Managing People: HRM Models and Theories for Improving Productivity and Employee Relations

This report discusses the HRM models and theories used by FarmBox for managing people and improving productivity. It assesses the appropriateness of the models and identifies areas for improvement. It also provides recommendations for new HRM models and theories to improve employee relations.

MANAGING PEOPLE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
HRM recruitment and selection models, theories and concept used by FarmBox......................3
Theories affecting the employees and company productivity.....................................................5
Assessing the appropriateness of the models used by FramBox and identifying the areas that..5
needs improvements....................................................................................................................5
Areas of the procedure that need improvements are...................................................................7
Recommendations of HRM models or theories that should be used by the FramBox for..........7
improving their operational productivity and employee relations...............................................7
The Standard Causal Model of HRM......................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
People management is the overall directing, organizing and management of the peoples in
the organisation including recruitment, selection, training (Leroy, 2018). Managing peoples is all
about preparing their wages, compensations or appraisal policies and conducting open
communication with them for ensuring effective workplace environment for motivating and
encouraging them to work hard. FarmBox is a company of United Kingdom dealing in fresh food
products and has its operations worldwide. This company is selling its products online for more
earnings but due to covid-19 it is facing many problems in its staff management. This report will
include various theories, models, concepts relating to the study of human behaviour in the
workplace. Further, an understanding of how this models or theories affects the company
productivity and assessing its appropriateness of the HRM. Lastly, identifying and
recommending the best theories or models for the company to improve the operational
productivity and employees relations through more effective HRM talent management.
MAIN BODY
HRM recruitment and selection models, theories and concept used by FarmBox
FramBox is a supplying fresh foods to the customers online as well as in the shops but due
to Covid-19 this company is facing huge problems in collaborating the activities of its staff due
to less training and confusion (Paillé, 2019). This company FarmBox is using various models
and theories in its workplace for increasing the employees productivity and the company too.
Various theories and concept used by FarmBox are:
AMO theory
This theory used by the FarmBox for increasing the ability or motivation by creating
opportunities so that the employees can work more efficiently with full satisfaction these three
components are interconnected to each others. Ability: This company is increasing the ability of each employees by increasing the
knowledge and skills of the employees in doing the task with more accuracy (Mat, 2020).
The leaders and the managers of this company is helping the employees to increase their
experiences and skills by giving them proper training and knowledge.

 Motivation: Farmbox is motivating its employees by giving them proper salaries and
wages and increasing their ability will automatically increases the morale of the
employees to work with full efforts (Cheng, 2021). The leaders and the managers are
listening to their problems and communicating with them in decision making to make
them feel invlolved. Opportunity: With both ability and motivation this company is also providing various
opportunities to the employees to work with full efficiency to achieve their dreams. This
company is giving opportunity for promotions, appraisal for good performances etc.
Human capital theory
This theory is used by Frambox in which it described that employees can increase their
productivity and efficiency by education or various training sessions to them (Marginson, 2019).
This theory states that investing the human capital of the company on educating the employees
by various training sessions will automatically increase the productivity of the employee and
with higher productivity the outcomes will be more. Using the human capital on employees for
increasing their ability will leads to high productivity with high outcomes.
Michigan framework
This is the method of leadership used by Frambox for increasing the performances of the
employees by changing the organisational structure or framework (Reppond, 2018). The
framework and strategies of HRM is developed for selecting, appraising, rewarding, employees
for making them feel happy and do the work with full efficiency. All the employees are selected
according to their skills and knowledge and are given work according to their skills and
knowledge. All this strategies are used within the organisational framework for increasing the
performances of the employees.
5-P Model
This company is using five P’s model for increasing the productivity of the employees the
five P’s stands for :

 Purpose: This company’s manager is clearly describing the purpose or reason of the
organisational goals to all the employees clearly so that everyone is clear about their
work and goals in the company (Dotsenko, 2020). Principles: The Farmbox is following predetermined principles and goals so that no
employee is confused about the work and how the work has to be done. Processes: In this the leader decides the processes of how the work has to be done and in
what time or what skill is required to do the work with full efficiency and efforts. People: In this the company select the right people at the right place for example peoples
with Business administration will be placed in the HR team so that the employee can
work with more ease and full efficiency due to full knowledge. Performances: The performances are being measured with predefined goals and the
performances of employees which match the standards are being rewarded and those who
failed to do so manager send the feedbacks to improve.
Theories affecting the employees and company productivity
All this models are used by the company for increasing the performances of the employees
by increasing their ability or motivating them by providing all the opportunities to work hard
with full satisfactions (Aboelmaged, 2018). This company is giving them all the training needs
and knowledge of doing the work more efficiently and clearing their roles for no confusion. With
all this efforts by the company the productivity will be maintained due to satisfied and skilled
employees doing the task for more outcomes.
Assessing the appropriateness of the models used by FramBox and identifying the areas that
needs improvements
The FramBox is using the above theories for the smooth flow or complete harmony among
the employees for no delay in work or the work time of the employees will be fixed. The theory
AMO theory is used by the leaders and the managers of this company so that the ability and
motivations of the employees can be increased by providing various opportunities like rewards,
recognitions and appraisal policies. This theory is doing good in the company but facing one
problem due to lack of interest of the leaders in increasing the ability due to unskilled and leaders

