Managing People in Organisation
Introduction of Managing People in Organisation Assignment Sample
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Management of employees is the focus of HRM. HRM is the human aspect of corporate management and is concerned with policies, processes, regulations, and systems that affect the organization's workforce. A recruiting and selection expert must identify FarmBox's FIRM theories and their good and negative features of them. Additionally, the impact on employee behavior of these ideas has been examined, along with a suggestion that the company implements the theories. FarmBox Direct is a membership food delivery business that aims to provide fresh and local produce to the doorsteps of American households.
Human resources management is a major focus of this project. A company's human resources department is in charge of finding, hiring, training, and retaining new employees. The case of FarmBox has been used to demonstrate the importance of human resource management in an organization (Beardwell et al, 2017). Because of the company's recent growth, reorganization is in order. Increasing operations necessitate a growth in the number of competent employees, as well as a willingness to adapt to changing company requirements. The theoretical, methodological, and managerial advantages of this study may be found. Based on what we have learned about the HRM models and ideas, we concluded that mastery and correct implementation of these models are beneficial to any business that seeks performance and successful organizational culture.
Task One – Identifying Issues
According to the findings of the case study, FarmBox has been using a unique HRM approach. It has lately completed a recruiting and selection procedure through which it has hired a small number of people. Although the primary goal was to increase efficiency and production, the company's recent hiring has resulted in lower output and a shift in employee behavior in the other direction (Elwood et al, 2016). Once employees have found another job, many of them plan to quit the firm. As a result, we can assume that the organization is having difficulty filling open positions, as the issues began shortly after new employees were hired. As a recruitment and selection expert consultant, I must assess the client's internal recruitment and selection process to identify any concerns.
Maximizing the potential talent pool while minimizing time and administrative expenses is a major concern for companies. Line managers and HR professionals should assess applications individually to produce a shortlist for further consideration. The use of a panel reduces the likelihood of screening being skewed by an individual's prejudice.
To attract and retain top talent, FarmBox must be able to recruit and choose the finest candidates. Productivity and profitability are two metrics that may be affected by a company's selection process in several different ways. Because of the urgency of the position or the limited number of applicants, some companies prefer to make job offers only based on the first information provided (István et al, 2010).
1. Report Task Guidance
Task Two - Defining HRM recruitment and selection models and theories
Aligning business objectives with HR Plan: Analysis of the company's goals and their incorporation into HR policies, such as those governing recruiting, selection, appraisals, performance management, and employee development, is how this is accomplished.
HRM Models are the characteristics of HR management. These models serve as a foundation for analyzing human resources management (Henry et al, 2019). HRM is characterized in terms of variables and relationships, which offers a framework for further study, as well as an understanding of how to explain the importance and nature of essential HR activities. The HRM idea has been described in a variety of ways by different academics. Farmbox has used a variety of FIRM models in its business and operations. Here is a quick rundown of some of the most popular models and theories:
AMO theory (Ability, motivation, and opportunity)
Employee traits and organizational performance are shaped by the AMO theory's three independent work system elements: ability, motivation, and opportunity. Using AMO theory, managers may use creative approaches that boost morale among their workforces and achieve their organization's objectives. At the outset, ability refers to HR actions and policies aimed at providing employees with the required skills, experience, and ability to carry out their duties with little supervision as described by Bos-Nehles (2013). FarmBox FIRM methods that focus on improving workers' skills and competencies are called ability-enhancing FIRM strategies.
As a second example, motivation may be used to a person's job performance and HR policies for controlling employee motivation. Motivation refers to an employee's drive to perform, which may be bolstered by both external and internal factors. Incentives and career chances are two examples of motivation-enhancing approaches. Based on work design theories or empowerment literature, the AMO model also incorporates the opportunity component. As a result, opportunity takes into account more than only one's traits. Quality circles, for example, or teamwork, are examples of practices that contribute to opportunity.
The AMO model of performance
(Source: Appelbaum et al, 2000: p.38)
Human Capital Theory
As a result of Marshall's idea that human beings are the most valuable kind of capital, a formal economic study of education may have started to position the person at the heart of any development goal, rather than just as a consumer good. While the orthodox view was revived by the Human Capital theory, education was given a prominent place in public policy because of the theory's assertion that the acquisition of intangible capital, such as education, has a significant impact on the labor market by increasing a person's creativity, cognitive abilities, and performance.
