Perspectives Of Human Resource Management

Perspectives Of Human Resource Management Suppose you are the HR Manager in a company. Company is considering the idea of establishing an HR Department to manage its employees efficiently and effectively to use different prospective of HRM, and how flexible workplace play an important role in HR performance and what are main challenges faced by HR manager in flexible workplace, while at the same attain maximum employee satisfaction and loyalty. Your report should address the theoretical background with appropriate examples and flexibility within the workplace This assignment will be done in group. The assignment will include a report to be developed and is to be presented. Client 1: Banking sector (head office) Client 2: Insurance sector Client 3: Telecom sector Client 4: Private University Teacher will have meetings with the groups on fortnightly basis (after 2 weeks). The students are expected to show coordination and commitment towards the group and will discuss their progress in each meeting. If any student is found guilty of non-cooperation or any other issue of major concern, the boss will cut down the final grade of that person. Grading Statement Pass Merit Distinction P1 Explain Guests model of hard-soft, loose-tight dimensions of HRM M1 A range of methods and techniques have been applied D1 Synthesis has been used to generate and justify valid conclusions P2 Review the differences between Storeys definitions of HRM and personnel and IR practices M2 A range of sources of information used P3 Analyse HRM from a strategic perspective and it implications for the role of the line manager and employees P4 Review and explain a model of flexibility and show how this might be applied in practice P5 Describe the need for flexibility and the types of flexibility which may be developed by an organization and give examples of how they can be implemented M3 Apply the relevant flexibility approaches on the organization under consideration and justify your answer. P6 Evaluate the advantages and disadvantages of flexible working practices from both the employee and the employer perspective Outcome 1 Tasks for P1 Discuss the relationship between hard, soft, loose-tight HRM in context of guests model in implementation prospective. This should be done in perspective of information provided to the client. Tasks for P2 Discuss how storeys definitions of HRM are different then personnel and IR practice and what the impact of these practices in organization Tasks for P3 Discuss what is the strategic importance of HRM for any organization. Discuss from the point of view of strategic approaches of HRM. Tasks for M1 The student is expected to apply the approaches and methods discussed at Pass level on the organization selected. Outcome 2 Tasks for P4 Discuss where we can use the model of flexibility in organization and how we can use it for the improvements in the organization selected. Tasks for P5 Where and why organization use flexibility and which type of flexibility are implemented in organization. Task for P6 Discuss if we implement the flexibility in organization what will be the advantages and disadvantages of flexibility in employee and employer context how both are affected in various situation. Tasks for M1 Technique and different model of HRM and flexibility are implemented and how we will get the desire result after implementing these models. Table of Contents Preface  ¦.8 Summary  ¦..9 Guests model 10 Hard and soft HRM 11 Storey model 11 Differences among HRM ANDPM 12 Importance of HRM 13 Application of pass level 14 Flexibility at workplace  ¦15 Need of flexibility  ¦16 Types of flexibility  ¦17 Pro and co of flexibility  ¦18,19,20 Application on organization  ¦21,22 Conclusion   Ã‚ ¦..23 Bibliography  ¦.24 Preface Being HR manger we have develop a report for voicegainz Communication Company that how they can implement different HRM approaches in their organization. We hope our work will be appreciated Summary This report is developed for HR department of voicegainz Communication Company. First of all we have discussed the Guest model and its relation with soft and Hard HRM. We have also discussed the storey model of HRM and explained the difference between human resource management and personnel management. Further we have defined and explained the importance strategic human resource management. Beside this we have also applied this approaches on organizing selected that how can voicegainz take benefits from these model, Furthermore we had discussed the importance of flexibility and why organization needs to arrange flexible working hour. We have also discussed and explained different types of flexibility method. In order to know more in depth we had also explained the advantages and disadvantages of flexible approaches. Beside this we have also applied all these topics on organization selected. At last of report we give a small conclusion of this report. Task for P1: Discuss the relationship between hard, soft, loose-tight HRM in context of guests model in implementation prospective. This should be done in perspective of information provided to the client. Guests model: Guest (1987) extended the Harvard models four HR policy choices of employee in ¬Ã¢â‚¬Å¡uence, human resource  ¬Ã¢â‚¬Å¡ows, reward systems and work systems to a total of seven. These seven policy areas included: organizational job design; policy formulation and implementation and management of change; recruitment, selection and socialization; appraisal training and development; manpower  ¬Ã¢â‚¬Å¡ows, reward systems and communication systems. The correct policy choices will lead to HR outcomes of commitment, competence and cost effectiveness, and result in the long-term consequences of individual well-.being, organizational effectiveness and societal well-being. The perspective of soft HRM and Guest model is somehow same because both approaches emphasize on employee commitment, communication, reward system, appraisal, and