Human Resource Management and Organisational Effectiveness

The provided assignment is a collection of various references related to human resource management, including theoretical frameworks like Herzberg's two-factor theory, employment practices in the small firm, outsourcing in the financial services industry, introduction to human resource management, and more. It also covers topics such as job performance, high-commitment HR practices, and the effects of family involvement on knowledge management and firm performance. The references are from academic journals like the Journal of Organizational Effectiveness and the European Management Journal, as well as books on human resource management theory and practice.

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

1HUMAN RESOURCE MANAGEMENT
Table of Content
Introduction-....................................................................................................................................2
Task 1:.............................................................................................................................................2
Brief description of the BHP Billiton, Australia.............................................................................2
Types of approaches to HR observing about BHP......................................................................4
Considering strategic human resource management model proposed by Nankervis et al..........5
Types of HR functions performed...............................................................................................5
Task 2: Retention and development................................................................................................5
Task 3: Performance Management..................................................................................................7
Job description and a brief overview of the company.................................................................7
Describing the most suitable type of performance review method.............................................8
Task 4: Human Resource management (Literature Review).........................................................10
Conclusion.....................................................................................................................................11
References and Bibliography.........................................................................................................12

2HUMAN RESOURCE MANAGEMENT
Introduction-
The following report provides a portfolio of a set of activities related to human resource
management. The purpose of the report is to derive an in-depth understanding about human
resource management and its functions impacting the organization’s operation. In order to meet
this stated purpose, the discussion in the report includes different theories and models of HRM.
More specifically, the first task of the report considers the organization BHP Billiton- a mining
organization performing operation in Australia. In order to review the human resource
management at BHP Billiton, different function such as types of employees, type of HR
approaches and types of functions used, have been critically reviewed liking with theories and
models. Similarly, the task 2 includes the same industry to describe the staff retention and
development policies of BHP. Based on the assessment of HR management, a suitable
performance management plan for BHP has been developed in the report.
Task 1:
Brief description of the BHP Billiton, Australia
BHP is leading global resource organization; it deals with minerals, gas and oil
extraction. BHP’s products are sold across the world, due to high sales and innovative marketing
approaches the firm is leading through the Singapore market, Huston and United State (BHP,
2018). The organization runs the operation under a Dual Listed Company Structure. The
corporate of purpose of BHP is to create a sustaining and share holder value by discovering and
marketing natural resources. Another significant approach of the firm is to acquire and operate
large, sustainable and upstream assets, which is diversified by market and regions. On the other

3HUMAN RESOURCE MANAGEMENT
side, the organization ensures a sustainable access to education, training, healthcare and quality
and opportunities support the social inclusion as well as deliver the opportunity for the people to
realize their full potential. The employment structure of the company shows that BHP respect the
rights of indigenous people and knowledge their rights to maintain their capture, tradition and
customs.
Describing the type of employees with reference to Atkinson’s flexible model
The organization values its members and encourages the growth of key employees to build and
to support persistently stable performance as well as the growth of its diverse operation (Albrecht
et al., 2015). BHP strives to develop an understanding about the purpose and achievement among
its organizational members in the operation. Organization attracts hire, employee and enhance
the skills of its workers who could share and understand organizational values. The human
resource department at BHP encourages members to extend their capabilities as well as utilize
their functional skills to help the firm to implement its strategy and create a sustainable future. In
order to gain success in a diversified business, the organization is trying to build workforce that
effectively reflects the communities in which the organization performs. This means the
organization is trying to build a flexible workforce maintaining diversity in its approach.
Similarly, Atkinson’s model for labor flexibility also talks about the “core” worker as well as the
peripheral workforce (Atkinson & Storey, 2016).
BHP, for building a full-time employment, provides train and development program to
shape its workforce needs. In Atkinson’s flexibility, the core group stands for the full time
employees, which would provide the organization with the functionality flexibility (Atkinson &
Storey, 2016). The purpose of building a flexible workforce of BHP is quite similar to the

