Application of Resource-Based Model in HRM

The provided assignment content discusses various aspects of Human Resource Management (HRM), including its functions, applications, and skill development. The authors R.J., Marchington, and Wilkinson, among others, emphasize the importance of HRM in managing people and developing strategies for business success. They also highlight the significance of resource-based models, such as the Michigan model, which takes into account various resources like human capital, financial, and technological capabilities to enhance market performance.

MANAGEMENT PRACTICE

EXECUTIVE SUMMARY
Managing human resource at the workplace is considered to be the most important as
through this; it becomes easy for business to accomplish its long term goals and objectives. For
conducting the present study, organization chosen is Buttle plc which is an independent Timber
and Builders merchant with branches in London. Business is indulged into the practices of
selling building materials. Development of employees within company takes place by providing
them proper growth opportunities such as promotion, responsibilities, etc.
Resource based Model of HRM is also effective which takes into consideration all the
resources along with the capabilities of business which assist in enhancing the market
performance. Further, the strategies employed by Buttle Plc to manage its workforce are quite
effective where three performance tools are considered namely improving, supporting and
leading. On the basis of conclusion, there are some recommendations to Buttle Plc where
business can introduce more effective reward system through which it is possible to enhance the
motivation level of the target market. Further, reward can be provided to them on the basis of
their work done.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SIGNIFICANCE OF HRM AND DEVELOPMENT.....................................................................1
CONCEPT OF HIGH PERFORMANCE WORK SYSTEM.........................................................4
CONCLUSION................................................................................................................................6
RECOMMENDATIONS.................................................................................................................6
REFERENCES................................................................................................................................7
BIBLIOGRAPHY............................................................................................................................8
APPENDIX......................................................................................................................................9

INTRODUCTION
Managing human resource within the workplace is considered to be most important as
through this it becomes easy for business to accomplish its long term goals and objectives.
Further, the entire range of objectives set by business can be accomplished when business
applies efforts in managing its employees in effective manner. Apart from this, high performance
work system is also effective in HRM where internal environment is being developed where all
the staff members within the workplace has proper involvement along with responsibilities. For
conducting the present study organization chosen is Buttle plc which is a independent Timber
and Builders merchant with branches in London (About us, 2016). Business is indulged into the
practices of selling building materials. Business is efficient enough in managing its human
resource and this act as development tool for enterprise. In the entire report HRM practices of
company have been discussed which contributes in accomplishing overall objectives.
SIGNIFICANCE OF HRM AND DEVELOPMENT
Human resource management plays most important role in Buttle plc as organization
hires large number of individuals such as delivery drivers, marketing, sales, accounting, IT etc.
As per view of Lussier and Hendon (2014) employees working in the enterprise are assigned
various roles and responsibilities and by carrying out them in appropriate manner it is possible to
accomplish overall aim of the business. Organization considers personal goals of its staff
members and by focusing on them it is possible for Buttle plc to sustain in the market for longer
period of time (Lussier and Hendon, 2014). Further, human resource management is all about
taking initiatives for managing staff members and considering their views which are linked with
the personal growth.
Development of the employees within the company takes place by providing them proper
growth opportunities such as promotion, responsibilities etc. Therefore, this also support in
enhancing productivity of the business where management can easily focus on its long term
goals and objectives. However, Karami, Analoui and Cusworth (2004) argued that human
resource management practices of the business provide direction to the company in
accomplishing its goals. Apart from this, staff members within the workplace holds
responsibility to carry out key operations and by carrying out same in efficiently manner it
becomes easy to boost organizational productivity (Karami, Analoui and Cusworth,, 2004).
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In order to better understand the impact of human resource management of growth and
overall performance of the business Michigan model is effective which takes into consideration
various internal and external factors affecting human resource management practices of the
enterprise. The ranges of factors influencing HRM are political, economical and cultural.
Political factors include laws and regulations which have been developed by government for
protection of human resource within the workplace. I have found that businesses have to take
corrective actions so as to deal with the range of factors such as political, economical, etc . Buttle
plc has to comply with all the laws introduced by government in relation with protection of
employees and appropriate opportunities have to be provided to them so that they can be
managed easily (Banik and Bhaumik, 2006). Apart from this, economic factors are also present
which states that in case if economic condition of the nation is sound then in such case more
employment opportunities are provided by the businesses and vice versa. Therefore, it also plays
crucial role in management of human resource and acts as development tool for the business. On
the other hand, cultural forces are also present where it is well known fact that culture of every
individual differs from each other due to which it sometimes acts as hurdle in managing
employees within the organization. Management has to develop human resource plan keeping in
view culture and religion of the staff members and this allows business in satisfying need of the
human resource (Adhikari, 2010).
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These are some of the external forces affecting human resource management and in case
if business is able to deal with such forces then it is possible to work in favor of staff members
and their development within the workplace takes place easily. With the help of this, I have
noticed that the external forces present in the market affects the business affairs and sometimes,
it prevents business from accomplishing the objectives. On the other hand, some internal factors
are also present which affects human resource management practices of business and they are
mission and strategy, organization structure of the enterprise. Mission of Buttle plc is to enhance
its market performance through human resource management and this states that business
considers its staff members as valuable asset (Svetlik and Costea, 2007). Therefore, it is
beneficial for the entire company and supports in gaining competitive advantage. Organization
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Illustration 1: Michigan model
(Source: Strategic human resource management, 2012)