on training and development. (http://highered.mcgraw-hill.com) Definition of hard HRM: According to Karen legge definition(human resource managment, 2010) that the hard model of HRM as a process of emphasizing the close integration of human resource policies with business strategy which regards employees as a source to be managed in the same rational way as any other being exploited for maximum return. Explanation: From the above definition its clear that in hard HRM model human resource manager more focus on to merge human resource policies with business strategy. Beside this in hard HRM model people are consider as resource. They are viewed as human capital, in which organization invest and from which organization expect return on its investment to achieve organization goals. According to our course (human resource managment, 2010) in hard approach organization strictly monitor and control employee through quantitative performance management. In this approach employer give less importance to employees. Organization will only invest on employee for business interest otherwise organization will not invest on employees. Soft HRM: According to definition given by legge (human resource managment, 2010) the soft version of HRM as a process whereby employees are viewed as valued asset and as a source of competitive advantages through their commitment, adaptability and high level of skill and performance. Explanation: According to our course book of (human resource managment, 2010) the soft HRM philosophy roots are traced back to human relation management school, which give more importance to communication, motivation and leadership. In contrast to hard HRM approach, soft HRM is totally different approach because in soft HRM model organization treat or consider employee as asset. According to soft HRM approach organization can gain competitive advantages through employees commitment and high skills. Similarly employer must involve employee in decision making due to which employee will be more motivated and committed toward organization. Beside this in soft HRM approach more importance is given to communication and organization culture. Employer must create such an opportunities for employee in organization where they could improve their skills and abilities. In addition soft HRM approach is more a unitarist approach, which means that the interest of employee and management should be same. From my view point this is the point which differentiates the soft HRM approach from hard HRM. Task for P: 2 Discuss how storeys definitions of HRM are different then personnel and IR practice and what the impact of these practices in organization: In 1992 storey (human resource managment, 2010) presented a theory in which he discussed that how traditional personnel management changed into human resource management. He underlines twenty seven points, which differentiate personnel management from human resource management. Storey begins his approach by defining four elements which distinguish HRM from personnel management. Differences between personnel management HRM: One of major difference is that personnel management consider employee as cost and try to minimize this cost. While human resource management consider employee as human resource and aim to improve and develop this resource. According to (michael Armstrong, 2006) the scope of personnel management is very limited as compare with human resource management. The human resource management gives more importance to organization culture and value, the HR manager always emphasis on employee to follow organization mission statement while personnel management emphasis on organization norms, costumes and practices. The personnel management believes that there should be strict monitoring over employees. While human resource management believe totally different. HRM create such an environment where employee works by themselves. The decision making in PM is slow as compare to HRM. The human resource manager considered human resource as asset for organization while personnel management is totally different. The human resource manager takes on board his subordinates toward achievement of mutual objectives. Further In personnel management, employees contract of employment is clearly written and employees must observe strictly the agreed employment contract. The contract is so rigid that there is no room for changes and modifications In contrast to personnel management in human resource management philosophy is more different. In human resource management there is not restriction or any strictness here manager goes beyond the contract. difference copy.jpg Tasks for P3 Discuss what the strategic importance of HRM for any organization is. Discuss from the point of view of strategic approaches of HRM. Definition: According to definition given by Bratton Gold that strategic human resource management is the process of linking the human resource function with the strategic objective of the organization in order to improve performance. (human resource managment, 2010) SHRM: According to this definition that strategic human resource management is the practice of aligning the business strategy with human resource policies in order to achieve strategic goals of the business. The aim behind strategic human resource is that organization must fit its human resource strategy within the framework of overall business objectives and therefore ensure that there is alignment among the human resource practices and the strategic objective of the organization. The changes in the business environment with increasing globalization, changing demographics of the workforce, increased focus on profitability through growth and change in technology forced organization to focus more on SHRM. In order to achieve long term goals its important to give more importance to human resource. The role of the HR manager must parallel the needs of this developing, changing organization. Successful organizations are becoming more adaptable, resilient, quick