4HUMAN RESOURCE MANAGEMENT
benefits associated with Atkinson’s flexibility model such as efficient matching of staff levels to
business structure and volumes, long-term competitive advantage and improved customer
service.
Types of approaches to HR observing about BHP
Reinforcing business through the energy of one team
BHP tends to use prominent HR approaches, where through operation both employees
and the originations rain benefitted . In order to fulfill the business needs, the organization
strengthens its operation with the emery of one team. Through training and development
programs, BHP’s trying to build a workforce that reflects the communities in which
organizational Assets are located and its employees live (BHP, 2018).
Employee accountability
The employees at BHP tend to hold themselves accountable for operational the
organizational functions. However, the leaders in the organization must have to follow the
principle of keeping safety and making people a priority and developing integrity.
Health and safety approaches for the employees
As the organization is running a diverse operation including mining, gas and oil, worker
safety at BHP is always a first priority. The organization is committed to a range of global safety
priorities in FY2016 that continues to lead BHP’s decision-making and approach to safety (BHP,
2018). There are four different forces related to health and safety at BHP such as “reinforcing
that safety comes before the productivity, the focus on the field of verification of materials as

5HUMAN RESOURCE MANAGEMENT
well as fatal risk, improve its internal investigation process as well as broadly share, and apply
lessons.
Considering strategic human resource management model proposed by Nankervis et al
According to Nankervis’s strategic HRM model, the organization should generate a
strategic capability, skilled, committed and well-motivated employees. According to Delery and
Gupta (2016), strategic human resource management tends to provide a unifying framework,
which should be developed based on contingency and integrative phenomenon. However, the
present HR framework of BHP indicates that organizations pay attention to integrity and
flexibility, which must include the needs for a skilled and committed workforce.
Types of HR functions performed
As BHP is performing its operation in a global environment with its products and
services, it builds a diverse workforce in which recruitment and selection has been done a talent
haunt programs. As the organization tends to perform a set of risky operation, it maintains good
working conditions such as flexible work hour, adequate leave facilities, and managing
employee relations with both full time and part-time employment contracts. In order to build a
diverse workforce, it provides suitable training and development program (Hornbeck et al.
2011).
Task 2: Retention and development
As put forward by Brewster et al., (2016), in a business sense, the term “high turnover”
can hold the two meanings. However, particularly, in human resource, employee turnover is
referred to the rate at which employee tend to leave their job position in an integration and
replaced by new employees. BHP has a large workforce with extending job positions but its

6HUMAN RESOURCE MANAGEMENT
mining department is presently facing a growing employee turnover challenge. Particularly, the
employee turnover rate in 2016 was around 19%, which is 6% higher than the turnover
recorded in 2014 (BHP, 2018). On the other side, the turnover rate observed in oil and gas is
around 11% of which is again 2% higher than percentage recorded in 2012. Latorre et al.,
(2016) mentioned that in mining and oil and gas industry, the people tend to look for long-term
employment and suitable career growth opportunities, as the industry is always remains in the
growing stage despite the fall in the global economy.
When digging into this fact, it is found that Nankervis, Rowley and Salleh (2016)
mentioned despite the fall the in economy, the industry is in the growing stage, as the demand of
mining, oil and gas is always increasing in the global environment. The increase of demand is
also influencing the employees in the sector. The people, developing career in the sector look for
flexibility, adequate pay, career growth opportunities and required motivation for work where
they learn the skills and gain industrial knowledge. Following theory of motivation proposed by
Herzberg helps to identify how motivation and other stated elements influence employee
retention and development.
According to Herzberg, motivation factors can be divided into two factors such as hygiene
factor and motivation factor.
Hygiene factor: Hygiene factors are those factors, which are mandatory for bringing motivation
at workplace (Alshmemri, Shahwan-Akl &Maude, 2017). Thus, if BHP has to control its high
staff wastage, the following elements should be considered by the organization itself.

7HUMAN RESOURCE MANAGEMENT
Pay- BHP needs to provide its employees with appropriate salary structure, which needs to be
appropriate and reasonable. The pay structure in BHP’s all department (mining oil and gas)
needs to be equal and competitive.
Company policies and administrative policies: As the purpose of BHP is to build a
flexible workforce, organization‘s policies should not too rigid and they should be fair and clear.
Fringe benefits- The workers at all department of BHP need to be offered healthcare
plans, benefits for the family members and employee help program.
Interpersonal relations: The employees in mining and oil and gas industry often deal
with large set of operation; thereby, the relationship of employees of should be effective with the
peers and leadership.
Likewise, BHP also needs to pay attention to the motivation factor.
Motivation factors
Recognition: The employees in the mining sector tend to undertake large project;
thereby, they the leaders or the supervisors at BHP needs to praise their workers.
Growth and promotional opportunities: The employees in BHP work under a long-term
contract; therefore, the organizations should provide appropriate growth and career development
opportunities to its employees.
Task 3: Performance Management
Developing a performance management plan for a mining manager at Mining department
at BHP Billiton, Australia

