The Evolution of HRM in Asia Pacific

This assignment delves into the historical development and evolution of Human Resource Management (HRM) within the Asia Pacific region. It analyzes significant milestones, prevailing challenges, and emerging trends shaping HRM practices in this dynamic area. The focus encompasses understanding how HRM has adapted to changing organizational contexts and societal influences across various Asian countries.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the student:
Name of the University:
Author Note:

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Introduction
Human resource management is considered the key determinant of organization
performance. Clear outlined human resource management structure normally reduces
management challenges. The HR wage issue has become a problem in Australia though
organizations are required to comply with HR policies that indicate the need for equal pay for
employees. In studying human resource and important issues that affect the most organization in
Australia and globally remains wage disparities. In identifying this challenge two organizations
were studied and these are Woolworths and Coles. Employees tasked with trolley collection in
these two organizations had poor payment issues leading to wage discriminations. Upon pressure
from institutions such as Fair Work Ombudsman, Coles reviewed its wage policies while
Woolworth maintained payment policies for trolley collectors. Woolworths being an employer of
more than 200, 000 employees, has recently come into the spotlight for two human resource
issues. These human resource issues are poor payment of trolley collectors and subsequently
discrimination of these employees. The human resource remains one of the most important
aspects of the organization and should be treated with the most care. Theories of human resource
also indicate that HR is an important department of an organization. There are many theories and
literature that have been advanced to give a deeper understanding of human resource especially
solving certain human resource challenges. The following literature review explores various
human resource theories that give a clear understanding of HR wage disparities issue.
Theories and concepts of human resources
According to the theory of Ability, Motivation & Opportunity (AMO), for the
organizations to solve problems of poor performance there is need to motivate employees.

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According to Brewster, Sparrow, and Harris (2005), one way to motivate employees is to
remunerate them is according to their role or standard. Poor pay is an issue that requires high
attention as it determines the performance of the employees. A similar theory of performance
also indicates that a motivated employee will work better than a less motivated employee.
Moreover, the organization policies, especially on compensation of employees, play a critical
role in the motivation of employees. This implies that an organization that has low payment
policies is most likely to face similar issues as Woolworths. In addition, setting organization
policies that aim at the motivation of employees should comply with the set standards for such
employees. According to Lowry (2006), ethics also play role in compensation of employees as
ethical standard prevent any discrimination of employee in terms of wages. A case study
conducted by Michelson and Kramar (2003), shows that a motivated employee normally feels
encouraged and hence their performance increase. However, Bjorkman (2006) contradicts the
theory of motivation indicating that employees will be motivated by pay for a short period of
time and thereafter their performance either reduce or remain constant. Wall & Parker (2001)
summarise the theory of motivation indicating that even if the employee is shortly motivated,
their performance cannot reduce to the same level as initial before motivation.
HR operative model is another theory of human resource that explores the flexibility of
the organization operates. According to Radhakrishna & Satya (2015), a flexible operation
allows adjustment when there are challenges affecting the human resource. It worth noting that
one of the key challenges that Woolworth is facing is operation inflexibility as the organization
is unable to review compensation policies for trolley collectors. Similarly, Kaufman (2008) also
explains that a more flexible organization in terms of how it handles HR issues determines the
organization’s ability to solve problems of discrimination. Another theory, McShane and

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Travaglione (2007), explains that ethical standards require human resource department to review
the compensation rates for wages of employees periodically to accommodate the financial or
economic situation within the country. This lay foundation for the flexibility that is needed for
organization’s operation and management with capabilities to adjust payment periodically.
According to the theory of contingency, the compensation of employees also rests on the
organizational environment and circumstance. This theory, therefore, shows that at times the
working environment within an organization dictates pay rise for employees. Furthermore, the
larger the size should reflect on the pay of employee since large organization such as Woolworth
attracts high customers. Therefore, at high customer number, there should be increase
compensation to reflect on the magnitude of work. According to Patrickson & Hartmann (2001),
the working environment for employees needs to use in developing HRM policies and practice as
this determines the wages. Moreover, collecting trolleys during high customer seasons becomes
high demanding as compared to other times. These factors need to be considered in
compensating employees to increase their performance.
There are also pressures from various institutions that are the task to regulate the HR. The
Institutional theory explains the relationship between the human resource and other organizations
such as Fair Work Ombudsman. The Human Resource Director, Australia, is an example of
institutions that normally pile pressure on organizations to tackle pay and discrimination issues.
As explained by Bjorkman (2006), human resource management is an important issue that
cannot be left to operate on its own without pressure from outside the organization. The
Constitution, on the other hand, highlights the relationship between various external
organizations that regulate the behaviour of the organization towards employees. This institution
theory is also supported by Paauwe and Boselie (2003) when explaining the need for an