to change direction, and customer-centered. They recognize that organization will compete for talent in coming years. This recognition brings about the need for employee oriented workplaces and programs that meet the needs of employees for meaningful work, growth, challenge, communication, and effective leadership. Strategic human resource management more concentrates on action which could distinguish the organization from it competitor. It develop declaration of intent which define means to achieve ends its concerned with the long term allocation of significant organization resources and with matching those resources and capabilities to the external environment. The essential aim of ideal SHRM is to produce ideal ability by guaranteeing that the company has the experienced, dedicated and well motivated workers it needs to accomplish continual competitive benefits. (http://www.citehr.com) Task for M: 1 The student is expected to apply the approaches and methods discussed at Pass level on the organization selected. The organization which we selected for this report is a voicegainz communication company which is a local call centre. Which provide services to different companies located in Europe and Afghanistan: according to scenario being HR manager we have to establish HR department in order to efficiently and effectively manage its human resource: In order to establish HR department voicegainz communication we will make HR policy on the basis of guest mode and all other methods which we discussed above. In order achieve high job performance, high problem solving, and similarly to decrease labor turn over, employee absence and to maintain low grievance level voicegainz communication company have to focus on these seven points. Such as organization job design and structure, policy and management of change, communication system, appraisal and training, recruitment and selection, man power flow, reward system. Voicegainz Communication Company has to give more power to its employee. Due to which worker will be able to take decisions. In order to run organization HR manager will forecast the need of human resource for organization. The HRM will also have to attract and retain talented people for organization. It will be the responsibility of HR manager to motivate employees through proper rewards and incentives, in order to control labor turnover. The HR manager is also responsible to manage employee performance. It is his duty to develop proper performance appraisal methods. Beside this HR manager is responsible to develop and manage pay structure for employee similarly its HR manager duty to develop performance pay system and benefits schemes such as pension, maternity and sick pay. Voicegainz Communication Company should develop such a workforce which could compete in competitive environment. The HR manager role is to create motivated and committed workforce for the organization. Further it will be responsibilities of HR manager to ensure that there is proper communication among employee and line manger. However in practical life mostly organization adopt element of both soft and hard HR but we will give more importance to soft HRM approach. The HR manger of voicegainz Communication Company will consider employees as assets and an important source of competitive advantages. Beside this HR manager of voicegainz will have to adopt more democratic leadership style. The HR manager of voicegainz Communication Company has to think more strategically. It will be responsibilities of HR manager to make sure that HR policy and business policies are integrated. This mean that managers take responsibilities for human resource and need to ensure that they have the right people in the right places to ensure that business strategy can be achieve. Outcome: 2 Task for P: 4 Discuss where we can use the model of flexibility in organization and how we can use it for the improvements in the organization selected. Flexibility: According to our course book (human resource managment, 2010)that flexibility first emerged as a major issue in the 1980 in western European countries, mostly due to increased competition, international recession, uncertainty about future market and also due to introduction of new technology. There are some other reasons like increase in number of working women. Similarly majority of workforce have family responsibilities. Beside this there are some countries where an individual cant work more than 48 hours per week on average. In our course book its mention that Due to these changes and demand organizations and employer felt to provide and introduce flexibility in their organization. An organization can use the model of flexibility for different purposes. According to survey conducted by CIPD shows that organizations not only use model of flexibility for the sick of employee need, but also to meet customer needs, to retain employees, and to achieve organization goals. (http://www.cipd.co.uk) We can use model of flexibility in different situation suppose an organization which aim to increase production, offer its employee to work over time or outsource them. In order to decrease employee absenteeism organization may offer flexible work schedule or job sharing scheme. Recently the changes in law also force employer to create more flexible working environment. In 2002 a new act was introduced in UK in relation to flexible working (human resource managment, 2010). According to this law that In order to make a request for flexile working hour employee should follow the below procedure. Employee can request for flexible working arrangement specially Have a child under the age of six years old, or a disabled child(under 18) Employee who have worked for the organization for at least twenty six constant weeks. Employee most request in written form and should write all the reasons due which employee request for flexible working hour. Within 28 day employer has to respond to request whether he accept or reject. If request rejected