7AAD062 Human Resource Management Assignment Sample
CRITICALLY EVALUATE HOW THE IMPLEMENTATION OF HUMAN RESOURCE MANAGEMENT PRACTICES CAN ENHANCE BUSINESS PERFORMANCE
1. Introduction
Human resource management practices deal with a set of policies and practices throughout the organizational lifecycle to enhance commitment, satisfaction, competencies and boost employee engagement. The aim of this study is to examine the implementation of human resource management (HRM) practices to enhance organizational performance. Performance management, training, and development, training and development, recruitment, and selection are different areas of HRM. The leading Engineering companies, for instance, Fluor Corp and Airbus implement these HRM practices to automate different organizational processes. The study sheds its light on the impact of strategic HRM, benefits, and challenges of HRM approaches, provision of data, effective contribution of line managers, relevant theories, and models.
2. The impact of strategic HRM on business performance
The overall approaches to the development of HRM practices are effectively dealt with by strategic HRM and it is closely related to different aspects, such as learning and development, resourcing, reward, and employee retention. As cited by Han et al. (2019), it further focuses on strategic change and the development of organizational bases to achieve organizational objectives. Strategic HRM considers the use of planning, designing and management, workforce strategy, and employment policy. A transformation about HRM practices is discussed on this strategic HRM and it creates a remarkable influence on improving business performances. According to the view of Lopez-Cabrales and Valle-Cabrera (2020), successful implementation of HRM practices increases and improves several organizational areas, for instance, quality, productivity, and financial performance. This planned process critically considers the development of a flexible and continuous process through bringing different organizational benefits to achieve maximum competitive advantage.
Strategic HRM evolves with several organizational activities and develops performances of different organizations, for instance, Fluor Corp and Airbus. It contributes to the goal accomplishment and survival of these organizations and supports the implementation of different business strategies. Strategic planning, increasing number of strategic opinions, and innovation potential are fostered by these strategic HRM practices. In the words of Knies et al. (2017), cooperation between the HRM department and line managers is improved by these strategic HRM practices. Improving business atmosphere and performance, training, and providing career growth opportunities, boost employee ability to enhance organizational productivity and performance. As opined by Jiang and Messersmith (2018), the competence of employees is a significant aspect that is effectively dealt with by this strategic HRM to build and strengthen business relationships. Effective planning of strategic HRM effectively guides employees and different organizational performances and activities to achieve organizational objectives and maximum competitive advantage.
This implementation of HRM practices in different organizational activities structures and frames organizational management and effectively deals with several issues in external or internal business environments. As stated by Hamadamin and Atan (2019), strong relationships between the HRM department and line managers are significant to foster strict organizational decisions and implement strategies to foster change. The flexible and continuous organizational processes are regulated that motivate employees and find different solutions. Therefore, these implementations of strategic HRM are significant to boost employee morale and improve different organizational performances.
3. HRM practices are linked with a more contemporary and strategic approach
HRM practices regulate the entire organizational life cycle and it delivers different opportunities and challenges through linking a more contemporary and strategic approach. According to the view of Knies et al. (2017), it further maximizes organizational potential and motivates employees to increase productivity and performance for achieving more revenue. Integrating and aligning business strategies, HRM practices improve organizational performance through dealing with a set of practices and processes. Demographic change, technological improvement, changes in the educational background is important factors that improve the strategic decision-making process. As influenced by Jiang, and Messersmith (2018), effective planning, business relationships, and proper decision-making processes are significant in improving different organizational functions. HRM practices are closely linked with employee recruitment, training, selection of employees, and different functions that can motivate them to achieve maximum organizational objectives and competitive advantage.
In implementing HRM practices, organizations are facing several opportunities and challenges to conducting different business activities. As influenced by Stokes et al. (2019), it improves team building, monitoring, and ensures organizations follow different laws and regulations by engaging loyal employees. The leading Engineering organizations, Fluor Corp and Airbus are also implementing these HRM practices to engage different employees and boost organizational performances in this competitive global market. It effectively improves employee retention, builds organizational culture, and develops performance and productivity while managing conflict between employees and partners. Recently, organizations are highly aware to manage and improve organizational performances by implementing these HRM practices. Recruitment and retention, management of conflicts, training, and development planning for change and organizational structure are scrupulously regulated by these HRM practices (Han et al. 2019). Therefore, this implementation of HRM practices is beneficial and significant to achieve high competitive advantage and brand awareness.
