The Guest Model and Warwick Model of HRM
1. The models of Human Resource Management help in providing the analytical Framework that is necessary for evaluating the human resource management of a company. These models are also responsible for validating certain practices and also gives the distinction among the HRM practices. The models are responsible for providing HRM characterization that is responsible for establishing variables as well as the relationship that needs to be examined.
The Guest model was developed by David Guest in the year 1997. In this model, there is an assumption that the human resource manager needs to initiate specific strategies that involve the use of certain practices which leads to a certain result. The outcomes are generally related to behavioural performance and associated with financial reward. There is an emphasis on the logical Sequencing of strategy, practices, outcomes, result and consequences (Grant, 2016).
The model was developed by Hendry and Pettigrew and similar to the other models, the proposition of this model is focused on 5 specific elements which are the Macro environmental factors, the internal factors, the content of business strategy, the context of Human Resource Management as well as the content of Human Resource Management (Marchington, Wilkinson, Donnelly & Kynighou, 2016). The primary advantage of using this model is that it identifies as well as classify is the various environmental influencers that affect the human resource management and by taking into account the internal as well as external content, the model helps in developing a cognizance of the business strategy as well as the HR practices (Brewster, Chung & Sparrow, 2016).
In the case of KiwiFurniture, the organisation operates in a global market primarily from New Zealand. The human resource management department of the organisation is involved in the roles of bystanders as well as advisors. The local strategies and policies implemented in the company are formulated in the respective local HR departments (Wilton, 2016). However, the implementation of these strategies as well as policies are managed by the central HR department. Hence it is easy to understand that the local and the Global Human Resource Management policies can vary (Marchington, 2015). Hence it can be conclusively stated that one of the human resource management models implemented by KiwiFurniture is Warwick model which considers the internal as well as external factors while policy formulation and implementation.
According to the case study, the HR activities implemented in the company are decentralized which means that the local managers take help from the international human resource management team in cases of recruitment as well as termination of an employee. This means in such a case the company utilizes the Guest model of Human Resource Management wherein Strategic management is emphasized more in comparison to the other models where personal development and management is focused on (Stone & Deadrick, 2015). The human resource management practices involve hiring, training, compensation, developing relationship and appraisal. The outcomes of implementing the guest model include increased flexibility, enhanced commitment as well as quality. The guest model not only improves the performance but also helps in motivating the individual to co-operate and perform its role in the organisation. Implementing this model imbues positiveness, increases productivity, brings about innovativeness along with an improvement in quality (Lasserre, 2017).
Performance Management Strategies and their Application at KiwiFurniture
2. As already discussed performance is a very crucial parameter of a business organisation and hence it is necessary to identify that strategies that can strengthen the management of performance in an organisation. In the context of an international organisation such as KiwiFurniture, the importance of performance management is more profound. International businesses implement several strategies for reviewing and monitoring performance management. However, by taking notes of the case study, we can assume that at least 2 different four strategies are undertaken by KiwiFurniture. These two strategies are mainly behavioural approaches and result based approaches.
Behavioural approach has been mentioned in a psychological study as an approach which is based upon the human behaviour and its ability to learn another. According to this approach, the human behaviour can be modified and conditioned in order to bring about the performance by providing the right input as well as techniques at the right moment (Saebi, Lien & Foss, 2017). Implementing a behavioural approach helps in understanding the various motivational factors of the individual employees and this information can be effectively utilised by the organisation to enhance the productivity. It can be clearly understood that behavioural approach if undertaken can result in a very strong feedback and monitoring system of employee performance which can be utilised by an international organisation like the KiwiFurniture to sustain in the competitive market (Ryazanova, McNamara & Aguinis, 2017).
It should be also noted that there are certain aspects of the behavioural approach that is criticised by many. There exists a belief that the procedures involved and the analysis of the findings along with the conclusions that are drawn from them are not linked rationally to each other. Furthermore, the conclusions cannot be justified due to the inadequacy of the evidence. It is assumed that there is an awareness of the simple relationship between satisfaction of employee and productivity (Mandhachitara & Allapach, 2017). However, this is not true as productivity and happiness are influenced by Complex behavioural phenomena. The behavioural approach also fails to focus on the employee attitude which is very critical as an influencer to the performance as well as productivity (Jensen & van der Voordt, 2016).