employee must appeal. If employees think that employer didnt follow rule and regulation, the employee has the right to bring complaint before an employment tribunal within 3 months. (human resource managment, 2010) Task for P: 5 Describe the need for flexibility and the types of flexibility which may be developed by an organization and give examples of how they can be implemented: Need for flexibility: As we know that Due to demographic and social changes the number of people in the paid workforce with caring responsibilities is set to increase. This will in turn increase the demand for flexibility in the workplace. An organization through flexibility can retain best employees. Similarly through flexible workplace organization can also boost productivity and innovation. So these all are the reasons due which need for flexible work place arise. According to our course book of (human resource management and employee relation) that in 1984 Atkinson introduced a new model which known as the core /periphery model) according to this model organization mostly consist of core and periphery employee. According to him that core employee are more important for organization survival because they posses high skills and are more competent. As we said that these employees are more important for organization survival therefore they should be treated differently from other group. Organization should provide them career development opportunity and should be more paid. (human resource managment, 2010) In contrast to core group, periphery group worker enjoy none of the benefits given to core group. There is categorization within the peripheral group. According to Atkinson the first peripheral group is combination of full time labor, but more vulnerable than core group workers. There is no need to achieve functional flexibility among this group as little training is needed to perform the job, since they tend to be less skilled. Beside this there is second peripheral group which is made of staff employed on part time or on fixed term contract. This group has less skill and has less chance of promotions. Similarly this group has lower salary then core group. There is also third group which are consist of external employees who are not directly employed by organization. These are employees such as sub-contractor or employed through outsourcing. The shamrock organization Charles handy used the shamrock organization to apply a model to work force flexibility. The three level leaves of shamrock were used to symbolize an organization human resource. Professional core: According to Charles handy professional core are permanently employed people who represent the distinctive knowledge and competence of the firm. According to him that professional core group are more talented and professionals. Organization will paid them more as compare with others. These people are closer to organization. This group has more knowledge about organization objectives and practices. As we said that they are rewarded with high salaries and award but in return they must show strong commitment toward organization. Flexible labor force: According to Charles handy flexible labor force are not permanent workers. They work temporary or part time for organizations. They join the work when ever organization needs them especially in peak time. for example in Easter festival demand for chocolates increase due to which organization hire worker temporarily in order to meet demand. Contractual fringe: The second group consists of contracted (outsourced) specialists who may be used, for example, for advertising, RD, computing computer, catering and mailing services. They operate in an existential culture; and are rewarded with fees rather than with salaries or wages. Their contribution to the organization is measured in output rather than in hours, in results rather than in time. (human resource managment, 2010) Task for P 5: There are different types of labor flexibility, which can be applied in different situations. We will discuss them briefly. Functional flexibility: Functional flexibility which is also known as task flexibility, in this method employee should know or have multi skills. In this method employer simply provide training to employees in order to learn new skill. In the method employees are redeploy to do multi tasks. The overall aim behind offering functional flexibility is to achieve greater workforce productivity. Location flexibility: In the method there is flexibility for workers to work far away from the office base. In this method employee connect with office via email or any other electronic medium. Such kind of flexibility provides benefit to both employee and employer. Through location flexibility method organization can reduce its office cost. (human resource managment, 2010) Temporal flexibility: It refers to shifting working hours in order to meet production demand. In a situation where there is fluctuation in production and demand employee may work over time. Similarly organization may hire employee for part time job. Numerical flexibility: It referred to the firms ability to operate the number of labor input through working arrangement within the firm or by using the external labor market (e.g., short-term contracts, flexible working hours). Through numerical flexibility method organization can easily handle the fluctuation in demand and supply. (human resource managment, 2010) Flexible working method: There are different flexible working methods. We will discuss them below: Temporal flexibility: Flextime: In this method employee choose when to start and end work. This is the most requested and most affordable type flexible working arrangement. For example an employee chooses to start work on 9am to 4 pm on Monday while on Thursday start work on 11am and end work at 6 pm. Job sharing: In this method workers mostly share the job hours among each other. This option can be difficult for small employer where training may necessary. For example: one worker work