Fluor Corp and Airbus are also facing different challenges in managing and maintaining different HRM practices to improve organizational functions. HR effective management, change management, lack of organizational management, and rapid change management are different challenges of implementing HRM practices. In many cases, these challenges effectively jeopardize business performance and demotivate employees (Saeed et al. 2019). Therefore, it can be stated that the implementation of HRM practices fosters different opportunities and challenges at the same time.
4. Benefits and challenges of different HRM approaches
HRM approaches and practices, such as, “selection and recruitment, training and development, performance and engagement” involve different benefits and challenges. In this challenging global market, Fluor Corp and Airbus are also involved with the challenges and benefits of HRM approaches to improve different organizational functions. It improves employee retention, engages loyal and talented employees, and effectively builds organizational culture. Both these challenges and benefits are important to understand these HRM practices and their impact on business performance.
Benefits
HRM approaches deliver different advantages and benefits in improving organizational functions and activities to achieve a high competitive advantage. As opined by Yusoff et al. (2020), in motivating employee performance and retention, these HRM approaches are important that further foster different organizational activities. Team spirit and camaraderie within the organization are explained by this strategic HRM approach while the recruitment process effectively engages the most talented and loyal employees. HR strategies are significant to create a change and innovation for meeting the demand of different customers across the world. Strong and effective decision-making processes are regulated by this HR management and it creates a proper relationship, HRM approaches play a crucial role (Morris et al. 2021). It further involves employee salary and insurance and ensures legal procedures of an organization to monitor sustainable functions.
Recently, the leading worldwide organizations, for instance, Fluor Corp and Airbus have experienced the benefits of HRM approaches. Implementation of HRM practices is significant to achieve high revenue to manage organizational performances in an effective way. In building a team and creating the organizational culture and improving productivity, these HRM practices are beneficial and build strong brand awareness (Abdullah et al. 2020). Strategic planning, innovation, and removing conflicts, HRM regulates different activities and fosters employee retention.
Challenges
HRM practices further deliver different challenges and organizations are facing difficulties in managing different operations. According to the view of Abdullah et al. (2020), rapid change, lack of technological improvement, budget problems are the main challenges that critically affect HRM practices. Recently, in engaging loyal and talented employees, organizations are facing problems due to travel restrictions due to this recent outbreak of COVID-19 and its consecutive issues, like lockdown and travel restrictions. In measuring the effectiveness of HR management, organizations are unable and this lack is the main cause for the failure of different functions. Workforce diversity, cultural issues, striking work-life balance is the main problems that critically affect these organizational functions. As influenced by Lopez-Cabrales and Valle-Cabrera (2020), lack of planning, globalization, managing a multi-general workforce is complex and difficult to enhance organizational productivity and performance. Therefore, it is stated that these challenges reflect a negative impact on improving organizational functions and performance.
5. Provision of data that supports the view that relevant HRM practices
HRM practices are relevant and effective in managing different operations and activities through maintaining discipline, regulations, and activities. In maintaining and managing different organizational data, these HRM practices play a key role and foster different functions. Fluor Corp critically focuses on implementing HRM practices to manage different data and information. As opined by Madden et al. (2018), it is noticed that effective HRM practices engage 80% of loyal employees within an organization to improve productivity, performance and improve brand awareness. Recently, almost 70% of worldwide organizations are implementing these HRM practices to enhance their business performances and activities. Implementation of these HRM practices is important to deliver different benefits and advantages and organizations are able to manage their operations.
Therefore, it is imperative to note that effective HRM practices are relevant to managing different activities and it assists organizations to achieve high competitive advantage. The leading engineering companies, for instance, Fluor Corp and Airbus are also experiencing fruitful results from these different HRM approaches (Islam et al. 2020). Successful HRM practices can lead the organization to its peak of success through engaging employees and customers and organizations are able to collect maximum revenue.
6. Effective contribution of line managers to relevant human resource management practices
Line managers play a crucial role when it comes to the management of major company functions. Considered to be lying just above frontline workers, managers are tasked with the management of departments besides holding a significant part of business. These managers have a crucial role to play in the management of employees, overseeing their contribution, performance, and subsequent development. It is in this context that employment law comes into focus, with line managers working closely with employees.
Employment law mandates cover a significant area of issues which includes areas such as bullying at workplaces, harassment, sexual offenses, discrimination, and so on. As opined by Knies et al. (2018), line managers are required to have complete knowledge about employment law as they are required to be in direct contact with employees and meet their daily grievances, along with evaluating their performances. Hence, line managers need to be aware of laws prevailing in the country as well as the state and work accordingly.
