HRM AND THE DESIGN OF WORK

MICHAEL ARMSTRONG

• IDENTIFICATION OF ISSUE: Less financial outcomes

• APPLIED THEORY: The Harvard Model of HRM

• PRACTICAL THEORY: Incorporate both hard and soft HRM 

• LINKED THEORIES: The Harvard Model of HRM & Guest Model

• SOLUTION: To understand the issues by communication schedules.

When choosing an HR model, consider factors such as business strategy, organizational design, industry and competition, HR team capabilities, and cost-effectiveness. Business strategy should guide the decision, while organizational design and structure can influence the most effective model. Industry and competition also play a role in designing HR's position. HR team capabilities should be considered when comparing different models.(Saleh, Yaacob, and Rosli 2015)

Introduction

Human Resource Management is a strategic approach to acquiring, developing, managing, motivating, and gaining commitment from key organizational resources. With over 16,000 HR vacancies in counties, there is a high demand for professionals. Great Learning Academy's Human Resource Management Course provides essential knowledge. Automation has made HR professionals' work easier and faster. The Executive PG Program in Management offers comprehensive knowledge about management functions and processes(Dcruz, 2022).

1. Planning of Human Resources

Resource planning is crucial for an organization to achieve its objectives and efficiently use resources. It involves understanding the number and type of employees needed for specific goals and tasks, forecasting future requirements, and aligning the hiring process. HR professionals must understand department requirements and candidate types to create effective plans for expansion, ensuring the company is neither understaffed nor overstaffed(Brammer, Jackson, and Matten 2011).

2. Recruitment

Performance management determines employee productivity and engagement through effective leadership, feedback, and communication. Modes include bi-annual reviews, manager reviews, peer reviews, and customer feedback(Marmara et al. 2022).

3. Performance Management 

Human Resource Management is crucial in hiring suitable candidates for an organization. HR professionals must coordinate with teams and understand their skills and mindset before advertising or interviewing. Recruitment determines the talent essential for an organization's success(Soylent Communications, 2024).

4. Learning and Development

Human Resource Management is crucial in fostering future-ready skills and knowledge among employees. Employers allocate 0.5% of their annual bill pay for employee development, as it is mandatory in the UK for employers with over £3 million annual bill pay(Saleh, Yaacob, and Rosli 2015).

5. Compensation and Benefits

Compensation and benefits are crucial for an organization's total cost expenditure. Human Resource Management professionals must create attractive and efficient packages to attract employees while maintaining company finances. Their primary objective is to provide fair and equitable compensation, while also setting guidelines and policies for employee compensation and benefits(Parsons 1991).

.....................................................................................................................,.........................................................................The Soft HRM System prioritizes employee needs as a crucial business resource, offering high business transparency, financial rewards, long-term plans, professional development opportunities, and a modern, democratic leadership style. It includes higher-income models, bonus packages, professional development opportunities, and appraisal systems(Weeks & Chepesiuk, 2003)

HR managers should compare soft and hard HRM approaches to determine the best fit for their organization. While Millennials favor soft HRM, hard HRM components are crucial for productivity and profit. For instance, software companies use soft HRM to boost engagement, while new service sector businesses apply strict HRM(Brocklesby, 1995).

Storey Model – Hard HRM – Soft HRM (1989):

Hard HRM:

• Individualistic
• rejection/marginalization of industrial relations
• dismissal of contrasts of perspectives amongst chiefs and workers 
• emphasis on gaining work efficiencies
• sharp financial focus

Soft HRM:

• Workers viewed as exploitable assets.
• more of concern with the employee’s views
• Emphasis on employee relations
• Employee involvement and commitment encouraged
• Humanistic edge of thinking
• Development of core employees

Soft HRM system offers advantages such as increased employee morale, productivity, and motivation, leading to higher retention rates and reduced recruitment costs. It also fosters strong word-of-mouth marketing, improving company culture and recruiting top talent. However, it can be costly for employee training and may delay decision-making due to increased departmental involvement(Druker et al., 1996).

HR managers often have personal styles that don't align with a specific system. To switch, check definitions and key qualities and measure which style suits your business needs(Weeks & Chepesiuk, 2003).

Four main types of Communication occur within a company:

• Upward communication
• Downward communication
• Diagonal communication,
• Horizontal communication. 

Hard HRM is characterized by one-way communication and autocratic leadership, leading to short-term goals and quick removal of low-performers. Soft HRM, on the other hand, allows for 2-way communication, innovative ideas, and long-term goal fulfillment. It encourages a motivated workforce, reducing the need for replacements but causing longer replacement times due to the nature of this approach(Muriithi, 2020). 

REFLECTION 

Human Resource Management is a strategic approach to acquiring, developing, managing, motivating, and gaining commitment from key organizational resources.  HR professionals must plan resources, conduct performance management, and create effective expansion plans. Learning and development are crucial for fostering future-ready skills and knowledge among employees. Compensation and benefits are essential for maintaining company finances. Soft HRM systems prioritize employee needs, offering high business transparency, financial rewards, long-term plans, professional development opportunities, and a modern, democratic leadership style. HR managers should compare soft and hard HRM approaches to determine the best fit for their organization. Soft HRM systems offer advantages such as increased employee morale, productivity, and motivation, leading to higher retention rates and reduced recruitment costs. However, it can be costly for employee training and may delay decision-making due to increased departmental involvement. HR managers often have personal styles that don't align with a specific system.

References

Dcruz, N. (2022, Nov 21). Great Learning. Retrieved from Major Functions of Human Resource Management: https://www.mygreatlearning.com/blog/human-resource-management/#:~:text=According%20to%20Michael%20Armstrong%20(1997,work%20in%20and%20for%20it.%E2%80%9D  

 Muriithi, P. N. (2020). Line managers and the application of the Harvard HRM model. The International Journal of Business and Management, 8(10). https://doi.org/10.24940/theijbm/2020/v8/i10/bm2010-008

Soylent Communications. (2024, 03 23). NNDB Tracking the entire world. Retrieved from Soylent Communications: https://www.nndb.com/people/040/000052881  

 Weeks, D., & Chepesiuk, R. (2003). The Harvard model and the rise of shared storage facilities. Resource Sharing & Information Networks, 16(2), 159–168. https://doi.org/10.1300/j121v16n02_03