Human Resources Management (HRM) is responsible for recruiting, training, and managing the workforce. Workforce planning and strategy, recruitment, training, reporting, and analytics are some of its other tasks. Human resource management is critical in helping to provide education and training, which ultimately enhances the company's performance. Human resource management is critical to an organization's success in attracting, developing, and retaining top talent. Human resource management's staffing role must also be successful in locating, recruiting, and securing the personnel who possess the human capital required to meet the demands of the firm.
Human Capital model for HRM
(Source Wright et al, 2007: p.48)
It was at the University of Michigan in the early 1980s when the Michigan model of human resources management was conceived. Matching model or best-fit methods to human resource management are also known as the Fombrun et al or Michigan model. Fombrun's first attempt at HRM (1984). Known as the "hard" approach to HRM, it emphasizes the interrelatedness and consistency of human resource management tasks.
While the Human capital model is cited as an influence, the authors argue that this approach places a greater focus on strategic measures aimed at personnel as well as higher-level thinking about the organization's goals. To achieve acceptable attitudes in an organization, the author claims that the Michigan models place a heavy emphasis on reward measures (Munyon et al, 2011). A firm's mission, strategy, and organizational structure are all critical to its success, according to Fombrun.
This HRM paradigm highlights the interdependence of four management roles. There are four functions: selection, evaluation, development, and reward. Only four HRM functions are included in this model; all other environmental and contingency aspects are left out. As a result, it is deemed incomplete. Because it is so basic, this model may be used to describe the nature and relevance of human resources tasks. Criticism of the matching model has been loud and clear.
The Fombrun model of HRM
(Source: Sinha & Thaly et al, 2013: p. 142)
5 P Model
The 5Ps model of human resource management, which is based on the 5Ps of purpose, principles, processes, people, and performance is developed by Mildred Golden. This is a strategic human resource management framework. Organizational performance is dependent on people's performance, which in turn is impacted by their goals, principles, and procedures if you follow this approach (Armstrong et al, 2014). The vision, mission, and goals of an organization are referred to as the organization's purpose. Principles are the guiding principles for accomplishing the goal. These describe the procedures that must be followed for work to be completed. Organizational structures, methods, and procedures for achieving goals are called "processes."
5P Model HRM
(Source: Anyim et al, 2011: p.70)
The 5-P model of HRM
The 5-P model of HRM outlines how HRM functions under the following five headings:
1 HR philosophy - It is an official declaration of what FarmBox thinks about its human resources, how important they are, and how they should be handled.
2 HR policies - These suggestions focus on human resources issues and the development of HR programs and processes that are aligned with the company's strategic objectives.
3 HR programs - Human resources policies influence these initiatives, which aim to launch and manage organizational transformation activities inspired by strategic business demands.
4 HR practices - These are the steps used to execute human resources policies and programs. Employee relations and administration are also included in the list of responsibilities.
5 HR processes - HR strategic plans and policies are implemented by these formal processes and methodologies (Beardwell et al, 2014).
Staff behavior is affecting the productivity of FarmBox
The company's operations and, thus, its performance, are directly correlated with the workplace habits of workers. Unprofessional or unprofessional conduct can sabotage production, depress morale, and harm the company's image in the eyes of customers and the public. Online ordering platform FarmBox distributes fresh food items directly to clients in Cheshire, England. In 2020, a sudden increase in demand for the company's goods prompted an immediate expansion in the number of workers to keep up with the demand. B2B ties with schools, restaurants, and Farmbox Direct established hotels in the past (Bratton et al, 2020).
Task Three – Assessing the Appropriateness of Models
Companies that want to compete on a global scale need to develop lean production techniques. Lean roadmaps are discussed in the literature, but since they focus on the technical aspects of lean transformation, organizational learning and human resources management (HRM) techniques are often overlooked. The strategy includes HRM ideas and allows for the suggestion of changes in HR procedures.
Assessment of AMO Theory
There must first be an understanding of the original model and its approach in human resources management. To put it another way, we need to know what the writers had in mind to begin our inquiry. In addition, it is critical to recognize the studies that were carried out with the express purpose of validating the model. Some studies cite the AMO model in their theoretical frameworks but do not use it in their subsequent analyses. If there aren't a lot of direct tests, we opted to add those papers that indirectly support the concept in our review. In-depth knowledge of the model may help firms better comprehend the challenges they confront when attempting to adopt human resource policies.
