Human Resource Management

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

1HUMAN RESOURCE MANAGEMENT
Human resource management is the strategic approach that explains the effective management of
people in an organization (Bratton & Gold, 2017). Human resource management is a discipline
that has seen major changes from in both its theory as well as its practice. To understand the
current trends in human resource management in this paper, “Fonterra” has been chosen for the
case study.
Fonterra is the multinational dairy company that has the largest share of export of the
New Zealand’s dairy products. It was founded in 2001, and presently it has more than 10,000
farmers working under it (Fonterra, 2018).
Response to question 1.1.a
Two current trends in human resource management are, use of Artificial intelligence (AI) in
human resource and flexible work arrangements.
Artificial intelligence (AI) in human resource can be used as an important tool due to its
certain advantages.AI in human resource management helps making decisions by analyzing the
data through algorithms. Machine learning and decision making helps to improve decision-
making quality. Flexible work arrangements on the other hand not only increases productivity, it
also develops the morale of the employees. Flexible work management is nothing but the flexible
time and work culture so that the employees have enough choice and options. It helps the
company to have more productivity when there are lesser work force available because flexible
work arrangement helps employees to perform function, which does not require any specific
skillsets.
Response to question 1.1.b

2HUMAN RESOURCE MANAGEMENT
There are certain advantages of using Artificial Intelligence. Firstly, it is that it is less
time consuming in nature. For example, drones can replace multiple tasks done by the farmers
on-foot. AI in human resource helps to find the right talent maximizes employee engagement,
research, solve problems, and most importantly help in automating the workflow (Albrecht et al.,
2015). On the other hand, a flexible work environment would mean that the employees have less
rigidity in diving works among them; productivity is high for the employees and the company.
Secondly, the importance of flexible work arrangements is greater work-life balance of the
employees and greater satisfaction of the employees with flexible time and work environment.
However, there are disadvantages of AI and flexible work arrangements, which are not to
be ignored. Firstly, AI is a very expensive installation. The software and hardware required for
the implementation are costly (Albrecht et al., 2015). Secondly, it might also lead to the loss of
jobs, unemployment and reduced job security. The disadvantage of flexible work arrangement is
less. However, the flexibility might hinder the productivity as it lacks specialized knowledge
about the matter. Secondly, flexible work management would require the company to have more
number of additional management processes to manage and monitor diverse activities.
Response to question 1.1.c
Fonterra has to develop flexible work arrangements for the farmers so that they could
adapt and adjust their works according to their needs. Flexible work management helps them to
divide the work among the other employees without fixed arrangements. It has to ensure that
there is flexible work arrangement because the farm is completely based on the farmers. It also
has the advantage of getting specialized knowledge about varieties of tasks. AI and automation
help to identify, analyze and arrange for the crops and reduce the usage of toxic herbicides
almost by 90 percent (Fonterra, 2018). AI and automation help to develop employees experience

3HUMAN RESOURCE MANAGEMENT
and reduce manual work in many ways. There are many organizations, which have already
developed these practices in their organizational structure, and these have been successful in
reaping positive outcomes.
Response to question 1.1.d
If these trends are implemented into any future business entity, it will have the benefit of
performance evaluation of the employees and it can easily transfer the task of skill development
and learning from manual to the machine (Strohmeier & Piazza, 2015). To implement AI in the
organization, it should start with collecting the data, making a hypothesis, testing that data and
finally putting the data into work. It can also install the “Talent Acquisition” software, which can
automatically scan, read and analyze the applicant by reducing the manual workload almost to
half. While if the trend of flexible work arrangement is implemented in the future business
entity, it will have greater productivity to the company because it does not restrict one particular
task fixed for one employee. To ensure flexibility in work, the company should relax its rigid
procedure of allocating specific task to specific people. It can also manage to have compressed
workweeks, which is a system of condensing one or more workweeks into fewer and longer
days.
Response to question 1.2.a
The issues of the human resource management in Fonterra are; the failure of the
protection of the interest of the dairy farmers. The company failed to maintain the interest of the
employee in giving them the assured returns for their production (The Standard, 2018). The
second issue associated with the working of Fonterra is major job cuts. The company slashed