Human Resource Management Report: Amazon, Barratt Homes Analysis

This report delves into the principles of human resource management (HRM), focusing on the application of the resource-based view and the VRIO model within the context of Amazon and Barratt Homes. It examines how these organizations can leverage their internal resources and capabilities to gain a competitive advantage. The report also identifies and analyzes major threats faced by organizations in the UK labor market, such as the lack of skilled and talented employees and decreasing productivity, with specific attention to the impact of Brexit and technological advancements. Furthermore, it explores how companies like Amazon and Barratt Homes can mitigate these challenges through strategic HRM practices, including attracting, retaining, and developing their workforce to ensure long-term success. The report provides a comprehensive overview of the current HRM landscape, offering insights into the strategies and challenges that shape organizational performance.

MANAGING HUMAN
RESOURCE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
1 Application of the “resource based view” related to the human Resource management....1
2 The major threats faced by the organisations related to the labour market. .......................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
.........................................................................................................................................................8

INTRODUCTION
Human resources management is concerned with making plans for managing and
handling the workforce in the organisation. This means it is concerned with performing various
functions for managing the task and activities related to the organisation. It majorly focuses upon
the employees working in the organisation. If the management of the human resource is not done
in the proper order then the organisation will not be able to work in a coordinated manner and the
goals will also not be achieved(Baumgartner,2014). Managing the human resources can be by
evaluating the needs and preferences of the individuals working in the organisation. The
organisation chosen in this report is Amazon and Barratt Homes. The topic covered in this report
are the various strategies which can be used by the organisation for gaining competitive
advantage and some of the major threats which the organisation is currently facing related to the
labour market.
TASK
1 Application of the “resource based view” related to the human Resource management.
Resource based view is the continuous framework which is used by various organisations
for planning the strategies with the motive of gaining competitive advantage in the market. It
majorly works for knowing the capabilities and competencies of the organisation and its
competitors which are available in the market. “Resource based view” majorly works for
knowing the strength and weakness of the organisation. It is also concerned with gaining proper ,
adequate and sustainable competitive advantage in the market. Sustainability regarding the
competitive advantage can be directly depends upon the available resources with can either be
imitated or substituted. If the organisation want to achieve main targets and goals of resource
based view than emphasised can be on choosing best strategy for analysing the availability of
internal and external resource(Belbin, 2012). This is usually done to make best use of the
available opportunities in the market. Resource based view helps in knowing the various
strategies and functions which are currently operating in the organisation. If this is done than
external environment can be easily managed and better plans can be made for achieving the
future target and goals in the proper manner. Resource based view is majorly based on two
resources which is either tangible or intangible. These resources must be heterogeneous or
immobile because this will help in gaining VRIO resource and competitive advantage. As this
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models in internal and external strategies and opportunities. So it is better for the organisation to
make better plans for managing each and every task in the proper manner. It also focuses on
using new and better ways for increasing and enhancing the skills of the employees working the
organisation. If all the tasks of the resource based view is managed in the proper manner than
the organisational performance will be increased because every task will be managed. For
determining the capability of the organisation resource diversity and resource immobility can be
used(Bennett and Raab, 2017).
Resource diversity is the the various resources which are present in the organisation but
these available resource are of heterogeneous type. This means of any organisation is using
similar resource than it will not be heterogeneous resource. As this will not help the organisation
in gaining the competitive advantage in the long run. Whereas resource immobility is concerned
with the various resources which are expensive for the organisations. Due to this it becomes a
hard task for the competitors to make use of such resources. As these types of resources involves
high investment and procurement cost. This type of resource is majorly based on the
development and procurement cost. If the organisation is successful in using this resource than
competitive advantage can be easily achieved in the best possible manner.
