Farmbox HRM Analysis: Models, Policies & Employee Productivity

This report analyzes the human resource management (HRM) challenges faced by Farmbox, a Cheshire, UK-based company experiencing rapid growth. It explores various HRM models and theories, including the human capital theory, the 5P model, and AMO theory, to address issues related to em...Read More

Managing People
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Concepts and different HRM recruitment and selection theories............................................3
2. Assessing appropriateness of the HRM model, theories and concept that have been
deployed by Farmbox:.................................................................................................................5
3. Recommendations to Farm box regarding selection of HRM model, policies and concepts
for improving employees’ relation and productivity...................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Human resource management can be defined as a strategic approach to efficient
management of people in companies so that they can help them in accomplishing goals (Stone,
Cox and Gavin, 2020). This present study is based on Farm box of Cheshire, UK. It provides
fresh food to customers and this family business had 4 employees. This company is facing some
problems after hiring employees related to customers' satisfaction and performance. This study is
going to discuss some different approaches and HRM models that can help this company in
improving employees' performance and satisfying customers. Further, it will discuss
effectiveness of 5P model, human capital theory and AMO theory in talent management and
improving performance. Training, motivation, performance appraisal, campus hiring are some
other effective HR practices that will also be discussed in this study.
MAIN BODY
1. Concepts and different HRM recruitment and selection theories
Farm box, based in Cheshire UK distribute fresh food produce to customers via an online
ordering platform. This family business experienced unexpected growth at the time of Covid-19
as people were ordering food online. Now, it is requiring hiring more staff and after hiring staff,
it has found that customers are facing problems in getting their products in a timely manner. This
company has decided to employ specialist HR firm to solve problems and retaining skilled
employees with them (Shaban, 2019). On the basis of this, it can be said that only hiring
employees is not important but they need to be retained, satisfied and managed in an effective
manner. There are number of HR models and theories that are being used and can be
implemented in an effective manner such as:
Human capital theory: This theory of human resource believes that human beings can
increase their productive capacity through skills training and education. This theory is being
developed by Becker and Rosen who stated that individual workers have set of skills that they
can improve through proper education and training. So, on the basis of this, it can be said that
employers of this company needs to develop training and educational programs for new hired
employees. It seems that employees of this company are lacking behind as they do not have
much knowledge about managing customers and satisfying their needs (Galiakberova, 2019). By
providing training and education to new hired employees, Farm Box can solve customers’
problems and can improve productivity.
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In addition, it can also be said that by providing training and education to employees,
employers of this company increase their knowledge and they can learn better ways of satisfying
customers. The main problem that company is facing is lower productivity and increasing
customers’ complaints of not getting their deliveries on time. By developing educational
program and increasing knowledge of employees, they can make their employees able in
improving their performance, solving problems of customers and improving relations with
customers by communicating with them (Winterton and Cafferkey, 2019).
5 P Model: This model is based on 5 constitutional aspects such as process, purpose,
principle, people and performance. HR and employers need to align all these aspects and by
doing so, they can manage talent within business that is the key of organisational success. It is
found that this company is specialised in providing qualitative food products to customers via
online channels. But after hiring employees, it came to know that productivity of this company
got hampered. So, on the basis of this, it can be said that the main reason behind poor
productivity is: poor process and unskilled employees (Keegan and et.al., 2018). Employees who
have been hired may be lacking behind in some areas where they need to increase their skills and
abilities to manage customers and their needs.
In addition, it can be said that, employers of this company needs to change process of
performing functions and producing food products. They need to monitor their employees and
make sure that they are on the right track and performing functions in an effective manner. By
changing processes and measuring performance of employees by using performance indicators,
this company can solve all problems that it is facing. It can improve productivity and can regain
its image in the market.
Performance appraisal: In addition, it can be said that company can focus on
performance appraisal. When employees are being appraised on the basis of their performance
then it makes them feel valued and they are more likely to strive hard and help their company out
in accomplishing their goals. Performance appraisal can motivate other employees whose
performance is poor as they can be motivated by viewing others and for getting promotional and
other opportunities they can also focus on improving their individual performance. Along with
this, employers can develop on boarding training (Ahmad and Umrani, 2019). This is a type of
training that is being provided to new hired employees. Employees came to know about ways of
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performing functions, they know about policies of organisation and it makes easier for them to
perform their allotted work.
On the basis of above discussed models and theories, it can be said that Farm box can solve
all HR related problems and can regain its image in the market. It can expand its business,
increase sales by making their workers skilled.