with less knowledge and the company is using the old methods of training and developments
which is not applicable in the present world with huge competitions and rivalry
Another theory used by FramBox is Human capital theory in which it is using and
investing its capital on educating the employees for gaining good knowledge of work with more
advanced trainings. This method is good but this company is unable to manage its Human capital
in an appropriate ways to increase the outcomes by the employees due to old methods and old
peoples. This company is using its capital and investing in those employees who are already
skilled and giving the work to the peoples who are not aware about the ongoing trends in the
market or new technologies used in the market.
The Michigan Framework used by the company has good advantages because if the
company will pre planned all its activities and strategies or work according to the needs of the
goals the company’s efficiency will increase. This company is saving its cost in training and
selection by taking online interviews and selecting only those peoples who are experts and can
do the work more efficiently will be selected who need very less training to save the cost and
time. This company also providing all the opportunities to its employees to work with full
motivation by rewarding the employee performances and also the lower to higher level needs so
the employees can achieve its personal goals as well organizational goals with full satisfaction.
Last model this company uses is 5-P model in which all the purpose, process, principles,
performances and people policies are decided in advance like what will do which work, at what
time the work is to be completed with standards, what salaries are required for which job and
which performances are compared with past one, the processes of doing the work to save time
efforts. All this things which are decided in advance creates no confusion in the mind of the
employees because then the burden of training and conflicts decreases due to each member has
assigned the work properly and the procedures to do the work (Wæraas, 2020). This model helps
in no delays in the work and the team members will do the work with full efficiency because
they are placed at the position in which they are experts. This method also have some
disadvantages like employer or employees are free of stress due to all the pre planned work they
will not take more responsibility in case of work burden or emergencies due to standard targets
and resist to change on new policies and methods.

Areas of the procedure that need improvements are
 The company need to improve its investments by buying the new technologies for
increasing its sells at least cost. Employing or selecting new employees who already
know all the skills and have experience in the field so there is no need to invest money on
that employee this way the company can save its money and increase its outcomes.
 It needs improvements due like using more digital method of selecting and giving
training to the employees which requires less cost with more experienced and
professional experts.
 The problems can be solved by the company by making its motivational and leadership
effective by the leaders among the team more stronger so that the employees work with
more efforts and does not resist to change and work with complete harmony (Hale, 2019).
 Using Maslow hierarchy of needs to solve the problem of dissatisfied employees for by
them opportunity to achieve all level needs.
 Using effective leadership styles by involving its employees in decision making so that
they can ideas for doing the work more effectively.
 The company Frambox need to improve its working style due to employees are working
extra hours with the same pay and many of them are leaving the organisation due to work
burden. This area need a huge improvement to reduce the turnover rates of employees.
Recommendations of HRM models or theories that should be used by the FramBox for
improving their operational productivity and employee relations.
The company Frambox should use new theories and methods for increasing the ability and
productivity of the employees by making them feel motivated by using various motivational
models. This company should use various leadership models to encourage or lead the team or
making individual efforts to the group goals and making them involved in the decision making
process. The company should use motivational models are
Maslow hierarchy of needs
The company should use this model to provide all the basic and higher level needs to every
employee to make them feel motivated and work more hard for achieving the objectives.

 Physiological need: The company Frambox should provide its employees all the basic
needs like fair salaries and wages so that employees all lower level needs can be satisfied
(Tripathi, 2018).
 Safety need: With all the basic level needs the company should provide its employees all
the job security so that they feel safe while doing the jobs like medical insurances,
educational facilities etc. This need helps the employees to stay in the company for more
longer time and reduces the company’s turnover rates.
 Social need: The employees with satisfied with lower level need an environment in
which he/she can interact with others without any hesitations like communicating with
the employee of other departments or appreciation in front of everyone for good
performances it increases the employees morale.
 Self-esteem need: This are the higher level needs which and employee with good
knowledge and position need like to be respected by the others or rewards and
recognitions in front of everyone to feel motivated to work more hard.
 Self-actualization: They are the last need or the highest level needs which every
employee wants like achieving the dreams or position in the office for more satisfaction
(Sarstedt, 2022). The company Frambox should provide all this opportunities so that each
individual work to the fullest to achieve its goals with organisational goals.
The Standard Causal Model of HRM
The Frambox should use this model in which it comprises of various models and has
causal chain the first step is business strategy and ends with Financial performances.
Overall strategy
↓
HR strategy
↓
HR practices
↓
HR outcomes
↓
Improved internal performances
↓

