HRM Strategies for FarmBox: Enhancing Productivity and Relations

This report analyzes the Human Resource Management (HRM) practices at FarmBox, a UK-based company specializing in fresh food distribution. It examines the HRM recruitment and selection models currently in place, such as the AMO Theory, Human Capital Theory, and Michigan Framework, and assesses their impact on employee behavior and company productivity. The report identifies both positive elements and areas needing improvement within FarmBox's HRM procedures. Furthermore, it recommends specific HRM models, theories, concepts, policies, and procedures that FarmBox could adopt to enhance operational productivity and improve employee relations through more effective talent management. The analysis emphasizes the importance of investing in employee training, motivation, and opportunities to foster a productive and engaged workforce, ultimately contributing to the company's competitive advantage and sustainable growth.

Managing People
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1) Define HRM recruitment and selection models, theories, and concepts (AMO Theory,
Human Capital Theory, Michigan Framework, 5 P Model etc.) that FarmBox currently have in
place and explain how these can affect the behaviour of the staff within the workplace, that
may also be affecting the company productivity.........................................................................3
2) Assess the appropriateness of the HRM models, theories and concepts that have been
deployed by FarmBox and identify the positive elements and any areas of the procedure that
may need to improve...................................................................................................................6
3) Identify and recommend HRM models, theories, concepts, policies, and procedures for
FarmBox to adopt to improve their operational productivity and employee relations through
more effective HRM talent management.....................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Human resource management is the main function of organization who understand needs of
employees and organization then give contribution to work effectively. HRM is the strategic
approach to the effective and efficient management of people for the purpose of gaining
competitive advantages. The main function of human resources is planning, organising,
recruitment & selection, performance management, learning & development and compensation
& benefits. This is most important to have talented and experienced human resource that can
manage organizational functions and activities (Helgadóttir, 2018). To understand about human
resource FarmBox has been taken that grow and distribute fresh food products and sale directly
to the consumers via online ordering platform. The organization is facing issue of increasing
employee turnover and lower productivity that directly affected business industry negatively.
The present report covers recruitment and selection models that affect staff behaviour, HRM
models and concepts developed by FarmBox, recommendations to improve operational
productivity.
MAIN BODY
1) Define HRM recruitment and selection models, theories, and concepts (AMO Theory, Human
Capital Theory, Michigan Framework, 5 P Model etc.) that FarmBox currently have in
place and explain how these can affect the behaviour of the staff within the workplace, that
may also be affecting the company productivity.
Farmbox is a UK based company deals in growing and distributing fresh food products
directly to customers through digital platform. It started its business with limited resources and
rapidly grow unexpectedly at the time of Covid Pandemic. Company wants to cater demands of
consumers effectively which results in requirement of more investment and staff. After recruiting
of new employees company faces operational inefficiency due to lack of trained staff
simultaneously failed to retain its employees. In order to resolve these issues company is
planning to hire specialist HR team in order to gain effective productivity and retain its
employees (Kahn and Baum, 2020). Some of HRM recruitment and selection models in context
to Farmbox are as follows:
AMO Theory
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This theory consists of three independent components that aids an organisation in shaping
characteristics and behaviour of employees alongwith contributing to success of company. It
assists in investigating the causes of high and low performance in organisation. Analysts of
Farmbox should carefully implement this theory in their operations by providing a management
tool to organisational leaders for investigating the impact of performance on company's business.
All the components of AMO theory in relevance with Farmbox are discussed below: Ability is termed as knowledge and skills that an employee is equipped with to work in
organisation. It is considered a vital factor as competence of employees is highly required
for high work performance in organisation. Through this factor, Farmbox can investigate
caliber and competence of their employee as their recruitment and selection was based
on a small interview video. Company should provide proper training to employee in order
to increase their knowledge and skills (Mirror, 2019). Motivation refers to direction and encouragement provided to employees in order to
increase their performance levels. Farmbox can motivate its employees in order to retain
them for a long period of time by providing them monetary incentives and flexible
working hours. Opportunity refers to a phase that enables an employee to apply their skills and
motivation effectively in order to perform a given task efficiently. Farmbox should
provide opportunities to its employees for demonstrating their capabilities simultaneously
contributing to firm's performance (Jones and Crowe, 2017).
Human Capital Theory
In 1960s, economists Gary Becker and Theodore Schultz first understand the use of
education as well as training in business parlance and coined the term human alongwith
intellectual capital, treated them as renewable sources of productivity. This primarily refers to
large group of employees who are qualified and able to perform different tasks in organisation. It
requires both employer and employee efforts in development of human capital through
substantial investments. In a broader sense it entirely consists of intangible qualities such as
skill, experience, education, creativity and personality. Investing in human capital from employer
side involves commitments like worker training, apprenticeship program and family assistance.