Steps must be taken to improve the effectiveness of line managers. There are several steps through which it can be achieved. One of the first steps that can be taken includes taking leadership coaching, as it will help managers to become equipped with handling employees efficiently. Line managers are required to be proficient when it comes to handling disputes; thereby it becomes important for managers to have strong leadership capabilities to be able to handle difficult scenarios. It can also be improved through team-building exercises, where managers spend time with employees and work towards gaining their trust (Nachmias et al. 2021). Communication is a fundamental trait for line managers to have, and thus, managers should be provided with adequate training to foster effective communication. Lack of proper communication may lead to misunderstandings between the employees which will have a direct effect on reduced efficiency between the employees. The role of line managers is to ensure that no discord arises, and a healthy work environment is present within the organization. Hence, it is through the use of following procedures that performance of line managers can be improved.
7. Relevant HRM theories
Organizational Life-Cycle Theory
As per organizational life-cycle theory, it is stated that every organization or business follows a specific timeline right from beginning to its end. Sequence occurs in the form of developmental stages, where organizations achieve specific goals at each particular sequence. Four specific stages are involved, namely start-up of business, growth, maturity of business and rebirth/decline (Hasan, 2018). Each of these steps is fundamental to the growth of businesses and forms a significant part of the human resource management policies of an organization.
This is evident in most business organizations, as in initial stages when a firm has just started operating, it takes a lot of time for the organization to settle in the market and start attracting customers. It is at a quite later stage when maturity stage occurs because it is at this juncture that organization has already captured the market and is a go-to name in industry. Growth occurs next and is dependent upon response from market, while many companies bow out of market in this stage; many remain and proceed to maturity. According to Cook (2018), the maturity stage is achieved at different periods for different companies depending upon the type of products being sold and size of the company. The last stage is either rebirth or decline, the reason being that post maturity it becomes imminent for a company to bring something new or lose customer interest. Hence, each of these fundamental steps is a part of every organizational structure.
Figure 1: Organizational Life-Cycle Model
Strategic Contingency Theory
The theory is based upon two distinct aspects namely, “Contingency” and “Strategic,” where the model outlines specific areas it targets. Contingency defines different tasks that need to be performed by subunits within an organization and influences other subunits to do the same thereby creating a ripple effect. This contingency is said to transform to strategic when the rest of the subunits can acquire more contingency, subsequently becoming powerful (Bindra et al. 2019). This theory also states that it is a leader who achieves a central position within an organization, based upon their skills and problem-solving abilities.
Figure 2: Strategic Contingency Theory
(Source: Bindra et al. 2019)
This model also states that it is a leader who holds the ability to significantly influence organizational functions as a said leader becomes indispensable to the organization. Considering the case of engineering companies, it is functional skills known by leaders which make them indispensable as small misgivings on their part can affect the workflow of the entire organization. This model consists of a huge part of all major HRM practices in organizations.
8. Application of relevant HRM models, theories, and literature research
In the case of engineering companies, there lies a strict need for strong HRM functions, to ensure the effective working of firms in the industry (Turner et al. 2018). Considering the case of UK engineering company Airbus, it should be noted that strategic contingency theory plays a significant role in an organization. A closer look at the growth of the company will outline the important role which managers had to play. The company has a single owner who lies at the centre of making decisions and solving issues. This has made the owner an indispensable part of the organization, thereby giving the individual huge power when it comes to managing functions of the organization. It is because of this reason the company has been able to gradually raise demand for its products in the market, as it has been successful in capturing subunits and raising their level of efficiency.
Similarly, right after its inception in the 1960s, it was only a decade later that Airbus first witnessed a surge in demand for its aircraft. Despite being in the market for a significant period, the company had been unable to witness the growth and capture the market. Reason growth was possible was owing to strategy changes undertaken by the company where its products were changed to cater exactly to the needs of the market. It was in 2000 when the company grew further by bringing out more aircraft (Airbus, 2021). Currently, the company has completed its stage of growth and is working towards gaining maturity. However, a major issue that has arisen is increasing which is hampering the company’s organizational life-cycle.
On the other hand, when considering the case of Fluor Corp, which is currently the biggest engineering company in the US, it has been found that the company is thoroughly situated in the final stage of its organizational life-cycle. The company has been in the market for over 100 years and thereby is currently at the stage of rebirth (Fluor, 2021). As it has been found from recent policy decisions made by the company, it has started working towards expanding the company to include new ventures, which will lead to diversification in the type of services performed by the company. A company, having been in the industry for such a long period, has been able to go through its entire life-cycle achieving both growth and maturity. Hence, the company needed to undertake new policies which would help in its “rebirth” without which the company would have eventually closed. Hence, it can be seen that the HRM theory of Organizational Life-Cycle is evident in companies.