Improved financial performances
 The company should decides all the overall strategies of its business like the investments
decision, funding strategies or the selection and recruitment strategies etc in advance so
that the plan can be executed properly (Hong, 2019).
 The second step is the company decides all its HR strategies like recruitment processes,
selection and training cost, appraisal, wages policies etc so that before selecting the new
candidates all the methods and practices are pre sets.
 Then the company develops its HR practices like hiring people at the right place , giving
training to the existing employees, managing employees performances, and marinating
harmony in the teams.
 After all the practices and strategies the outcomes are being recorded for comparing it
with the future or past outcomes and selecting the best methods which has more
outcomes (Siangchokyoo, 2020).
 Improved internal performances: This strategies and pre planned policies helps the
employees to perform well due to more training and skilled employees which increases
the internal performances
 If the internal performances is good and increased directly leads to increase in financial
performances and overall profits of the company.
Transformational leadership style
This leadership style should be used by the Frambox for increasing its team cooperation
and performances. In this the leaders listen to the followers and communicate with them in
decision making for involving the employees to take part in the decision making process (Naji,
2020). This helps employees to bring new ideas and solutions for solving the problems and the
leaders helps the employee to develop the leadership skills of the employee.
All this strategies and models will increase the overall productivity of the company and
helps the employees to work with full efficiency and efforts. Using new methods of recruitment
like digital methods or social medias or producing the products with new technologies save time
cost of the company and increases the overall efficiency.This models helps the company for
maintain its labour turnover or relations with full motivation and effective leadership style.

CONCLUSION
From the above report it has been concluded that managing people in an organisation is a
difficult task due to cultural diversity and behaviours of the employees due to conflicting natures.
The Fairbox is using various model, theories and concepts for motivating its employees to work
with full efforts. The company is still facing problems in the company for employees relations
and there are various negative impacts of the models that has to be improved. Further, it has been
concluded that using Maslow model or effective HRM models helps in reducing the labour
turnover and cost by selecting trained and skilled candidates with new technologies and
procedures. All this new strategies and models helps the company to increase its productivity and
employee relations with least cost. The HRM models helps the company to improve overall
efficiency by including various HRM models and grouping them together for best outcomes.

REFERENCES
Books and journals
Leroy and Den Hartog, D., 2018. Managing people in organizations: Integrating the study of
HRM and leadership. Human Resource Management Review, 28(3), pp.249-257.
Paillé, P., 2019. Green recruitment and selection: an insight into green patterns. International
journal of manpower.
Mat, and et.al., 2021. HRM and Employee Significant Behavior: Explaining the Black Box
through AMO Theory. Pertanika Journal of Social Sciences & Humanities, 29(4).
Cheng, M.M. and Hackett, R.D., 2021. A critical review of algorithms in HRM: Definition,
theory, and practice. Human Resource Management Review, 31(1), p.100698.
Marginson, S., 2019. Limitations of human capital theory. Studies in Higher Education, 44(2),
pp.287-301.
Reppond, and et.al., 2018. Addressing food insecurity in college: Mapping a shared conceptual
framework for campus pantries in Michigan.
Dotsenko, and et.al., 2020, October. Human Resource Management Tools in a Multiproject
Environment. In Conference on Integrated Computer Technologies in Mechanical
Engineering–Synergetic Engineering (pp. 680-691). Springer, Cham.
Aboelmaged, M.G., 2018. Knowledge sharing through enterprise social network (ESN) systems:
motivational drivers and their impact on employees’ productivity. Journal of Knowledge
Management.
Wæraas, A. and Dahle, D.Y., 2020. When reputation management is people management:
Implications for employee voice. European management journal, 38(2), pp.277-287.
Hale, and et.al., 2019. Adapting Maslow's hierarchy of needs as a framework for resident
wellness. Teaching and learning in medicine, 31(1), pp.109-118.
Tripathi, N., 2018. A valuation of Abraham Maslow's theory of self-actualization for the
enhancement of quality of life. Indian Journal of health and wellbeing, 9(3), pp.499-504.
Sarstedt, M. and Danks, N.P., 2022. Prediction in HRM research–a gap between rhetoric and
reality. Human Resource Management Journal, 32(2), pp.485-513.
Hong, and et.al., 2019. Collaborative-based HRM practices and open innovation: A conceptual
review. The International Journal of Human Resource Management, 30(1), pp.31-62.
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Siangchokyoo, and Campion, E.D., 2020. Follower transformation as the linchpin of
transformational leadership theory: A systematic review and future research
agenda. The Leadership Quarterly, 31(1), p.101341.
Naji, and et.al., 2020. The role of HR strategy on safety culture and psychological stress among
employees in the upstream oil and gas companies: a conceptual review. Solid State
Technol, 63(5), p.12.
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