2. Assessing appropriateness of the HRM model, theories and concept that have been deployed
by Farmbox:
AMO theory:
AMO theory is one of the most effective HR theory that allow company as well as
employee to understand abilities, motivation and opportunities. It is every clear that every
business organization want their employee to work effectively and allow them to explore
different area of development (Kellner, Cafferkey and Townsend, 2019). Employee has three
characteristic, ability, motivation and opportunities, if any of these are missing then their
performance will be impacted and company will face issue. FarmBox need to use AMO theory to
understand their employee, this company is facing issue regarding poor HR practice that
affecting their company, there are three element of AMO theory, these are:
Ability: Every employee have uniqueness which allow them to be different from others,
their ability help them to perform task effectively. Farmbox is one those companies who need to
analyse their employee and their ability to performance task, this business organization need to
provide task to employee according to their ability (Ragas and et.al., 2017). Farmbox is facing
issue of employee leaving their premises because of extra load they have to manage impacting or
testing their ability. This company can improve their employee's retention with practice of right
match which means right job position with right ability that will boost their performance and
allow them to be effective.
Motivation: motivation is one of the most important element of AMO theory, this allow
company to focus on motivation of employee to boost their performance. It is very clear that
motivation push employee to work better next time and allow them to explore different area of
development. Farmbox have to provide motivation to their employee to boost their performance,
this company have to analyse need of their employee for example' employee working extra hour
need to be paid accordingly as they are giving their personal time to manage business (Harihar
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and Chalil, 2018). Farmbox need to provide financial benefit to their employee allow them to
gain their trust and boost their motivation.
Opportunities: opportunities play vital role in managing people of the business
organization, it is highly recommended for every business organization to provide equal
opportunity to their employee in certain areas of business for example; providing them
opportunities to take important decision will impact company's performance and allow them to
become more effective. Providing opportunities is one of the best way to motivate employee and
help them to explore different area of development. Opportunities may include providing higher
position, job design and rotation of the job.
Michigan Frameworks:
This model is considered as the hard model of HRM because this model takes employees
as the means of achieving the strategy of the organization as a resource which is used in the
rational and calculative manner and this model is based on the strategic control, organizational
structure and the systems for management of the people (Van Waeyenberg and Decramer, 2018).
The hard HRM focuses more on the people resources than the soft HRM for achieving the
success. Hard HRM assumes improving HRM reason is increasing the productivity level. This
HRM model will help the FarmBox company to motivate the employees by which they will
work more effectively as the Michigan model gives the central importance to motivating
employees rewarding the people.
The key principles of Michigan Model are-
Selection: The process involve recruiting the people who has the capability to do the job
that has been assigned to them. FarmBox must ensure in hiring those candidates who are capable
of doing job effectively by matching the business needs of jobs to the human resource. This
process is very important for FarmBox company because after selection process the company is
not performing well which means the company has to focus more on selecting better candidates.
Performance and appraisals: The performance is the most important element for every
organization to measure the overall result of the company. Performance appraisal is the process
of regular reviewing the performance of the employee and its contribution for the company.
FarmBox will be beneficial by this model of HRM as it helps them to determine the employees
who have most contributed for the growth of the company and rewarding for their achievement
this overall will increase the productivity level of the FarmBox company.
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Reward: reward is key principle of Michigan framework or hard HRM, this allows
company to provide financial benefit to their employee and help them to create trustable
environment (Armstrong and Taylor, 2020). Farmbox need to provide reward to their employee
which include incentives and other reward according to their performance, this business
organization have to provide reward to those employees who have worked extra and effectively
managed clients complaint, this way they can solve issue they are facing due to poor HRM
practice in the business.
Development: development is one the most important principle of Michigan framework
as this allow company to provide effective training and development process to sharpen skills of
employee, this simply means company will create development environment and push them to
learn new things that will help them in their career. Farmbox need to provide effective training to
employee to sharpen their skills and allow them to manage clients complaint in professional
manner.
3. Recommendations to Farm box regarding selection of HRM model, policies and concepts for
improving employees’ relation and productivity
On the basis of above discussed HR models and theories it can be said that Farm box needs to
focus on talent management. Number of effective models and HRM theories have been discussed
above that are being used by company. There are some other practices that this company should
use for improving relations with employees and customers and making them able to improve
productivity.
Campus hiring: It can hire employees from campus as campus hiring is one of the best
ways of getting talent at workplace. By focusing on this type of recruitment and selection, it will
not require investing much in training and development. It is one of the best and effective
external recruitment source that can make companies able in getting talent and skilled
employees. By hiring skilled employees, it can bring innovation within business and by
encouraging employees for improving performance by using innovative ideas, it can satisfy
customers' needs (Mills, 2020). Customers are more likely to stay with business when they get
qualitative and innovative products.
