Current Issues In Human Resources Management Commerce Essay Example
Current Issues In Human Resources Management Commerce Essay Example

Current Issues In Human Resources Management Commerce Essay Example

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  • Pages: 12 (3214 words)
  • Published: July 14, 2017
  • Type: Case Study
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The introduction of human resource management (HRM) in the United States was a unique method for managing people and organizations. It gained popularity in other countries, including Britain, based on research conducted by Hendry and Pettigrew. Further studies by Gerhart and Milkovich, Cutcher-Gershenfeld, Arthur, Huselid, and Huselid and Decker have all concluded that human resources play a crucial role in achieving and sustaining competitive advantage.

Delery and Doty argued that while HRM is a holistic concept, initial research focused on a narrow range of issues. However, there is consistent evidence linking human resource practices to high performance. Studies such as 'The case for good people management' published in 2001 and the Black box research conducted by CIPD in collaboration with the University of Bath in 2003 both support the relationship between human resource practices and business performance.

According to Boxhall's explanation cited in "Strategic Human Resourc

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es Management" published by ABE(1998), successful administration should adopt an overall strategic approach with specific human resource schemes.Different administrations may have varying approaches to human resources management. International investment banks tend to view employees as quantifiable assets, while creative industries recognize them as valuable resources for gaining a competitive edge. However, there is currently a societal paradigm shift that has influenced the nature of work, with fewer individuals taking on more responsibilities and a rising trend towards job role flexibility. Productivity refers to the efficiency of converting inputs into useful outputs, and businesses lacking productivity goals or measurements lack direction and control. Therefore, concerns about productivity impact organizational policies and procedures related to strategic human resources management activities. HR planning is a crucial aspect of strategic human resources management, as prior planning

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ensures effective management of new initiatives or changes within an organization such as redeployment, relocation, or implementing new systems. Predicting future staffing needs using successful methods ensures efficient operation for the administration.HR planning is important for various reasons including retaining core employees, attracting new ones, managing costs, and enhancing performance. The process of HR planning differs across industries. For example, British Gas utilizes forecasting programs to predict market growth and future requirements for additional engineers. They conduct detailed forecasts one year in advance while making more general predictions for the following two years. British Gas faces challenges such as updating engineer skills and addressing health and safety concerns which impact workforce planning in the gas industry. To address these challenges, training programs are implemented at British Gas to bridge any skills gaps and keep engineers updated on technical matters. Technical changes can also be communicated through field radios or text messages. Effective HR planning requires selecting suitable individuals for managerial roles in order to plan, organize, and coordinate teams of engineers. Therefore, British Gas aims to attract a diverse range of people into their administration. Tesco follows a similar approach with ongoing annual planning and regular reviews occurring in May, August, and November (The Times100 -1995-2000).These reviews allow for adjustments in staffing levels and recruitment based on strategic objectives, such as opening new stores. Recruitment is the process of identifying and attracting potential candidates to fill vacant positions in an organization. Selection involves choosing the right employees. Attracting and selecting the right individuals is crucial for organizational growth.
While recruitment and selection practices may vary across sectors, Virgin Media has established procedures for selecting sales staff.

During recruitment, behavior and appearance play a significant role as these employees represent the company's sales team. Thorough checks are conducted on references and criminal records to ensure legitimacy, with no relatives allowed as references. Sales records of departing salespeople are retained for at least six months. Similar measures are implemented and documented when hiring external applicants, like Virgin (2010). These practices enable Virgin Media to recruit highly qualified individuals who can generate optimal returns.
On the other hand, Tesco employs internal selections at times to motivate their staff through a talent planning process called 'talent planning'. This process encourages employees to progress within the company's hierarchy. An annual assessment strategy is put into place where employees have opportunities to apply for higher positions, with managerial roles requiring online applications.Shortlisted applicants proceed to an interview and attend an appraisal Centre for the final stage of selection. Regular in-store positions at Tesco have a simpler hiring process where applicants can submit their CV or register at local job centers. Specialized positions like pharmacists are advertised in journals such as The Times100 -1995-2000 and Tesco. Job descriptions and individual specifications help managers assess employee fit within the company and recruit suitable individuals. Each job also has a benchmark provided for evaluating staff performance level requirements.

Tesco is committed to policies that motivate workers, resulting in reduced service inconsistencies and improved overall productivity. They recognize the importance of training and development in ensuring employees are equipped to perform effectively, viewing it as an investment rather than an expense. Creating a culture that supports continuous learning is crucial for survival according to Gavin (1993), and it is management's responsibility to foster

this environment.

