Managing People: HRM Models and Recommendations for Improved Productivity and Employee Retention

This report discusses the importance of human resource management (HRM) in managing people in an organization. It covers HRM recruitment and selection models that affect staff behavior at the workplace, the appropriateness of HRM models, and areas of procedure that need to improve. It also provides recommendations for HRM models to adopt and improve operational productivity and employee retention. The report is based on the case study of Farm Box, a UK-based company that distributes fresh food directly to consumers.

Managing people

Table of Contents
INTRODUCTION ............................................................................................................................3
HRM recruitment and selection model that affect staff behaviour at workplace..........................3
Appropriateness of HRM models and areas of procedure that need to improve...........................6
Recommend HRM model for the organisation to adopt and improve its operation productivity
and employee retentions................................................................................................................7
CONCLUSION .................................................................................................................................9
REFERENCES.................................................................................................................................10

INTRODUCTION
The human management resource is an approach to manage people in the organisation.
These people are considered as key resource in the HRM approach. The human management
resources management is concerned with the individuals dimension in organisational management
the HRM is that process which consist of the four important activities such as acquisition,
motivation, development and maintenance of the human resources. It bring talented employees in
the organisation by identifying their skills and knowledge. It is that branch of the management
which is accountable on the staff basis to concentrate on those operational aspects which are
mainly concerned relationship between management and employees and development of people
and group (Armstrong and Taylor, 2020). The firm chosen in this report is Farm Box which is
situated in Cheshire, UK. It deals in distributing fresh food directly to the consumers. The main
aim of this report to cover HRM recruitment model, concepts and theories, appropriateness of
HRM model with positive elements, HRM recommendation model, polices, theories for company
to improve their operational productivity.
HRM recruitment and selection model that affect staff behaviour at workplace
The recruitment and selection is very significant function of HRM. It maximise the
employee's strength to meet organisational strategic objectives or goals. There are different
theories of HRM to recruit people in organisation to achieve their goals. These theories and model
effect employees behaviour in different way in the organisation (Ayentimi, Burgess and Brown,
2018). In context of Farm Box, there are some recruit and selection models of HRM.
AMO model
This model suggest three independent work system elements that shape the employees
characteristics and their contribution for the organisational success. The employees in an
organisation can be very motivated and competent, but if the workers do no have any opportunity
for making a contribution in the success of a company then it goes beyond their work performance
on job.

 Ability- These are the skill and knowledge of employees has to do their job. The HRM
hire those workers who have the ability and skill to work efficiently ( Borges and Tan,
2017). The company should provide training sessions to enhance their employee's skills or
abilities in order to attain the organisational goals.
 Motivation- It include different methods to motivate t he employees such as promotion,
bonus, compensation, performance evaluation, performance appraisal and many more.
They motivate and encourage their workers to improve their performance and work
productivity.
 Opportunities- In this, the company provide opportunities to their employees so that they
become enable to make a contribution in company's success. The company give regular
feedback to its workers and offer them different opportunities for their development as
well as the company.
In context of Farm Box, they took the interview of candidates through online system with the aim
to determine candidate's suitability and skills. They need to hire some skilled and talented workers
for their services. It is very essential for the HRM department of the respective company to
conscious shaping of the employees abilities, motivation and provide opportunities to them.
Human capital model
This concept is proposed by the Schultz during 1962 and later it is developed extensively
by the Becker in 1964. According to the Schultz, the training and education increase worker's
productivity by imparting useful skills and knowledge, hence raising the future income of workers
by enhancing their lifetime earning. As per the Becker , he state that there is a positive relationship
between the firm performance and individual performance. The human capital model is used by
the human resource management to designate the personal attributes by considering it useful in
production process (Glińska-Neweś and et. al., 2020).The HRM play their pivotal role in
acquisition, development and the retention of human capital in organisation. The human and
intellectual capital are the renewable resources. Along with leaders, directors the employees are
also very critical for organisational success. The human capital is managed by the organisational
human capital management that is now referred as human resources management. The HRM
department of an organisation oversees workforce acquisition, optimization and management.
Other directives of this department include the workforce planning and strategies, employees
development and training, recruitment and analytics and reporting. Therefore, this model depict

