The phenomenom of human resource management Essay Example
In the early 90's, HRM was considered a new and influential concept in understanding employment relationships. Various changes were observed, such as a decline in trade union membership, organizational restructuring, and an increase in atypical forms of employment like temporary and contracted work. However, there is still no universally agreed definition for HRM. Watson (2002) pointed out that the term is used confusingly. Broadly speaking, HRM can refer to any approach to managing people. For instance, Boxall and Purcell (2003) used it to encompass all activities related to managing employment relationships within a company.
Human Resource planning has been effective since the times of Max Weber, a German Lawyer who viewed sociology as a comprehensive study of social action. Weber identified four types of rational behavior including goal-oriented rational behavior where both the goal and means are rationally chosen.
taking logical steps towards achieving the goal. Another term for this is "Technocratic Thinking". We prioritize reason in striving for a goal even if the goal itself may not always be rational; we pursue it through logical means.
of that power. Organizations are categorized based on their legitimacy: charismatic authority, traditional authority, and rational legal authority.
The text at hypertext transfer protocol://www.hrmguide.co.uk/history/classical_organization_theory.htm discusses Taylorism and its impact on management. It suggests the possibility of a science of management where problems and solutions can be catalogued, classified, standardized, and made predictable. F.W. Taylor developed an autocratic approach to management in the early 20th century that included detailed task specifications and selecting the best person for each job. According to Taylor, workers were expected to follow instructions precisely for efficient physical work.He also advocated for rewarding the most efficient workers through premium payment. Taylor's ideas led to Fordism, a production philosophy developed by Henry Ford that relied on continuous assembly line techniques. Fordism was dominant in global manufacturing until the 1980s. The stopwatch method, known as Time and Motion, was used to measure work and increase efficiency while minimizing time and effort waste. Continuous Improvement, or Kaizen, is a Japanese production method that encourages employee knowledge and creativity to continuously improve product manufacturing and development (Source: [link]). In the 1950s and 1960s, human relation approaches were part of a larger behavioral science movement which saw the development of influential theories on human performance motivation. Maslow's hierarchy of needs focused on why people work by highlighting their pursuit of fulfilling various needs from survival to self-actualization. Job design concepts such as job enrichment and job expansion also emerged during this period (Source: [link]).
The alliance between Human Resources (HR) strategies and business strategy development is seen as closely aligned processes. According to Schuler (1992), strategic human resource management links HR policies and practices with a company's business objectives
and plans, distinguishing it from traditional personnel management.
The people management strategy is influenced by and influences the business strategy. However, product, market, and financial considerations are still important. Instead, decisions in these areas are informed by the organization's knowledge of its intellectual capital. This contribution becomes even more significant in cases where strategy formulation is an emergent or evolutionary process. It allows the organization to leverage its knowledge of its people's capabilities or take advantage of improvements in skills and abilities.
By adopting a forward-thinking people management strategy, the organization can pursue more challenging business goals that require higher levels of knowledge, ability, or innovation from its workforce.
Purcell (1989) and Purcell and Ahlstrand (1994) differentiate between "upstream" first-order decisions that determine the long-term direction or scope of the enterprise. They also differentiate "downstream" second-order decisions that deal with internal operational procedures and company structure to achieve objectives.
'Downstream' 3rd-order decisions refer to strategic determinations concerned with human resource structures and approaches. These establish the fundamental parameters of employee relations management within a company.
According to Ulrich (1998), due to various competitive challenges an organization faces, its human resource management needs to develop strategies to address issues such as globalization.
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One of the main challenges for organizations is to have the intellectual capital necessary for a responsive global organization. This requires finding, hiring, compensating, and retaining talented individuals. Adapting to continuous change is the biggest challenge for HRM strategies. HR managers need to be able to learn quickly, embrace new strategies efficiently, and develop a human resource strategy that suits their organization. The following model presents an excellent approach towards HR strategic management.The text discusses a model consisting
of six steps for HR management, as outlined by Michael Armstrong and Angela Baron in their publication "Strategic HRM: The key to improved business performance" (2002) and the Naval Personnel Task Force in their report "A strategic Human Resource Management System for 21st century" (September 2000). These steps include defining the strategic direction, planning the HR management system, planning the entire workforce, acquiring necessary human resources, investing in human resource development and performance, and evaluating and sustaining organizational competency and performance.
Currently, the Corning Glass Company is evaluating its top 100 executives to assess their entrepreneurial abilities. This evaluation aims to gain a better understanding of executive talent within the organization with regard to managing different sections of the BCG matrix. An example of this occurred in December 1979 when they reshaped their electronic strategy due to market expansion. They appointed a manufacturing specialist who had demonstrated skill in customer relations to a top selling position within the electronics department. This decision appears to be successful as he effectively turns things around.
Between 1975 and 1980, significant managerial changes took place at Chase Manhattan Bank.The careful selection and placement of executives at a strategic level played a crucial role in turning around the troubled bank in the mid-70s. In the past, senior positions at Chase were typically filled based on connections and past experiences, prioritizing banking accomplishments over managerial ones. However, Chase recognized the need to review these traditional practices and implemented a strategic effort to effectively manage senior selection and placement decisions.
