Human Resources Management In Personnel Management Commerce Essay Example
Human Resources Management In Personnel Management Commerce Essay Example

Human Resources Management In Personnel Management Commerce Essay Example

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  • Pages: 12 (3225 words)
  • Published: July 15, 2017
  • Type: Case Study
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The concept of human resource management, formerly known as personnel management, has evolved due to advancements in technology and society. According to Hall.R (1992), HRM is an expanded version of traditional personnel management. However, Hackman, J R and Oldham, G R (1986) differentiate between the two by stating that personnel management focuses on the workforce while HRM prioritizes resources. Guest (1987) sees HRM as a specific form of personnel management that emphasizes strategic issues such as employee commitment and quality. Ian Beardwell & Len Holden (2001) define HRM as a consistent approach to managing employees strategically. Hall, D T (1984) believes that all management decisions affecting the organization-employee relationship fall under HRM. Jackson, S.E & Schuler (2003) view HRM as a unique approach to employment management for gaining competitive advantage through skilled and committed staff.

This essay titled "Sign posting and the Functions of HRM: An

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alyzing the Impact of External Environment Factors" critically evaluates how human resource plays a role in organizations in relation to external environmental factors. The analysis includes discussion on HR patterns that enable organizations to gain sustainable competitive advantages with relevant examples provided. In conclusion, recommendations and decisions will be made.The text discusses the significance of Human Resource Management (HRM) in today's business environment and its role in understanding external factors. HR practitioners have been recognized as valuable assets, with organizations placing more importance on HR to gain a competitive advantage against market rivals (Ulrich, 1997). To remain competitive and sustain growth, organizations must constantly assess their internal and external environments (Bratton & Gold, 2007). Factors like political, economic, social, and psychological changes within society significantly impact organizations. These changes are caused

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by globalization, restructuring, and workforce mobility as depicted in Diagram 1. HR functions are also affected by these changes. Additionally, organizations continuously evaluate their strategies to address challenges related to terrorism and economic crises while staying competitive in a globalized economy. These challenges have an ongoing impact on recruitment and selection processes. Selection is defined as gathering and evaluating information about individuals for job offers according to Julie Beardwell and Tim Claydon (2007).Guest, D E et al. (1996) discussed the significance of measuring the cost per hire and its relation to acquiring employees. They also highlighted the importance of rules and regulations in protecting employees from unfair treatment during recruitment and selection in today's business environment. Therefore, HR plays a crucial role in ensuring non-discriminatory hiring for available positions. For instance, McDonald's corporation follows government regulations in its recruitment process by employing people from diverse backgrounds worldwide (McDonald's enlisting structure, source: www.mcdonalds.com). Laurie J Mullins (2002) states that the supply of labor function involves HR developing practices to enhance employee performance. However, factors like the 9/11 terrorist attacks and credit crunch have led organizations to downsize their workforce due to economic struggles. The key challenge for HR is making decisions on recruitment or downsizing while meeting market demands without causing financial loss. Diagram 3 illustrates the equilibrium point and emphasizes the importance of HR in planning for labor demand versus supply with the aim of achieving desired output. It is critical for companies to optimize profits and reduce labor costs (Source: Charman.A, 1999).

Example 2

Virgin Media plans to reduce around 2200 jobs by 2012, which accounts for approximately 15% of its workforce.According

to CEO Neil Berkett, the measures taken by the company are justified based on HR projections for employee requirements during the economic downturn and changing customer preferences in the market (Source: www.bbcnews/business). The significance of HR functions has shifted over the past decade, as they are now considered crucial by business partners and actively participate in strategic business planning. This includes decision-making on production choices, locations, target customers, and volume estimation. These considerations form part of an organization's planning process. Business strategy refers to how an organization defines its mission and objectives while effectively utilizing resources to achieve those goals. HR plays a crucial role in developing strategies in the complex and dynamic business environment. The main goal is to assess the talent pool to determine if there is suitable expertise required to fulfill the organization's strategies. Integrating HRM with business strategy allows human resources to support and implement strategic plans, giving the organization a competitive advantage (Michael 2001; Armstrong Forthcoming 2010).Maximizing human capital, increasing labor efficiency, reducing costs, and increasing productivity are key factors in achieving the goal of maximizing profits. An example that highlights the significance of HR in supporting corporate strategy is Goldman Sachs. In 2010, it was ranked as the second-best employer to work for. Mr. Michael Sherwood, Vice President of Goldman Sachs, attributed the company's success in supporting their corporate strategy to HR's contribution in every possible way (source: http://www2.goldmansachs.com). Additionally, training and development play a vital role within HR. According to Becker, Huselid.M, & Ulrich.D (2001), these activities aim to improve employees' skills and knowledge to support organizational goals and gain a competitive advantage. Ulrich.D (2001) defines preparation and