The significance of training and development can be seen through the case of Thomas Cook overseas resorts, which has a diverse workforce including front line representatives and managers who frequently move between destinations.It is essential for employees to receive comprehensive training from the beginning (People1st, 2008). New hires undergo an eight-day initiation period to acquire necessary skills and behaviors before joining their respective resorts. They also receive on-the-job training to effectively apply their knowledge within their local environments. Overseas representatives at Thomas Cook have opportunities for development, such as the STARS - Senior Training and Recognition Scheme. This program offers three levels of preparation linked to motivation and increased productivity (People1st, 2008). Thanks to this training policy, Thomas Cook has achieved efficiency and higher standards for customers, making them the number one travel agent.

HP also offers a learning and development program called HP Compaq. Employees are encouraged to explore new areas in technology and career development, fostering innovation and creativity. Ongoing support is provided through the Grow @ HP system, which guides employees in excelling in their current roles while acquiring necessary skills for career growth. The company follows the 70/20/10 learning model to ensure employees maximize their learning potential while developing their talents. Advanced technologies are used for training purposes, improving knowledge retention through live practical training and remote lab capabilities.The implementation of work-life balance policies can lead to increased efficiency and reduced costs (8.HP, 2010). In recent years, there has been a shift in the concept of work-life balance as clients now expect services to be accessible at all times and employees prioritize maintaining a balanced work and personal life. According to

Clutterbuck's definition from 2004 (as cited by CIPD, 2010), work-life balance involves recognizing various demands on time and energy, making choices about their allocation, and considering personal values in decision-making.

Implementing policies that promote work-life balance can have numerous benefits according to the CIPD (2010). These include enhanced productivity, flexibility, customer service quality, staff morale, motivation, commitment, engagement while also reducing absenteeism. Furthermore, it improves recruitment efforts and aids in retaining a diverse workforce. Although employers may face additional costs due to increased managerial workload associated with implementing these policies; however, the benefits outweigh these expenses.

BT (British Telecom) is an example of an organization that has implemented strategies like flexible working arrangements, temporary schedules, and job rotations to address challenges related to work-life balance. Neglecting employee well-being can harm business success as revealed by a case study conducted by the Health and Safety Executive. BT has recognized the growing concern of mental health issues within their organization which has led to higher rates of absenteeism and productivity concerns.BT partnered with the Communication Workers Union and Connect to address various issues in a non-political and non-confrontational manner. Their HR scheme focused on redesigning occupations, promoting flexible working, and identifying individuals at risk for early intervention to improve wellness. This resulted in a 30% decrease in absence rates due to mental health problems, despite market pressures. BT's research also revealed that individuals who work from home are 20% more productive compared to those working in an office setting.

The Merton Council implemented flextime and home-working practices which led to a significant decrease of 50% in sickness absence and 75% in medical assignment absence. Similarly, Northumbria Water offers flexible working

arrangements to attract a wider pool of applicants and recruit top talent for available positions.

Employers conduct job analyses to determine the requirements for vacant positions. As per the Business lexicon (2010), a job is long-term employment where an individual provides services to an employer in exchange for payment. An occupation includes specific responsibilities, duties, tasks that can be measured, quantified, accomplished, and rated according to mention (2010). This systematic approach covers the job function, description, requirements, duties, and evaluation as stated by Human Resources (2010).Job analysis is utilized to create job descriptions that outline the responsibilities, duties, qualifications, and working relationships associated with a specific job (Heathfield ,2010). These descriptions improve organizational efficiency by clarifying responsibilities and reducing re-work. Additionally, clear roles motivate employees as they understand their tasks and contributions to overall goals (Ihraustralia , 2010).

Job design builds upon the information from the job description by combining various elements to form a job (Unknown source , 2010). There are four approaches to job design: mechanistic,humanistic perceptual,and motivational(Mbaknol , 2010 ).

Job rotation involves systematically moving employees through different tasks in order to increase awareness and motivation(tutor2u , 2010) . Both the Royerson University library in Toronto and Indiana University in Bloomington have implemented job rotation to enhance multi-skilling and alleviate boredom (The free library, 2010).

Another approach is job expansion, where employee activities are amplified by trading a series of work (Mbaknol, 2010). The Volvo factory in Kalmar during the 1970s and IBM in 1943 adopted the method of job enrichment as a way to motivate employees. In IBM's case, extensive changes were made not only to the production system but also to the role of

line managers.

The development of service-driven economies has led organizations to adopt job enrichment in order to provide better opportunities for individual skill development and recognition.Expanding tasks to include diversity and responsibility has led to the adoption of lean production and Total Quality Management by Japanese companies like Honda and Ford. This reflects a shift in job nature due to engineering advancements and rapid environmental changes. To be responsive and flexible in the global market, organizations have embraced de-jobbing as a new approach. De-jobbing involves expanding workers' roles beyond their job descriptions, favoring flatter and leaner organizational structures that move away from hierarchical structures influenced by Taylorism.