For example, when the trust director retired, instead of hiring a seasoned banker, corporate management chose someone with experience at IBM to bring a fresh
marketing perspective aligned with the bank's new growth strategy. Similarly, when restructuring its retail banking business to expand consumer financial services offerings, Chase hired an executive with previous entrepreneurial management experience from a small industrial company.
Compared to other companies like GM or Exxon, General Electric's diversification adds complexity to their evaluation process for directors. With over 200 concerns within GE itself, evaluating directors becomes more challenging.GE has implemented sophisticated methods to manage the evaluation of key directors. While smaller companies often go unnoticed in mergers and acquisitions, mega-mergers attract significant media attention. The merger between Hewlett-Packard and Compaq is a prime example of this trend in smaller trades. One important strategic activity at GE is the "Slate System," which involves close oversight by the president for the top 300 positions. A specific staff group, led by a senior vice president, reviews these key activities and collaborates with line directors to create lists of eligible candidates for important roles within GE. Only individuals on the approved slate are considered for these positions, meaning that a business leader cannot select a vice president of marketing unless they are included on the official slate list. Ultimately, the slate must be approved by Human Resources. If a manager wishes to strongly advocate for an individual not on the slate, their decision must be escalated through the hierarchy at GE until it reaches the president.
Deloitte has merged its existing estate arm with Driver Jonas, a property advisory company, to enhance its capabilities in the property sector. This merger is expected to generate ?100 million in new business revenues. Around 650 partners from Driver Jonas will join Deloitte's corporate finance division.
KIA
Motors remains committed to social and environmental responsibility.
KIA Motors' management aims to create a prosperous life through their cars and bring harmony and mutual benefits to shareholders, customers, and the car industry. They strive to become the number one global leader in the automotive industry by focusing on innovation. Their goal is to elevate the KIA brand and ensure customer happiness by providing cutting-edge technology, superior quality, and exceptional service. KIA prides itself on its commitment to reform and taking on challenges with an ambitious spirit. They promote creativity and innovation while satisfying customers with advancements that respect both people and nature. KIA Motors announced the "Globalization of Sustainable Management" in June 2004 in partnership with the ministry of Environment. They regularly publish related studies to share progress and evaluation results with the public as part of their commitment to open communication. Each individual unit within KIA sets environmental goals based on their policy, which are supported by detailed plans at the department level. To address relevant issues and take a leading role in environmental management, KIA has formed an Environmental Committee.
The committee convenes annually to evaluate environmental performance and promote further improvement. KIA Motors has multiple committees dedicated to the environment, such as the Environmental Products Committee, the Environmental Production Committee, and the Environmental Management Committee. KIA Motors also implements an Ethics Charter that emphasizes Trust Management, on-site direction, crystalline direction, and strengthening corporate ethics. This horizontal direction system helps maintain KIA Motors' esteemed reputation. Moreover, KIA Motors differentiates itself from competitors by providing customers with a 7-year product warranty instead of the typical 3 or 5 years. This decision grants KIA Motors a
global competitive advantage.
To address low staff morale, Sainsbury's has introduced new HR initiatives as part of a ?950 million rescue plan. Following a three-month strategic review, the supermarket chain acknowledged that low staff morale significantly contributed to its recent financial struggles. The review recognized Sainsbury's committed and dedicated workforce but identified room for improved morale. Consequently, Sainsbury's implemented a new strategy aiming to incentivize and reward co-workers based on store standards and availability in order to cultivate a customer-focused culture. Additionally, they have launched staff suggestion programs and recognition strategies.Sainsbury's is planning to hire an additional 3000 store staff and optimize working hours to better meet the needs of their customers. Similarly, as the world's largest retailer, Wal-Mart recognizes the importance of having a satisfied and efficient workforce. Despite lower wages typically found in the retail industry compared to manufacturing, Wal-Mart offers various benefits to attract, retain, and develop top talent. These benefits include pensions and the opportunity for employees to become stockholders through the Associate Stock Ownership program.
Wal-Mart also provides additional perks such as childcare discounts for employees with children, reimbursement for completing the GED for both employees and their partners, as well as scholarships for employees and their families. Furthermore, they are implementing a new technology-based program aimed at improving employee engagement and productivity. This program involves analyzing data to match potential employees with suitable job positions.
According to www.gdpublishing.com/ic_pdf/ers/walm.pdf (dated 14-02-2010), Sportech has announced plans to acquire SGR from Scientific Games Corp for $83m in cash and shares. This acquisition would position Sportech as a global leader in pools betting. The president of Sportech refers to this move as transformative, stating that it
will elevate the company onto the international stage.To raise funds for its acquisition and other initiatives, Sportech plans to generate $47m through a fully underwritten placement and an open offer of ?58.4 million in shares, priced at 50p each (source: City A.M Dated 15-01-10).
Executive Summary
Human Resource direction encompasses various practices in the field, such as recruitment, selection, and assessment. It also involves formal policies that guide and somewhat restrict the development of these practices. Additionally, it entails implementing HR doctrines that aim to define the values that drive an organization's policies and practices. However, numerous companies have embraced a new Strategic Human Resource policy as a means of achieving Competitive Advantage in today's world.
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