Different Models of Strategic Human Resource Management
Question:
Discuss about the Employee perceptions of line management performance.
According to Armstrong (2014), the framework for strategic human resource management depends on the factor that problems related to the historical management of employees can possibly be solved when the general managers develops a point of view on how they expect to see the involvement and evolvement of the employees. Armstrong also said that without a strategic vision or central philosophy, the activities of the HRM would represent set of independent activities guided by its own tradition of practice. However Beer et al (2015) stressed on the Harvard framework of HRM that stresses on the role played by the line managers who in their view should have acceptance of more responsibility for ensuing the alignment of the competitive strategy with the policies of the employees. These line managers should also have mission of setting the policies that governs how the activities of the employees implemented and developed in a mutually enforcing manner. The Harvard Framework also initiated the required link between the strategic human resource management decisions (SRHM), the performance of the organization and the business environment. The advantages of the Harvard Framework of HRM include:
- Ensures recognition of a wider range of interest of the stakeholders.
- It helps in recognizing the trade-offs, either implicitly or explicitly between the interest of the owners, employees and the various groups.
- Helped in widening the context of the HRM for including the employee influence, the work organization and the supervisory style.
- Helped in broadening the range of contextual influences on the choice of the management strategy thereby suggesting a meshing of socio cultural and product market logics.
- Emphasizes choice and not determined by environmental or situational determinism.
Now the comparison of the different definitions of Strategic Human Resource Management is based on the various models. The Best Fit Model stresses on the fact that human resource strategies must align with the organizational strategy (Bal et al. 2013). The Competitive Advantage Model of HRM is based on Porter’s generic strategies that are cost leadership, differentiation and focus. The Configurational Approach of strategic human resource management helps in recognizing the existence of the hybrid strategies and the limitations of focusing on the vertical integration. The Resource Based Model of strategic human resource management depends on the nature of the reward and effort exchange. There exist four characteristics of capabilities and resources that include value, inimitability, rarity and non substitutability. According to Pfeffer (1998), the high performing work system refers to the set of practices that aims at high performance as well as commitment towards the organization irrespective of the sector.
The fundamental model for analyzing the contribution of the HRM to the effectiveness of the organization puts forward that performance represents a function of Ability plus Motivation plus Opportunity, also known as the AMO theory (Bos, Van and Kees 2013). The persuasion and encouragement of the people for utilizing their discretion for the performance improvement of job can be explained in respect to the AMO theory. The Ability (A) is based on the assumption that people will ensure applying for jobs in an organization that defines the process of recruitment, ensure recognition of the attributes which implies the selection and will learn newer behaviour and skills which is a process of development and training. The Motivation (M) depends on the assumption that people are motivated for using their ability in the productive manner since they will be responding to the various intrinsic and extrinsic stimuli and rewards. The opportunity (O) is based on the assumption that people will not only ensure better customer service or higher quality work beyond the level of satisfaction.
Contribution of HRM to the Effectiveness of Organizations
The contribution of HRM in term of effectiveness in the organizations is explained with the help of examples. For instance, in Apple, the HR tried to implement innovation through creation of jobs that required coordination but also close interaction. In Pfizer, the strategy of the HRM was to enhance the quality which was done by providing explicit and fixed descriptions of jobs. However, in Ryanair the strategy was cost reduction which the HRM did through closer monitoring of the pay levels of the market for usage in the decisions for compensation.
The hiring stages adopted by the Human Resource management involve various stages that include (Bratton, J. and Gold, J., 2017):
Applicant Screening: This involves screening of the cover letters and the resumes based on the set criteria. The qualified candidates will appear for the screening interview.
Candidate Interview: Depending on the volume of the selection candidates there are various types of interviews that are scheduled. This includes:
- Structured Interview: In this type of interview the employer creates the interview questions based on the abilities and skills and each interviewee is asked the same set of questions and in similar order (Brinkmann 2014).
- Consist of standardized questions that help in standardized response.
- A more straightforward approach in producing the statistical results
- Ensures higher rate of response
- Presence of interviewer for explaining the question for avoiding misinterpretation
- Cognitive Ability Test: This is a type of psychometric assessment designed for measuring the general intelligence and involves categories like numerical, spatial, abstract, verbal and mechanical reasoning (Benjamin, Brown and Shapiro 2013).
- It is objective and quantitative with no observer bias
- Non invasive method
- Can be repeatable
- Can be used as indirect measure for mental ability or intelligence
- Work Sampling: This represents the statistical method that allows quicker analysis, recognition, enhancement of the job responsibilities and performance competencies while determining the organizational flow of work.
- Ensures unbiased results
- Interruption of studies does not affect the results
- Can be conducted by any person with limited training
- Can be used for studying team work
- Less time consuming and economical
Finalist Decision: One of the most important final steps is the evaluation and confirmation of suitable choice for the position based on all relevant information. There is also selection of back up candidate as well (Skec, Storga and Tecec 2016).