development as a systematic approach towards enhancing employee skills for improved efficiency. Recent statistics from The United Kingdom Society for Training & Development reveal that UK organizations invest over ?10 billion annually in employee training and development due to the necessity of integrating technology into their strategies.Companies that provide training and development for their employees have been proven to outperform their competitors. This is because they have a better skilled and efficient workforce that meets customer demands, while also generating a positive reputation for the company. Mr. Terry Joseph, the manager of Morrison's Stoke Newington branch, attributed the branch's success in 2008 to the training provided by HR. The employees gained more skills and knowledge which resulted in improved performance.

Training offers several benefits including improving employee attitude and enhancing their knowledge and skills for better job performance. It also boosts confidence and enthusiasm, leading to increased earnings. Furthermore, training promotes workplace safety by educating employees on proper equipment use and reducing the risk of accidents and legal issues.

Nando's is an exemplary company that prioritizes training and has won multiple national awards in the UK for their programs. They offer various training options such as restaurant opening preparation, management teamwork, coaching programs, initiation preparation, and staff development through a buddy system.

Another company that emphasizes training is Nissan Motors. They provide both employee and auto parts supplier training to ensure efficiency and meet customer quality expectations.Griffiths and Williams (1999) state that HR has a vital role in helping organizations adapt to external factors such as economic changes, customer demands, workforce migration, technological advancements, and trends like the credit crunch. The ability of HR professionals to plan and

implement necessary changes in the organization to improve performance is crucial in a continuously changing organizational life.

According to Gupta, A. and Govindarajan, V. (2002), there are various processes that can be utilized to initiate change. Some models include Kotler's eight-step strategy for change management:

1.Establish a sense of urgency: creating a sense of agency within the organization for change.
2.Make the guiding alliance: building strong leadership for change.
3.Develop a vision and strategy: creating a clear vision for change.
4.Communicate the change vision: effectively communicating the change to the entire organization.
5.Empower employees for wide-ranging action: granting authority and empowerment to employees.
6.Generate short-term wins: providing rewards or recognition for employees.
7.Consolidate gains and generate more change: making necessary adjustments to all activities that do not align with the change.
8.Provide support and reinforcement: offering ongoing support and reinforcement throughout the process.

Procedure of alteration

Anchor new approaches in the culture.

Example 7: Harley and Davidson Company

Implementing new technology in production, the HRM team at Harley and Davidson drew inspiration from Japanese methods. They introduced a strategy called "productivity three" with the goal of reducing inventory costs, improving consistency, and enhancing quality.

Example 8: Ducati

After its IPO in 1990, Ducati underwent significant changes to shift from an informal organization to a formal one. This included implementing three elements: employee engagement, just-in-time (JIT) stock list patterns, and statistical operator control (SOC) techniques. These changes encouraged workers to participate in decision-making processes, engage in quality formed circles, and take direct responsibility for improving bike quality. The HR department played a crucial role in this transformation by focusing on individual and organizational learning through programs like the Leadership Institute Program. They simplified the structure through team creation and clearly defined

roles while also adjusting job descriptions and production processes to eliminate non-value-adding roles.The HR function in Organizational Behaviour, as defined by Michael Armstrong (2009), studies how individuals feel, think, and behave within organizations. According to Daft (2001), the current economic conditions have caused increased turbulence in organizations, making it difficult to predict organizational behavior. This is evident through job losses and financial difficulties resulting from the credit crunch and terrorism. It is now crucial for HR departments to understand employee needs and how organizational policies can impact their behavior.

At Argos shops, the HR section recognizes the importance of understanding organizational behavior and has implemented a strategy of providing seminars within the organization to prepare individuals for any future changes or restructuring.

Job analysis, according to Guest and Peccei (1994), involves describing the nature of a job in relation to human requirements such as necessary experience and skills. The occupation analysis terminal provides a detailed description of responsibilities and activities involved in a specific task. Employees and managers rely on this description to gather information and determine its influence on occupation design. Companies like Apple value occupation analysis as it contributes to production efficiency and maintaining quality standards, as shown in Example 10.The HR department ensures that employees are familiar with their responsibilities and duties. Staffing is another HR practice that involves recruiting and selecting workforce for the organization. This text discusses various HR practices, including attracting and selecting qualified candidates for job vacancies. In Example 11, Guest, D E and Horwood, R (1981) mention how companies like Amazon and Starbucks create budgets to hire both full-time and part-time employees throughout the year. Example 12 features Gill

Crowther, the head of great managers at Microsoft, emphasizing the importance of creating a positive environment to attract top candidates.