8HUMAN RESOURCE MANAGEMENT
Job description and a brief overview of the company
The mining manager needs to maintain and encourage a positive safety as well as
environment culture throughout the operation. The managers have to lead the mine operation
management team as well as deal with mining personnel and resources. Apart from these
responsibilities, the proposed mining manager has to perform the following responsibilities.
 Suggest a capital expenditure projects to expand the capacity or enhance the operation
 Prepare production or the operation budget and supervise and report performance
 the manager has to contribute to business planning and organization strategy to enhance
competitiveness
Describing the most suitable type of performance review method
Self-Evaluation: To implement this self-evaluation method, the mining manager needs to
judge his/her own performance against pre-determined criteria. Latorre et al., (2016) mentioned
that typically the self-evaluation is considered when an official performance review is developed
to allow a more detailed discussion and to make sure that employee understand how they will be
judged. This method could be little subjective to reflect work performance properly because
workers could rate themselves too high or too low; however, the discrepancies between the staff
and organization can be perceptive.
360-degree feedback: 360-degree feedback review method helps to deliver a
comprehensive look at a staff’s performance by pulling feedback from the outside sources.
Hence, the mining manager and BHP’s leader will still have to complete an assessment of
employee’s work performance and technical skills. However, Bracken and Rose (2011) on their
article of performance management mentioned that this review method also involves the

9HUMAN RESOURCE MANAGEMENT
feedback from peers, direct report and non-direct supervisors with whom the proposed manger
has to work regularly. In addition to this, this review method includes an evolution of proposed
manager’s character and leadership skills.
Rating scale: Rating scale is the most commonly used performance review method and
this method is base on a set of organization- developed criteria (Harms, Clifford & Cryer, 2014).
This can further include traits, behavior and competencies –against which the staff could be
judged or evaluated. Hence, the human resource department of BHP has to assign each criterion
with a numerical value, generally on a ten-or five point scale. However, the organization has to
be sure that employee understand where the achievement or success and failure fall on the scale.
When the employees know about the scale, they can perform accordingly.
Among these three types of performance review method, 360-degree feedback method
should be selected as the most suitable performance review method.
Justifying why 360-degree feedback method is the most suitable one
360-degree method will be a suitable one because, in this particular method, several
parties such as the supervisors, peers and team’s managers review the employee’s performance.
Thereby, when the performance of a staff is rated by three different outsider sources, state of
transparency is automatically established. This method does not create a biased result.
Pros and cons of 360 degree feedback method
Pros Cons
Scope for a more detailed assessment- This is
because the organization can collect feedback from
different sources. Hence, the firm can see recruiting
Generate a negative culture- If the feedback
which would be received, comes negative, it may
create a state of resentment on the team, where the

10HUMAN RESOURCE MANAGEMENT
themes and patter to focus on employee is angry at their colleagues and peers
Effective Teamwork- if everyone is able to identify
their strength and weakness they should work to
develop or resolve, they will become good peers
This method pays too much attention on the
weaknesses and not adequate attention is put
forward on strength, which could be discouraging
sometimes.
Table 1: Pros and Cons of 360-degree feedback method
(Source: Author’s Note)
Task 4: Human Resource management (Literature Review)
An article conducted by Stone and Deadrick (2015) on challenges and opportunities
affecting the future of human resource management, reveals the fact that the field of human
resource management is observing several pressure for change. Particularly, the authors have
mentioned that shift in the economy, domestic diversity and advancement in the technology have
created new domains for the organization and strengthened the HR field with some new
direction. In addition, the findings of the article also indicate the fact that technology and talent
management are considered as two significant drivers of changing the human resource scenario
of present century. However, Albrecht et al., (2015) arguably mentioned that technology is
indeed a driver but what changes the field of human resource is the dynamic business
environment, where each day, the marketers are facing new challenge or approach, where the
need for change remains as the certain fact. This means that the organizations in the recent time
are planning to develop a workforce that is flexible to the changing nature of market.
Firms in each sector tend to make large investment on their human resource. Nonetheless,
the author of the article on “challenges and opportunity affecting the future of human resource

