HR management help on:HR Theories and strategies

Introduction:Human Resource Management (HRM) refers to a term of policies, processes as well as strategies which would help in the proper functioning of the enterprise. This term has been recently replaced with personnel management. It means managing the people working within the organization. Managing the employees, staff members as well as developing the human resources has been termed to be one of the most challenging aspects for any enterprise.Human resource management has been considered to be both academic as well as a business practice which addresses the theoretical & practical techniques for managing the entire workforce. It must be noticed that, the theoretical aspects of human resource management (HRM) is quite universal & cannot be taken into practice. This paper majorly takes into consideration the various theories of HRM which are applicable within the organizational structure. It has been discussed within the assignment that, HRM theories will help in order to shape the entire organizational structure. The paper clearly defines human resource management, theoretical basis of the same as well as its practice within the national & international organizations.

Body:HUMAN RESOURCE MANAGEMENT (HRM):

Human resource management refers to strategic as well as a coherent approach towards the most valued assets of the organization i.e. personnel. Personnel would refer to the people who are working within the enterprise either individually or collectively in order to meet the objectives of the organization. The term HRM majorly takes into consideration management of the people working within an organization. HRM would be defined as a process which involves high levels of involvement amongst the people working within the same. It would be referred to as a function which mainly focuses upon recruitment of the people, staffing, and providing fair directions as well as regulate the employment relationship within the enterprise. The human resource management model would emphasize upon the following things. They are discussed as under:

Þ    Search new ways to perform a particular task

Þ    Perform the central role in managing change

Þ    Treat the workers as individuals & not considering the part of the entire group.

Þ    Encouraging the workers to judge the entire administration as partners rather than taking them as opponents.

Þ    Use of “us & us” shall be done rather than “us & them”.

THEORY:The theoretical discipline of HRM is based upon the fact that employees are individuals who have varied goals & objectives which needs to be fulfilled. The theory of human resource management showcases a positive view over the workers which help in the increasing the productivity of the organization as well as overcome the various obstacles which might come in the entire process. The obstacles might arise within the organization due to the following reasons such as lack of training, insufficient knowledge regarding a particular subject matter which might lead to the failure of the entire process. It shall be taken into consideration that various innovative ways shall be practiced which would help to practice the human techniques in the best possible manner. The goals as well as the practices shall be such which would help to increase the efficiency as well as effectiveness of the enterprise.Based upon the various theories of human resource management, the main goals of the enterprise would be to help the enterprise to meet the strategic goals thereby maintain fair employee & employer relations within the same. The theories will help to attract as well as manage the employees in the best possible manner. The main aim of the academic theory of human resource management is to change the thinking of the top officials that humans are not machines. Therefore, proper examination of the personnel shall be done. This will help in order to increase the effectiveness as well as efficiency of the employees which will benefit the enterprise in the long run. The main aim of human resource management is to fit within management. The basic principle of theory of human resource management is to narrow the gap between employees as well as employers. Hence, within an organization psychology, industrial relations, training & development, industrial engineering, organizational psychology, sociology will play a major role.

PRACTICE:

The following human resource management (HRM) practices consist of various processes which would help in the achievement of the various goals of the organization. The human resource management practices will include the following processes. They are as under:

Þ    Workforce planning

Þ    Proper recruitment

Þ    Induction & Training

Þ    Management of the skills

Þ    Personnel administration

Þ    Compensation

Þ    Wages & salaries

Þ    Time management

Þ    Travel management

Þ    Payroll settings

Þ    Employee benefits program

Þ    Cost control planning

Þ    Appraisal based upon the individual performance

 GLOBAL OR INTERNATIONAL HUMAN RESOURCE MANAGEMENTAnother aspect within Human Resource Management (HRM) refers to international human resource management. This takes into consideration the various aspects within international organizations. This aspect within the international human resource management consists of the process of employing as well as development & rewarding the people within the enterprise. International organization refers to an enterprise which has its subsidiaries in various part of the globe. It has been seen that, the international firms have their own management as well as business styles. The human resource managers will be unable to change all the styles as well as ignore the same. Practicing the same will lead to high levels of changes within the entire regime. While doing so various issues might be encountered within the global organization. Some of the issues which might be seen within the organization have been discussed as under:

Þ    The human resource management (HRM) policies as well as practices will vary from country to country.

Þ    Managing the people belonging to different cultures will refer to one of the major issues within an organization

Þ    Different international organizational models exists

Þ    The approaches which are being used

Some of the International Organizational Models given by Barlette & Ghoshal shall be used within the international organizations in order to overcome the various issues have been discussed as under:

Þ    Decentralized federation: This refers to one of the traditional models which are being used within the international organization. In this international organizational model, each & every unit will be managed as a separate entity. This would help in order to evaluate as well as optimize the performance within a particular environment.

Þ    Coordinated Federation: This International Organizational Model helps the centre to develop a sophisticated management system which will help in order to enable as well as maintain proper control. This will help the international organizations to adopt various practices and recognize the market conditions in a much elaborative manner.

