HRM Analysis: Theories, Business Strategy & Trends - HR4006 Report

This report analyzes the key features of human resource management (HRM), critically evaluates relevant theories and concepts, and assesses HRM's role in achieving business strategy. It explores the evolution of HRM, highlighting the shift towards employee-focused and individualized workplaces driven by increased competition for skilled labor. The report identifies key features of HRM such as its people-oriented, comprehensive, individual-oriented, continuous, staff, pervasive, and challenging functions. It also discusses the link between HRM practices and organizational performance, emphasizing the AMO theory (Abilities, Motivation, and Opportunity) and the importance of aligning talent with business strategy. Furthermore, the report examines contemporary trends in HRM, including multi-skilling and the integration of virtual and augmented reality. The report differentiates between soft and hard HRM strategies, and concludes by emphasizing the need for HR professionals to possess rhetoric skills to effectively persuade and communicate within organizations.

Running head: HUMAN RESOURCE MANAGEMENT
HR4006
Human Resource Management
Semester 2
Assessment 1
I confirm that this assignment which I have submitted is all my own work and the
source of any information or material I have used (including the internet) has been fully
identified and properly acknowledged as required in the school guidelines I have
received.
Module Tutor Dr Emma Thirkell

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HUMAN RESOURCE MANAGEMENT
Student Number [enter your ‘G’ number’]
Word Count [enter your word count excluding Reference
List]
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Executive Summary
The purpose of this report is to analyse and identify the main features of the human resource
strategy. It analyses and critically evaluates a range of theories and concepts, which are
related to the human resource, and the link of the theories and concepts to the organization
performance. It provides an assessment of the role of human resource in strategic thinking,
direction setting, planning and operations of the business organization. Further, it provides a
critical review of the contemporary changes in the trend of human resource industry. The
report identifies the changes in the current trends and practises of human resource in large
business organizations. It includes the legal, ethical, economic, social and technological
change issues faced by the organization along with the international development and the key
trends in the current human resource industry. Lastly, it provides a summary of the report and
the conclusions.
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Contents
1. Introduction............................................................................................................................3
1.1Key Features of Human Resource Management...................................................................3
1.2 Critical Evaluation of Human Resource Management.........................................................5
2.0 HR and Business Strategy....................................................................................................7
3.0 Contemporary Trends in Human Resources........................................................................8
4.0 Summary............................................................................................................................10
5.0 Reference List....................................................................................................................11
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1. Introduction
Human Resource Management can be defined as a whole consisting of inter related,
inter dependent and interacting components of physiological, psychological, ethical and
sociological components. Human resource management is a considered as a practise of
recruiting, hiring the employees, deploying and managing the employees of the
organization. It is often referred as human resource (Nankervis et al. 2016). It is the
responsibility of the human resource department of the organization to create, put into
effect, and oversee the policy governing the workers and the relationship of the human
resource along with the organization. The aim of this assignment is to analyze and
research on the theories and concepts of HRM. It analyzes the definition and the
perspectives on HRM. Further it provides the difference between the HRM and the
SHRM.
1.1 Key Features of Human Resource Management
Human Resource Management is believed to be a word which is used to describe and redfer
to the ways in which the business organization manages the personnel department of the
organization. It is the responsibility of the human resource managers to conduct the activities
of the business in an effective, legal, consistent and fair manner. The main strategy of the
human resource managers is to aim recognizing the link between the capable personnel for
the organizational achievement. It mainly seeks to achieve competitive advantage by
strategically developing a capable workforce by integrating culture and structural personnel
techniques.
Evolution of HRM
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In the recent years, the human resource development has evolved into its roles a strategic
partner of the business organization for mapping the direction of the organization. Previously
the challenges faced by the human resource department included succession planning and
offering skills and knowledge to the leaders of the organization needed for the success of the
organization. However, the human resource management has evolved due to increase in
competition of the skilled labours and workers have become a top priority. As a result of the
increased competition in the market, the workplace of the organization have become more
employee focused and have been individualized (Langston and Lauge-Kristense 2013). The
workplace of the organizations has become much more personalized than the previous years.