The concept of result-based management is focused on the result. The results can be defined as measurable changes that result due to a certain action or cause. There are three different types of results that are commonly confronted in result-based management strategy (Ray & Mondal, 2017).
These are the results that are produced as a consequence of the actions taken during the course of a project by utilisation of the project resources.
These results are a consequence of the direct results and the intensity of impact of such results depend on time. The various aspects of this result are not under control and can be influenced by other factors.
The impact of the project can be only visible after a long period of project completion and in the context of a broad environment. Similar to the intermediate results, the outcome and effect can be influenced by other factors.
Recommendations for Improving KiwiFurniture’s Performance Management Programme
Result based management approach is favourable because it helps in defining the realistic expected outcome on the basis of appropriately analysing the various factors in play (Trivedi 2016). It also helps in clearly identifying the beneficiaries of the program which helps in designing the policies and strategies that will be able to fulfil their needs. Result based management is a very critical monitoring process that examines the results produced and the resources utilised by adhering to the proper indicators. Result based management is also very helpful in identifying as well as managing the various risks without ignoring the expected results and the required resources.
The first recommendation that can be provided is that KiwiFurniture adopts payment methods that take into consideration the evidence of work done and merit of the individual as compared to the traditional pay based on positioning. This strategy will enable KiwiFurniture to motivate the employees to work at greater efficiency. The recommendation is valid because the company needs to minimise unnecessary spending on employees who do not produce any result. Implementation of the strategy will also help in achieving overall congruence for KiwiFurniture as merit-based payment will reduce dissent among those employees who work hard and are loyal to the company. In order to ensure jdc company needs to provide and communicate the employees with a clear goal setting, objectives as well as the expectations. In order to boost the efficiency of the employees, the company can make use of feedback model training sessions. The 180 degree feedback is usually undertaken by companies to identify the gaps and competencies and generate learning opportunities that are tailor made for the organisation. Utilising this feedback based system will enable the employees to identify their own vulnerabilities as well as merits. This is very important for the recommendation given as the company will provide the employees and opportunity to improve and develop themselves in accordance to the new policy. Normally such type of feedback exercise is implemented on the middle and lower levels of management.
KiwiFurniture can also implement a rewarding and penalizing system for behavioural issues. The recommendation is valid as most of the conflict between the management, the workforce and the client a resultant of bad behaviour and attitude. Rewarding good behaviour will help in promoting the same in the corporate culture. The recommendation is specific because it will help in dealing with the several issues related to customer service and employee satisfaction. The recommendation is congruent as we have already discussed that there is an indirect relationship between productivity, performance and employee satisfaction. For KiwiFurniture to implement this recommendation it is necessary for them to improve the present behavioral appraisal program which can not only provide their employees with evaluation of their annual performance and efficiency in goal achievement but will also rate them on the basis of their behaviour. Implementing this system will enable the corporate to understand the obstacles to employee motivation and reasons for declining efficiency. If it is possible to overcome the barriers and obstacles, KiwiFurniture will enjoy the commitment and loyalty of motivated employees and this will boost the strategic congruence of the organisation.
Cultural and Institutional Aspects to Consider for Global Performance-Based Pay System Implementation
Another recommendation that can be suggested for KiwiFurniture is a rewarding individual taking an initiative nurse in things they do. This recommendation is very precise because it will help in dealing with the result-based approach of the company. As the case study portrays that some of the subsidiaries in certain Geographic sections do not participate to critically appraise strategies, colleagues or superiors. Rewarding initiatives will benefit the company as it will bring new ideas to the corporate and at the same time will be effectively useful for feedback and monitoring. Hence this makes the recommendation both valid and congruent for KiwiFurniture. It is very necessary to implement a feedback friendly culture in case of KiwiFurniture because it will help in developing effective communication channel that will in turn be useful for bringing about improvement in areas of trust, respect and commitment. As we have already understood that a 180 degree feedback system will not be widely popular in countries in the Asia Pacific region, the management can set off face to face interviews in meetings to understand the several aspects of the individual employee of the organisations in the region. Enabling a feedback friendly culture will help in increasing the level of open communication which in turn will be responsible for boosting employee participation which can act as a very good platform for taking initiatives which are aligned with the goals and objectives of the organisation.