Þ    Centralized hub: This International Organizational Model will help to focus upon the global markets as compared to the national markets. This model specifies the fact that such type of enterprises

1. Centralized hub

in which the focus is on the global market rather than on local markets. Such organizations are truly global rather than multinational.

1. Transnational

in which the corporation develops multi-dimensional strategic capacities directed towards competing globally but also allows local responsiveness to market requirements.

CONVERGENCE AND DIVERGENCEAnother issue facing international organizations is the extent to which their human resource (HR) practices should either ‘converge’ worldwide to be basically the same in each location, or ‘diverge’ to be differentiated in response to local requirements. There is a natural tendency for managerial traditions in the parent company to shape to the nature of key decisions, but there are strong arguments for giving as much local autonomy as possible in order to ensure that local requirements are sufficiently taken into account.(This is known as global/local dilemma). Convergence may be increasing as a result of the following factors:

• The power of markets

• The importance of cost

• Quality and productivity pressures

• The development of like-minded international cadres

• The widespread practice of benchmarking ‘best practice’.

CULTURAL DIVERSITYThe second HR practice and policy which has shaped the organizational structure refers to the Cultural Diversity within the same. Cultural as well as the environmental diversity has been referred to as one of the key issues within global HRM. The study conducted by Hofstede in the year 1980n states that, there are approximately 11,000 differences amongst the employees employed over 40 countries.

In order to shape the organizational structure, the following four aspects shall be taken into consideration. They are discussed as follows:

Þ    Individualism v/s Collectivism: Individualism refers to an organizational culture which favors people who are always looking for themselves. In this particular organizational culture, the employees are family oriented as well as they give first priority to them. Whereas, on the other hand collectivism refers to an organizational structure which favors people who give their prime time, loyalty as well as find protection within a group.

Þ    Power distance: Power Distance refers to the difference amongst the cultures which are being acceptable within the society. The organizations will either have high power distance or low power distance. It has been seen that, organizations with high power distance are those which accept high levels of power between top as well as bottom of the society. In case of Low Power distance, the society looks for power which is being shared equitably between the top as well as bottom of the society. In case of low power distance the power is being shared equally which will narrow the gap between the top as well as the bottom officials within the organization.

Þ    Uncertainty Avoidance: In this aspect the society would be tolerant towards the uncertainty as well as there will be a need to avoid it. The threats of uncertainty avoidance can be seen in regards to high avoidance.

Þ    Masculinity v/s Femininity: This aspect of cultural diversity will provide a tendency to pursue assertiveness or materialism (masculinity) as well as provide higher concerns to the relationships as well as think for the welfare of others (femininity).

Below are the results which are obtained from 40 different countries produced from a framework which is produced from the “culture clusters” which are labeled based upon the geographical regions as well as the languages such as Asia, Near Eastern and Nordic, Latin, Anglo, Germanic & development of the economies (less as well as more developed).

Comparing the results obtained from the 40 different countries against the criteria of the framework, produced ‘culture clusters’, labeled according to geographical areas (Asian, Near Eastern and Nordic) or language (Latin, Germanic and Anglo) and economic development (Less developed or More developed).

From this Hofstede concluded that it was impractical to produce a unifiedmanagerial approach that could be adopted world wide to meet the needs of individuals and groups, their structures and the requirements of change.The conclusion to be drawn from this study is that a contingency approachto human resource management is called for in these circumstances.Ouchi also made an important contribution to our understanding of theinternational dimension of human resource management. He studied thecharacteristics of Japanese and American organizations to see if selected practices from Japan could be translated to the United States. Ouchidiscovered the following differences in the behaviour of Japanese andAmerican organizations.

Þ    The employees are promoted within a particular organization.

Þ    The career path defined within this type of organization is not specialized.

Þ    The decision making practiced in such type of an organization are shared within the employees.

Þ    The success within the organization is seen as a result of the collective efforts made by the employees all together.

Þ    It has been seen that, long term performance appraisal are more important for the employees. This helps the employees to work towards the accomplishment of the organizational goal in the effective & efficient manner.

Þ    High degree of mutual trust as well as responsibility is seen in such type of organizations. Mutual understanding is seen between the managers as well as the employees.

Þ    This type of organization generally provides short term employment to its employees.

Þ    The employees are not promoted within the organization. The people are recruited for different types of vacancies.

Þ    The career path defined within this type of organization is generally specialized.

Þ    The decision making practiced in such type of an organizations are not shared within the employees. Such type of organizations practice individual decision making.

Þ    The success within the organization is seen as a result of the individual efforts made by the employees rather than collective sharing the responsibility.

Þ    It has been seen that, short term performance appraisal are more important for the employees. This helps the employees to be motivated till the time they are working within the same. Individual achievements are seen in terms of success.

Þ    Varying degrees of trust as well as loyalty between the staff members as well as the manager sis seen in this type of the organization.

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