This shift allows for decentralization of decision making, faster communication, and cultivating a customer-focused culture that promotes teamwork and high involvement working practices. IKEA Group effectively utilizes flat structures to engage employees in their jobs while 3M implements a decentralized approach known as level construction.

However, this can lead to "group think outlook" and unclear job functions causing stress within the organization. Striking the right balance between centralization and decentralization poses a challenge for many administrations. The Home Depot Inc., for example, centralized its operations leading to cost reduction and improved profitability.Conversely, Caterpillar experienced losses in the 1980s because of centralized decision making, which led to delayed and inaccurate information. De-jobbing allows organizations to transition away from traditional full-time employment towards more flexible working arrangements. The British Airport Authority found that multi-skilling reduces costs by requiring fewer employees. In 1973, Hewlett-Packard became the first US company to introduce flex-time, while UK companies like DSGI, Lloyds TSB, and First Direct have various methods of implementing flexible working agreements for their front-line staff

and management. These methods include part-time working, flexible hours, remote working, and flexible shifts. William Waldgrave (1996) argued that a flexible labor market is crucial for reducing long-term and structural unemployment as well as leveling regional labor disparities.

While flexibility in organizations can have both positive and negative effects, some employees perceive it as a threat to job security and working conditions. However, Total Quality Management (TQM) employs techniques such as de-jobbing, Just-in-time (JIT), Kaizen, and benchmarking to address these issues by organizing tasks around teams and processes rather than specialized functions. TQM involves establishing standards based on customer needs, ensuring compliance through procedures, monitoring quality levels continuously, and taking corrective actions when expectations are not met.Japanese companies like Toyota and Sony have been at the forefront of this approach. Maryland-based designer Penril DataComm has also adopted TQM to improve organizational efficiency. Although there are drawbacks, such as potential disruptions to productivity and training challenges, the advantages of TQM outweigh these disadvantages. According to Peter Drucker (1988), business process re-engineering is crucial for wealth creation due to intense competition, constant technological advancements, shorter product life cycles, and the emphasis on knowledge development. Therefore, administrations must find innovative ways to improve products or modify procedures in order to effectively compete and ensure survival (Tid and Bessant, 2009). Business Process Reengineering (see Appendix a), coined by Hammer and Champy in the 1990s, is the primary approach for achieving this as it directly transforms an administration's performance. Enhancing business processes is crucial in today's market as customers demand higher quality products and services. Failing to meet these demands may result in losing customers to rivals. Implementing this model allows

organizations to benefit from improved cost, service quality, and speed. However, constant change also poses risks such as demotivation among individuals and disruptions in productivity within the organization (Mabey et al.).In order to enhance productivity, organizations should embrace the concept of "de-jobbing" (Bridges, 1994) and move away from traditional job structures. It is believed that "security strains complacence" (Strategic Human Resources ABE , 2008), indicating the need for adaptable job roles that prioritize speed, flexibility, and creativity. Despite warnings from Alvin Toffler in the 1970s and Peter Drucker in 1988 about changing organizational structures, some companies still rely on traditional job descriptions.

Market leaders recognize the importance of retaining highly skilled employees by creating a high-performance working environment with incentives for good performance and promoting knowledge sharing to foster a learning culture. Career development can be supported through methods like development centers to identify potential candidates for internal promotions. One-stop-praise can also be implemented to acknowledge and praise individuals for their accomplishments.

Cultivating a culture of innovation is crucial for successful administration as it encourages employees to think outside the box.The Norton and Kaplan (1996) balanced scorecard methodology should be used to evaluate organizational effectiveness, in addition to competitive benchmarking for identifying best practices. For further reading, Susan Hammond's (1994) book "Strategic Human Resources Management 1st Edition" by Mabey, Christopher, Salaman, Graeme, and Storey, John (1998), published by Sage Printing Ltd in London is recommended. Another notable contribution is Hugh Macmillan and Mahen Tampoe's (2000) "Strategic Management," published by Oxford University Press Inc. in New York. The ABE Business Management Study Manual released a study manual titled "Strategic Human Resource Management for Business Organisation" in 2008. Derek