IMI Human Resource Needs of Organizations in Different Sectors of Economy
Private Sector: In the private sector the human resource not only helps in improving the bottom line of the company through strategic management but also help in setting the wages and salaries (Brewster and Hegewisch 2017). For instance, the HR has made use of the competitive advantage model for reducing the cost of Ryanair by closely monitoring the pay levels of the market in order to make compensation decision.
Public sector: The HR in public sector works towards effective collaboration with other sectors in a cost effective manner (Bouckaert, Peters and Verhoest 2016). They also identify efficient ways of working and fostering innovation. In public service, HR also ensures greater use of outsourcing and shared services.
Not for profit: The centre of any non profit organization lies in its mission and the primary need of HR in such organization lies in managing this vision and keeping it alive amongst the employees(Nussbaum 2016).
After Jaguar won the award for the best quality plant in Europe, it progressively adopted the production systems of Ford along with implementation of new HR policies that involved using the full time and part time members at work. The human resource management(HRM) now holds a track of five minutes for each day on a set topic compared to the 15 minutes that was allotted initially for discussion. HRM also encourages the team for a routine maintenance by being a part of the Ford Total Preventive Maintenance (FTPM) (Purcell et al. 2018). This acted as empowerment and influenced the introduction of the new models and the new production lines.
At Selfridges the HRM consciously set out in changing the brand image amongst its staffs by making it more revitalized. There was creation of focus groups amongst the staffs with the introduction of a 360-degree or 180-degree appraisal system (Purcell et al. 2018). There was an implementation of a broad banded pay an arrangement that led to the replacement of the length or age of the service with a progression based on performance. There was creation of a newer staff council along with an introduction of the six monthly assessment performance reviews, widespread use of the mystery shopper who reported the customer centric skills of the staffs and a ten- minute briefing break. The HRM also made sure to introduce a formal communication amongst the team members on a monthly basis.
Resourcing: The HRM focuses on dealing with the people and how their decisions influence the productivity of the organization (Marchington et al. 2016). The HRM not only helps in building teams within an organization but it also helps in building the organizational culture.
Performance Management: The HRM holds the responsibility of keeping the people motivated for their performance with an effective mechanism of feedback from time to time.
Learning and Development: This helps in improving the business performance along with efficiency and productivity thereby helping them in gaining a competitive advantage.
Reward: The reward comes in the form of workplace quality which is defined by the safety and comfort within the workplace. The HRM helps in maintenance of the work place quality by assessing the present conditions of the employees and by considering the thought and concerns of the employees.
Employee Relations: The HRM helps in simplifying the relations of the employees in workplace by ensuring certain workplace standards and addressing employee concerns.
The levels of strategic decision making include and how the human resource management feeds into corporate strategy are as follows:
Stages involved in Hiring Process
Implementation of Corporate Strategy: This involves consideration of the dealings of the business
Implementation of Business/ Competitive Strategy: This deals with the ways of establishing and sustaining the competitive advantage
Implementation of Functional Strategy: Includes the contributions of the functional groups of the organizations like the operations, finance and human resource.
The development of the Human Resource Programs for implementation of the HR strategy can be done following the five fundamental questions which are mentioned as follows (Becker and Huselid 1998):
- By knowing the strategic objectives of the firm
- By knowing how they can be translated to the unit objectives
- By considering the unit managers views on the performance drivers for those objectives
- By considering the motivation, skills and structure if the workforce of a firm
- By considering the influence of the HR system on the motivation, skills and structure of workforce.
Boxell and Purcell (2003) put forward a differentiation between the various types of strategic decisions. According to them, the upstream decision-making refers to the long-term nature and direction of an organization whereas the downstream decision-making is referred to the implications of the upstream decisions on the structure of the organization.
According to Ulrich et al. (2012) the roles in HRM function in the Organization are as follows:
- Role of Strategic Positioner: Here the HRM know the context of business, contributes to development of the relevant strategies for business and helps them in translating to goals and plans.
- Role of Credible Activist: This is the stage for getting the things done and delivering the results. The HRM needs to posses strong interpersonal skills for making sound decisions related to business
- Role of Capability Builder: This is where the HRM helps in defining the organizational capabilities and ensures their reflection of the organizational values.
- Role of Human Resource Innovator: Here, the HRM helps in innovating and integrating HR practices around the business issues. In addition, the HRM also helps in aligning the procedures and structures with the capabilities of the organization and desired results of the business
- Role of the HR Change Champion: At this stage, the HRM helps in developing the organizational capability for implementing the change by overcoming resistance to the change. This where they make sure that there are availability of necessary resources.
Acting as Technology Proponent: Here, the HRM contributes to the effectiveness of the management information and ensures application of social networking for helping people to stay connected.
However, the roles in Strategic Human Resource Management are as follows:
Senior Management: Helps in providing visionary leadership along with defining the values and purpose of the organization. They also set direction and help in developing higher level strategies for the organization (Marler and Fisher 2013). They also implement the functional strategies. Operations involving product, service, marketing, customer service, HR and IT are not only prepared but supported and implemented.
Front Line Management: According to Purcell et al (2003), they help in instilling life to the HR policies and play a vital role in the implementation and engagement. They also involve in the formulation of the strategies that impacts them.