Motivation: Motivation is other ways of improving relations with employees. Sometimes,
employees get frustrated due to increasing work load and online orders. Due to increasing orders,
they find difficulties in managing that affects quality of products. So, on the basis of this, it can
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be suggested to this company that it should motivate its employees in both finance and non-
financial manner. For motivating employees in financial manner, employees can be provided
bonus, incentives on the basis of their improved performance. Within non-financial motivation,
employees can be provided promotional and other opportunities (Nawangsari and Sutawidjaya,
2019). When employees get promotional and such other opportunities then it makes them feel
valued, it improves their confidence and self-esteem as well.
Team working: There are number of reason poor employees performance and one of the
main reason is poor relation of employees with their colleagues and their manager. When
employees have improved relations with their colleagues then they are less likely to be absent at
work. They feel self of belongingness and colleagues are more likely to help each others. For
improving relations, employers of this company should promote team working. By allotting tasks
in a group, they can encourage employees to interact with each other. When employees work in a
team then they learn new ways of performing functions and it increases their knowledge. Other
importance of team working is: improved relations with each other (Harsch and Festing, 2020).
Employees can solve problems by collaborating and it can be beneficial for this company as it
can solve customers problem in an effective and timely manner as well.
Controlling and monitoring: As it is found that customers are not getting their online
food in a timely manner and it may be because of slow production process poor collaboration.
So,on the basis of this, it can be suggested to this company that it should focus on proper
controlling and monitoring so that it can know as whether employees are performing their
functions in an effective manner or not. On the basis of this, it should encourage employees for
increasing their speed and improving overall process so that they can deliver food products to
customers and can deliver products to them even before expected time. Employees should need
to be active on social media platforms and its official site so that they can review customers'
complaints and their views. On the basis of this review, they can take better decision and can
solve customers' problems in a timely manner.
Along with these, it can also be suggested that this company should provide rewards to
customers like discounts and vouchers as it can make them feel valued. Along with this, it can
implement total quality management and six sigma operational management approaches. These
approaches make enable to employees in improving quality of products and decreasing errors.
By improving quality of food products as well as eliminating waste, it can make itself sustainable
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and can attract customers to the great extent. Six simga and TQM approaches can increase speed
of employees and can improve their performance that is one of the main area on which this
company needs to focus (Akanmu and et.al., 2021.). Along with this, it can implement effective
leadership styles such as transformational and democratic. By allowing employees and customers
to suggest for improving decision-making process, it can solve problems and can make better
decisions.
CONCLUSION
It has been summarized from the above study that talent management plays a vital role as
it enables employers in accomplishing organizational goals and satisfying customers. This study
has discussed some HR related issues and impact of poor performance of employees on
customers' satisfaction and retention level. Further, it has discussed effectiveness of 5P model,
human capital and Michigan framework in improving performance of employees and increasing
their knowledge as well.
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REFERENCES
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industry. International Journal of Quality & Reliability Management.
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Galiakberova, A.A., 2019. Conceptual analysis of education role in economics: The human
capital theory. Journal of History Culture and Art Research. 8(3). pp.410-421.
Harihar, A. and Chalil, G., 2018, October. Impact Of Technological Changes On Hrm
Competency Frameworks. In Proceedings of Business and Management
Conferences (No. 6810374). International Institute of Social and Economic Sciences.
Harsch, K. and Festing, M., 2020. Dynamic talent management capabilities and organizational
agility—A qualitative exploration. Human Resource Management. 59(1). pp.43-61.
Keegan, A. and et.al., 2018. Organizing the HRM function: Responses to paradoxes, variety, and
dynamism. Human Resource Management. 57(5). pp.1111-1126.
Kellner, A., Cafferkey, K. and Townsend, K., 2019. Ability, Motivation and Opportunity theory:
a formula for employee performance?. In Elgar introduction to theories of human
resources and employment relations. Edward Elgar Publishing.
Mills, K.J., 2020. “It’s systemic”: Environmental racial microaggressions experienced by Black
undergraduates at a predominantly White institution. Journal of Diversity in Higher
Education. 13(1). p.44.
Nawangsari, L.C. and Sutawidjaya, A.H., 2019. Talent management in mediating competencies
and motivation to improve employee’s engagement.
Ragas and et.al., 2017. Green lifestyle moderates GHRM’s impact on job
performance. International Journal of Productivity and Performance Management.
Shaban, S., 2019. Reviewing the concept of green HRM (GHRM) and its application practices
(Green Staffing) with suggested research agenda: A review from literature background
and testing construction perspective. International Business Research. 12(5). pp.86-94.
Stone, R.J., Cox, A. and Gavin, M., 2020. Human resource management. John Wiley & Sons.
Van Waeyenberg, T. and Decramer, A., 2018. Line managers’ AMO to manage employees’
performance: the route to effective and satisfying performance management. The
International Journal of Human Resource Management, 29(22), pp.3093-3114.
Winterton, J. and Cafferkey, K., 2019. Revisiting human capital theory: progress and prospects.
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Edward Elgar Publishing.
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