Orientation is another HR practice mentioned by Hall, R (1996), which involves helping new employees adapt to their roles through information about working hours, policies, and expectations. 4Print Limited, a publishing company in Greater London, UK, is known for providing comprehensive orientation for new hires. They provide comprehensive information on job expectations, company culture, salary rates, and working hours as discussed in Example 13.According to Mr. Steve,the director of the company they are able to achieve better execution compared to competitors by using an orientation pattern that provides employees with work-related information for efficient task performancePerformance appraisal involves monitoring employee performance to ensure it meets acceptable levels and includes evaluating job performance and accountability as well as providing feedback for future improvement. It serves as a basis for determining compensation and taking disciplinary actions when necessary. Ford is an example of a company facing difficulties with their assessment system where they implemented a rating system targeted at eliminating older workers resulting in discrimination based on race, gender, and age.

Career development has emerged due to employees' desire for growth and advancement in their careers according to D. Fombrun, N Tichy, and M.A Devenna (1998). Career planning activities involve assessing an individual employee's potential for growth and promotion within the organization.

Example 15

Boston Consulting Group (BCG) offers a framework that ensures success and flexibility for employees by providing training and support to help them pursue their chosen career paths. With operations in over 65 countries worldwide, BCG provides its employees with the opportunity to face diverse challenges while carrying

out projects in different parts of the world.

Example 16

Arm ltd (Architecture for digital world limited) believes that the key to innovation lies in having the best people, which is why career development is prioritized. The company offers a range of on-the-job and formal training opportunities aimed at enhancing employees' skills.The available learning resources for employees include initiation, mentoring, coaching, classroom preparation, higher instruction aid, leadership programmes, technical preparation, rotation programmes, seminars, and team development sessions (Guest et al., 2000b).

Labour relations involve interactions between the organization and trade unions who represent employees in negotiating and discussing issues related to employees' rewards, working conditions, and other employment rights. HR practice in this context primarily focuses on negotiating with trade unions and resolving disputes for the benefit of both employees and the organization (Nickson, 2007).

In the case of British Airways and brotherhood negotiations were weak resulting in costly employee strikes (Example 17).

Record-keeping is crucial in maintaining various employee information such as application forms, personal history and references, health history,and most importantly employment history. Other essential records include earnings,hours worked absences ,and turnover. Comprehensive workforce records are increasingly important in HR practices today(Marks & Spencer example) (Guion,R.M.,1993; Cyr,D.J.,1995).www.marksandspencer.com emphasizes the importance of understanding the workforce for efficient job allocation. Michael Porter suggests that competitive advantage can be achieved through cost leadership, which involves accessing affordable resources and implementing effective production techniques like JIT. One way to reduce HRM costs is by utilizing technology, such as e-learning. Low employee turnover helps with client retention and reduces recruitment and training costs. Competence, knowledge, skills, abilities, and motivation all contribute to job performance.The text discusses the importance of work-related attitudes such as

job satisfaction, commitment to the organization, and being a responsible corporate citizen. It mentions Toyota and People Express Airlines as examples of companies using HRM practices to improve production efficiency and reduce costs. The text also talks about differentiation as a competitive strategy where a company aims to be unique in its industry by offering valued attributes. HRM practices are mentioned as a sustainable source of advantage that competitors find difficult to imitate, according to Dennis Nickson (2007). However, it is noted that the impact of these practices may not always be favorable due to interdependency between systems. Mercedes Benz is given as an example of an organization that prioritizes dependability and quality despite high prices. The text highlights the need for considering external factors in HR practices and functions in the current economic climate. Effective HR practices are said to give organizations a competitive edge over rivals, with Nandos serving as an exemplar for its commitment to employee development and providing necessary skillsThe significance of HR functions, such as employee acquisition, workforce assessment, and organizational change management, in today's economic conditions cannot be overstated. Many companies have realized the importance of investing more in employees rather than machinery to stay competitive and increase net income. For example, Toyota has implemented knowledge management systems to enhance employee proficiency through knowledge sharing. This strategic responsibility lies with Toyota's HR department. Nissan goes even further by recognizing the role of HR in aligning company strategies with HR strategies. These concepts are discussed in various publications including "Global Mergers and Acquisitions: The Human Resource Challenge" by Charman.A (1999), "The Human Resource Challenge of International Joint Ventures" by Cyr,

D.J. (1995), "Human Resource Management" by Dennis Nickson (2007), "Human Resource Management" by Derek Torrington, Laura Hall & Stephen Taylor (2002), and "Employment Relations Management" by D.E. Michie, J. Sheehan, M.Conway (2000). Another relevant book is "Human Resource Management" written by D.Fombrun, N Tichy and M A Devenna (1998) and published by Wiley in New York.