From employee point of view, obtaining education is most vital and obvious investment in
human capital. Under this theory, it is believed that investing adequately in human resources will
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results in productive business operations in growing economy. This theory advocates that human
beings can increase their productive capacity through high education and specialized training
(Mantle and Lichty, 2019).
This concept has been further divided into sub categories such as cultural, symbolic,
social and economic capital. Economic capital is measured through ability of employee to
perform tasks which results in financial value. Social and cultural capital is the relationship
which influence individual's contribution to society. Each capital is vital and their combination
leads to total human capital. This theory essentially develops relationship between employer and
employee so that their integrated combination led to business success. Farmbox invests huge
resources in recruiting and hiring individuals but it doesn't show up great results. Analyst of
Farmbox should analyse and implement this theory in order to provide specialized and proper
training as well as retaining its employees. Farmbox can provide its employees with good
working environment and try to build friendly relationships in teams in order to increase
productivity of business. They can also assist its employees in providing motivation through
monetary and non- monetary incentives which helps them in putting dedicated efforts in every
task. These practices aids Farmbox in grabbing opportunities and gaining sustainable competitive
advantage. Hence, company should invest more in human resources (Reiter-Palmon, 2021).
All the economist is not in favour that this theory increases productivity. Many economist
and authors argued that human capital only tells about talent and ability, real productivity came
later as output through various inputs such as training, motivation and capital equipment.
Another economist states that simply turning people into capital came with class conflicts.
Modern critiques argue against this theory, stating it to be offering simple and illogical principles
whose only purpose is to explain connection between human capital, productivity and income.
This theory principally talks about human resources as capital of organisation and does not look
for operational efficiency, which is also needed by analyst of Farmbox. So they need to be
carefully evaluate this before implementing it in the business operations.
Michigan Framework
This primarily focuses on hard human resource management practices as it has less
humanistic value. This model considers employees similar to any other resource obtained
cheaply, developed and exploited fully. This principally laid on market performance and efficient
productivity of organisation. Farmbox should change its concentration from effective
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employment requirement to strategic development of business. As it is failing in satisfying its
consumer demands and receiving complaints, it should shift its preference from employee
development to sustainable productivity of business. In relation to FarmBox, management uses
Michigan framework to solve the issues and affecting employee’s behaviour such as:
 Strategy as Plan – this means having plan of action and strategy is better for
organization that can help to be prepare from internal and external situation. In relation to
FarmBox, HRM management formulate effective planning to increase its business
activities by increasing sources and capital.
 Strategy as Ploy – This can be explained as strategic options that used to beat the
competition in market and attain competitive advantages. In relation to FarmBox,
management can use by bringing something new in market and provide training to
employees which support to develop the organizational performance.
 Strategy as Pattern – This pattern works wonders for organization by developing new
strategy and making effective decisions. The FarmBox use this pattern for developing its
business in to national and international market that support to increase business
performance by managing people at right place.
 Strategy as Position – This strategy relates to position, planning, and execution that can
help to maintain a unique position in market and develop organizational productivity. The
management of Farmbox, could maintain higher position by retaining people and
increasing business activities effectively.
 Strategy as Perspective – This can be explained as strategy of human resource
management used by organization to targeting audience and changing customer buying
behaviour that can help to operate the business effectively. FarmBox needs to understand
buying behaviour of their customers and provide products accordingly that can help to
develop the organizational performance by resolving issues.
2) Assess the appropriateness of the HRM models, theories and concepts that have been
deployed by FarmBox and identify the positive elements and any areas of the procedure
that may need to improve.
Human resource management is the strategic approach used by organization for effective
management of people and gets work done. This is important for each organization to identify
issues arises while working and resolve it by managing all functions and activities. To maximize
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the business performance and attaining competitive advantages. In business environment there
are different types of people runs their business by managing all functions and bringing changing
in their performance. FarmBox is growing and distributing fresh food to their customers via
online platform that supported to influence customers and develop organizational performance.
The management understand the requirement of their employees and motivate them could be
effective strategy for chosen organization which can help to manage business activities and
performance. The chosen organization have applied Michigan Framework, 5 P Model, and AMO
Theory that have provided positive elements such as:
Helps to recruitment and selection – This is most important for organization to have
skilled and talented people as they work collectively by managing all functions and performing
their roles. If there is skilled and talented people then would be opportunity to grow business and
increase performance. In relation to FarmBox, management uses AMO theory that stands for
ability, motivation and opportunity. In this, management identify the vacant position at the
workplace and recruit skilled people who gets ready to work continuously and give their level
best. This can help to manage the business activities and performance in competitive
environment (Westers and Plener, 2020).
Maintaining good relations with employees – It is most important for organisations to
maintain good relation with their employees in order to influence them to operate business
functions in most effective manner. Mangers of a company maintain good relation with
employees by providing various opportunities to them and by consisting open and honest
communication. In case of FarmBox, managers uses HRM models and theories in order to make
an effective relation with their employees, which help them to operate their business in effective
as well as in efficient manner.