Torrington and Laura Hall authored the fourth edition of "Human Resources Management" in 1998; this publication was done by Prentice Hall Europe. Peter Reilly's publication from 2001 titled "Flexibility at work-balancing the involvement of employer and employee" was published by Gower Publication Limited in Hampshire England. Additionally, Russell C Swanburg's second edition of his book "Management and Leadership for Nurses Manager" was released under Jones and Batlett Publisher in 1996.Neil Anderson's contribution to Industrial Work and Organizational Psychology can be seen through his handbook called "Personnel psychological science," which is available online at www.leighbureau.com/speaker.asp?id=[Accessed on 15th June, 2010]. In 1996, Brian Becker and Barry Gerhart published an article in the Academy of Management Journal exploring the impact of Human Resources Management on Organizational Performance. The citation for this article is ici=00001-4273 % 28199608 % 2939 % 3A4 % 3C77953ATIOHRM % 3E2.0.CO53B2: Accessed on (12th June, 2010). Another publication related to job displacement is a book titled "Job displacement: Global acquisition Communities" authored by Bridges William and Wesley Addison in the year 2000. Steve Boggan reported in 2001 that Nike has acknowledged misidentifying child labor. The details can be found at this link, accessed on the 14th of June, 2010. An article written by Scott Bronstein and Wayne Drash in CNN's website states that BP was ordered to cutoff the rig on the day of the blast. The full article can be accessed here, accessed on the 14th of June, 2010.Robert Camp authored an article titled "A bible for benchmarking by Xerox" for Financial Executives magazine in 1993.This article can be accessed online at http://allbusiness.com/finance-insurance/399130-.html. It was last accessed on June 12th, 2010.

In 2001, an article titled "Still Waiting for Nike to Make It- Nike's Labour Practices in the Three Years Since CEO Phil Knight's Speech to the National Press Club" by Connor, Tim was published and can be found at http://www.independent.co.uk/news/world/americas/nike-admits-to-mistakes-over-child-labour-631975.html. It was accessed on June 14th, 2010. Regarding China, Honda (2010) implemented wage increases to prevent a strike. More information can be found at www.AutomotiveWorld.com. DeNisi, Angelo; Hitt, Michael S.; Jackson Susan E., wrote about "The Knowledge-Based Approach to Sustainable Competitive Advantage," which can be accessed on June 15th, 2010. An empirical study conducted by Tamer K Darwish explores the implementation of strategic human resource management in the telecommunications sector in Jordan. The study is available at http://www.brunel.ac.uk/329/BBS%20documents/PHD%20Doctoral%20Symposium%2009/TamerDarwish0821681.pdf. It was accessed on June 16th, 2010.Paul Dobson and Kenneth Starkey also contributed relevant content. In 2004, John Richards published a revised edition of "Strategic Management Issues and Cases: Black Publishing." More information about this book can be found at http://books.google.co.uk/books?id=ohOJMLEuMwC&pg=PA132&dq=ford+motors+strategic+human+resources+policies+and+practices&hl=en&ei=M4wOTPapItqa_QbqwuTWDQ. In 1969, the book "Organizational Behavior" by Flat World Knowledge was accessed on June 13th, 2010 through [Link]. On June 16th, 2010, James Paul's literature review and theoretical model on the convergence of Strategic Management and Knowledge Management can be found at [Link]. Gaia Martin Garino and Christopher Martin conducted a study in 2005 on the impact of labor turnover in UK micro-data.Source 5: Ben W. Heineman Jr.'s (2010) article titled "The Safety Calculus after BP" from Harvard Business Review can be accessed at hypertext transfer protocol: //www.hbr.org/article/thesafetycalculusafterbp.html on June 14th, 2010.
Source 6: Susan E. Jackson and Randall S. Schuler's (1990) research on Human Resource Planning challenges for Industrial/Organizational Psychologists at New

York University is available at hypertext transfer protocol: //www.rci.rutgers.edu/~sjacksox/PDF/HRPlanning.pdf, accessed on June 12th, 2010.
Kettley P.'s (1995) report titled "Is Flatter Better?" with report number 290 was published by The Institute for Employment Studies. The ISBN of the report is 978-1-85184-216-2.It can be found at hypertext transfer protocol://www.employment-studies.co.uk/pubs/summary.php?id=290 and was accessed on June14th, 2010.
An article called "Keeping control in level administrations" written by Karin Klenke can be found at www.telegraph.co.uk/finance/2953187/Keeping-control-in-flat-organisations.html.
Elaine Kurtenbach wrote an article titled "Honda measuring impact of latest provider work stoppage" in China in 2010.The article can be found at the following URL: hypertext transfer protocol://www.forbes.com/feeds/ap/2010/06/08/business-telecommunications-equipment-as-china-labor-honda_7672123.html?boxes=Homepagebusinessnews. It was accessed on June 6th, 2010.

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