3. The following provides the the 6-D model used by Hofstede Insights that requires to be kept in the books of every organisation preparing to expand:
Power distance: This component can be defined as a measure of the expectations and acceptance of unequal distribution of power by the less powerful members present in the organisations or institutions in a specific country (Saleem & Larimo, 2017).
Individualism: Individualism is a fundamental issue which is defined by the degree of interdependence of members among themselves in a society.
Masculinity: This dimension indicates the fundamental issue of what motivates people to work. The two motivations are namely desire to be the best and to do what the heart desires.
Uncertainty avoidance: This dimension helps in measuring the action of the society on being threatened by ambiguous as well as unknown situations leading them to create believe as well as Institutions.
Long-term orientation: This element is a measure of the ability of the society to maintain links with the past while tackling the challenges of future and present times.
Indulgence: This dimension is a measure of the extent of the degree to which individuals will try to control the desires or impulses (Mazanec, Crotts, Gursoy & Lu, 2015).
Figure 1: Hofstede Insights for France, Japan and New Zealand
(Source: )
Change Management Philosophies for Implementing Performance Management System at KiwiFurniture
In order to implement the Global Pay based system in France, it is necessary to consider the few cultural aspects such as masculinity and individualism and the institutional aspect of power distance. As we have already defined the terms power distance, individualism and masculinity, next step is analysing the figure provided above. It will be beneficial to understand the impact of the cultural aspects on the strategy of global pay-based system in France (Teke?, Üzümcüo?lu, Hoe & Özkan, 2018). France has a score of 71 which makes it a highly individualistic society where the children are raised to be emotionally independent and this is responsible for making French employees self-motivated to become the best in their trade and hence they take the issue of customer service very seriously. The other cultural aspect that has been observed in France is masculinity. Going by the figure it can be observed that the French society is more or less of a feminine society with the score of 43. It has been also observed that the upper Echelon of the society is more feminine while the lower working class is masculine (Braud, Frederick, Harvey, Leong & Lane, 2017). This means that the upper-class individual is more likely to follow their heart in things they do while the working class tries to be the best at what they do. The institution on the respect that has been chosen for analysis is power distance. This variable itself in a combination of masculinity and individualism makes the French society rather unique society. France scores highly in this dimension with a score of 68 and this means that the French society has an acceptable degree of unequal power distribution (Arage, Belanger & Beshah, 2015). It has been observed that most of the French company have a single- or two-tier Hierarchy system and the superiors enjoy perks and benefits which the common workforce does not. The high score in term of power distance and individualism leads to a unique situation where the seniors or superiors are formally respected but behind their back, the employees do not follow the instructions of the superior because of the individualistic approach. The French society requires strong and efficient leadership.
In the case of Japan, the power distance is scored at 54 which means that the Japanese society is borderline hierarchical in nature. The society also values merit more than hierarchy with the philosophy that everyone is born equal and they can become anything if they work hard (Degens, Endrass, Hofstede, Beulens & André, 2017). The Japanese society also scores an intermediate of 46 in the individualism dimension which means that the society values group harmonics over individual opinion. It is a paternalistic society and this means that the people of Japan are loyal to the identity inner group. In terms of masculinity. Japan scores a very high 95 which in combination with the Mild individualism aspect makes people less assertive and display lower competitive individual behaviour. However, there is a serious competition among the groups (Braud et al. 2017). This means that in a corporate environment the Japanese people are motivated working as a team to win against the competitors. Japan is known for its excellence as well as perfection in terms of production and services as well as presentation. This is a very good example of the masculine feature of the corporate environment in Japan. Women members of the society find it difficult to ascend the corporate leaders because of the masculine norms complemented by the long hours of work (Shortall & Kharrazi, 2017).