Motivating employees – Company motivate their employees in order to make them
productive for the company which also them to get expected outcomes and increase their sales.
Mangers of a company motivate their employees by providing rewards and gifts or through
promotion. In respect of FarmBox, managers uses AMO theory in order to motivate their
employees in effective manner in order to improve their company's performance.
Optimum utilization of resources – In order to improve company's performance it is
important for the manager to focus on optimum utilization of resources. It will also results in
better return of investment for the company. It saves time and cost and reduce waste and make
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their performance successful. In regards of FarmBox, various theories and model in order to
utilize their resources in effective manner. It also helps them to increase their productivity.
Providing training and development programme to employees – Training and
development programmes help employees in order to understand the method in order to perform
its company's function in relevant manner. It creates various opportunities for employees in order
to improve their skills in order to perform their job. In accordance with FarmBox, managers are
always focus on providing proper training and development programmes to their employees in
order to make them inform for performing their duties in effective manner (Keene and Stelson,
2017).
Increase organizational productivity- By making small changes in the organisation
help their manager to improve as well as increase their organisational productivity in effective
manner. It also improves if employees are highly motivated and perform their work in effective
manner by using proper tools. An organisation improves its productivity by improving their
operating functions, employees performance as well as by adopting new transformations. In
context of FarmBox, managers increase its organisational productivity by using proper
technology and human resources.
3) Identify and recommend HRM models, theories, concepts, policies, and procedures for
FarmBox to adopt to improve their operational productivity and employee relations
through more effective HRM talent management.
Each organization wants to get success in their business so that it formulates effective
planning and strategies which used to develop the organizational performance. If company is
facing different types of issues, then management is responsible to understand the issue of
organization such as lower productivity, increasing employee turnover, lack of motivation and
others that impacts negatively on organization and reduced profitability. Employee relations
refers to organization’s efforts to create and maintain positive relations with employees to get
ready to work continuously and support to develop the organizational productivity.
It is recommended to FarmBox organization to understand the issues that occurs while
operating their business and use effective theory and model of human resource management that
can help to manage the business activities and performance effectively. The human resource
management is having major role as it analysing what their employees wants and how they could
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be satisfied then kind of benefits should be provided to staff that can help to bring change and
develop business performance.
FarmBox should be use Michigan framework that based on recruitment & selection,
performance monitoring, rewards, and training & development strategy that can help to develop
organizational performance. This can help to manage the business activities and performance to
improve organizational productivity. In relation to FarmBox organization, management can use
this theory to solve the issue by recruiting and selecting people, providing training and getting
work done effective that supports to develop organizational productivity and profitability.
By using Human capital theory, FarmBox can increase their productive capacity with the
help of greater education and skills training. This theory helps to motivate the people at the
workplace and they ready to work more which can help to develop the organizational
productivity and profitability. Thus, management of chosen organization should be focus over
human relations and motivation which can help to accomplish business goals (Bailey, Mankin,
and Garavan, 2018).
The selected organization should also use AMO theory that can help to analysis the ability
of employees to work and allocate them work that supports to increase business performance and
productivity. This also helps to motivate the people and bringing changes in their performance
that supports to improve business performance.
CONCLUSION
From the report it can be concluded that human resource management is the activity of
managing people and working of workplace that can help to develop the organizational
productivity. This is important for each organization to identify issues faced while operation and
make the use of effective theory and models that can help to resolve problems and develop
organizational productivity. AMO theory, Michigan framework, and human capital theory
should be used by FarmBox that will help to improve business performance by recruiting skilled
people, and motivating them to work effectively. This also helps to improve the business
productivity and profitability by managing people at workplace.
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REFERENCES
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Jones, V. and Crowe, M., 2017. How people from ethnic minorities describe their experiences of
managing type-2 diabetes mellitus: A qualitative meta-synthesis. International journal
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Reiter-Palmon, R., 2021. Leading for team creativity: Managing people and processes. In
Creative Success in Teams (pp. 33-54). Academic Press.
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managing software people and teams. Addison-Wesley Professional.
Westers, N. J. and Plener, P. L., 2020. Managing risk and self-harm: Keeping young people safe.
Clinical child psychology and psychiatry. 25(3). pp.610-624.
Bailey, C., Mankin, D. and Garavan, T., 2018. Strategic human resource management. Oxford
University Press.
Keene, B. and Stelson, U. M., 2017. Managing People as a Leader. In Encyclopedia of Strategic
Leadership and Management (pp. 965-976). IGI Global.
(Helgadóttir, 2018) (Kahn and Baum, 2020) (Mirror, 2019) (Jones and Crowe, 2017) (Reiter-
Palmon, 2021) (Mantle and Lichty, 2019) (Westers and Plener, 2020) (Bailey, Mankin, and
Garavan, 2018) (Keene and Stelson, 2017)
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