in the evening while another does the same job at morning. Overtime: In over time method Organization offer employee to work overtime. A business may ask employee to work overtime in order to increase the production or meet demand. For example in factory normal working hours is from 9 am to 4pm. But employer ask employee to work till 8 o clock. Numerical flexibility: Part time: Part time worker are those workers which work less than 40 hour per week. They are not permanent workers due to which organizations didnt give them other benefits. According to our course book recently government of UK take serious step for the right of part time worker. According to these laws part time worker should be treated equally. Functional flexibility: Multi skilling: in multi skilling employer give training to employee in order to learn multi task. In this method employee do multi tasks Location flexibility: Telecommuting is a perform agreement in which a worker provides out all or some of the responsibilities of the job at house or another different place. From example an employee work in Telecom Company but perform the entire tasks from home. (http://www.hr.ucdavis.edu) Task for P6: Discuss if we implement the flexibility in organization what will be the advantages and disadvantages of flexibility in employee and employer context how both are affected in various situation. As we know that everything has some kind advantages and disadvantages similarly flexibility have some advantages and disadvantages. In article written by CIPD that CIPD believe that flexible working arrangement play very important role in organization success. Further they explain that HR manager can use flexibility as strategic tool. An employee gets more committed toward organization due to flexible working arrangement. According survey conducted by CIPD that workers on flexible contracts likely to be more emotionally engaged, more satisfied with their work, more likely to speak positively about their organization and less likely to quit. However we will discuss its advantages and disadvantages below. Advantages for employer: As we discuss above that due to flexible work schedule employee get more committed toward organization. Similarly flexible work schedule decreased absenteeism because with flexible working arrangement employee can easily make balance between work and family responsibilities. Due to flexible working schedule organization can retain more talented workforce. Beside this organization can recruit outstanding employees due to flexibility. By providing flexible working environment organization can develops its corporate image. (michael Armstrong, 2006) Disadvantages for employer: Similarly arranging flexible working hour has some advantages. It may take much cost to administer the schemes. Because employee should be trained that flexible polices and also the bills of utilities such as gas, telephone etc increase due to extra usage. Beside this employer can also face communication difficulties because everyone have different working hour. Advantages for employee: Flexible working arrangement has lots of advantages for employee. Employee can manage his working responsibilities and family responsibilities. Similarly employee gets satisfied and more motivated. They enjoy the workplace and less likely to get tired or bored from job. Through some method employee can gain experience for example multi skilling method Disadvantages for employees: Through flexible working arrangement employee can also get tired for example in compressed hour method employee may work for long time. Similarly Multi-skilled employee has to work more so it creates burden for him/her. Some time for employees it become difficult to manage or complete the task for homes. (human resource managment, 2010) Task for M2: Use different sources of information to justify your implementation of in organization. In order to complete this report, we have collect data from our course book, from teacher slides and from different website which keen be seen as bibliography at end of the report. Task for M: 3 You will have to justify your choice of flexibility approach applied in the organization. Consider organizational type and resources which are relevant to HR. As we know that there are different types of flexibility, which can be use in different situations. Here we have developed some flexible working arrangement for voicegainz Communication Company. We have proposed two kind flexibility such as location and, temporal flexibility: as voicegainz is telecommunication company therefore it will be will beneficial for employees by offering for them tele -working, flexi time and job sharing. Tele-working: by offering tele-working flexibility employees will enjoy to work from their home. Employee will no more face rush hours, pollution and will also minimize travel cost. Employee of voicegainz will be able to balance their work and family responsibilities. Beside this employer will also get benefit from this method because it will save overheads, particularly premises cost because know a days rent for buildings are rising. Flexi time: by offering flexi time employees will easily manage their working hour and family responsibilities. Those who have any urgent work can easily will choose when to arrive and leave. As voicegainz have 24/7 service system therefore employee can easily its working hours. It will also increase the morale of female employee because they are allowed some time to go earlier. Job sharing: as voicegainz communication company have 24/7 service therefore It helps company to carry out its work with without i.e. whenever employee is absent due to any reason then there is always someone in the company to carry out his/her tasks. In order to request for flexible working employee will pass from below process Task for D: 1 Synthesis has been used to generate and justify valid conclusions Conclusion: Guest (1987) extended the Harvard models four HR policy choices of employee in ¬Ã¢â‚¬Å¡uence, hu