Various business organisation majorly works on two components which are the various
resources of the organisation and its product and services which can be generated by using the
resources. After performing these activities organisations usually measures its performance so
that better plans are made for the future. If the performance of the organisation is proper than
competitive advantage will be automatically achieved and the goals will be achieved in the
coordinated manner. Resource based view is carried on two main assumptions which are
heterogeneity of resources and heterogeneity of goods and services of the organisation. In the
very first assumption the operational capabilities for the competative advantage is known and in
second assumption activities related to the production of goods and services are taken into
consideration(Campion and et. al., 2011). These two assumptions are related with the persistent
of the organisation and its mobility in the market. If the organisation wants to achieve the stated
of competitive advantage than the heterogeneous resources can be taken into consideration. The
resource based view helps the organisations in providing proper economic foundation by
evaluating the activities of the HR department and the employees currently working in the
organisation. This is usually done to achieve the competitive advantage in the systematic and
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coordinated manner. The various human resource strategies and the operational strategies can be
performed by using the VRIO model(Cascio, 2015). As this model will be helpful in knowing
the roles and responsibility of the HR executive related to the sustainability of the organisation
and its employees.
The VRIO model is the model used by various organisations to make strategies regarding
the protection of the resources and the capabilities. This model also guides and provides new
ways for achieving the competitive advantage. This model usually comprises of four different
parts which are value, inimitable, rare and organisation. It is very much necessary for the
organisations to manage the needs of the employees working in the organisation. This is because
without the help of the employees organisation will be able to achieve competitive advantage in
the proper manner. So the employees of the organisation must be considered as the valuable
asset. If the organisation wants to reduce its cost than the focus can be emphasised on using
proper working structure. It is also necessary for the organisation to know the need and
importance of human resource. So that efficiency and sale of the organisation is increased in the
best possible manner. Proper human resource management will lead to increase in the revenue
and satisfaction level of the customers. This is because if the organisation is successful in
selecting the best candidates than they will automatically perform better and will give better
services to the potential customers. By doing this organisation will also be successful in
achieving good competitive advantage in the market. According to the rare stage in VRIO model
human resource department majorly works on identifying, developing and exploitation the
various characteristics which are unique or rare in the employees(Coetzee, Mitonga-Monga, and
Swart, 2014). These characteristics are generally known to make better plans for the achieving
the competitive advantage in the market. In inimitable it is the duty of the human resource
department to find out unique values of the organisation. So that better plans can be made to
manage its employees and internal or external environment. It is very much essential for the
human resource department of every organisation to make necessary actions regarding the
development of the characteristics and working structure. So that competitive advantage in
achieved in the proper manner. In this stage the focus is more on maintaining proper working
environment in the team. So that the potential of the employees is used in the best possible
manner. This can be done by building good relationship with the employees so that they can give
better output in the organisation(Cowling and Mailer, 2013).
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If the major focus of the organisation is on gaining the competitive advantage then
various HR polices can be used. As these polices will helping in knowing the capabilities,
weakness or strength of the organisation and of employees. One of the best example of
organisation using good practice for gaining the desirable state in the future is Google. The
organisation focuses on using new and innovative strategies for motivating and retaining its
employees. This is done by knowing their characteristics and needs. Google continuously makes
plans and strategies for rewarding their employees by providing them bonus, promotion. The
major motive behind this is to increase their efficiency and productivity. The management of the
organisation has formed various polices for their employees so that level of retention and
dissatisfaction is reduced. It is very much essential for the organisation to know make the
strategies and plans as per the need and demands of their employees(Daft, 2015). This is
because if it is not done the organisational and individual goals will not be achieved in the best
possible manner. Another best example of the organisation which is using proper HR policy is
Amazon. The major focus of the organisation is to hire right candidates for the right job. The
employees of the organisation are highly trained qualified. Due to the organisation is successful
in gaining good position in the market. The management of the organisation continuously makes
changes in its working structure. So the satisfaction level of the employees are increased and
chances of employee turnover is reduced. Amazon also provides various bonus to the employees
who are planning to quit their job. This is usually done to save the valuable employees of the
organisation. Whereas if the Amazon is not able to provide promotion than the employees will
not have sense of belongingness towards the organisation and they will end up leaving their job.
This is because their satisfaction level will not be increased by the management of Amazon.
2 The major threats faced by the organisations related to the labour market.
The two threats which the organisations of UK are currently facing are; Lack of skilled
and talented employees and Decreasing productivity. Due to the increase of technological
development, many organisations in the UK are facing the problem of lack of skilled labour.
Reasons behind the evaluation of these two problems are negative impact of Brexit and
technological enhancement various fields. After the introduction of Brexit, many organisations
have faced the issue of inadequate availability of skilled labour in the UK market. Many
employees are shifting from one place to another because their needs and preferences are not
taken into consideration by many organisations. This directly resulted into decrease in the skilled
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labour. Decrease in the skilled labour has resulted in decrease in the image and productivity of
the organisation(Farndale, Scullion and Sparrow, 2010). This is because the employees are not
able to give their best output at the workplace. Many organisations in the UK labour market are
using the labour intensive technique. So their production level is increased and the effects of
uneven labour market is decreased.
The shortage of labour in faced by Barratt development Plc which is house builder
London. The performance of the organisation in the market is decreasing because there is
shortage of skilled labour in the construction filed. The labours in this field are lacking with
various technical skills and they are also not well qualified. Due to this factor the workforce is
not able to work as per goals and objectives of the organisation. There is shortage of skilled
labour because of the decrease in number of migrations from European Union. The organisations
are unable to find the right candidate for the right job and due to this their resources are getting
wasted. Rapid decrease in the skilled labour has also resulted in the growth rate of the country.
Due to this organisation is also not able to use new and innovative techniques in the process of
production(Gallagher and Underhill, 2012). As if the labours are lacking in the appropriate skills
than they will not be able to handle latest technology in the right manner. To overcome this
situation organisations can focus on providing training programmes to the labours. As by doing
their there current skills will be improved and they will perform in the best possible manner. The
organisation can also invest in the various automation programmes as by doing this various new
roles will be created.
TESCO is also facing the same problem of shortage of skilled labour. The organisation is
facing many problems for hiring skilled and talented employees. The major reason behind this is
young generation is having improper knowledge about the English and Maths. Due to this they
are not able to work as per the rules and regulations of the organisation. It is seen that major
reason behind improper knowledge is candidates fails to gather relevant information from their
schools(Hopen, 2010).
Another major problem faced by the organisations is poor productivity. The employees
have improper skills and knowledge and due to this they are not able to give better outcome in
the organisation. Since there is lack of skilled labour in the market of UK. So now the
organisations are focusing on using latest techniques in order to complete the work in the best
possible manner. If the organisations wants to increase their productivity in the long run the
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focus can be emphasised on motivating and encouraging the employees. So that they can
perform better and the level of productivity is increased. For doing this the organisations will
require latest machines and tools. For Increasing the productivity organisations are focusing on
outsourcing their work from various other countries. Many organisations like Honda have
removed their business from the UK to various other countries. This was done with the motive of
maintaining the cost and quality of product.
Barratt Homes in facing the problem of poor production which is resulting in the
profitability of the organisation. The major reason behind this is the employees in the
organisation are unable to work in the proper manner. To reduce this problem, it is necessary for
the organisation to make proper strategies after analysing the current and past situation of the
organisation. Before the implementation of the new strategies the needs and demand of the
employees must also be taken into consideration by the organisation. This is because if this is not
done than the resources of the organisation will be wasted(Kehoe and Wright, 2013). Due to
lack of productivity is becoming difficult for the organisation to sustain in the market for longer
period of time. Whereas, if the organisation is successful in making better plans for improving
the productivity then the image of the organisation in the market will automatically be increased.
Barratt Homes will also be able to compete with the competitors in the best possible manner.
This is because the organisation will have skilled labour which will try to give the best outcome.
