Detailed Literature Review: Organisational, Societal and Industry HRM

This literature review delves into the multifaceted realm of Human Resource Management (HRM), examining the interplay of organisational, societal, and industry factors. It explores the influence of internal elements such as organisational strategy and culture, alongside external factors like globalisation and institutional frameworks. The review highlights the importance of aligning HRM practices with overall organisational strategies, emphasizing the role of the Harvard model in achieving desired outcomes. It investigates how societal factors, including globalisation and institutional influences, shape HRM practices, particularly for multinational corporations. The review also analyses industry-specific factors, such as the distinctions between public and private sectors. The review draws on various academic sources to provide a comprehensive overview of the current knowledge and contribution to the field.

LITERATURE REVIEW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Organisational Factors............................................................................................................1
1.1 Strategies of companies in context to HRM.....................................................................2
1.2 Organisation Culture........................................................................................................3
Societal Factors......................................................................................................................3
1.1 Globalisation and Human Resource Management...........................................................4
1.2 Institutional factors...........................................................................................................5
Industry Factors......................................................................................................................5
1.1 Golden principle of Human resource's management........................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Human Resource Management is one of the most important part of the any organisation.
Human Resource practice are the set of human resource management processes and actions that
work universally. Literature review is type of article review that includes the current knowledge
as well as substantive findings and theoretical and methodological contribution to a specific topic
(Noe and et.al., 2017). The main purpose of this study is to dig deeper into the idea of Human
Resource management. The scope of this study is both in academic and corporate sectors as this
articles is helpful for students to gain the deep knowledge of HR practices as well as company
can also build and improve there policies with the help of this article. In this present essay, all the
authentic and valid sources will be taken in consideration, Wikipedia and other invalid sources
are excluded. The focus of literature review is on main three factors societal, industry and
organisational factors.
MAIN BODY
According to the Gutierrez-Gutierrez, Barrales-Molina & Kaynak, (2018) Human
resource management system constituted within firms are influenced by a number of factors
including internal and external both. Human resource management is the source of
accomplishing competitive advantages. Internal factors include organisational strategy, culture
etc., whereas external factors include societal and industrial factors. It is very important that the
human resource strategies of the company should be aligned with the entire organisational
strategies in order to achieve desire goals and objectives.
Organisational Factors
As per the views of Zhong, Wayne & Liden, (2016) organisational factors is the internal
factors which influence the human resource practices of the company in both positive and
negative manner. Organisational internal factors plays an essential role in the success of business
as well as human resource policies, programmes and practices. If the internal factors are not
aligned in a systematic manner than it is not possible to manage the human resources of the
organisation. As per the findings of Mostafa, Gould‐Williams & Bottomley, (2015) the best
model that is adopted as well as implemented by organisation in order to align the human
resource practices with the six main elements which are interest of stakeholders, situational or
external factors, HRM policy choices, Long terms consequences, HR outcomes and feedback
loop through is Harvard theory. It is true that the outputs flow straightly into the stakeholder and
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company. This model suggests that if the effectiveness and performance of the HR need to be
raise it is very essential to align all these elements with each other as well as with organisational
policies too.
1.1 Strategies of companies in context to HRM
Read & Laschinger, (2015) stresses on the strategies of companies as with the context of
Harvard model, HRM practices must be fit vertically with the organisational strategies.
Organisational strategies includes, mission, power and policies, culture, conflicts, structure and
HR systems. In order to gain the desire goals and objectives of the firms, managements is
emphasizing and bringing changes on the current practices of recruitment and section, training
and development opportunities and many others. HR managers are also including flexible
working hours, shift system to encourage employees to perform in more better way. Albrecht and
et.al., (2015) extracted that, mission of the company also influence the human resources
practices. For example, the case of FedEx company as it mission of the firm is to maximum
customer satisfaction with the aim, People-Services-Profit. These means excellence care of
employees breeds fabulous service to customers and if customers are satisfied if will generate
huge profit. Thus, there are many other organisation whose mission are straightly aligned to
employees satisfaction. However, Donate, Peña & Sanchez de Pablo, (2016) argues that,
organisational structure is one of the element that influence the human resource practices of the
organisation to greater extent. Organisational structure refers to hierarchy within firm that
defined the roles and responsibilities of each and very employees. It is very true that the strategy
along with structure plays a key role in identifying HR practices.
