processes allowing for an activated feedback loop. (Bain and Company, 2018).

Consequently, this heavy dependence on technology and data management systems to effectively implement BPR may be too costly for some companies. This level of analytics and an intelligence can result in a larger than expected staff replacement.

Over many decades’ organizations have investigated means to grow and develop organizational performance. HRM has sought to achieve these objectives with its unique focus on High-Performance Work Systems. This system comprises of a series of best practices that includes managing performance, employee engagement, performance-based compensation and extensive training and development of staff. This combination of practices not only propels the organization to achieve its goals but it impacts directly on the stakeholder’s lives. (Rajanala and Kumar, 2014).

Combatting climate change and environmental degradation has been integrated into the governance and leadership approaches of most contemporary organizations. There is a succinct understanding by HRM that environmental expertise and advocacy is necessary not only on the Board of Directors but also meshed into the culture of the organization. Managing the environmental concerns through HRM systems requires training and resources therefore the concept of Green Human Resource Management is particularly relevant. Molina-Azorin et al. (2021).

CSR and HRM are both essential tools within any organization. They are bound by one common factor, sustainability particularly environmental and social sustainability. Corporate Social Responsibility focused on environmental preservation and supported by HRM can have significant benefits for an organization. It will improve its reputation, competitive advantage and sustainability. (Herrera and de las Heras-Rosas, 2020). Conversely, HRM has influenced loyalty and motivation amongst employees and the organization. There is positive relationship with co-workers and greater commitment and creativity towards work-flow. Khuong et al. (2020).

Human Resource Management Practices (HRMP) is an effective organizational performance indicator and it has direct impacts on people and the environment. Originally, HRMP was focused on economic performance at the expense of people and the planet. However, when the elements of sustainability are equally attended too all stakeholders benefit. Employee satisfaction indicates that there will be a rise in productivity and reduced staff turnover. The feedback loop and employee engagement afforded through HRMP allows for issues and optimization to be dealt with immediately in a cost-effective manner avoiding potential costly risks. Generally, the enhanced performance of employees indicates financial KPIs will be met and exceeded. Yousef and Shadi, (2021).

The analysis on the challenges and opportunities of managing productivity and performance in an effective and efficient manner to reflect increase in profitability has allowed for critical discussion on a plethora of concepts and practices. Additionally, understanding the commitment of the appropriate human resource management tools that will encourage sustainability of the planet was accomplished.

Linkages between Operations Management and Productivity as well as Human Resource Management and Performance were established and its influence on sustainability were deduced. Furthermore, integrating productivity and sustainability through TQM, Environmental Stewardship, Process Health and Safety as well as Business Process Reengineering practices were delineated.

Thereafter, High Performance Work Systems and it multi-faceted influence on performance and consequent productivity was discussed and key focus was on the opportunities and challenges Human Resource Management has on the elements of the Triple Bottom Line.

Over the years there has been an evident and justifiable shift from economic performance to social and environmental performance across many organizations. Some recommendations that can allow a greater part of society to individually enhance their performance and productivity are as follows:

-       Assist employees to focus on their own personal growth, not only to achieve the goals of the organization but their personal lives. It will have a domino effect and expand the drive for sustainability.

-       Employ SHRM strategies as an element of CSR, share the tools and techniques with schools and universities to form part of its curriculum. These are traits that will mold society and it should not be only at the point of employment that these strategies are now being effected.

-       The environment is not achieving sustainability as fast as it should be, therefore organizations should recruit environmental experts on its board to really drive environmental consciousness.