In today’s context, the human resource department has become more focused on the
productivity and performance of the organizations. With the advancement of technology, the
human resources may implement the use of instant messaging tools such as primary internal
communication vehicle. There has been a change in the social cultural behaviour of the
employees and the workers of this generation, they still demands and value for the basic
benefits like the health and the retirement program but they also want more flexible and
individualized benefits (Wilkinson and Wood 2015). For example, the retail giant Amazon
offers to its employees a generous tuition benefits and onsite schooling for the employees.
The company has been providing opportunity to train workers for jobs outside Amazon. To
address to the latest trends and changes, the organizations and the human resource are
arranging flexible work arrangements and schedules to evaluate the work performance of the
employees. The employees and workers of day seek for more independence and opportunities
(Kochan 2017). Therefore, it is required by the human resource department to adapt to the
changes accordingly.
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From the analysis of the definition of the human resource management, the following features
have been identified.
People oriented: Human resource management of the organizations are concerned with the
employees and their behaviour, emotional and social aspects of the employees. It brings
together the people of the organizations and the goals of the company (Purce 2014). They
further ensure that the goals of the organizations are met.
Comprehensive functions: Human resource management cover all levels of the employees
and applies to all types of organization (Nankervis et al. 2016). the human resource
management applies to workers, supervisors, managers, officers and other types of employees
in the organizations.
Individual oriented: Human resource management is concerned with the training and
development of the employees, provide support services and programs to facilitate the
development of human resources, employee satisfaction and growth of the employees. In
other words human resource department of organizations are concerned with the development
of the human resource such as the knowledge, skills, abilities, capabilities and potential for
attaining and achieving the employee goals of the organizations (Purce 2014).
Continuous function: The human resource management is a continuous and a never-ending
process; it requires constant alertness and awareness of human relations in the organizations
and their importance in everyday operations and functions of the business.
Staff functions: The human resource management of the organization is highly responsible
for all the line managers, they contribute to the growth and success of the organizations and
they manage the staff managers of the organizations (Purse 2014).
Pervasive function: Human resource department is the central function of an organization
and performs all types of managerial and functional management such as the production
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management, the financial management and the marketing management. Every manager in an
organization s involved with the human resource functions.
Challenging function: The job of the human resource management is considered to be
challenging due to the dynamic nature of the employees.
1.2 Critical Evaluation of Human Resource Management
HRM and its link with performance
It was observed by Richard, Kirby et al. (2013), that there is a positive relationship
between the human resource management and the organizational performance of the
organization. Lower the performance of the human resource department of the organization
and its programs results in lower employee development, which decreased the overall
organizational performance of the organization. The development of the employees in an
organization depends on the training, development and promotion initiated by the human
resource department of the organizations. Various author such asJackson, Schuler et al.
2014); have suggested that is important to better understand the practices of human resource
management, which affects the performance of the organization. The practices of human
resource department of an organization positively affect the employee outcome and the
performance of the organizations, thereby affecting the financial outcomes and market based
outcome. Stredwick (2013), that the human resource management of the organization must be
consistent with the effective organizational factors has argued it. It is the responsibility of the
human resource management to create positive conditions for the employees and achieve the
desired goal of the organizations as well as influence the attribution of the employees in the
organizations.
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The AMO theory of human resource department is based on the idea that the human
resource practices influence the Abilities, Motivation and Opportunity of the employees to
participate. These are some of the important practices of human resource department, which
positively affects the overall performance of the organizations. Some researchers also call it
the KSA theory (Langston and Lauge-Kristense 2013). It has been mentioned by Stredwick
(2013), that the human resource practices of an organization increases the knowledge, skills
and abilities of the employees. They also perform the functions of motivating the employees
of the organization to leverage their knowledge, skills and abilities (KSAs). It is also the
responsibility of the human resource department to empower the employees of the concerned
organization to do so and help them to consistently grow and prosper for its organization.