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organization to act according to standards required. In contrast, Osland, et al. (2007) explains
that various institutions will always push for employee wage increment despite their performance
in an organization. Nankervis, Chatterjee and Coffey (2007), on the other hand, shows that the
legitimacy of institutions lay in their ability to protect the right of employees and therefore there
is need to increase their pressure on the organization.
The matching model of human resource management also takes the HR to another level
where HR system needs to match organization structure. This means that the organization’s
strategy should assist in managing the employees since there is congruency between the two.
According to Michelson and Kramar (2003), larger organizations such as Woolworth and Cole
have a humanitarian strategy that aims at bettering the lives of people around it. This should also
reflect on the management of employees and therefore limited discrimination. Similarly, Kochan
(2004) advocate for implementation of strategies that are similar to human resource
management. Streamlining human resource management according to the organizational strategy
helps the organization to perform better. This according to McShane and Ravaglione (2007),
indicates that performance of the organization solemnly rests on employees.
Forborn Tichy and Devanna model of human resource management explain the
interrelationship in HRM activities. According to Martin, Romero and Sanchez-Gardey (2005),
HRM activities that form cycle include selection, development, appraisals and rewards. All these
activities are linked to form the basis of performance. As explained by Kaufman (2008),
appraisal and rewards being a vital aspect of HR plays an important role and should be
continuously reviewed. The model is based on the role played by human resource management
cycle through minimally considered determinant of performance of the organization. This does
not contradict similar observation made by Johnason (2009) when commenting on the human

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resource management cycle. The Michigan model also explains the relationship between
selection, development, reward and appraisal as the determinants of performance of an
organization. According to this model, these aspects of human resource cycle should be clearly
monitored to avoid issues as witnessed in Woolworth Limited.
Organizational behavior theories also explain the relationship between human resource
management and organizational behavior. For instance, the organizational mechanism theory
explains the interrelationship between various employees and the organizational culture or
structure. As Heneman and Judge (2005), explains organizational culture, for instance, come into
play with standards set by government regulating the body. This means that the strategy laid
down by the organization in paying for employees should work in hand with government policy
guiding human resource management. Similarly, Brewster, Sparrow and Harris, (2005), indicate
that organization human resource structure outlined in organizational chart normally complies
with government policy pertaining labor policies. In addition, as organization designs its human
resource strategy government standards and organizational culture are interplay. This particularly
does not contradict a similar study by Ibid & Kelly (2003) that show the importance of
organizational behavior in solving human resource issues.
Rebuttal
Despite theories that explain the responsibility of organization towards human resource,
there are some other theories that explain organizations behavior toward employees. The
Harvard model of human resource explains that employees should be competent and cost
effective. This implies that trolley collectors demand high pay while their competency is not
worth the pay. In addition, the plan by Woolworth of not reversing the employees’ payment may

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be due to cost ineffectiveness of the move. Similarly, Dessler, Griffi and Lloyd (2007) explain
that it is equally no reason to increase pay for an employee that does not match the magnitude of
responsibility. This means that revision of pay for trolley collectors by Woolworth or Cole
organizations solemnly depend on the amount of work or the magnitude of work these
employees perform.
Conclusion
In conclusion, human resource is core to every organization and need good structural or
strategy to solve related issues. One of the issues that remain a challenge in human resource
management is wage discrimination issues among various organizations. There are many
theories and models that have been advanced to explain human resource management with
respect to wage related issues. Therefore, human resource management models such as
institutional theory, organizational behavior, motivation theory, commitment, matching model,
contingency and operative model. These theories clearly explain the role played by various
concepts in human resource.

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Reference
Bjorkman, I, (ed) (2006), International human resource management research and institutional
theory Handbook of Research in International Human Resource Management,
Cheltenham, Edward Elgar Publishing Limited.
Brewster, C., Sparrow, P. & Harris, H. (2005), Towards a new model of globalizing HRM.
International Journal of Human Resource Management, 16(6), p. 966.
Dessler, G., Griffi ths, J. & Lloyd-Walker, B (2007), Human Resource Management, 3rd edn,
Australia, Pearson, p. 567
Ibid, p. 31; & Kelly D. (2003), A shock to the system? The impact of HRM on academic IR in
Australia in comparison with the USA and UK, 1980–1995. Asia Pacific Journal of
Human Resources, 41(2), pp. 149–71.
Heneman III, H.; & Judge, T. A. (2005), Staffing Organizations. USA: McGraw-Hill.
Johnason, P. (2009), HRM in changing organizational contexts. In D. G. Collings & G. Wood
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Kochan, T. (2004), Restoring trust in the human resource management profession. Asia Pacific
Journal of Human Resources, 42(2), pp. 132–46; See also Ellem, B. (2005) Putting work

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in its place: The making of ideal workers and social contracts. Asia Pacific Journal of
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