Factors Influencing HRM Practices

The assignment delves into the various factors that significantly influence Human Resource Management (HRM) practices within organizations. It explores how concepts like sustainability, technological advancements, and globalization shape HRM strategies and decisions. The analysis aims to provide a comprehensive understanding of the complex interplay between these factors and their impact on effective HRM.

Running Head: MANAGING HUMAN RESOURCES
MANAGING HUMAN RESOURCES

MANAGING HUMAN RESOURCES
Executive Summary
This business report sheds light on the importance of Human Resource management in an
organisation and its various effects on different organizational activities. The report also
identifies the requirement of HRM in a specific organisation where there is lack of HR practices
and the consequences that are faced by the organisation are portrayed. Key features of HR
practices and its relation with the internal work flow of the organisation is established. Finally,
specific HR capabilities and its impact on sustainability of the organization in the market are
discussed.

MANAGING HUMAN RESOURCES
Table of Contents
Introduction 4
Findings and analysis 4
Conclusion 9
Reference List 10
Appendices 12

MANAGING HUMAN RESOURCES
Introduction
Human Resource Management practices in an organisation is based on an official system that
assists the company to look after in managing their workforce, recruitment of employees,
staffing and maintaining a methodical and formal work design within an entity. Productive
outcome of company is dependent largely on effective HR planning and practices. This business
report aims on focusing lack of supervision in HRM practices that can cause disruption in
internal environmental condition of organisation that can affect sustainability of company in
market. Examples of two health care organizations in Australia are considered where contrasting
HRM is implemented and a comparative study on HRM within the organizations is
demonstrated. The learner has conducted a secondary methodology analysis here to gather
information from secondary sources to provide insight into the HRM functions and their
sustainability in the organisations.
Thesis statement of this report shades light on the significant factors of prolonging sustainable
HR practices within an organisation and probable recommendations in improvement of HRM
operations in a healthcare organisation.
Findings and analysis
Recommendations for improving HRM operations
The two hospitals that are considered in studying effective HRM prolongs contrasting practices
of human resource within the organisation and subsequent consequences are faced by them. The
first hospital lacks a specific HR department and consequently face challenges in market
sustainability due to large number of employee turnover. On the contrary, the second hospital
possess an HR department in the organisation that consists of a dedicated HR team that looks
after employee that looks after organisation designing, employee recruitment and resourcing,
their performance as well as rewards and recognitions. Ehnert, Harry & Zink, (2014) mentioned
that successful employment flexibility always allows an organisation to maintain an integrated
HRM within the organisation. In the first hospital, lack of HR department has resulted in nil
flexibility among employees and as a result huge internal disruption has taken place due to non
involvement of key HR practices.

MANAGING HUMAN RESOURCES
CEO of the first hospital along with the finance manager have taken the responsibility of HR
department and a consultant is appointed, who visits the hospital once in a week to look after the
HR policies. Bogdanovic, Durian, & Cingula, (2016) mentioned that it is not possible to
acknowledge the factors and develop policies of human resources by a finance manager who has
no relevant knowledge about the particular field.
Figure 1: Three components of Karon Legge model
(Source: Nazeer, Zahid & Azeem, 2014)
As per Karen Legge Model, HR practitioner within an organisation can involve three types of
innovative approaches that can help in operations on HR departments (Lakshmi & Kennedy,
2017). The primary recommendation that is required to be provided to the CEO of the first
hospital is to develop a specific Human Resource Department within the organisation following
the Conformist Innovator approach of Karen Legg model. Conformist Innovator approach of
Karen Legg model will help the company to identify objectives of the organisation, strategies of
conflict reduction, cost reduction and increase organizational productivity (Psychogios et al.
2016). HR team of the second hospital has framed a strategic HR capability, dealing with the
visions of the organisation, thus enhancing their profit and productivity.

MANAGING HUMAN RESOURCES
Figure 2: Components of Six Sigma lean approach
(Source: Veloso, Tzafrir & Enosh, 2015)
The second hospital has maintained an effective monitoring of different HR practices, policies
and processes of their organisation. As per Kemayou, (2014), quality and performance
measurement of an organisation is done by six sigma model, which can be utilized by HR
departments. The second hospital has identified and measured the internal and external market
factors that are followed by undertaking the six sigma lean approaches in monitoring
organizational HRM. CEO of the first hospital is strongly recommended to conduct a methodical
monitoring of the HR practices with the help of Six Sigma model that would assist to frame an
organizational chart, designation of each employee, their performance and scope of
improvements. Specific training and development requirement, key performance indicators along
with rewards and recognitions of the employees can be identified from this model. Benn &
Rusinko (2013) stated that in HRM, key performance indicators portray the metric of
performance evaluation of several HR activities.
Key features in building sustainable HR capability
The second hospital has taken successful measures in developing the vision of organisation,
identifying key performance indicators, monitoring effects of organizational HRM, motivating
their employees and employee retention. Longoni, Golini & Cagliano, (2014) opined that a
CONTROLDEFINEANALYSEIMPROVE

MANAGING HUMAN RESOURCES
sustainable HR capability is developed within an organisation on individual considerations of
HR activities and specific analysis of those activities for future improvement.
Figure 3: Key performance Indicators
(Source: Story et al. 2014)
Key performance indicators identified by second hospitals are:
● Training and development
● Absenteeism
● Workforce cost
● Employee retention
● Employee motivation
● Employee turnover
● Workplace health and safety
Determination of each of the key performance indicators has allowed the second hospital to
improve their job designing in HR practices. As per Smith & Synowka (2015), a company can
develop a proficient strategy in executing HR practices, which would help them to prolong a
smooth workflow and also increase competence to survive tough market competition. Capability
of HR department of the second hospital is judged by their sustainable position in the market and
this has been possible because a smooth relation is maintained between the HR departments as
well other departments of organisation. On the contrary, the first hospital has not established a
KeyperformanceindicatorsSTRATEGIZEINNOVATEPROPAGATEMEASURE