In 1981, an article titled "Characteristics of the successful forces director," was published by D.E. Guest and R. Horwood in Personnel Management (pages 18-23).In 1999, D. Griffiths and L. Willams published a book on Human Resource Management, which was published by Prentice Hall (pages 24-25). A publication titled "Cultivating a Global Mindset" by A. Gupta and V. Govindarajan can be found in the Academy of Management Executive Vol.16, No.2 in 2002.

The nature and causes of effectual human resource management were explored by D.E. Guest and R.Peccei in a publication from 1994. Another publication from D.E.Guest, N.Conway, R.Briner, and M.Dickman titled "The State of the Psychological Direction" was published in the British Journal of Industrial Relations in June 1996 (pages219-42).

D.E.Guest, J.Michie, M.Sheehan, and M.Metochi conducted the Future of Work Survey with their initial findings being published as "Effective People Management" in 2000b by the Chartered Institute of Personnel.

J.P.Guilford authored a book called "The Nature of Human Intelligence," which was published by McGraw-Hill in New York in 1967.

R.M Guion published a symposium on industrial morale in Forces; Psychology journal (pages59-64) in 1993.

In a publication from Pearson's Human Resource Management journal in 1994, R.A Guzzo and K.A Noonan studied human resource patterns as communication and the psychological contract.

In their book "International HRM: Contemporary issues in Europe," authored by C Brewster and H Harris

and published by Rutledge London in 1999, J Haley discussed localization as an ethical response to internationalizationHall.R (1992) analyzed the strategic analysis of intangible resources in Strategic Management published by Pearson imperativeness on pages 135-44. In a paper presented at Durham University Business School on May 9th for the CIPS Conference, R Hall (1996) explored supply chain management as a challenge for the twenty-first century. Hackman.JR and Oldham.GR (1986) conducted research on motivation through work design in Organizational Behaviour and Human Performance on pages 250-79. D.T Hall (1984), published by Will Inc., focused on human resource development and organizational effectiveness. Ian Beardwell & Len Holden's book Human Resource Management (2001), published by Pearson Education Limited is also referenced. Jackson.S.E & Schuler discussed managing human resource through strategic partnerships in chapter 2 of their book on pages 4,5 & 8. In John Bratton & Jeff Gold's fourth edition of Human Resource Management (Theory and Practice) published by Palgrave Macmillan in 2007 is cited as well. Julie Beardwell and Tim Claydon's fifth edition of Human Resource Management (A contemporary Approach), Published by Pearson Education Limited in 2007 is another source used.
The following texts contain references to various publications, authors, companies, and websites: - Laurie J Mullins (2002) Management and Organisational Behaviour, Sixth edition, published by Financial Times Pitman.- Laurie J. Mullins (2007) Management and Organisational Behaviour, eight editionsThe text includes information about various sources, publications, and URLs. These include:

- Michael Armstrong (2009) Human Resource Management Practice, 11th edition, Published by Financial Times Pitman. Pg 481.
- Michael Armstrong (2006) Human Resource Management Practice, Tenth Edition, Published by Kogan Page Limited.
- Michael Armstrong Forthcoming (2010) Human Resource Management Practice,

Published by Kogan Page Limited.
- Michael (2001) HRM and Business Performance, Chartered Institute of Personnel and Development, London.
- Peter Boxall & John Purcell (2003) Strategy and Human Resource Management, Published by Palgrave Macmillan.
- Purcell J. (1999) Best fit or Best practice Chimera or cul-de-sac, Human Resource Management journal pp26-41.
- The Becker.B., Huselid.M & Ulrich.D (2001). The HR scorecard: linking people, strategy and performance published by Harvard Business school press.
- Ulrich D. (1997). Delivering Results: A New Mandate for Human Resource Professionals, Boston: Harvard Business School Press.

In addition to these publications:
-Terry Morrison Supermarkets Plc Supermarkets is located at 49A Stamford Hill Stoke Newington London N16 5SR.
-Steven from 4Print closers Ltd can be found at Unit 6 Northgate Industrial Park Collier Row Rd Romford Essex RM5 2BG.

The following URLs contain information about various websites:
-http://www.nandos.co.uk/index.cfm
-http://www.bbc.co.uk/news/technology/tecnnology-10850465protocol: //www.mcdonalds.com/us/en/home.html

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