Similarly, it has also been seen that the company is currently being headed by a new CEO who is spearheading the company towards undertaking new policies. Considering strategic contingency theory it is evident that the current CEO is an indispensable leader to the organization, as he has become integral to bringing about a change within the organization. The leader has effectively brought about a change to the functions performed by the company, by making quick decisions and solving the pertinent issues present. The leader has also implemented several new strategies that have resulted in the growth of the company, thereby improving its position in the market. Thus, it can be stated that the HRM strategic contingency theory is being adequately used within the organization. It is also evident the amount of power the leader holds over the employees and the organization and its ability to make such a drastic change in the policy of the company (Shao, 2019). It can thereby be stated that HRM models and theories form a distinct part of organizational growth and development.
9. Conclusion
It can be concluded that HRM practices have a significant role to play when it comes to improving business performance. These practices help bring about order within the organization and provide it with a definite structure. However, the managers and leaders are the major reason for the efficient implementation of HRM policies and practices, which are tasked with looking after the employees as well as the effective management of organizations. Major HRM theories such as that of the Organizational Life-cycle model and Strategic Contingency model form an integral part of organizations, helping in the correct implementation of the HRM practices. Considering the case of Fluor Corp and Airbus, it has been found that both these engineering companies have been working efficiently when it came to the implementation of HRM theories in practice. It is one of the major reasons for the growth and development witnessed by the organizations in all these years. Therefore, it can be stated that HRM practices have a significant role when it comes to enhancing business performance.
References
Abdullah, P.Y., Zeebaree, S.R., Shukur, H.M. and Jacksi, K., 2020. HRM system using cloud computing for Small and Medium Enterprises (SMEs). Technology Reports of Kansai University, 62(04), p.04. Available at: https://www.researchgate.net/profile/Subhi-Zeebaree/publication/341883552_HRM_System_using_Cloud_Computing_for_Small_and_Medium_Enterprises_SMEs/links/5ed829f992851c9c5e7b7d27/HRM-System-using-Cloud-Computing-for-Small-and-Medium-Enterprises-SMEs.pdf
Airbus., (2021), Home Page, Available at: https://www.airbus.com/en [Accessed on 1st January 2022]
Bindra, S., Parameswar, N. and Dhir, S., 2019. Strategic management: The evolution of the field. Strategic Change, 28(6), pp.469-478. Available at: https://www.researchgate.net/profile/Sanjay-Dhir-3/publication/337372927_Strategic_management_The_evolution_of_the_field/links/5de94b4d4585159aa4658b31/Strategic-management-The-evolution-of-the-field.pdf
Cook, M.L., 2018. A life cycle explanation of cooperative longevity. Sustainability, 10(5), p.1586. Available at: https://www.mdpi.com/2071-1050/10/5/1586/pdf
Fernández-Robin, C., Celemín-Pedroche, M.S., Santander-Astorga, P. and Alonso-Almeida, M.D.M., 2019. Green practices in hospitality: A contingency approach. Sustainability, 11(13), p.3737. Available at: https://www.mdpi.com/2071-1050/11/13/3737/pdf
Fluor., (2021), Fluor Unveils New Strategic Priorities and Goals to Support Building a Better Future, Available at: https://newsroom.fluor.com/news-releases/news-details/2021/Fluor-Unveils-New-Strategic-Priorities-and-Goals-to-Support-Building-a-Better-Future/default.aspx [Accessed on 1st January 2022]
Hamadamin, H.H. and Atan, T., 2019. The impact of strategic human resource management practices on competitive advantage sustainability: The mediation of human capital development and employee commitment. Sustainability, 11(20), p.5782. Available at: https://www.mdpi.com/555812
Han, J.H., Kang, S., Oh, I.S., Kehoe, R.R. and Lepak, D.P., 2019. The goldilocks effect of strategic human resource management? Optimizing the benefits of a high-performance work system through the dual alignment of vertical and horizontal fit. Academy of Management Journal, 62(5), pp.1388-1412. Available at: https://journals.aom.org/doi/abs/10.5465/amj.2016.1187
Hasan, M.M., 2018. Organization capital and firm life cycle. Journal of Corporate Finance, 48, pp.556-578. Available at: https://espace.curtin.edu.au/bitstream/handle/20.500.11937/60500/259637.pdf?sequence=2