2.0 Human resource management strategy
Many experts are in the opinion that human resource has a holistic perspective on the
talent alignment to the business strategy. The human resource department of the organization
has a unique position in the organization, which helps the leaders of the organizations
understand the ways in which strategy is developed (Stredwick 2013). The human resource
department ensures that the people provide a continued and smooth operation in the
organizations. It maintains a discipline and ensures a systematic approach in the functioning,
activities and operation of the business organization. Therefore, it implies that the human
resource department of the organization is regarded as a tool to assure the future available of
the employees to carry out the business operations (Rich bell 2015). It comes up with the
changes in the business external environment. It helps to assess the current human resource
through the human resource and adapts it to the changes in technology, political, economic
and other social-cultural changes.
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Strategies of HRM-Hard and soft
The soft HRM strategies are people focused and they are having high commitment. The
employees are considered the most important resources in the organization, they form a
competitive advantage. They are treated as individuals and the needs are planned accordingly.
The needs of the employees include employee training, development, commitment and
participation. Democratic leadership styles are used in soft HRM strategies, there is strong
and regular two-way communication, they have a longer-term workforce planning (Richbell
2015). The appraisal system mainly focuses on identifying the training and development
requirements and needs of the employees. However, the soft HRM strategies are costlier as it
requires performance related incentives.
The hard HRM strategies are task oriented, they have low commitment, and employees are
considered simply the resources of the business. They have instrumental approach towards
managing the employees of the organization. They mainly focus on performance
management; strategies are mainly focused in achieving the organizational goals. HRM
strategies is used in taller organizational structures, they have autocratic leadership style with
minimal communication, which usually comes from the top-down. There is little
empowerment of delegation. However, this approach de-motivates the employees; there is
high absenteeism and higher staff turnover (Stredwick 2013).
Rhetoric and Reality
Rhetoric is an HR skill, can be defined as “the art or the study of using language in an
effective and persuasive manner”. The human resource personnel must have the ability to
address the group of employees or the managers in an organization with the skill and
persuasion, which is considered core competencies of the human resource personnel. The
virtual reality and the augmented reality are an increasing trend in the human resource
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industry. They are booming and more organizations are leveraging the technology in human
resource to increase the productivity and retention.
3.0 Contemporary trends in Human Resources
Multi-skilling
It has been identified that multiskilling in an organization, and the skills in the
training has been linked to high performance work systems and rhetoric empowerment in the
organization. It has been assumed that a flexible workforce is multi skilled. Multi skills
present in an organization provide an opportunity to the staff to be trained in various roles
and skills. Having multi skills in an organizations leads to improved job satisfaction and
thereby increase the performance of the organization. It is considered an effective way for the
companies to organize the work and job in a way, which will lead to improvement in the
profitability, quality of work and flexibility.
Millennial
The millennial in the business organization has been changing the workplace. They
have brought significant revolution in the business. Previously the process of handling
employs, lack of engagement has lead to business failure. The social internet and the
enthusiasm of the millennial have brought revolution to the business as well the society. The
business organizations provide training to the present generation employees f the required
and necessary technical and behavioural skills in order to enhance their capabilities and
enable them to participate in the decision making (Stredwick 2013). The millennial are the
generation that have a digital workplace and leverage that power on the individual basis.
They have access t more information and possible handle the challenges of the organization.
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4.0 Summary/Conclusion
Therefore, from the above analysis, it can be concluded that the human resource
department tare a vital part of an organization; they perform the function of overseeing the
policy governing the workers and the relationship of the organization. The features of the
human resource has been discussed in the report, it has been identified that the human
resource are people oriented, it applies to all levels of the organization, it is individual
oriented, pervasive and is ongoing function. The report has critically evaluated the human
resource management. It analyses the range of theories and concept that are related to the
human resource department of the organizations and the ways in which it links with the
performance of the organization. Further, the report analyses the role of human resource
development in strategic thinking, planning, direction setting and operation of the
organization. Lastly, it has analysed the contemporary trends of the human resource
management industry, it identifies the advancements of technology and the changes in the
social cultural needs and demands of the employees and workers of this generation. It
determines the changes in the human resource practices of the previous years and the human
resource practices of the present generation. It has analysed the key trends in the human
resource industry in today’s context.
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