Managing People: HRM Theories and Models for Farmbox

This report discusses the HRM theories and models adopted by Farmbox, analyses their appropriateness, and suggests the adoption of The Harvard Model for improving productivity and employee relations.

Managing people

CONTENTS
1. INTRODUCTION..............................................................................................................1
2. REPORTING TASK GUIDANCE.....................................................................................1
2.1 Determining the issues being faced by Farmbox........................................................1
2.2 Outlining different Human Resource Management theories and models...................2
2.3 Analysing the appropriateness of the theories and models.........................................3
2.4 Determining and suggesting models...........................................................................5
3. CONCLUSION...................................................................................................................6
REFERENCES...........................................................................................................................7

1. INTRODUCTION
Talking in relation with the Human resource management, it is nothing but effective
management of the workers through remaining the side of the human of corporate
management long with the strategies, regulations, systems as well as rules which might
influence the staff of the company (Guest, 2017). In addition to this, it is also about making
use of the employees effectively for attaining the goals of the company. Pertaining to this, the
current research report also deals with determining the human resource management theories
being adopted by the case company “Farmbox”. The report will also going to evaluate their
impact on workplace. Furthermore, the final section of the research paper will throw light on
some recommendations related to theories and models to Farmbox for the purpose of
improving their productivity.
2. REPORTING TASK GUIDANCE
2.1 Determining the issues being faced by Farmbox
From the case study it was explored that the Farmbox, who distribute fresh food
produce is presently coming across with the issues related to recruitment and selection
process. They are facing this problem because of the surge of COVID19. There has been
sudden rise in the orders overnight and the company needs more staff, investment and
products to meet out this rising demand. Earlier the firm was being managed by the four
members of the family along with 2 farmhands. According to the case, the owner of the
Farmbox has took the process of recruitment and selection in a rush through enlisting an
online advertisement for farm hands necessitating curriculum vitae to be despatched to the
firm. Furthermore, the owner of the firm does not hold any past experience of this process
and due to this, the whole procedure was not performed effectively. Even all recruitment
guidelines along with the policies were not considered at the time of recruitment of
employees. If owner wanted to have effective hiring then there will be a requirement of eye-
catching advertisement with adequate stating of the brand, image and reputation of the firm,
remuneration, role to be performed and duration of work. And all this was not stated by the
owner during the online advertisement which resulted into decrease in the productivity and
altered the behaviour of the workers (Jiang, 2018). Moreover, most of them were planning to
leave the firm at times when they search out for the protected engagement for them.
Therefore, it can be overall said that because of their current recruitment, they are facing
recruitment issue and thus, there internal recruitment as well as selection process needs to be
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analysed for determining possible concerns as a specialist consultant for recruitment and
selection.
2.2 Outlining different Human Resource Management theories and models
Speaking about the HRM models and theories being adopted by the Farmbox,
currently they have adopted AMO, human capital and Michigan Framework in their business
activities and explanation of these are as follows:
 AMO (Ability, motivation and opportunity) theory – According to this theory there are
majorly three elements of the work system i.e. ability, motivation and opportunity
which shapes the features of the workers. Further, the goals of the organization are
better achieved through this theory because it paves the direction for the managers to
adopt novel strategies that leads towards motivation of the workers (Rajiani, Musa
and Hardjono, 2016). Focusing on the ability element it simply refers to the human
resource activities as well as policies that makes sure that each and every worker
being employed in the company have gained certain knowledge, skills, ability and
expertise for fulfilling their desired goals or tasks. Additionally, there are activities
which enhances the ability such as steps being undertaken for improving recruitment
and selection process. This will automatically leads towards hiring of a right person at
right job. On the other hand, motivation is concerned with the success of the job and
human resource policies that helps in the management of motivation at the workplace.
Opportunity refers to the chances being offered by the company top contributes
towards them. All these three elements are considered as a significant predicators of
proactive behaviours of the workers (Farndale and Paauwe, 2018).
 Human capital theory – This theory is being regarded as the backbone for all the
professionals related to human resource. It describes all the personal features which
are necessary for process of production such as health, knowledge, experience, skills
and education of the workers. It is important for the organizations to make investment
in their skills and abilities through training and development as it will going to enable
improved productivity. With greater education and skills training, employee’s
behaviour will be highly affected.
 Michigan Framework – This model is also known as hard human resource model
because of the fact that it pays attention towards treating workers as a medium to
attain the desired goals and work activity. They are not considered as soft asset rather
being used for achieving competitive success of the firm. Other than this, this model
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only focuses on business strategy, resources of the organization and external
environment (Boxall and Purcel, 2016). Michigan model is based on the major four
elements i.e. recruitment and selection, monitoring of the performance, rewarding and
development. Selection means hiring people who are capable for carrying out a
particular job, appraising the performance level of the workers and linking the same
with the objectives of the firm. High level rewards for higher performance which in
turn influences the motivation of the workers as well. Finally, enhancing the current
performance through effective training and development programs. However, this
model highly impacts the behaviour of the workers as they feel demotivated and
underestimated (Jiang, 2018).