structure is also crucial where it must include factors such as reward, appraisal and development
of employees. So, this type of structure encourages employees to indulge into the key practices
of the enterprise which contributes in accomplishing aims and objectives of the organization.
According to Armstrong, (2006) it is necessary that organization structure along with policies
must allow staff members to take part in the major affairs of the business and must enhance their
motivation level also. Apart from this, providing reward to employees along with other type of
monetary benefits generates trust and confidence in staff members towards company. Such type
of human resource management practices contributes in development of the business
(Armstrong, 2006). Through this, I have found that human practices of businesses need to be
effective so that productivity of company can be easily enhanced.
On the other hand, development of human resource generally takes place when proper
training is delivered to them on the basis of which they can easily perform the activities which
are being assigned to them. However, authors argued that providing favorable environment to the
workforce who is full of growth can assist business in accomplishing its overall aims and
objectives. Since 1991 Buttle has set standard for management of people and concept of heart of
investors in people have been undertaken where organization strongly takes initiative for
development of its workforce and this is having favorable impact on the business
(Zangoueinezhad and Moshabaki, 2011). Apart from this, the standards being set by
management focuses on three performance headings which are improving, supporting and
leading. All these areas provide proper support to the employees present within the workplace
and in turn Buttle is able to accomplish its overall objectives.
Apart from this, growth strategy has been employed by business where the key objectives
of the business are £25m sales by 2020, minimum 5% net return on sales, shareholders’ Funds
>£5m and Acquisition value of business >£12.5m. All these objectives can be easily
accomplished by business when proper human resource practices have been undertaken. In short,
it is easy for Buttle Plc to enhance its profit margin along with sales as business is efficient
enough in satisfying requirement of its workforce. In every plan and strategy of company, main
focus must be on growth of employees.
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CONCEPT OF HIGH PERFORMANCE WORK SYSTEM
As per view of Kaufman (2014) high performance work system is regarded as the
management practice which supports in development of environment where all the staff
members are have greater involvement along with responsibility. Buttle plc has undertaken the
concept of high performance work system where the standards being developed by the business
are in favour of the workforce (Kaufman, 2014). Further, the three performance heading
undertaken such as supporting, leading and improving are for the welfare of human resource.
Supporting is one of the major elements where employees are provided proper support at the
time when operations are being carried out by them. Presence of proper support enhances their
confidence level and in turn they take active participation in the major affairs of the company.
Therefore, this practice of human resource is also effective through which Buttle plc is able to
perform efficiently in the market and all its objectives can be accomplished easily. However,
Regis (2008) argued that high performance work system encourages management to consider the
growth of staff members within the workplace. Further, Buttle plc carries out all its operations
on wider basis due to which significance of managing human resource within the workplace has
become must for the enterprise. Apart from this performance of individual staff member within
the enterprise is directly associated with performance of organization in the market (Regis,
2008). Through this concept, I have noticed that high performance work system is effective for
the business through which individual performance of every employee can be enhanced easily
and it allows in gaining competitive advantage.
On the other hand, need and requirement of every staff member differs from each other due
to this reason effective high performance system has been undertaken. The entire range of human
resource management practices of Buttle plc are effective where growth of staff members within
the workplace is considered and this enhances organizational productivity in every possible
manner. Apart from this, business expansion is directly associated with management of staff
members within the workplace and if it is done by business in appropriate manner then
productivity of organization can be increased easily. Further, employees are delivered training
on continuous basis so that level of skills along with knowledge can be enhanced easily.
Therefore, human resource management along with development is quite effective for the entire
company like Buttle where business is able to accomplish its main goals and objectives
(Strategic human resource management, 2012).
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Moreover, when high performance work system is undertaken then it shows value of human
resource within the organization and they actively participate in the major affairs of the