role of the human resources management in providing training and education which in turn
enhance organisation's performance. As per this model, it is very essential for the organisation to
give training and educate their employees to enhance their productivity.
In relation to Farm Box, Their new employees are lacking in sales and unable to perform their
function well. It need to invest in its employees tanning and education in order to generate more
output.
5p's model
This theory is a form of the strategic human resources management that resorts to the
coalition of five main variables in order to improve the business operations which are given
below:
 Purpose- In this, it include all components that form the business's purpose, mission,
visions, their targets and strategies and aims (Hewagama, 2017).
 Principles- In involve those guiding principles, assumptions and philosophies that guide
an organisation and its business, these variables include ethics and the own organisational
culture.
 Process- These variable represent the organisational structure, its internal structure,
procedures and rule used by the business to produce their goods and services.
 people- These are the individuals and employees who perform activities which are
consistent with Process and Principles of the organisation in order to achieves their
purpose. These are the active factors who attain work result or outcome.
 Performance- It encompasses all measurement, metrics and the expected result which
indicate organisational status and used as criteria for the decision making. The
performance outcome are fed back into strategic management procedure in order to
provide a means of the feedback and control.
In case of Farm Box, to be effective and efficient they need all these five variable consonance
in order to mutually support themselves. The incomparability and incongruence among variables
expand unneeded energy, money and time. It can also create a high level of the frustration,
dissatisfaction and feeling of helpless among the employees.

Appropriateness of HRM models and areas of procedure that need to improve
There are several HRM models uses by the company and every model has its own own
benefits. These model stands for organisational strategic plans designed in order to support
administer and coordinate the business functions regarding to human capital (Kolvereid and Åmo,
2021). In context of Farm Box there are the appropriateness of different model which are given
below:
Appropriateness of AMO model
This theory is consist of three competent which are essential for any organisation and it is
very effective for the business as it has many advantages which are discussed here.
 This theory is widely accepted in the HRM literature to explain a link between the human
resources practises and performance.
 It is a superior structured framework which provide better understanding of relationship
between the HRM and performance.
 It contain three main independent work component which shape the employees
characteristics in such a manner that contribute in the organisational success.
 This theory enhance the practices of human resources management on the sustainable
competitive advantages ( Ye, Ma and Liu, 2021).
 The effectiveness of this model is beyond doubts as it provide adequate ability to the
employees and motivate them in their contribution in the success of business.
Appropriate of human capital model
This theory is based on training and education for the organisational employees and have
some benefits that help the company to develop their workers.
 The human capital explanation posits that employees in an organisation can enhance their
productive capability through a greater education and the skill training.
 It help the researcher and policy maker to evaluate the relationship between training and
education as inputs and economic and the social advantages as output.
 The possible downside heavily relying on the human capital theory is that this is portable.
It always owned by an employee not the employer (Yu, 2017).
 It allows the economy to or a company to grow as it lead to increasing in innovation in the
field of education, science and management.

 An investment in the human capital is an investing in the education which will improve the
workforce quality at workplace.
Appropriate of 5P's model
This model contain five constitutional aspect such as purpose, principles, process, people
and performance. It is essential in every organisation to accomplish their goals.
 This theory help the human resource management to implement program and new policies
which are related to the employees, management and training in the organisation.
 This model lead to development and learning of the employees in organisation and make
enable the them to contribute effectively in company's success.
 By using this model, the company evaluate employees performance and reward them on
the basis of their work efficiency or effectiveness at workplace (Westerman and et. al.,
2020).
 This theory express that how to vale and treat people in the organisation so that the
workers feel being valued and work with a dedication to enhance output.
 It help the organisation to establishes their guidelines and rules for an action on the people
related, enterprise issues and other Human Resources programs.
Hence, there are three main model of HRM and each model has their own benefits in different
way. These theories help the organisation in several manner in order to enhance their productivity
and employees work performance. By using these models a company become enable to mange
their business operational activity effectively.
Recommend HRM model for the organisation to adopt and improve its operation productivity and
employee retentions.
In an organisation, it is very essential to increase their productivity and employee retention
to get success ( Pessoto and et. al., 2020). In context of Farm Box, this company is facing various
challenges as after the recruitment of new employees the company's operational productivity is
decreased and order were incomplete or late sue to which its customers were complaining. They
also face the problem of employee retention as they are looking to leave the respective company.
To mange all these problems and challenges they has decide to employ their specialist HR firm in
order to help identifying main issue and rectify them with the hope of effective productivity and
retaining employees returning. Therefore, it is suggested to the respective company to choose
AMO model of HRM as it will help them in many ways that are discussed below:

As it is analysed that after the hiring of new workers, the company's sales goes down. Therefore
they need to adopt this AMO model.
 Abilities- This theory help them to identify those candidates who has a good skill sets and
ability which the company require to perform in their organisation. They must make ensure
that the workers have appropriate abilities Under this, the HRM department will make
facilitate training and development session to new workers in order to develop their skill or
ability. The aim of ability enhancing practices is to improve three main components.
 Motivation- The company need to motivate their employees and should encourage for
work hard. This motivation will deals with the employee's desire in order to perform
effectively. This motivation can be in term of intrinsic or extrinsic. They should motivate
the employee by rewarding them for their effective work performance and appreciate them
for the their effective skills.
 Opportunities- The company should provide several opportunities to its employees as it
help the workers to grow their career. There should be the opportunity of promotion, job
enrichment and some task where the employees can explore their skill or talents. The
lower level workers also can benefits for the development opportunity. The organisation
should map career path for each job role at work place by considering skills and unused
talent their employees have.
The human resources management is just like the talent management in a company. It include the
talent acquisition, organisational values and vision, training and development, performance
management and many more. To build a strong employees relation the management need to create
a policy by starting with the even one or two of the ideas will help them. In case of Farm Box, to
build the employees relation the company need to make some strategies so that there is less
employees turnover.
 The organisation should appreciate their employees for doing their job in a well manner
and motivate them than criticise. The HR department should communicate all negative and
positive feedbacks t the employees which help them to identify that where they need to
improve and what they need to continue. To make the workers feel valued, the
management should tell them that they are valuable and also recognize their high
achievements. The public recognition is best motivator for the certain personalities.

 The another way to make good relations with employees is that they should recognize and
reward their workers on the basis of performance evaluation. It is important for the
organisation to make sure that the incentives should align with business's values (Piatak
and et. al., 2020).
 The HRM department should ensure that the employees feel supported and develop a
greater sense of loyalty or employee engagement. The company should also focus on
employee's health and promote a healthy work life balance
CONCLUSION
From the above report it is find out that the human resources management approach sis
very essential for all the organisation as it help the company to manage their management. It play
an important role in the section and recruitment process. It make practises to hire very skills and
more talented candidates for the organisation which can make some contribute in the achievement
of organisational success. It uses different techniques and various methods in order to hire a
talented workforces. There are several HRM model and different organisation undertake different
model or theory as per their needs and requirements. There are some important model of HRM
such as AMO theory, Human capital theory and the 5p's model. These theories has their own
advantages and disadvantages. The AMO theory is very effective for the organisation, as it will
train the employees in order to enhance their abilities and also motivate the workers to work hard
so that the productivity of employees can be enhances. In this, the employees get many
opportunities which help them to develop themselves and make enable them to work efficiency in
the organisation to attain their goals.

REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice.
Ayentimi, D.T., Burgess, J. and Brown, K., 2018. HRM development in post-colonial societies:
The challenges of advancing HRM practices in Ghana. International Journal of Cross
Cultural Management. 18(2). pp.125-147.
Borges, L.A. and Tan, K.H., 2017. Incorporating human factors into the AAMT selection: a
framework and process. International Journal of Production Research. 55(5). pp.1459-
1470.
Glińska-Neweś, A. and et. al., 2020. Company Involvement in Sustainable Development—
Proposition of a Theoretical Framework. In Contemporary Challenges in Cooperation
and Coopetition in the Age of Industry 4.0 (pp. 439-451). Springer, Cham.
Hewagama, G., 2017. Service Recovery through Empowerment: HRM and Performance in the
Hotel Sector (Doctoral dissertation, ResearchSpace@ Auckland).
Kolvereid, L. and Åmo, B.W., 2021. Quality and performance in small accounting firms.
International Journal of Productivity and Quality Management. 32(1). pp.129-145.
Pessoto, F. and et. al., 2020. Temas em Educação Corporativa: implicações e atuações para
demandas contemporâneas. Vetor Editora.
Piatak, J.S. and et. al., 2020. Infusing public service motivation (PSM) throughout the
employment relationship: A review of PSM and the human resource management
process. International Public Management Journal. 24(1). pp.86-105.
Westerman, J.W. and et. al., 2020. Sustainable human resource management and the triple bottom
line: Multi-stakeholder strategies, concepts, and engagement. Human Resource
Management Review. 30(3). p.100742.
Ye, M., Ma, Y. and Liu, J., 2021. Why do public sectors perform high-level green public
procurement practice? A new insight with fsQCA approach. Journal of Environmental
Planning and Management, pp.1-29.
Yu, S.O. ed., 2017. Art of modern oriental management: Applying the Chinese, Japanese and
Korean management styles at work. World Scientific.