However, Palacios-Marqués, Soto-Acosta & Merigó, (2015) stated that, in order to gain
the competitive advantages, organisation focuses on various competitive strategies like it is very
important to selected growth strategy should be profitable for the company. Each and every
competitive strategies must be align with the HR policies in order to gain competitive advantages
as well as competitive workforce within organisation. For example AMX company who is part
of the HARMAN Professional Division, as they used to evolve innovative technologies that aids
to modify the world. They are highly concern on the customer services as they never take this
lightly. Management gave high focus on Training and AMX implemented Lay-off procedures as
well as Conscientious hiring practices in order to become leader in the employee engagement or
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relation. They have open door policies fr employees that welcomes the views or ideas of top
managers to a trainee.
1.2 Organisation Culture.
According to the Aguenza & Som, (2018) organisation culture is another internal factors
that influenced the human resource practices within organisation. The system of shared belief,
values, assumptions, thoughts, is called as culture of the firms that straightly stated how people
behaves in the company. It also indicates how people will be perform the job role that have
strong influence on the entire performance of the company. In order to accomplish high degree
of organisational commitments from workforce, it is suggested from Harward model that the
objectives of values of the company must be align with the culture of the company. It is fact that
the contribution of employees are more probable in the betterment of the company. For example
the Case of Eastman Chemical Company is awarded for the best working environment and
working culture in 2016 (Real example of Companies Human Resource Practices, 2018). The
rate of employees satisfaction is remarkable and one of the highest in the world. The parameter
in which the company judge is work-life balance, benefits, compensations, career culture,
approach to superior management and advance opportunities.
Societal Factors
As per the views of Bratton & Gold, (2017) the application of HRM practices within
organisation must be plain towards the particular objectives and context of the company. Human
resource practices are very critical aspect for especially multinational organisation. It becomes
very challenging for MNC's to create HRM practices, programmes and policies that might be use
for all geographical locations unaccompanied by catering towards particular national contexts.
However, Nankervis and et.al., (2016) stressed on societal factors that it is the situation of
external factors which influence human resource practices within organisation such as
institutional factors and globalisation. The impact of globalisation on human resource department
of the organisation is very signifiant when organisation planned for expansion in the global
market. It is very essential for organisation to consider diverse ambit of applicable adjustments
which could be able to recruit, trained as well as retain employees that often spread throughout
the various nations or geographical locations because of diversified culture and beliefs. Human
resource managers have to adopt there thinking as well as practices in order to overcome the
issues of cultural differences.
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1.1 Globalisation and Human Resource Management.
As per the finishings of Read & Laschinger, (2015) the transformation of human resource
practices, polices and programmes in the modern faces is directly link to the globalisation
factors. After globalisation, human resource management has gained attention in the business
works because of skilled and knowledgeable workforce. There are some factors that needs to be
considered by organisation when they develop human resources practices due to globalisation are
fatalism or acceptance and power distance. However, Meinck and et.al., (2015) stated that, the
degree of level of power hold by top authorities in the organisation is called as power distance
and the fact is that society accept on the view that power should be shared or divided unequally.
But, Palacios-Marqués, Soto-Acosta & Merigó, (2015) stated that, in terms of globalisation,
power distance factors are determined and varies according to the culture and belief of society.
Thus, it becomes very challenging and difficult for multinational companies to establish signal
world-wide structure that caters to multiple societies. Multinational organisation needs high level
of skilled and knowledgeable human resource management in order to control multiple society
culture.
In addition to this, Berman and et.al., (2019) articulated that, fatalism or acceptance is
another factors of globalisation that it is not possible to control fully the outcomes of one's
actions as it creates difficulties must an organisation operate in nations with opposing social
group of fatalism. For example Shell company is able to maintain the diversified and multiple
culture of the organisation as company is playing remarkable role in forming and implementing
human resource strategy at international and global areas or market as there are 90000 staffs
working in 90 nations. The Human resource manager of company is able to manage the overseas
projects by keeping tabs on there abroad employees. This effective strategies have defended the
organisation from its competitors in both domestic and global market.