HR Director and HR Business Partners: They help in envisioning the ways of implementing the corporate strategy into the human resource strategies at the higher level. They play a key role in the development of the organization (Ulrich et al. 2014). They also ensure exerting their influence on how the businesses managed, staffed and organized.
- Involving people from all parts of business
- Creation of shared vision having strategic importance
- Establishing the gap that exists between the aspirations for future and the present reality
- Creation of a map of the system
- Considering the futuristic dynamic nature
- Ensuring agreement of the broad issues and themes and development of guiding principles involving the line managers
- Defining the basis for the strategy including the business element, environmental factors and the cultural factors
- Putting forward the details for the proposed strategy of HR
- Implementing a rationale and a plan of action
- Analysis of the costs and benefits
This refers to assessing the requirements in the light of analyzing the business needs of present and the future people by ensuring justification to where they are now, where do they want to be in the next couple of years and determining the ways of getting there (Sweeney2013).
Implementing HR strategies include:
- Conduction of a rigorous analysis of requirements and needs
- Formulation of the strategy
- Enlisting necessary support for implemented strategy
- Assessing the barriers to the success
- Preparing the required action plans
- Implementation of Project Management
- Following up and evaluating the progress along with taking remedial action
In order to deal with employee absenteeism, turnover, employee engagement and customer service levels the human resource management implements the following policies and procedures:
- Ensures collective bargaining (CB)
- Ensures implementation of communications policy and practice
- Ensures employee involvement and participation
- Ensures handling of grievance
- Ensures administration of Discipline
- Implements change and aspects of social responsibility
The human resource management can also implement:
The process of workforce planning can however take various forms but is particularly about bringing the business strategy into operation as per the determined action setting for ensuring that the workforce has the capability of delivering the strategic objectives and goals of the organization (Armstrong 2014)
The HRM must ensure the alignment of the talent strategy with the corporate strategy and consider it a priority. Strategic analysis from the perspective of business should include the external and internal trends and fed into the forecast of the human resource that will help in shaping the tailored approach of talent management of the organization (Marchington et al. 2016).
Succession planning refers to the process of development and identification of the new leaders who will be able to replace the old ones when they retire, leave or die. Succession planning prepares the experienced and capable employees for assume these roles (Calareso 2013).
References:
Armstrong, P. 2014. Limits and possibilities for HRM in an age of management accountancy. New Perspectives On Human Resource Management op. cit. at, 154-166.
Bal, P.M., Kooij, D.T. and De Jong, S.B., 2013. How do developmental and accommodative HRM enhance employee engagement and commitment? The role of psychological contract and SOC strategies. Journal of Management Studies, 50(4), pp.545-572.
Becker, B.E., Huselid, M.A., Becker, B.E. and Huselid, M.A., 1998. High performance work systems and firm performance: A synthesis of research and managerial implications. In Research in personnel and human resource management.
Beer, M., Boselie, P., and Brewster, C. 2015. Back to the future: Implications for the field of HRM of the multistakeholder perspective proposed 30 years ago. Human Resource Management, 54(3), 427-438.
Benjamin, D.J., Brown, S.A. and Shapiro, J.M., 2013. Who is ‘behavioral’? Cognitive ability and anomalous preferences. Journal of the European Economic Association, 11(6), pp.1231-1255.
Bos?Nehles, A.C., Van Riemsdijk, M.J. and Kees Looise, J., 2013. Employee perceptions of line management performance: applying the AMO theory to explain the effectiveness of line managers’ HRM implementation. Human resource management, 52(6), pp.861-877.
Bouckaert, G., Peters, B.G. and Verhoest, K., 2016. Coordination of Public Sector Organizations. Palgrave Macmillan.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in European human resource management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Calareso, J.P., 2013. Succession planning: The key to ensuring leadership. Planning for Higher Education, 41(3), p.27.
Marchington, M., Wilkinson, A., Donnelly, R. and Kynighou, A., 2016. Human resource management at work. Kogan Page Publishers.
Marler, J.H. and Fisher, S.L., 2013. An evidence-based review of e-HRM and strategic human resource management. Human Resource Management Review, 23(1), pp.18-36.
Nussbaum, M.C., 2016. Not for profit: Why democracy needs the humanities. Princeton University Press.
Pfeffer, J., 1998. The human equation: Building profits by putting people first. Harvard Business Press.
Purcell, J., Kinnie, N., Hutchinson, S., Rayton, B. and Swart, J. 2018. Understanding the People and Performance Link: Unlocking the black box. [online] Available at: https://file:///C:/Users/gitz/Downloads/2032872_1891439874_UnlockingTheBlackbox-CIPD%20(1).pdf [Accessed 11 Mar. 2018].
Skec, S., Storga, M. and Tecec Ribaric, Z., 2016. Work sampling of product development activities. Technical Gazette, 23(6), pp.1547-1554.
Sweeney, J., 2013. A strategic review of further education and training and the unemployed. Ireland: Department of Education and Skills.
Ulrich, D., Younger, J., Brockbank, W. and Ulrich, M.D., 2013. The state of the HR profession. Human Resource Management, 52(3), pp.457-471.
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