11HUMAN RESOURCE MANAGEMENT
signifies the fact that change in the field of human resource is caused by globalization and
expanded interest in particularly in innovation and sustainability. On the other side, Kavanagh,
and Johnson (2017) mentioned that one of the significant challenges affecting the future of HR
processes is the change from a manufacturing to a particular service as the fundamental of
economic base. Similarly, the service economist arguably mentioned that service activities today
tend to dominate the economies of some industrialized nations. Consequently, the businesses are
considered as the subset of overall service economy. Thus, the increase in knowledge economy
places new demands on organizations and it is bringing about changes in firm’s goals and HR
practices.
Conclusion
In conclusion, it can be ascertained that human resource management is a broad element
of organizational function. The establishment to human resource can determine the performance
of the organization. Likewise, the change in HR management can influence the overall
performance of the organization. However, one of the basic functions of HR department of the
organization is to always monitor and supervise employee performance, need, skills and
characteristics to lead the workforce towards a desired direction.

12HUMAN RESOURCE MANAGEMENT
References and Bibliography
Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. & Saks, A.M., (2015). Employee
engagement, human resource management practices and competitive advantage: An
integrated approach. Journal of Organizational Effectiveness: People and
Performance, 2(1).7-35.
Alshmemri, M., Shahwan-Akl, L., & Maude, P. (2017). Herzberg’s two-factor theory. Life
Science Journal, 14(5).
Atkinson, J., & Storey, D. J. (Eds.). (2016). Employment, the small firm and the labour market.
Routledge.
Bagher, M., & MacKerron, G. (2018). Outsourcing and the Flexible Firm; The Financial
Services Industry. In Positive and Negative Aspects of Outsourcing. InTech.
Banfield, P., Kay, R., & Royles, D. (2018). Introduction to human resource management.
Oxford University Press.
BHP. (2018). BHP Billiton | A leading global resources company. [online] Available at:
https://www.bhp.com [Accessed 29 Mar. 2018].
Bracken, D. W., & Rose, D. S. (2011). When does 360-degree feedback create behavior change?
And how would we know it when it does?. Journal of Business and Psychology, 26(2),
183.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.

13HUMAN RESOURCE MANAGEMENT
Brewster, Christopher, Elizabeth Houldsworth, Paul Sparrow, and Guy Vernon. International
human resource management. Kogan Page Publishers, 2016.
Carrasco-Hernández, A.J. & Jiménez-Jiménez, D., (2016). Knowledge management, flexibility
and firm performance: The effects of family involvement. European Journal of Family
Business, 6(2),.108-117.
Cascio, W. (2018). Managing human resources. McGraw-Hill Education.
Delery, J., & Gupta, N. (2016). Human resource management practices and organizational
effectiveness: internal fit matters. Journal of Organizational Effectiveness: People and
Performance, 3(2), 139-163.
Harms, T., Clifford, R. M., & Cryer, D. (2014). Early childhood environment rating scale.
Teachers College Press.
Hornbeck, P. V., Kornhauser, J. M., Tkachev, S., Zhang, B., Skrzypek, E., Murray, B., ... &
Sullivan, M. (2011). PhosphoSitePlus: a comprehensive resource for investigating the
structure and function of experimentally determined post-translational modifications in
man and mouse. Nucleic acids research, 40(D1), D261-D270.
Hosie, P., & Pforr, C. (2016). Human resource development: Proactive preparation to manage
crises. In Crisis Management in the Tourism Industry (pp. 93-108). Routledge.
Johnstone, S. (2018). Employment practices, labour flexibility and the Great Recession: An
automotive case study. Economic and Industrial Democracy, 0143831X17748370.
Kavanagh, M. J., & Johnson, R. D. (Eds.). (2017). Human resource information systems: Basics,
applications, and future directions. Sage Publications.

14HUMAN RESOURCE MANAGEMENT
Latorre, F., Guest, D., Ramos, J., & Gracia, F. J. (2016). High commitment HR practices, the
employment relationship and job performance: A test of a mediation model. European
Management Journal, 34(4), 328-337.
Nankervis, A., Rowley, C., & Salleh, N. M. (2016). Introduction: Human resource management
and organisational effectiveness–an overview and synthesis. In Asia Pacific Human
Resource Management and Organisational Effectiveness (pp. 1-13).
Stone, D. L., & Deadrick, D. L. (2015). Challenges and opportunities affecting the future of
human resource management. Human Resource Management Review, 25(2), 139-145.