However, Daspit and et.al., (2016) argued that, it is considerable that human resource
department of the company faces difficulties in managing multiple culture with single human
resource policies, but there are another societal external factors that influence the human
resource practices. It is very important for organisation either in domestic or global operations to
comply with the labour laws. It is true that it is challenging for human resource department to
comply multiple regulation with single human resource practices. Thus, organisations human
resource department have to adopt international norms and standards so that labour laws are
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abided by the company itself. Labour laws are somewhat similar for every countries but still
human resource manager have to understand and thorough each and every laws very deeply
because a short mistake can sue the company that not only affect the brand image in particular
country but it influences negative reputation in global environment. So, it is better to consider the
labour laws very seriously.
1.2 Institutional factors
Institutional factors plays prominent role in shaping the human resource practices of the
company. Wang and et.al., (2016) stated a theory that is applicable to Human resource
management us New institutionalism as this theory assumed that organisations confirms to
contextual expectations with the objective to gain legitimacy as well as raise profitability of
survival. Labour laws are also included in institutional factors as well as some another elements
such as wealth, class, politics, class etc. In addition to this, this theory also states that with
increasing competition, organisation establish same organisational practices. There are mainly
two categories of this theory which are competitive and institutional isomorphism. Change
evaluation and market competition are mainly included in competitive isomorphism. Thus, in
shaping the human resource practices effectively, organisations have to consider the market
competitive and evaluate changes on continuous basis to remain competitive in the market.
Industry Factors
As per the Ramdhani and et.al., (2017) industrial factors is another factors that influenced
the human resource practices within organisation as it incudes demographic, social, economic,
technological, regulatory and environmental factors. Further, industry factors also include factors
like public and private sector. For instance, from state legislative focal point the Human
Resource Practice for the education sector is different from the mining industry because of high
risk and remote working nature are included in mining sector. Thus, it shows that the human
resource practices is different for different sectors. Schneider & Sunyaev (2016) stated that, the
role played by private and public is critical as a factor of human resource management. However,
it is common that he main objectives of private sector is to earn high profit as well as they are
governed by specimen of shareholder who used to promote actions resulting in financial returns.
Whereas, the motive of public organisations is public welfare and are governed by state
authorities. The human resource practices, policies and programmes are different and depended
on the nature and size of sector.
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According to the Shin & Konrad (2017) industries comprehend various human resource
management systems as well as practices relative to external and internal factors that is
surrounded to company. Life-cycle model is one of the best model that states that it is very
important to align the HR practices with the business policies. For example, HR practices in
mining industry is somewhat challenging because of fluctuating prices of commodity and
demand raise the expectation of stakeholders as well as ongoing needs to raise the profitability
and productivity as strategies of people are very challenging in the landscape. The workforce in
mining sector becomes highly specialised as well as feel pressure of international human capital
trends as effect the role and responsibility of Human resource are very high. HR managers have
to bring changes in the strategies and policies to retain talented and skilled employees. However,
Paul, Parthasarathy & Gupta (2017) defended that, mining is public sector, so they are governed
with the state authorities and it is mandatory for them to plan effective strategies and plans for
there workforce. If they ignore it might be happen there license will be sued. However, private
sectors are also highly concern about the employee's retention because it directly affects the
brand image of the company. The human resource strategies are depends on industry to industry
and it is important that Human resource practices must be linked with the business objectives. In
addition to this, in the period of downturn, it is necessary for organisations to adopt sustainable
practices so that the growth of industry is not affected.
1.1 Golden principle of Human resource's management.
Delery, & Roumpi (2017) stated that, there are some golden principle of Human
resource's management that is followed by both private and public sector organisations. By
following these principles the growth and success of the business is confirmed. Recruitment to
Retirement this is the principle which is mainly adopted in public sector organisation as HR
managers should have to deal with there employees from recruitment to selection such as
planning of manpower, selection, training, wage or salary, promotion, transfers, appraisal, and all
other things to exit interview. HoweverIsaac & Ruitenberg (2017) articulated another principle is
Hire for attitude, recruit for skills as it reflect the best practice of HR. HR managers focus on
attitude instead of experience because a person having good attitude can grasp more knowledge
and learn job work. This HR practices are especially adopted in private sector organisation. For
example, Nissan company is remarkable and recognised for their skilled and trained employees
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as company is shining because of there employees as their HR practices include transparent
salary scales for leaders to hire as well as build there team.