MANAGING HUMAN RESOURCES
specific HR department, thus their sustainability in HR capability is questionable. They have
only appointed a consultant in reviewing their HR policies, processes and practices. As per
Akhtar et al. (2014) appointing only a consultant to supervise HR policies is not sufficient in
evaluating the HR capability of the organisation and its consequent sustainability in market.
Healthcare
organisation
Key
performance
Indicators
Monitoring HR
processes
Employee
retention
Sustainable HR
capabilities
First hospital No No No No
Second hospital Yes Yes Yes Yes
Table 1: HR practices in two organisations
(Source: Created by learner)
HR department of the second hospital has considered the motivation of their employees as a
crucial factor and had introduced several reward and recognition processes to increase the
encouragement and loyalty of employees. This has helped the company in retaining their
employees, reducing staff turnovers and overall production quality of the company has increased.
Lack of all these systems in the first hospital has resulted in huge employee turnovers, staff
grievances, absenteeism, and reduction in overall company productivity. Varma (2013) has
stated that effectual production is indirect in the HR department, utilization of staffs is being
initiated from this department itself. Hence, it is obvious that the first hospital will face reduced
productivity as their employees are not enough encouraged and motivated.
CEO of the first hospital is content with the supervision of an HR consultant in their organisation
to look after HR policies set by CEO and financial manager. As mentioned by Lussier & Hendon
(2014), an HR consultant can oversee and supervise the prevalent HJR policies but cannot
undertake measures in introducing new strategies as well as look after employee benefits that are
essential for company benefits.
Options Characteristics
Creating HR functions Staff engagement
Organisational commitment
Quality of patient care
HR manager Planning

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Job analysis
Recruitment
Selection
Table 2: HR practices in second organisation
(Source: Created by learner)
The second hospital has effective HR department that deals with all the HR activities of the
organisation and essential measures of improvement are recommended. This is another key
factor in maintaining sustainability regarding capability of HR and consequently assists in profit
enhancement of the organisation. (Refer to Appendix 1)
Conclusion
Findings and analysis in the above report shows that there is an effective relationship of HR
department of an organisation with the enhancement of company’s profit since the primary
lookout of this department is towards the wellbeing of staff, who are the actual human resources
of an organisation. Requirement of a specific department within an organisation deals with
overall increase in productivity of an organisation and lack of presence of this department does
not allow sustainability of the organisation in market. It is thus required to establish an effectual
HR department within an organisation to look after the internal work culture of the organisation
along with the sustainability of the company to survive tough competition in the external market
environment.

MANAGING HUMAN RESOURCES
Reference List
Akhtar, N., Azeem, S. M., & Mustafa Mir, G. (2014). Impact of hrm practices on perceived
organizational performance. International Journal of Academic Research, 6(5).632-745.
Benn, S., & Rusinko, C. A. (2013). Boundary objects, HRM tools and change for
sustainability. The Necessary Transition. The Journey towards the Sustainable Enterprise
Economy. 2(4), 102-410.
Bogdanovic, M., Durian, J., & Cingula, D. (2016). Hrm choices for business strategy support:
how to resolve the most important hrm strategic dilemmas?. Economic and Social
Development: Book of Proceedings, 52(11) 429-745.
Ehnert, I., Harry, W., & Zink, K. J. (2014). Sustainability and HRM. In Sustainability and
Human Resource Management, 45(7), 78-214.
Kemayou, Y. (2014). Organization and Assessment. International Human Resource
Management, 74(22), 1020-2145.
Lakshmi, V. R., & Kennedy, H. (2017). The Role of Business Sustainability in Human Resource
Management: A Study on Indian Manufacturing Companies. The South East Asian
Journal of Management, 11(1), 70-330.
Longoni, A., Golini, R., & Cagliano, R. (2014). The role of New Forms of Work Organization in
developing sustainability strategies in operations. International Journal of Production
Economics, 147(6), 147-160.
Lussier, R. N., & Hendon, J. R. (2014). Human resource management: Functions, applications,
and skill development. London: SAGE Publications.
Machado, C., & Davim, J. P. (2014). Human Resource Management and Technological
Challenge, Berlin: Springer.
Nazeer, S., Zahid, M. M., & Azeem, M. F. (2014). Internal service quality and job performance:
does job satisfaction mediate. Journal of Human Resources, 2(1), 41-65.

MANAGING HUMAN RESOURCES
Psychogios, A., Szamosi, L. T., Prouska, R., & Brewster, C. (2016). A three-fold framework for
understanding HRM practices in South-Eastern European SMEs. Employee
Relations, 38(3), 310-331.
Smith, A. D., & Synowka, D. P. (2014). Lean operations and SCM practices in manufacturing
firms: multi-firm case studies in HRM and visual-based metrics. International Journal of
Procurement Management, 7(2), 183-200.
Story, J. S., Barbuto, J. E., Luthans, F., & Bovaird, J. A. (2014). Meeting the challenges of
effective international HRM: Analysis of the antecedents of global mindset. Human
Resource Management, 53(1), 131-155.
Varma, A. (2013). Managing human resources in Asia-Pacific, Abingdon: Routledge
Veloso, A., Tzafrir, S., & Enosh, G. (2015). How employees perceive HRM practices:
Differences between public and private organizations. Human resource management
challenges and changes, 77(23), 19-36.

MANAGING HUMAN RESOURCES
Appendices
Appendix 1
Factors affecting HRM in an organisation