2.3 Analysing the appropriateness of the theories and models
AMO (Ability, motivation and opportunity) theory
In case of Farmbox, each and every employee does not hold knowledge, skills, ability
and expertise for fulfilling their desired goals or tasks. The leaders or the owner of the
company was not able to assess the ability of the worker as they were all selected and hired in
haste. Similarly, the employees are not motivated as they have been working for long hours
than mentioned in their contract and because of which the production level of the company is
decreasing. As the recruitment of the employees were being done through online
advertisement, they does not hold any experience regarding the same field and thus, they are
not able to fulfil their tasks (Cascio, 2015). Other than this, they are also seeking for new and
better opportunity outside and wanted to leave Farmbox as soon as possible. All this is
happening in the company as the HR practices are not properly conceptualized by the owner
of the company. However, if it is abstracted effectively it will definitely going to augment the
ability of the workers, motivates and inspires them and finally, it will also offer opportunities
to contribute to the Farmbox.
Human capital theory
Talking in terms of the case, this theory is affecting the business and activities of the
Farmbox and is not appropriate for the company. This is due to the fact that this theory states
that human component has the potential influence in the success of any company. In reality,
all those companies who wish to survive in this competitive business environment are
required to consider human resource as one of the most crucial driver to attain an edge over
the other firms competing in the same market. Furthermore, a company can achieve
advantage in terms of competition because human capital ability can effectively apply their
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skills, experience and science into their job or task. After evaluating this theory, it can be said
that the same is not happening in Farmbox and this pertain to different reasons (Delery and
Roumpi, 2017). Firstly, there is a compensation differentiation, as those employees who are
hired by the company in haste due to surge in the demand because of Covid19 are being paid
less and worked for long working hours. Secondly, the employees are also not trained due to
shortage of time. And the theory suggests that training is considered as one of the most
crucial component in the developmental process of human capital or employees. Further, it
also connected with innovation as it support in skills development. As specified in the case
study of Farmbox, the recruitment of the employees were being done through online
advertisement, they does not hold any experience regarding the same field, even no training
was offered to them and were directly given a tour of the company one day before being
offered individual accountability. This resulted into decrease in the production level of the
company (Gerhart, 2013).
Michigan Framework
The Farmbox has deployed this model in to their business activities. They have also
considered employees as a resource for attaining competitive advantage and organizational
success. As mentioned in the case, the company is presently coming across with the issues
related to recruitment and selection process and they are facing this problem because of the
surge of COVID19. There has been sudden rise in the orders overnight and the company
needs more staff, investment and products to meet out this rising demand. Other than this, the
owner of the Farmbox took the process of recruitment and selection in a rush through
enlisting an online advertisement for farm hands necessitating curriculum vitae to be
despatched to the firm. After recruitment of the workers they have been allotted their
individual responsibilities without any prior training and induction (Sparrow, 2017). Even
they are working for long hours other than that mentioned in their contract just to meet out
the rinsing production demand. Because of this, this most of the employees were demotivated
and are not valued. Besides, no consideration was also given on their skills and knowledge. It
also resulted into high absenteeism of staff as well as turnover. However, this model on the
other hand also had some positive elements. First and the foremost was faster
communication. As there was one way communication from the owner’s side to the workers,
the decisions were taken too fast by the senior level management and no employees have
been given authority to contribute something in decision making. Secondly, it proved very
cost effective to the owner of the Farmbox. This is due to the fact that there was no
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consideration being given by the management towards employees’ training and development
programs (Brunetto, Farr-Wharton and Shacklock, 2011). Minimum level of cost was being
involved in monitoring the performance level of the workers and their management.
2.4 Determining and suggesting models
After analysing and understanding the whole case of Farmbox, it can be said that
there are some models being deployed by the company for managing its business activities.
Out of which, the AMO theory can considered to be effective up to some extent. However,
considering the current issues in the recruitment and selection process of the Farmbox and
current behaviour of the staff members, it is highly suggested to the company to adopt
different model for making improvement in their operational productivity as well as
employee relations. This can be done through more effective Human Resource Management
talent management (López‐Cotarelo, 2018). In this regard, it is highly suggested to Farmbox
to adopt one of the most crucial as well as powerful models of HRM known as The Harvard
Model. This model was being industrialised by Michael Beer in the year 1984 at the
University of Harvard. This model functions on the basis of five important elements i.e.
human resource policies, situational factors, interest of the stakeholders, human resource
results and finally, long term consequences being set by the firm for attainment purpose. As
per this model, the association amid the situational factors along with the interest of the
stakeholders powerfully impacts as well as support in shaping the policies related to human
resource management which needs to be executed for attainment of the predetermined
objectives (Khatri, 2016).
