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Understanding HRM Models: Ulrich Model, Expectancy Theory, and Equity Theory

This assignment involves a case study on Kiwifurniture, with references to motivation theories, performance management strategies, and cultural and institutional legislation in New Zealand, China, and Germany.

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Added on  2023-04-24

About This Document

In this document we will discuss about Understanding HRM Models and below are the summary points of this document:-

  • Ulrich Model of HRM: Categorizing HR functions into business partners, shared services, and centers of excellence.

  • Expectancy Theory: Motivational theory based on individuals' expectations of outcomes.

  • Equity Theory: Focuses on fairness in the distribution of resources and benefits in relationships.

 

Understanding HRM Models: Ulrich Model, Expectancy Theory, and Equity Theory

This assignment involves a case study on Kiwifurniture, with references to motivation theories, performance management strategies, and cultural and institutional legislation in New Zealand, China, and Germany.

   Added on 2023-04-24

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HRM 1
Human Resource Management
Understanding HRM Models: Ulrich Model, Expectancy Theory, and Equity Theory_1
HRM 2
Answer 1
HRM Models
Ulrich Model of HRM
Ulrich Model of HRM was proposed by David Ulrich, it is necessary for the HR manager to
categorize the function into three forms such as HR business partners, shared services and
centers of excellence (Noe, Hollenbeck, Gerhart & Wright, 2017). This model is helpful in
providing the shape of international organization in core areas like training and development,
recruitment and compensation and benefits. The use of this model is being done on the basis for
transforming the functions of HR, relied on the idea of separating the HR policy making,
business partner roles. This model is helpful for the company to plan future success according to
the company’s position.
Figure : Three-Legged Stool
Source: (Theotokas and Kapantais, 2017).
When the situation of the company is low in hiring skilled people, this model can be applied for
recruitment because HR business partners pay attention to this need for the company and
Understanding HRM Models: Ulrich Model, Expectancy Theory, and Equity Theory_2
HRM 3
communicate with each to resolve the conflicts. In case of not getting better understanding
regarding the different culture, this model can be applied for training and development because
the aspect of this model of shared services include cross-organizational synergies, dissemination
of good practices and recognition of administrative activities that facilitate in training and
development program (Mamman & Al Kulaiby, 2014). On the other hand, the situation of the
company is critical in making decision regarding compensation and benefits; the aspect of the
model of center of excellence is focused on same concern in order to increase productivity.
Expectancy theory
As stated by Kelechi et al (2016), Expectancy theory serves as motivational theory that deems
individuals to be motivated to do certain action with expected outcome that it would obtain upon
the completing the task. It is the theory that proposes that an individual will behave or act in a
definite manner in a certain manner as they are encouraged to choose a specific behaviour over
others because of what they expect the outcome of that chosen behaviour will be. This model can
be applied for recruitment because it is the theory of the management that entails valence,
expectancy and instrumentality. The expectancy theory is applicable to recruitment because it
will be helpful in motivating to the employees as issue can be seen in the case study of less
motivation among employees towards accomplishment of the task.
Valence refers to the emotional orientation in the context of outcomes. The expectations of
employee are different in the organization about their capability (Trautwein, et. al., 2012).
Management is fully involved in the commitment of fulfilling the expectations of the employees.
It is the theory that is helpful in providing training and development to the employee so that they
can perform as per the expectations of the employer. Expectancy theory is helpful in getting
Understanding HRM Models: Ulrich Model, Expectancy Theory, and Equity Theory_3
HRM 4
attention of employers towards compensation and benefits through which employees will be
motivated in performing the task.
Source: (Parijat & Bagga, 2014).
Equity Theory
The main focus of equity theory is on deciding whether the distribution of resources is to fair to
both partners of relational. Equity is evaluated by measuring upto the ration of contribution and
advantages for each person. This model can be applied for recruitment within the business
because Adam’s equity theory is categorized employment benefits and rewards by taking
consideration of employee work’s effort as inputs and rewards as outputs. It employs HRM to
recruit skilled employees by attracting the benefits of the company for the employees and pay
attention to the fair treatment (Jamali, El Dirani & Harwood, 2015). According to this theory, to
increase the input factors within the organization, the company provides training and
development program so that they can perform in a well efficient manner. By focusing on input
factors, the company can get an upper level of output factors within the organization (Caldwell,
2010). This theory is applicable to the compensation and benefits area because this theory
Understanding HRM Models: Ulrich Model, Expectancy Theory, and Equity Theory_4
HRM 5
highlights equity in the structure of the pay of remuneration of the employees (Morand &
Merriman, 2012).
Internationalization HRM strategy carried out by Kiwi Furniture
In the context of the case study of Kiwi Furniture, HR manager has decided to go beyond the
traditional method and take initiative to keep the focus on the global performance-based pay
system, which would be helpful in increasing the motivation of people. Below mentioned two
theories are helpful in taking attention of employer towards the area of training and development,
compensation and benefits and recruitment.
Expectancy theory
It is the theory of HRM that can be applied in the case study of Kiwi Furniture because it
contains three aspects such as valence that lead employees from efforts to performance that
helpful in giving outcome to them so that their personal goals can be achieved (Renko, Kroeck &
Bullough, 2012). In earlier, the employees of the company were not aware about the personal
goals but, with the help of this theory they will be aware of it. The company would be employed
through this theory to provide salary and employee benefits at international level so that the
employees of New Zealand, China and Germany can get enough reasons to stay in the company
for a long period. With the help of this theory, the company can recruit skilled employees and
begin training and development program so that they can perform in a well-effective manner
(Wigfield & Cambria, 2010).
Equity Theory
Understanding HRM Models: Ulrich Model, Expectancy Theory, and Equity Theory_5
HRM 6
Adam’s equity theory can be applied in Kiwi furniture case study because there is a lack of
motivation in the work of the employees. Due to the lack of concrete information and lack of
involvement of managers in the new strategy has become the major issue for the company to
cope up with the issues (Ryan, 2016). For which, this theory is suitable as it entails two major
factors such as input and output because it is stated by Adam that it is required by the
organization make the employee feel that their work outputs will give them the opportunity to
get promoted in the organization. Kiwi furniture manager should do the same with the employees
of the company so that they can work in a well-efficient manner without getting discouraged (Al-
Zawahreh & Al-Madi, 2012). The internationalization strategy of the company would be
successful by taking consideration of this theory because it facilitates to provide them effective
knowledge regarding the current situation and future concern so that they can perform
accordingly and involve in the decision-making approach (Du Plessis, 2009).
Understanding HRM Models: Ulrich Model, Expectancy Theory, and Equity Theory_6

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