enterprise. Human resource management is all about satisfying the needs of the staff members
and providing them favourable environment to work. As per view of organization whose strategy
is effective to manage its staff members can easily sustain in the market for longer period of time
and in turn provides large number of benefits to the business in every possible manner.
CONCLUSION
The entire study being carried out has supported in understanding about the significance
of human resource management and development which assist in accomplishing organizational
objectives. Further, the strategies employed by Buttle Plc to manage its workforce is quite
effective where three performance tools are considered namely improving, supporting and
leading. All these elements enhance motivation level along with job satisfaction of the
workforce. Apart from this, it allows management to accomplish its long term aims and
objectives which is fruitful for business. Therefore, practices of human resource management are
directly associated with goals of the enterprise and enhances overall performance.
RECOMMENDATIONS
On the basis of conclusion, there are some recommendations to Buttle Plc where business
can introduce more effective reward system through which it is possible to enhance motivation
level of the target market. Further, reward can be provided to them on the basis of work done.
Apart from this, bonus scheme can be introduced for all the staff members and it must not totally
rely on the performance of the employees. Staff members who are not able to perform better
must also be provided benefits so that they can be encouraged to take part in the business affairs.
Apart from this, staff members must be encouraged to participate in development of the
monetary plans so that their job satisfaction can be raised through this and in turn this can
provide ample of opportunities to the company. Business must take feedback from staff members
on continuous basis so as to know effectiveness of its strategies to manage human resource.
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REFERENCES
Books and Journals
Adhikari, R. D., 2010. Human resource development (HRD) for performance management: The
case of Nepalese organizations. International Journal of Productivity and Performance
Management. 59(4) .pp.306 – 324.
Armstrong, M., 2006. A Handbook of Human Resource Management Practice. Kogan Page
Publishers.
Banik, A. and Bhaumik, K. P., 2006. Project management and development of human capital in
the Caribbean: three case studies. Management Decision. 44(8) .pp.1076 – 1089.
Karami, A. Analoui, F. and Cusworth, J., 2004. Strategic human resource management and
resource‐based approach: the evidence from the british manufacturing industry.
Management Research News. 27(6) .pp.50 – 68.
Kaufman, E. B., 2014. The Development of Human Resource Management Across Nations:
Unity and Diversity. Edward Elgar Publishing.
Lussier, N. R. and Hendon, R. J., 2014. Human Resource Management: Functions,
Applications, and Skill Development. 2nd ed. Sage publications.
Marchington, M. and Wilkinson, A., 2005. Human Resource Management at Work: People
Management and Development. CIPD Publishing.
Regis, R., 2008. Strategic Human Resource Management and Development. Excel Books India.
Svetlik, I and Costea, E. S., 2007. Connecting human resources management and knowledge
management. International Journal of Manpower. 28(3/4) .pp.197 – 206.
Zangoueinezhad, A. and Moshabaki, A., 2011. Human resource management based on the index
of Islamic human development: The Holy Quran's approach. International Journal of
Social Economics. 38(12) .pp.962 – 972.
Online
About us. 2016. [Online]. Accessed through: <http://buttles.com/about-us/>. [Accessed on 2nd
April 2016].
Strategic human resource management., 2012. [Online]. Accessed through:
<http://paulooliveiramartins1967.blogspot.in/2012/11/unit-1-michigan-model.html>.
[Accessed on 2nd April 2016].
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BIBLIOGRAPHY
< https://www.jobenjoy.com/the-resource-based-view-of-strategic-hrm/>
<http://www.sundaytimes.lk/120624/business-times/high-performance-work-systems-for-high-
performance-companies-3853.html>
<http://www.bretlsimmons.com/2011-08/high-performance-work-systems-affect-employee-
attitudes-and-group-performance/>
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APPENDIX
Another model of HRM is also effective named resource based model which takes into
consideration all the resources along with capabilities of the business which assist in enhancing
market performance. Resources of business such as financial, human, technological etc are
considered to be quite effective. On the basis of key resources strategies are developed by
business and in turn it allows to perform better in the market (Marchington and Wilkinson,
2005). Further, it acts as the source of competitive advantage and acts as development tool for
the enterprise. One of the major resources for Buttle is human as different staff members have
been indulged into carrying out business operations. Further, this resource is valuable, rare,
inimitable and non substitutable for company. Therefore, in this way resource based model is
quite effective to understand the significance of human resource within the workplace.
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