CONCLUSION
The above literature review comes to the conclusion that addressing external and internal
factors are connected with the human resource management programmes, practices and policies.
Human resource management is the source of accomplishing competitive advantages. This report
also summarised that it is very important to align the human resources practices with the
business objectives in order tom achieved the heights of success in the business world. Further,
human resource department within organisation faces difficulties in managing multiple culture
with single human resource policies because of different culture followed by different societies.
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REFERENCES
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engagement in organizations. IJAME.
Albrecht, S. L and et.al., (2015). Employee engagement, human resource management practices
and competitive advantage: An integrated approach. Journal of Organizational
Effectiveness: People and Performance, 2(1), 7-35.
Berman, E. M and et.al., (2019). Human resource management in public service: Paradoxes,
processes, and problems. CQ Press.
Bratton, J. & Gold, J., (2017). Human resource management: theory and practice. Palgrave.
Daspit, J. J., Holt, D. T., Chrisman, J. J., & Long, R. G. (2016). Examining family firm
succession from a social exchange perspective: A multiphase, multistakeholder
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competitive advantage: is the field going in circles?. Human Resource Management
Journal, 27(1), 1-21.
Donate, M. J., Peña, I., & Sanchez de Pablo, J. D. (2016). HRM practices for human and social
capital development: effects on innovation capabilities. The International Journal of
Human Resource Management, 27(9), 928-953.
Gutierrez-Gutierrez, L.J., Barrales-Molina, V. & Kaynak, H., (2018). The role of human
resource-related quality management practices in new product development: A dynamic
capability perspective. International Journal of Operations & Production
Management, 38(1), pp.43-66.
Isaac, A. R., & Ruitenberg, B. (2017). Air traffic control: human performance factors.
Routledge.
Meinck, F., Cluver, L. D., Boyes, M. E., & Mhlongo, E. L. (2015). Risk and protective factors
for physical and sexual abuse of children and adolescents in Africa: a review and
implications for practice. Trauma, Violence, & Abuse, 16(1), 81-107.
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Mostafa, A. M. S., Gould‐Williams, J. S., & Bottomley, P. (2015). High‐performance human
resource practices and employee outcomes: the mediating role of public service
motivation. Public Administration Review, 75(5), 747-757.
Nankervis, A. R., Baird, M., Coffey, J., & Shields, J. (2016). Human resource management:
strategy and practice. Cengage AU.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. & Wright, P.M., (2017). Human resource management:
Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
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technological, organizational and competition factors on Web knowledge exchange in
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Palacios-Marqués, D., Soto-Acosta, P., & Merigó, J. M. (2015). Analyzing the effects of
technological, organizational and competition factors on Web knowledge exchange in
SMEs. Telematics and Informatics, 32(1), 23-32.
Paul, J., Parthasarathy, S., & Gupta, P. (2017). Exporting challenges of SMEs: A review and
future research agenda. Journal of world business, 52(3), 327-342.
Ramdhani, M. A., Aulawi, H., Ikhwana, A., & Mauluddin, Y. (2017). Model of green
technology adaptation in small and medium-sized tannery industry. Journal of
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Read, E. A., & Laschinger, H. K. (2015). The influence of authentic leadership and
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Schneider, S., & Sunyaev, A. (2016). Determinant factors of cloud-sourcing decisions: reflecting
on the IT outsourcing literature in the era of cloud computing. Journal of Information
Technology, 31(1), 1-31.
Shin, D., & Konrad, A. M. (2017). Causality between high-performance work systems and
organizational performance. Journal of Management, 43(4), 973-997.
Wang, H and et.al (2016). Corporate social responsibility: An overview and new research
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Zhong, L., Wayne, S. J., & Liden, R. C. (2016). Job engagement, perceived organizational
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Online:
Real example of Companies Human Resource Practices. 2018. [Online]. Accessed through:
<https://www.humanresourcesmba.net/worlds-30-innovative-corporate-human-resources-
departments/>.
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