If the productivity of the organisation and individuals is increased than the organisation will also
be able to increase the satisfaction level of their potential customers. Organisation can also make
use of the latest labour intensive techniques. As these techniques will guide the management in
planning the future course of action for increasing the productivity in the long and short run.
TESCO is also facing the problem of decrease in the productivity level. The major focus
of the organisation is to increase the profitability and image in the best possible time. So for
achieving this organisation is focusing on increase its productivity in the best possible manner.
The HR practices of the organisation can also be changed because appropriate HR polices will
help the organisation in managing each and every activity in the best possible manner(Noe and
et. al., 2017). Organisation has also started using artificial intelligence for increasing the
productivity in the systematic manner. As by doing this organisation will be able to compete the
task and activities in the proper manner and the chances of error will be reduced because the
work will be done by machines. Using this technique will also help the organisation in
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overcoming the problem of lack of skilled labour. The organisation is also continuously making
efforts for growing and expanding its business in various parts of the world. So to achieve this
target it is essential for the organisation to maintain proper HR polices. As with the help of this
organisation will be able to retain its employees. The motivation of the employees can also be
done with the help of HR practices. Skilled labours of the organisation will know what is
expected from them and what measures are to be taken to achieve the target in the best possible
manner(Veleva, 2010). Whereas if this is not done than the problems of the organisation will be
increased and it will be tough job for the management of the organisation to increase the
productivity. So it is essential for the organisation to give equal priority to the human resource. If
this is done in the best possible manner than the profitability and sale of the organisation will be
increased and the organisation will also be able to gain the competitive advantage in the market
for longer period of time(Wilson and Game, 2011).
CONCLUSION
From the above given report, it has been stated that if there is not proper management of
the human resource than the functions of the organisation will not be performed in the proper and
systematic order. Human resource in the organisation can either help increasing the growth of the
organisation or can also lead to decrease in sale and profitability. Resource based view can also
help the organisation in managing the task and activities in the systematic manner. If the
organisation is successful in properly analysing the threat then good competitive advantage can
also be gained in the best possible manner by the organisation and the objectives will be
achieved in the effective and efficient manner.
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REFERENCES
Books and Journals
Baumgartner, R.J., 2014. Managing corporate sustainability and CSR: A conceptual framework
combining values, strategies and instruments contributing to sustainable development.
Corporate Social Responsibility and Environmental Management. 21(5). pp.258-271.
Belbin, R.M., 2012. Team roles at work. Routledge.
Bennett, C.J. and Raab, C.D., 2017. The governance of privacy: Policy instruments in global
perspective. Routledge.
Campion, M.A., and et. al., 2011. Doing competencies well: Best practices in competency
modeling. Personnel psychology. 64(1). pp.225-262.
Cascio, W.F., 2015. Managing human resources. McGraw-Hill.
Coetzee, M., Mitonga-Monga, J. and Swart, B., 2014. Human resource practices as predictors of
engineering staff's organisational commitment. SA Journal of Human Resource
Management. 12(1). pp.1-9.
Cowling, A. and Mailer, C., 2013. Managing human resources. Routledge.
Daft, R.L., 2015. Organization theory and design. Cengage learning.
Farndale, E., Scullion, H. and Sparrow, P., 2010. The role of the corporate HR function in global
talent management. Journal of world business. 45(2). pp.161-168.
Gallagher, C. and Underhill, E., 2012. Managing work health and safety: recent developments
and future directions. Asia Pacific Journal of Human Resources. 50(2). pp.227-244.
Hopen, D., 2010. The changing role and practices of successful leaders. The Journal for Quality
and Participation. 33(1). p.4.
Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices
on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-391.
Noe, R.A., and et. al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Veleva, V.R., 2010. Managing corporate citizenship: A new tool for companies. Corporate
Social Responsibility and Environmental Management. 17(1). pp.40-51.
Wilson, D. and Game, C., 2011. Local government in the United Kingdom. Macmillan
International Higher Education.
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