Islam, M.A., Hunt, A., Jantan, A.H., Hashim, H., and Chong, C.W., 2020. Exploring challenges and solutions in applying green human resource management practices for the sustainable work in the ready‐made garment industry in Bangladesh. Business Strategy & Development, 3(3), pp.332-343. Available at: https://onlinelibrary.wiley.com/doi/abs/10.1002/bsd2.99
Jiang, K., and Messersmith, J., 2018. On the shoulders of giants: A meta-review of strategic human resource management. The International Journal of Human Resource Management, 29(1), pp.6-33. Available at: https://www.tandfonline.com/doi/abs/10.1080/09585192.2017.1384930
Knies, E., Boselie, P., Gould-Williams, J. and Vandenabeele, W., 2017. Strategic human resource management and public sector performance: context matters. The International Journal of Human Resource Management, pp.1-13. Available at: https://www.tandfonline.com/doi/full/10.1080/09585192.2017.1407088
Knies, E., Leisink, P. and Kraus-Hoogeveen, S., 2018. Frontline managers’ contribution to mission achievement: A study of how people management affects thoughtful care. Human Service Organizations: Management, Leadership & Governance, 42(2), pp.166-184. Available at: https://www.tandfonline.com/doi/pdf/10.1080/23303131.2017.1422067
Lopez-Cabrales, A. and Valle-Cabrera, R., 2020. Sustainable HRM strategies and employment relationships as drivers of the triple bottom line. Human resource management review, 30(3), p.100689. Available at: https://www.sciencedirect.com/science/article/pii/S1053482218303255
Madden, A., Bailey, C., Alfes, K., and Fletcher, L., 2018. Using narrative evidence synthesis in HRM research: An overview of the method, its application, and the lessons learned. Human Resource Management, 57(2), pp.641-657. Available at: https://onlinelibrary.wiley.com/doi/abs/10.1002/hrm.21858
Morris, J., Hassard, J., Delbridge, R. and Endo, T., 2021. Understanding managerial work in the modern Japanese firm: The influence of new organizational forms and changing human resource management practices. Economic and Industrial Democracy, 42(4), pp.1378-1406. Available at: https://journals.sagepub.com/doi/abs/10.1177/0143831X19875785
Nachmias, S., Mitsakis, F., Aravopoulou, E., Rees, C.J. and Kouki, A., 2021. Line managers’ perceptions of diversity management: insights from a social exchange theory perspective. Employee Relations: The International Journal. Available at: http://irep.ntu.ac.uk/id/eprint/44112/1/1465798_Mitsakis.pdf
Pallisera, M., Vilà, M., Fullana, J., Díaz‐Garolera, G., Puyalto, C. and Valls, M.J., 2018. The role of professionals in promoting independent living: Perspectives of self‐advocates and front‐line managers. Journal of Applied Research in Intellectual Disabilities, 31(6), pp.1103-1112. Available at: https://dugi-doc.udg.edu/bitstream/handle/10256/15559/028487.pdf?sequence=1
Saeed, B.B., Afsar, B., Hafeez, S., Khan, I., Tahir, M., and Afridi, M.A., 2019. Promoting employee’s pro-environmental behavior through green human resource management practices. Corporate Social Responsibility and Environmental Management, 26(2), pp.424-438. Available at: https://www.emerald.com/insight/content/doi/10.1108/SRJ-12-2019-0403/full/html
Shao, Z., 2019. Interaction effect of strategic leadership behaviors and organizational culture on IS-Business strategic alignment and Enterprise Systems assimilation. International Journal of Information Management, 44, pp.96-108. Available at: https://fardapaper.ir/mohavaha/uploads/2019/04/Fardapaper-Interaction-effect-of-strategic-leadership-behaviors-and-organizational-culture-on-IS-Business-strategic-alignment-and-Enterprise-Systems-assimilation.pdf
Stokes, P., Smith, S., Wall, T., Moore, N., Rowland, C., Ward, T., and Cronshaw, S., 2019. Resilience and the (micro-) dynamics of organizational ambidexterity: implications for strategic HRM. The International Journal of Human Resource Management, 30(8), pp.1287-1322. Available at: https://www.tandfonline.com/doi/abs/10.1080/09585192.2018.1474939
Turner, J.R., Baker, R. and Kellner, F., 2018. Theoretical literature review: Tracing the life cycle of a theory and its verified and falsified statements. Human Resource Development Review, 17(1), pp.34-61. Available at: https://journals.sagepub.com/doi/pdf/10.1177/1534484317749680
Yusoff, Y.M., Nejati, M., Kee, D.M.H. and Amran, A., 2020. Linking green human resource management practices to environmental performance in the hotel industry. Global Business Review, 21(3), pp.663-680. Available at: https://journals.sagepub.com/doi/abs/10.1177/0972150918779294
………………………………………………………………………………………………………………………..
Know more about UniqueSubmission’s other writing services:
