MSc HRM Report: Organisational Development and HRM at Leicester Uni

This report discusses the integral role of Human Resource Management (HRM) in shaping and sustaining an organisation's culture. It delves into key aspects such as recruitment, training, employee motivation, and the establishment of core values. The report highlights how HRM strategies, including feedback, rewards, and strategic development processes, contribute to employee engagement, retention, and productivity. It further explores the organisational context of HRM, including sociological perspectives, organisational structures, and the management of organisational change. It also addresses the concepts of HRM, focusing on employee relations, organisational flexibility, and the challenges faced by HRM in managing an organisation effectively. This report uses case studies and theoretical frameworks to illustrate the practical implications of HRM in fostering a positive and productive organisational culture. Desklib provides a platform for students to access a wide range of resources, including past papers and solved assignments, to support their academic endeavors.

Running head: A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
Human Resource Management as an Integral Part of Organisational Culture
Name of the Student
Name of the University
Author note

1A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................3
Unit 1: The Organisational Context of HRM.........................................................................3
Unit 2 topic: Concepts in HRM.............................................................................................6
Unit 3 topic: HRM Theories and Models...............................................................................9
Unit 4 topic: Evidence on Policy and Practice.....................................................................13
Conclusion................................................................................................................................16
Reference..................................................................................................................................18

2A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
Introduction
Human Resource plays a crucial role in the sustenance of an organisation’s culture.
An organisation runs with the effective contribution of the employees. Hence, recruiting the
right candidate for a particular profile within the organisation; training him or her adequately
as per the job requirements; mentoring the candidate with regards to facing risks and
challenges and adapting leadership roles; counselling him or her under stressful situations and
finally evaluating the candidate’s performance and motivating him or her for achieving
better, are few among the major roles that an HR manager has to play in making an
organisational culture fruitful (Smollan 2015. Recruitment and selection are two such job
roles that are mostly identified with the human resource. The success of an organisation is
hugely dependent on how satisfiedly an employee discharges his or her roles. To ensure their
satisfaction, the Human Resource division of the organisation has to take care of a number of
factors like employment conditions, compensation and benefits, acknowledgement of their
exceptional performance and offering leadership roles. All such factors in isolation or in
combination not only aids in engaging the employee positively with his or her duty but also
instils the organisation’s core values and principles in them. A positively motivated employee
who values the organisation’s objectives and respects its cultural beliefs, ethics and code of
conducts becomes an asset for the organisation and takes it to newer heights. It is an HR who
facilitates such cultural cultivation within the employee by means of definite strategies. Some
of these strategies consist of productive feedback, rewarding an outstanding performance or
exhibition of exemplary behavioural standards. Periodically, an HR reinforces the
organisation’s culture through strategic development processes and evaluation of needs.
Cultural values play a positive role in influencing the thinking of an employee about the
organisational initiatives which, in the long run, results in producing improved outcomes.
Such initiatives enhances employee motivation, creativity and also help them in maintaining

3A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
effective work life balance. They learn to co-operate more with the organisation’s strategic
changes. Thus, the HR’s contribution in the organisational culture profoundly helps in
enhancing employee retention rates, reducing accident rates by making each employee aware
of the necessary safety measures, increasing productivity and quality of performance thereby
ensuring its growth and sustainability. In the following report four major aspects of Human
Resource Management would be discussed in light of their role and contribution in the
sustenance of an organisation’s culture. Organizational culture is a collection of values,
principles and beliefs that influences the behaviour and expectations of the employees as well
as the social and psychological environment at the workplace (Bourland-Davis and Graham
2017). The organizational culture is also a product of several factors such as the history of the
organization, the products or services of the organization, the management strategy used, the
demographics of the employee, the national culture, the language and diversity of the
organization, the organizational values and norms, assumptions of the employees and even
the environment and location of the organization. The organizational culture plays an
important part in the readiness of change. A positive work culture that is open to challenges
and is supported by effective leadership and communication can be more receptive and
supportive of organizational change while ineffective management and communication
barriers can increase resistance to change (Haffar et al. 2014). The present article aims to
describe in details about how the various HR Functions impact organisational culture.
Discussion
Unit 1: The Organisational Context of HRM
During Module 2 of the Masters Program, several important concepts which are
associated with Human Resource Management (HRM) have been discussed, mainly in the
context of Organizational Culture, the concepts of HRM and the theories and models of HRM
and evidence based policies and practices that are used in HRM. The significance of the

4A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
background of studying organization was the focus for first unit of the module. Various
theories and perspectives can be used for understanding Organizational Behaviour and
organizational Culture (Collings et al 2018). A social science perspective can be used to
understand how people interact with each other and how they work as a group (Shen and
Benson 2016). According to Thompson (2017), the sociological perspectives also help to
understand the basic assumptions, beliefs and expectations of the people (or employee) which
helps to get a deeper insight about their behaviour (or the organizational behaviour). This
understanding can be used to develop conceptual framework of how people behave and how
they can be best managed in order to maintain a professional and productive environment.
Additionally, Sociological perspectives can help to understand the causes of conflicts and can
be used to mitigate and manage conflicts (in workplace). Such aspects show how sociological
perspectives are necessary for HRM (Hollenbeck and Jamieson 2015).
Significance of Organizational Structures was also outlined under unit 1 of Module 1,
during which the significance of understanding organizational culture for HRM were
discussed. Also, discussed was how classical management theories were used for the
Organizational Structure. The classical theory mainly supposes that both the managers as
well as employees are rational beings and are capable to taking the right and responsible
decisions which can maximize the efficiency of the organization (Farnham 2015).
Organizational culture is a collection of values, principles and beliefs that influences the
behaviour and expectations of the employees as well as the social and psychological
environment at the workplace (Bourland-Davis and Graham 2017). Outlined below is how
the organizational culture is significant for the HRM:
 It helps the HRM to understand how employees interact with each other in the workplace
and how they can be motivated and their loyalty to the organization maintained.

5A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
 By setting up a good organizational culture, values of respect and equality can be
maintained for all employees.
 Haling an inclusive work culture can increase solidarity among the employees which can
help to reinforce their identity as a part of the organizational workforce.
 A safe and respectful and inclusive work culture can also help to promote better employee
satisfaction and retention of the employees.
 Workplace culture also helps to provide a sense of direction for the employees through
which they can be guided on how to maintain a productive as well as safe and inclusive
workplace culture.
 Through a productive and positive work culture, the productivity of the individuals and
teams can be improved and thus help to promote organizational growth.
 By understanding the values, practices and beliefs of the organizational culture, the
Human resources can develop policies for recruitment and training, training and
development, compensation administration and performance management.
(Lee et al. 2016; Bourland-Davis and Graham 2017)
In section 2 of Unit 1, significance of Organizational Change and development to the
HRM practices were discussed. The aim of the unit was to help to understand the various
sources of changes in the organization, understand the management approaches that can help
organizational change practices, approaches towards employee training programs that can
help organizational change and organizational development and how culture can influence
readiness for change. Discussed below are these aspects:
Sources of change in the organization: Change in an organization can be induced
through several factors and sources, which can be both external as well as internal such as
technological changes, political and social changes, change in organizational complexity and

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size, globalization, regulation from governing bodies, economic changes and fluctuations,
change in ownership and leadership, culture of the nation and local regions (Smollan 2015).
These factors act as stressors which can increase the need for the organization to change and
adapt to. Moreover, changes can also be planned as well as emergent (such as growth of the
organization, transition and transformation of business) which can take place as the result of
the regular operations of the organization and strategic management decisions (Cameron and
Green 2015).
Management approaches for organizational change: In order to support
organizational change and organizational development, different management styles can be
used by the HRM such as stabilizing the process of change, cheerleading towards the
change, analyzing the organizational culture and persuade the employees towards change
(Smollan 2015).
Approaches towards employee training program: Various training programs can be
considered which can help the employees to increase their skills and competencies and
supporting their career development. Training programs such as workshops, mentorship
programs, and internal training programs, external certification training and paid training
programs can help the employees to develop their skills (Cameron and Green 2015).
Effects of culture on readiness for change: The organizational culture plays an
important part in the readiness of change. A positive work culture that is open to challenges
and is supported by effective leadership and communication can be more receptive and
supportive of organizational change while ineffective management and communication
barriers can increase resistance to change (Haffar et al. 2014).

7A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
Unit 2 topic: Concepts in HRM
During Unit 2, introduction was given on the significance of employee relationships,
concepts of HRM, the goals of HRM as well as the challenges faced by HRM in the
management of an organization. These factors help to develop understanding how through
effective employee relations the HRM can help in the development of the organization and
usher organizational change. Additionally, understanding the goals and challenges of HRM
can prepare the HR personnel to conduct their job in a more efficient and effective manner
(Sanderson and Mujtaba 2017). Discussed below are these factors:
The contractual relationships are based on temporary contracts which have a fixed and
pre planned termination date. After the termination the relationship with the employees end
and needs to be renewed if the relation is to be continued. This type of relation also does not
have a clear retirement date and the terms of the contract dictate the length of the relation.
Responsibilities of the organization towards contractual employees also differ from
permanent employees, and contracted workers are often considered as temporary members of
the organization (Meijerink et al. 2016).
HRM helps to induce flexibility and adaptability of the organization to any
environmental change through strategic decision making. Additionally, HRM practices also
help to maintain quality of performance of the employees. Thus HRM can be understood as a
collection of management strategies, ideas, models and framework which helps in the better
engagement of the employees with the organization, helping them to increase their
productivity, upholding the organizational values and provide the employees a medium to
raise any concerns they might have regarding the organizational management (Beltrán-Martín
and Bou-Llusar 2018).

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The roles and policies of HRM are influenced by several goals and objectives which
ultimately help in the growth of the organization. The main goals and objectives of the HRM
have been discussed below:
Increasing productivity of the employees: One of the main goals of the HRM policies is to
support and foster development of the productivity of the employees to achieve better
organizational performance by maintaining an effective organizational environment. The
HRM also aims in the development of the skills and competencies (through strategic training
and development of the employees) in order to promote employee growth and their capacity
to increase their productivity (Veth et al. 2017).
Increasing Organizational Flexibility: This is an important goal of HRM which can allow an
organization to adapt to changes in the organizational environment and address
organizational challenges by promoting flexibility within the workforce. The aim of the HRM
to support organizational flexibility also helps to promote job satisfaction and better retention
of the employees (Beltrán-Martín and Bou-Llusar 2018).
Supporting Social legitimacy of the employer: The HRM also has an important objective to
support the social legitimacy of the employer by helping the organization to engage in
activities related to social welfare as a part of the corporate social responsibility (Veth et al.
2017).
In section 4, various challenges faced by HRM in the management of employees and
achieving the key goals and responsibilities have been discussed, which have been outlined
below:
Scarcity of Labour and Employee Turnover: This is a significant challenge for the HRM,
especially for maintaining staffing for skilled job positions and in market where there is a
shortage of skilled employees. Also, a poor turnover of employees faced by many

9A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
organizations is another challenge that causes poor retention of the employees (Veth et al.
2017).
Giving Motivation to the employees: Every employee can have different expectations, drives
and objectives because of which, developing strategies to motivate all employees is a
challenge for the HRM since it is not possible to address the diverse needs and expectations
of all the employees in order to motivate them (Dumont et al. 2017).
Tension caused by organizational change: During organizational changes, employees often
face significant tension and stress caused by an uncertainty about the organizational
directions, their change in roles and adapting to a change in the working process. This can be
a tension for the HRM since they are expected to help in the process of organizational change
as well as understand the perspectives and challenges faced by the employees and help to
reduce those (Dumont et al. 2017).
Planning effective training and development programs for employees: The skills and
competencies of each employee in an organization can be unique and varied, due to this,
designing training program that can suit the individual skills and competencies as well as
professional needs of the employees can be significant challenge (Veth et al. 2017).
Unit 3 topic: HRM Theories and Models
Implementation of HR Strategies in a business is usually based on certain models related
to both product life cycle and employee welfare that operates in unique ways (Collings,
Wood and Szamosi 2018). The organizational culture is also a product of several factors such
as the history of the organization, the products or services of the organization, the
management strategy used, the demographics of the employee, the national culture, the
language and diversity of the organization, the organizational values and norms, assumptions
of the employees and even the environment and location of the organization (Lee et al. 2016).

10A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
Because of these factors, it is vital that HRM should consider the organizational culture in its
policy making and decision making practices. Each organisation adapts policies that is related
integrally to its business structure (Dumont, Shen and Deng 2017). The best practices in the
industry is dependent on the combination of core HRM policies and the market analysis that
has the potential to generate the desired organisational outcomes (Babnik 2014). These
advocated policies are in relation to recruitment, training and development and compensation
and benefits that aim to raise the bar of employee skills, their motivational levels and
flexibility in accepting challenges and risky tasks. Few aspects of such best practices would
be:
 Presenting an approach of multiskilling orientation
 Involving employee programmes to achieve formal work teams
 Implementing suggestions to achieve higher productivity and quality processes
through job rotation
 Demonstrating strategic assumptions of work ethics that can ensure the workforce to
attain a standardised quality and effectivity
The most important point that critically attributes the best practices of HRM consist of
carefully prescribing to these policies and presenting it before the resources in an absolutely
unambiguous format which can aid in better understanding and subsequent implementation of
these policies. The decisions pertaining to work culture that is taken at the highest level of
authority needs to be cascaded down to the junior most level in an unchanged format so that
the entire workforce gets the necessary validation that their contribution to the organisation is
valued (Dumont, Shen and Deng 2017).
At each level of organisational development, corresponding HR activities undergo
considerable modifications that relates to the organisational requirement. It includes:

11A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
Initiation: In an entrepreneurial venture when the organisation is yet to make a mark, the HR
functions are usually limited to basic administration like recruitment and compensation. This
is due to the fact that most of the higher level resource activities are undertaken by the CEO
or the business founder themselves.
Functional Growth: With gradual expansion, an enterprise tends to become more organised
and competent with respect to handling the growth of its market structure. The HR actively
starts assisting the line managers in the vital recruitments and follows it up with employee
benefit management.
Controlled Growth: As the organisation attains stability and no longer assigns growth as
one of its topmost priority, the corresponding HRM activities become much more centralised
around productivity and cost effectivity of its resources.
Functional Integration: The organisation aims towards diversification at this stage whereby
the HR managers co-ordinate the functions of different departments to assess their
performance in order to make the newer ventures of diversification stronger and more
successful. Policies in relation to training, compensation and rewards are revised to fit the
newer requirement (Chen, Sparrow and Cooper 2016).
Strategic Integration: In this stage, the HR department looks critically into the internal
aspects of adaptability, flexibility and integration across the other departments like
accounting and operations to align them with the business goals and objectives (Chen,
Sparrow and Cooper 2016).
Resource-Based View of Organisational Economics
This model has been approached to as an alternative of the general strategic operative
model discussed above in the previous section. As viewed by Chen, Sparrow and Cooper
(2016), a firm is expected to analyse its internal competencies to find the perfect job fit

12A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
between its regulator policies and external environment. Operating somewhat differently, it
seeks to attain competitive advantage in deploying resource, including human resources, in a
manner that is different from that of its competitors (Cascio 2014).
As argued by Al-Bahussin and El-Garaihy (2013), an organisation is able to sustain its
competitive advantage only when its employees feel motivated enough to continue their
service in that organisation and contribute effectively in its productivity. Hence employees
must be considered as important internal stakeholders who needs to be treated with fairness.
The relationship between an employer and an employee must be built on the concept of
balance whereby employers need to assess the possibilities lying within the capable reach of
an employee to discharge a particular job prospect (Cook 2016). If employees are pressurised
towards achieving greater targets through inadequate compensation, it leads to sheer
demotivation and inferior performance level. In such cases, employees usually suffer from
low morale that eventually leads to resignations. By adopting the stakeholder approach, the
organisation can lead to greater motivation among the employees, higher commitment
towards the organisation, quality outcome and reduced attrition. The line managers enforcing
organisational policies should be giving periodic feedback and training to the employees,
based on those feedback (Dermol and Čater 2013). It requires strong commitment on part of
the line managers to ensure that HR policies are correlated with high level of organisational
performance ensuring as well that employees are treated conveniently in a consistent manner
(Hollenbeck and Jamieson 2015). The employees need to be constantly reminded of the
organisational goals and their accountabilities in achieving those goals. They also need to be
proactive in their participation and with the desired behaviour must make it a point to apply
strategic approaches in issuing their respective deliverables.
HR policies and strategies are formulated with regards to their respective impacts on
the organisation’s employees and how much competent they are in discharging their

13A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
respective responsibilities. HRM strategies are mostly referred to as the third order strategy
which follows the pathway for corporate and business level outcomes (Bourland and Graham
2017). To achieve this properly, the organisation divides the short term goals and the long
term goals in order to avert any uncalled for crisis. In this way, the firm seeks to preserve its
competitive advantage. The types of roles performed in an HR Function consists of:
Advisors: the form the group of internal consultants whose primary function consists of
supporting the line managers and other junior employees. The consultation tend to become
the preliminary part of long term strategic outlines.
Service Providers: They form the on-call personal attendants mainly supporting the line
managers.
Regulators: They mostly take care of the formulation of industrial rules and regulations and
serve to implement them as and when required in certain required situations.
Change makers: They mostly help in processing the strategic agendas issued for
organisational benefits and focus on the reality driven aspects of business performance to
elicit motivational power within the employees so that they can deliver the desired outcomes
(Beltrán-Martín nd Bou-Llusar 2018).
Unit 4 topic: Evidence on Policy and Practice
According to managerialist argument, it is the low trust work system that serves to
affect the relationship between effort and reward (Cameron and Green 2015). Employees, in
general, strives to perform to their level best and adapt to novel and unpredictable situations
in the work environment. The work systems that are applicable in teams within an
organisation are tailored in line with the production and manufacturing based on the initiative
taken by employees to produce innovative results (Iriana, Buttle and Ang 2013). Team-
working refers to the system of division of labour implying autonomy in each division so that

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each team member can use their full potential to achieve the desirable team outcomes. To
make it more effective, the functions are allocated in such a way that it forms a rotational
design among the members, each allotted with a part in relation to the other. In some
situations, two teams can work alongside. Managers, in such cases, allot a considerable
amount of control to the members so that they can take the technical decision more
competently while discharging duty in their respective disciplines (Cook 2016).
The channels of communication form yet another important aspect in relation to the
work practices and policies. Each of these policies need to be appropriately communicated to
the relevant departments so that they can take charge of their responsibilities with enhanced
coherence to the context and better approach towards problem solving (Armstrong and Taylor
2014). The HRM objectives, if carefully studied are mostly aimed at organisational growth
through employee’s knowledge and skill development (Ali and Patnaik 2014). This often
leads to redistribution of power within the organisation that consequently leads to
organisational restructuring. It depends on the following factors like:
Human Capital Advantage: The firms are expected to develop strategies and policies that
serve to attract and retain the exceptionally talented resources.
Human Process Advantage: It relates to the potential possessed by the HR Systems that
yields competitive advantage to the form against the competitors (Ali and Patnaik 2014).
Trade Unions influence the HR policies of the organisation in a way that even the
strong institutionalised positions have to rearrange their strategies in relation to agreements or
disagreements in collective bargaining. In recent times, the impact of Trade Unions have,
however, weakened due to rapid political and economic developments (Al Saifi 2015). The
management-union relationship strives on the continuum of strength of the industrial
establishments. The theory essentially revolves around ‘command and control’ of the