Considering the mode, it is highly recommended to the company to incorporate some
of the important aspects like rules as well as regulations decided by the labour market,
features of the workforce and management philosophy. It is also crucial on the part of
Farmbox to evaluate the situational factors in order to develop cordial and conducive
environment of the workplace as well as for healthy association between the employees. This
will support in bridging the gap and foster higher growth for the company. In addition to this,
interest of the stakeholder can be developed by development of good communication with the
employees and other shareholders and cordial association with the communities, unions and
government (Brunetto, Farr-Wharton and Shacklock, 2011). Other than this, the Harvard
model also suggests that there are different human resource management policies that can be
implemented in the company on a practical basis. This will help in impacting the behaviour
of the workers. Employees can also be motivated by offering effective rewards as well as
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recognitions. In terms of rewards, they can be offered to the workers both intrinsically plus
extrinsically (Brown, 2018). Through this, Farmbox can enlighten both motivating as well as
hygiene factors. Besides this, the owner of the company can also retain their workers who are
searching for opportunity in other companies by allowing them to design their own job
through adopting enlarging or enriching strategies according to their capabilities and skills.
Therefore, it can be said that this model will offer an aid to the company to improve their
operational productivity as well as employee relations because it highlights more towards the
stakeholder’s interest for extended time period. At the same time, it also identifies the
adjustments both indirectly and directly amid proprietors, owner group and interest. If
Farmbox needs to carry out its activities effectively, it is necessary for them to make sure that
their workers are feeling comfortable with each other and they are sharing a good
understanding. They also need to work in close connection with each other towards the
accomplishment of a common goal (Kaufman, 2015). Subsequently, if employees of the
company will feel accountable as well as motivated for conducting good work they will going
to enjoy their work and will not take it as a burden and search for an opportunity in the
outside world.
3. CONCLUSION
Thus, from the above analysis it can be concluded that because of the absence of the
human resource manager and employing expertise in the company, candidates who are not
skilful and have not adhered the operational rules were being recruited and selected. In
addition to this, the hired employees were also not selected through adopting adequate
training and development procedure. All this resulted into great Human Resource
Management issues in Farmbox. Presently, different HRM models and theories were being
adopted by the Farmbox such as AMO, human capital and Michigan Framework in their
business activities. All these models have highly impacted the behaviour of the workers as
they feel demotivated and underestimated. Consequently, it is suggested to the company to
adopt Harvard model for making improvement in their operational productivity level as well
as for maintaining effective employee relations.
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REFERENCES
Books and journals
Boxall, P.F. and Purcel, J., 2016. Strategy and Human Resource Management. 4thed. Palgrave
Macmillan.
Brown, D., 2018. The Future of Reward Management: From Total Reward Strategies to
Smart Rewards. Compensation & Benefits Review.
Brunetto, Y., Farr-Wharton, R. and Shacklock, K., 2011. Using the Harvard HRM model to
conceptualise the impact of changes to supervision upon HRM outcomes for different
types of Australian public sector employees. International Journal of Human Resource
Management, 22(3), pp.553–573.
Cascio, W.F., 2015. Strategic HRM: Too important for an insular approach. Human Resource
Management, 54(3).
Delery, J.E. and Roumpi, D., 2017. Strategic human resource management, human capital
and competitive advantage: is the field going in circles? Human Resource Management
Journal, 27(1), pp.1–21.
Farndale, E. and Paauwe, J., 2018. SHRM and context: why firms want to be as different as
legitimately possible. Journal of Organisational Effectiveness: People and
Performance, 5(3), pp.202-210.
Gerhart, B., 2013. Research on human resources and effectiveness: some methodological
challenges. Chichester: Wiley.
Guest, D.E., 2017. Human resource management and employee wellbeing: towards a new
analytical framework. Human Resource Management Journal, 22(1), pp.22-38.
Jiang, K., 2018. On the shoulders of giants: a meta-review of strategic human resource
management. International Journal of Human Resource Management, 29(1), pp.6-33.
Kaufman, B.E., 2015. The evolution of strategic HRM as seen through two founding books: a
30th anniversary perspective on development of the field. Human Resource
Management, 54(3), pp.389–407.
Khatri, N., 2016. Managing human resource for competitive advantage: A study of
companies in Singapore. International Journal of Human Resource Management,
11(2), pp.336-66.
López‐Cotarelo, J., 2018. Line managers and HRM: a managerial discretion perspective.
Human Resource Management Journal, 28(2), pp.55-71.
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Rajiani, I., Musa, H. and Hardjono, B., 2016. Ability, motivation and opportunity as
determinants of green human resources management innovation. Research Journal of
Business Management, 10(1), pp.51–57.
Sparrow, P., 2017. The death of strategic HRM and business partnering: failure to deliver, or
wrong? IES Conference.
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