Human capital dimension
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TABLE OF CONTENTS
INTRODUCTION 1
TASK 1 1
Using a model of HRM, what is your analysis of the current situation? 1
TASK 2 4
Using the RBV approach, analyze the role of senior management team at Farradaw and how strategic role can be secured 4
REFERENCES 8
TABLE OF FIGURES
Figure 1: Guest model of HRM 1
Figure 2: Resource Based View Approach 5
INTRODUCTION
Human resource management plays crucial role in managing entire functions of the organization and that usually helps in enhancing productivity of the firm (Levi, 2010). The present research has been made on Farradaw Solutions which designs and manufactures bespoke solutions to underground process control systems that feature in service
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In the present case, Guest model of HRM can be applied as the situation can easily be understood by the major 6 dimensions of the model (Freeman and Ceriello, 2011). The model states that HRM is highly distinct from personnel management as the strategy it undertakes are highly changeable and effective. Figure 1: Guest model of HRM
(Source: Gannon and et. al., 2012)
The company has effective HR strategies which help in building range of products categories. Since the company has been growing steadily, employees with a big investment undertake number of projects from different contractors (Hackman and Lawler, 2001). The company has been facing several employment issues which has always been dealt by Susan and her personal assistant who plays full time personnel management role. Myatt (local branch secretary of the CIPD) has been playing sincere role as she is very much committed towards supporting all development opportunities and she always encourage non technical staff members to upgrade skills level. She is also involved in several HR activities such as selection, recruitment and she aims to emphasize recruiting only skilled and talented workforces (Gannon and et. al., 2012). This states that she helps the organization to focus on employee retention strategy so as to acquire market share and high growth. To manage the employees in
Human resource management refers to the process of dealing with people or controlling them. It plays an important role in effective utilization of human resources and bringing effective people in an organization (Attridge, 2009). With the following research at DaVita, one shall come to know about the standard model of HRM and how it is employed in the strategic planning of an organizational structure.
The model emphasize on the vertical integration between the business strategy and HRM function. It promotes “Unitarism approach” i.e. managers and employees cannot have conflicting views as they are working to achieve the same goal and effective management of people will vary from organisation to organisation depending on organisation culture.
1. Executive Summary: Whenever there is a change n incumbency at the top management, new incumbent would like to have SWOT analysis of the organisation. Jessica Walker the new incumbent HR director of Sunshine Steels observed that HR services of the company were in shambles. Every HR expert would like to learn and rectify the deficiencies in the policies followed in the past. This case study is helpful in achieving both the objectives.
According to this model, HRM practices are interrelated and directed towards organizational performance. It also identifies the existence of a human resource cycle with inherent HRM practices carried out in all organizations. Unlike the Harvard Model, the Michigan Model lends more weight to control than influence in managing human resources. Put another way, it does not consider the distinct nature of human resources as compared to the other organizational resources.
Human Resource Management (HRM) is the terminology used to illustrate formal systems devised for the management of people within an organization. It is the method of managing an organization or company that is directly related to the employees of that particular organization. The success of a business often rely heavily on the performance of managing human resource. Maximizing the desires and benefits of an organization and helping a business grow by rewarding employees to help motivate and push them in their performance is one of the main aim of HRM. By doing this, it will have a positive impact on both the company and it’s entire organization.