15A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
organizational processes followed within a hierarchical structure (Hatch 2018). The
hierarchical structure also helps to support Bureaucracy within the organization that helps to
create a clear division of labour, a clear outline of individual and team responsibilities and
maintain focus on organizational objectives. According to Cook (2016) these aspects show
how vital it is to understand organizational structure and culture for Human resources
management in order to effectively manage the workforce. When conflicts arise in terms of
sanctioning employee rights and benefits, the Union’s role integrally comes into play. They
pose certain political and ethical propositions by means of achieving outcomes in the
employee’s interest (Armstrong and Taylor 2014). HR management in industries of different
nations take different stands with respect to the trade union policy. It is largely dependent on
the external and internal factors of how these stands would be viably influencing the policies
of the organisation. Therefore, HRM cannot be thought in isolation from the industrial
relations affecting the organisation.
Human Resource Management is a set of management practice that helps to manage
the human resources or human capital of the organization. The HRM practices help an
organization to integrate the workforce as a single functioning unit and helping to promote
strategic management of the organization. It helps to promote commitment of the employees
towards the organizational objectives, as a result of which it helps in the development of the
organization and increase in productivity (Marescaux et al. 2017). As observed by Adonisi
(2013), in most of the capitalist economy, the small and medium scale enterprises are crucial
factors that drive the economy towards betterment. Relationship between the organization
and employers with the employees can be categorized into two main types such as
employment and contractual. Employment is a long term relation between an employee and
employer in which the employees continue their participation and engagement with the
organization until and unless they are terminated, resigned or retired from the position.

16A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
Employment makes the employee a part of the organization and the organizational policies
have to consider their health, wellbeing and welfare (Lee et al. 2016). The employees also
have a continued and uninterrupted engagement with the organization and can therefore be
considered as permanent members of the organization (Sanders and Yang 2016). SMEs are
different from the larger firm and way less sophisticated in terms of organisational culture.
Hence they are less likely to include sophisticated programmes for recruitment, selection,
training and engagement. Research evidence suggest that the HRM policies in Public Sector
Enterprises attempt to manage performance of its workforce through various sub units of
managements which are singularly owned by the State and mostly referred to as nationalised
firms (Anitha 2016). The HRM policies in such firms are not usually directed towards profit
making but towards providing quality service. Therefore HR practices need to examine the
cost of labour productivity in relation to attaining and maintain such objectives (Brewster
2017).
Conclusion
To conclude the following discussion it can be stated that Human Resource
Management is a set of management practice that helps to manage the human resources or
human capital of the organization. The HRM practices help an organization to integrate the
workforce as a single functioning unit and helping to promote strategic management of the
organization. It helps to promote commitment of the employees towards the organizational
objectives, as a result of which it helps in the development of the organization and increase in
productivity. The channels of communication form yet another important aspect in relation to
the work practices and policies. Each of these policies need to be appropriately
communicated to the relevant departments so that they can take charge of their
responsibilities with enhanced coherence to the context and better approach towards problem
solving. The HRM objectives, if carefully studied are mostly aimed at organisational growth

17A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
through employee’s knowledge and skill development. A firm is expected to analyse its
internal competencies to find the perfect job fit between its regulator policies and external
environment. Operating somewhat differently, it seeks to attain competitive advantage in
deploying resource, including human resources, in a manner that is different from that of its
competitors. The most important point that critically attributes the best practices of HRM
consist of carefully prescribing to these policies and presenting it before the resources in an
absolutely unambiguous format which can aid in better understanding and subsequent
implementation of these policies. HR policies and strategies are formulated with regards to
their respective impacts on the organisation’s employees and how much competent they are
in discharging their respective responsibilities. HRM strategies are mostly referred to as the
third order strategy which follows the pathway for corporate and business level outcomes.
The decisions pertaining to work culture that is taken at the highest level of authority needs to
be cascaded down to the junior most level in an unchanged format so that the entire
workforce gets the necessary validation that their contribution to the organisation is valued.
As the organisation attains stability and no longer assigns growth as one of its topmost
priority, the corresponding HRM activities become much more centralised around
productivity and cost effectivity of its resources.

18A REPORT ON ORGANISATIONAL DEVELOPMENT AND HRM
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