The AMO model is widely used in the literature on human resources, and we believe it is vital to perform a study to throw light on certain basic concerns (Gilbert et al, 2015). Consequently, the purpose of this research is to identify studies that have properly evaluated the concept and the methodology they used (e.g. multiplicative or summative).
Assessment of Human capital Theory
As a theoretical framework, human capital theory examines the growth of competence, formal education, and job tenure, which may be the most important factors in determining an individual's perceived employability. It's important to note that people's investments in these areas would have an important role in how they see their chances of finding new work.
A two-step process precedes this exercise, which begins by estimating the production under current circumstances, namely, when occupational and salary inequalities exist across industries. Secondly, production is re-estimated assuming that disparities between two estimates of output supplied when the highest welfare benefits suggested it might be attained.
Assessment of Michigan Framework
The Michigan model and the organization’s environment
(Source: Kapferer et al, 2012: p.34)
The Michigan model was developed by Formbrun et al. (1984) at Michigan Business school. There was an emphasis on integrating strategic HRM with corporate and commercial goals in the approach.
A major focus of this approach is on how an organization may effectively use its resources to react to the outside world. This model is based on two assumptions:
- It is a function of the organization's setting that determines the most successful methods for managing people (Fletcher et al, 2015).
- Employers and workers should work together to attain a common objective, according to the tenet of universalism. This approach served as the foundation for the HRM School known as the "best fit".
- This company's position is that staff should be trained to support the company's overall aims and ambitions.
Assessment of the 5P Model
The 5Ps Model's separate aspects and sub-elements are important, but their integration and alignment are even more critical for effective plan execution. Due to a lack of space, our emphasis on alignment and integration, and our target audience, the particular definitions of the aspects are those that are predominant in the literature and that are relevant to our work. One way an organization might track its progress is by using this arrow from Performance to Purpose (Millmore et al, 2007). Successful strategy implementation and management requires a constant and continuous flow of feedback.
Leaders in organizations have a good grasp of the founding ideas and current operations of their companies. As a result, all levels of the company must be on the same page when it comes to implementing the company's strategic plan, its underlying reason, and its urgency. To determine a company's long-term strategic direction, these assessments and aspects must be employed appropriately. Organizational leaders must understand and implement measurement and feedback systems if they are to ensure the long-term survival and profitability of their enterprises.
Task Four – Identifying and recommending models
The globalization of HRM has a wide range of ramifications for businesses, which may include a wide range of cultures. Efforts should be made to ensure that HR procedures are aligned with the overall goals of the firm. HR must, finally yet importantly, be on the lookout for creativity and innovation, which have been identified as critical to business success (Taylor et al, 2014). Businesses must keep up with the latest technological developments since this gives them an advantage.
Management of change, conflict management, management of a multi-generational workforce and the 5Rs are just a few of the issues that HR needs to deal with on a day-to-day basis. By taking some significant measures to face the difficulties of organizational transformation, HR professionals may help the firm develop methods to quantify the value of HR for the organization.
5P Model Recommendations for FarmBox venture
When improvement programs have the right emphasis, these management techniques help accelerate and sustain momentum. Relevant, appropriately linked, and intended to assist process owners to understand how the process operates and where changes need to be made are the most important aspects of a measurement plan. People need to know how they're performing, which is why measurement is so critical. Employees are also informed of the company's success in terms of key performance indicators via the use of measurements. Positive outcomes confirm the efficacy of the current reforms.
Researchers propose using various models of HRM in food delivery businesses due to how the manager's characteristics directly affect worker motivation. Therefore, it is suggested that the various management positions be blended to increase the motivation of agricultural personnel. Such tasks include registration and document storage, as well as the preparation of employee reports. Managers in these companies are also responsible for ensuring equality in political communication and execution, as well as keeping order and fostering a positive work environment among employees. Every day, agribusiness managers make tactical choices related to the job done by their employees. Because no two managers are the same and do not use the same methods for leading and inspiring their teams, the ordinal regression analysis shows that HRM models affect employee motivation (Torrington et al, 2014).
Any organization's success or efficiency in service delivery is directly related to the quality of its employees recruited via recruiting and selection processes, which is a serious business. This said that managers need to be aware of the goals, rules, and methods employed in the selection process. More importantly, individuals who are in charge of making hiring choices should be armed with enough knowledge to make an informed choice. According to this research, human resource policies and processes have a considerable influence on employee behavior and attitudes. When developing and executing recruitment and selection criteria in light of the study's findings, quality should not be neglected. This is more so since it's difficult to find the correct kind of workers.
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