It is important for HR Management to transform from being primarily administrative and operational to becoming more strategic contributor because of the involvement of competitive advantages through a company s’ employees. Strategic HR managers need proceed with the professional growth by hiring employees with high potential and giving them opportunity to learn and make lot of experience from their job roles where can access to brightest future in the industry. Secondly, the executive succession where the strategic HR managers will hiring the potential successors and grooming them with experience and advancement to be ready for replacement of the owner of company. A company can be in right direction if proceed with the strategic succession planning. Third is the labor cost efficiency. Strategic HR department mainly focus on their top performers who effort the most to organizational goals and long-term company success. A strategic HR philosophy ensures the employees satisfied perfect where by paid to
‘Human Resource Management is a strategic approach to managing employment relations which emphasizes that leveraging people’s capabilities and commitment is critical to achieving sustainable competitive advantage or superior public services.’ (Bratton and Gold, 2012, p.7). Therefore, it is important to understand the concept of human resource management model and how does it work and influence organization. While many model of HRM emerged, soft and hard model are both most widely adopted (Truss, et al., 1997). Both soft and hard HRM model are emphasizing to integrate the HR policies with business strategic, but the main distinction is how organization sees individual, which is as resource in hard model or as human in soft
The key parameters of the employee retention are the major activities & functions of Human Resource Management Department of any company, so, it can be said that the role of HR Department in any company is of very crucial nature and the key requirement. Human Resources department operational in current scenario is continuously engaged in preparing and implementing strategies to retain talented individuals with the company. Whereas the major issue in employee retention is their expectations and rapidly growing market with more lucrative and competitive offerings. Therefore, it can be easily noted the recruitment and selection of skilled individuals is a same level equal challenge as the retention of those employees with the company. It is now very important for the companies specially the multinationals and global
Guest (1987) demonstrates some sort of model of HRM which is motivation primarily based, and that is specific by
Guest’s theory(1989) of HRM(further explanation in appendix 1.2) is an expression of this approach, which is known to be a prescriptive model based on four HR policy: Strategy integration, commitment, flexibility and quality, to generate the desired organisational outcomes which are high job performance, problem solving, change, innovation and cost effectiveness; and low employee turnover, absence and grievances. However, the goals identified in this theory are unattainable without emphasis to factors in the environment that will help to shape human resource strategic choices. It also fails to recognise the different stakeholder interests that impact on employee behaviour and performance, resulting to high labour turnover, growing cultural sickness, low morale and disengaged
Human Resource department is a part of the General Office and is made of six employees – the Director of the Department, Recruiter, HR Administrator, Junior HR Administrator, HR Specialist and HR Junior Business Analyst. Now the department makes all the HR functions by itself – from the search of potential employees to the employment contract signing, placement of the employee and on-boarding process. The department also makes screening process by itself, which previously was made by external company. Intermedix Lietuva terminated the collaboration with external recruitment agency due to several reasons. First of all, HR department gained the knowledge, how the all recruitment process is made. At the very beginning it was not enough qualified human capital to manage big amount of new employees screening process, in order to do it internally. Secondly, costs of external recruitment are higher than internal selections. Despite the fact that the company is still growing, the need of new employees is predictable and the HR department is able to do the whole process by
Unsatisfactory HR planning is a key issue present in CGMS due to poor work balance and amorphous supervision of employees. HR planning covers many comprehensive goals and responsibilities imperative for every organisation. This helps an organisation to maintain to a balance between effective employees and efficient service (Akhigbe, 2013). The firm’s recently appointed HR director has been faced with the challenge of either acting as the ultimate capacity builder or ‘toe-cutting’ the workforce as the firm is relatively overstaffed and the large workforce lacks appropriate supervision. The firm does not wish to release their human capital, but at the same time needs to ensure HR budgets are managed appropriately. As such, the need to balance expenditure against income is an issue identified in the company. The chief financial officer at CGMS communicated that wages and salaries caused much of the firm’s financial pressures. This is a direct inference of the ratio between employee numbers and the income generating services of the firm. A large number of employees may not represent good performance and hence, employee screening might be required
Human resources management (HRM) is concerned with the ‘people’ management. HRM is a term increasingly used to refer to the philosophy, policies procedures and practices relating to the management of people within organization. Since every organization is made up of people, acquiring their services developing their skills, motivating them to higher levels of performance, and ensuring that they continue to maintain their commitments to the organization are essentials in achieving organizational objectives. Organization is able to acquire, develop, stimulate and keep out standing workers we both effective and efficient. Organization that are inefficient risk the hazard of standing or going out of business.
At the outset we would like to thank IMT Dubai and Dr. Arun Prasad for providing us with the opportunity to go beyond the classroom teaching and actually have a hands on experience on the HR practices of an organization. This was a great learning opportunity for us and will hold value for us in the future.