New Zealand has a very low score in the dimension of power distance. This means that within an organisation the hierarchy has been established for convenience purposes and the upper Echelon of the organisation is accessible by the common workforce as the superior are managers are dependent on the individual employees or teams. In such a setting there is a continuous infrequent sharing of information where the mode of communication is direct, informal and participative (Amlinger-Chatterjee, Baumann, Osborne, Mahmud & Koole, 2018). New Zealand is a highly individualistic country as they score 79 in this dimension which means that the society is loosely knit and people are only concerned with their own problems. In terms of business, the employees are expected to be self-reliant and sufficient and display the capability to take an initiative. The hiring of an individual in an organisation depends on the merit and evidence of work. New Zealand is a masculine society and its scored 58 in this dimension and this means that the society is based on the value to become the best. As an individual and the individual will be hired are promoted on the basis of the lifetime success and achievement. The society also encourages personal level conflict resolution with the aim to win.
4. For KiwiFurniture to penetrate into the major markets of Japan, New Zealand and France, it is necessary to bring about certain changes in the way the things have been done in response to the factors existing in each of these markets. The report has already analysed the cultural and institutional aspects of these countries which is necessary for a business organisation to implement it Human Resource Management and performance management strategies. The management philosophy that is currently utilised by KiwiFurniture requires to change and adapt to the changing Geography, culture and Society.
Currently, KiwiFurniture is aiming towards work and performance efficiency. The Strategies and policies implemented by the HR department may not be suitable enough for the different market in which they are being implemented due to the cultural and institutional differences among each of these markets (Goetsch & Davis, 2014). Human resource policy that can be effectively implemented in New Zealand may not be implemented to that extent in the case of Japan. This requires the constant information exchange among the international HR management and the local managers. The corporate values of the company are marketed to the Employees using company-issued magazines and newsletter. Since KiwiFurniture has not outsourced the HR tasks and responsibilities, it means that the local managers are responsible for introducing the new initiatives and make use of appropriate human resource tools.
It has been observed that in Asian markets such as Japan, it is difficult to implement the Strategies and tools that have been implemented globally in all the subsidiaries as there is a lack of integration. The management should focus on motivating employees by taking consideration of the cultural and institutional aspect of the country to increase the exchange of information as well as initiatives among the team members in these subsidiaries. By motivating employees, the corporate may be able to develop a work environment that promotes employee driven ideas which will help in increasing team participation as well as provide a platform for taking initiatives (Lozano, Ceulemans & Seatter, 2015).
Every day is a crisis situation for a big company like KiwiFurniture and the corporate needs to shift its focus towards crisis management that includes identification of potential hazards and pitfalls, devising Strategies and policies to deal with them and help in developing a clear goal for the resolution of the problem. This change in Philosophy will not only minimise the chance of failure or hazards occurring in a company but will also act as a framework for improving the performance of the company. The hazards in question do not only mean natural disasters or the accident but also symbolise the internal conflict, workplace disputes, inability to implement strategies, failure to take initiatives to name a few.
Company is recommended to implement the ADKAR 5 step model which is associated with creation of effective business conditions in order to bring about changes. This model can be effectively applied to New Zealand as well as France. Higher levels of individualism in France makes the ADKAR the best suited model to be implemented which will be responsible for creating awareness as well as desire among the workforce subsequently followed by creating value added knowledge that will promote the abilities of the individual employees to achieve the target and set goals (Bratton & Gold, 2017). New Zealand and France, both have high score in individualism which makes it relatively easier for promoting a desire to bring about change which if linked with the individual performance goals as well as achievements will be able to effectively communicate the performance goals of the company (Armstrong & Taylor, 2014).
The 180 degree feedback system needs to be implemented in New Zealand as well as Japan because usually and has a very poor power distance score while the Japanese do not believe in being critical of others performance. The 180 degree feedback model will help in providing clarity which will help in reducing the communication gap due to power distance in New Zealand and provide a platform to have open communication in Japan (Nankervis, Baird, Coffey & Shields, 2016).
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